Array Technologies Inc (ARRY) reported a strong Q2 2025 with revenue of $362 million, reflecting a 42% year-over-year growth. The company achieved an impressive 84% year-over-year volume growth in the first half of 2025. Net income to common shareholders increased by 138% compared to the previous year, reaching $28 million. The acquisition of APA Solar is expected to be EPS accretive in its first year, offering significant value to stakeholders. Array Technologies Inc has successfully launched new products like OmniTrac and Skylink, which now constitute more than 35% of their order book.

The company faces challenges due to regulatory uncertainties, including changes in utility-scale solar tax credits and safe harbor criteria. Tariffs and commodity pressures are impacting tracker input costs, affecting gross margins. Interest rates in key international markets like Brazil have reached 15%, causing project delays. The company experienced some delays in order intake activity due to short-term regulatory uncertainty. There is a potential risk of further industry consolidation, which could impact Array Technologies Inc's market position.

Q: Kevin, with the uncertainties your customers are facing, how should we think about near-term bookings? Are you expecting a rebound later this year? A: Kevin Hostetler, CEO: Q2 was muted until the last few weeks when bookings accelerated. We expect continued interest and quotes, but final awards may be delayed until there's clarity on regulations. We anticipate more order flow in Q4 for H1 delivery, pending regulatory clarity.

Q: Can you explain the descoping and reconfiguring of the legacy fixed price VCA and its financial impact? A: Kevin Hostetler, CEO: The descoping and reconfiguring of the legacy VCA, which was based on old, low steel pricing, resulted in a positive margin impact. Projects that slipped out of the timeline were canceled, and existing projects were repriced at current market rates, improving backlog margin percentage and dollars.

Q: Can you provide insights on Array's international progress and any challenges faced? A: Neil Manning, President and COO: We had a strong first half internationally, but some markets, like Brazil, face challenges due to high interest rates and economic conditions. We're diversifying our footprint with additional resources in South America and Europe, focusing on markets where our product portfolio is well-suited.

Q: Regarding the updated revenue outlook, is it volume-driven, or is there any price component? A: Keith Jennings, CFO: The revenue guide increase is primarily volume-driven, with about 80% attributed to volume and 20% to price. Most revenue performance is due to volume movement, project execution, and scope increases.

Q: How should we think about the gross margin trend for the second half and into 2026? A: Keith Jennings, CFO: The implied gross margin for the second half is around 29-30%. We don't expect further shipments under the legacy VCA contract in 2025, and the improved margins from reconfigured projects will impact 2026 and 2027. The guidance reflects a sustainable run rate for the first half of next year.

Array Technologies Inc (ARRY) Q2 2025 Earnings Call Highlights: Robust Growth Amid Regulatory ...

Array Technologies Inc (ARRY) reported strong Q2 2025 financial results, including $362 million in revenue (42% YoY growth), $28 million net income (138% YoY increase), and 84% YoY volume growth. The company launched new products OmniTrac and Skylink (35% of order book) and acquired APA Solar, which is expected to be EPS accretive. Regulatory uncertainties, including changes to solar tax credits and high interest rates in Brazil (15%), are impacting margins and project timelines. The company anticipates continued order flow in Q4 2025 pending regulatory clarity.