Array Technologies Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did ARRY Beat Earnings? Q1 2025 Results
Array Technologies kicked off 2025 with a striking recovery quarter, posting revenue of $302.36 million, a 97% year-over-year surge that marked the company's second-largest volume shipped since Q2 2023. Adjusted EPS of $0.13 more than doubled from $0.06 in the prior-year period, while adjusted EBITDA climbed 55% to $40.59 million, reflecting the scale benefits of 143% volume growth. The primary engine behind the revenue surge was a combination of genuine market share recovery and roughly $60 million in project deliveries that had been pushed out of 2024, a dynamic that helped propel contracting momentum across Independent Power Producers in Europe, the Middle East, and Asia. Adjusted gross margin compressed to 26.5% from 38.3% a year ago, largely due to a legacy fixed-price volume commitment, though management flagged the pressure as anticipated. A notable strategic development, Array can now quote 100% domestic content trackers under the IRA's Table I, giving the company a credible tariff shield. The company held its full-year 2025 guidance steady, targeting revenue of $1.05 billion to $1.15 billion and adjusted EPS of $0.60 to $0.70.
- 97% year-over-year revenue growth driven by market share recovery from customer initiatives
- Approximately $60 million of project pushouts from 2024 contributed to Q1 2025 revenue
- 143% year-over-year volume growth, second largest volume shipped quarter since Q2 2023
- 18% sequential growth in contracting for the quarter
- Adjusted gross margin compression due to legacy fixed price volume commitment agreement and significant regional mix shift
“ARRAY is off to a great start for 2025 with first quarter high double digits revenue growth compared with the first quarter of 2024, and achieving the second largest quarter of volume shipped since 2023, indicating solid market share recovery and the strength of our execution capabilities. We are now able to provide customers with quotes for our 100% domestic content trackers under Table I of the Inflation Reduction Act, an important milestone for ARRAY, reflecting our continued commitment to supply chain resilience and ability to minimize effects of geopolitical uncertainty, including tariffs. With electricity demand increasing and utility-scale solar being the lowest cost and fastest-growing energy source, domestic customers are expressing greater interest in Volume Commitment Agreements, and we are well positioned to help our customers deploy projects quickly and efficiently. We have a strong orderbook with 18% sequential growth in contracting for the quarter, gaining meaningful traction with Independent Power Producers across Europe, the Middle East and Asia, where we are seeing strong contracting momentum.”
Array Technologies CEO, on the earnings call
Forward Guidance & Outlook
ARRAY maintains full year 2025 guidance: revenue of $1.05 billion to $1.15 billion, adjusted EBITDA of $180 million to $200 million, adjusted net income per share of $0.60 to $0.70, adjusted gross margin of 29% to 30%, adjusted G&A between $144 million and $152 million, capital expenditures of $30 million to $35 million, free cash flow of $115 million to $130 million, and an effective tax rate of 24% to 25%. Guidance includes benefits from IRA Section 45X Advanced Manufacturing Production Credits. The company expects approximately 30% volume growth at the midpoint for 2025, with approximately 30% of forecasted 2025 deliveries represented by OmniTrack. Management expressed confidence in navigating tariff uncertainty and potential IRA changes, noting over 75% of contracted projects allow full tariff pass-through to customers.
ARRY YoY Financials
ARRY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.