Array Technologies, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenue falling to $915.8 million, a decrease of 42% from $1.58 billion in 2023. The company's gross profit also decreased by 28% to $297.7 million, compared to $415.6 million in the previous year. This decline was attributed to a 39% drop in the volume of products shipped and an 8% decrease in average selling prices for its Array Legacy Operations, which accounted for approximately 72% of total revenue. The STI Operations segment also experienced a revenue decline of 37%, primarily due to a 12% decrease in volume shipped and a 24% drop in average selling prices.
In terms of operational changes, Array Technologies faced substantial impairments, recording a goodwill impairment charge of $236 million and a long-lived asset impairment of $91.9 million during the year. These impairments were driven by a sustained decline in the company's stock price and updated long-term projections. The company also reported a net loss of $240.4 million for the year, compared to a net income of $137.2 million in 2023. The loss per share for 2024 was $(1.95), reflecting the adverse impact of these impairments and reduced revenues.
Array Technologies has continued to expand its product offerings, including the introduction of the Array STI H250 and OmniTrack solar trackers, which are designed to enhance energy production and reduce installation costs. The company also benefited from the Inflation Reduction Act, which raised the Investment Tax Credit (ITC) to 30% with no step-downs before 2032, providing a more stable incentive environment for solar projects. However, the company noted that the ongoing geopolitical tensions, particularly the Russia-Ukraine war, and inflationary pressures have affected its supply chain and operational costs.
Looking ahead, Array Technologies aims to leverage its expanded product portfolio and the benefits of the 45X manufacturing tax credit to improve its financial performance. The company is also focused on enhancing its operational efficiencies and expanding its market presence, particularly in international markets such as Brazil and Spain. Despite the challenges faced in 2024, management remains optimistic about future growth opportunities, contingent on stabilizing market conditions and effective execution of its strategic initiatives.
About Array Technologies, Inc.
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