Array Technologies Reports 97% Revenue Growth to $302.4 Million in Latest Quarter

Array Technologies, Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $302.4 million for the three months ended March 31, 2025, a 97% increase from $153.4 million in the same period last year. The company's net income also saw a substantial rise, climbing to $16.7 million compared to $2.2 million in the prior year, marking a 673% increase. This growth was primarily driven by a notable increase in sales volume, particularly in the Array Legacy Operations segment, which experienced an 86% revenue increase, and the STI Operations segment, which surged by 128%.

The company’s cost of revenue also increased significantly, rising by 130% to $225.9 million, reflecting the higher sales volume. Despite this, gross profit increased by 39% to $76.4 million, although the gross margin decreased to 25.3% from 35.9% year-over-year. The decline in gross margin was attributed to a 14% decrease in average selling prices and a reduction in benefits from the 45X manufacturing tax credit, as well as a one-time benefit recorded in the previous year.

In terms of operational developments, Array Technologies continues to expand its market presence, with 65% of its revenue coming from U.S. customers and 35% from international markets. The company has shipped approximately 87 gigawatts of solar trackers globally. As of March 31, 2025, Array Technologies had a total of 152,547,038 shares of common stock outstanding. The company also reported a cash balance of $348.3 million, with net working capital of $567.8 million, indicating a strong liquidity position.

Strategically, Array Technologies has been active in refining its financial structure. On May 1, 2025, the company entered into a Fourth Amendment to its Credit Agreement, which included refinancing its Revolving Credit Facility and adjusting its financial covenants. This amendment is expected to enhance the company's financial flexibility moving forward. The company is also focused on leveraging the benefits of the Inflation Reduction Act, particularly the 45X manufacturing tax credit, to improve its cost structure and competitive positioning.

Looking ahead, Array Technologies anticipates continued growth driven by the increasing demand for solar energy solutions and the expansion of its product offerings. However, the company remains cautious about potential market risks, including fluctuations in raw material prices, changes in trade policies, and the impact of geopolitical events on its supply chain. The management believes that its current operational strategies and financial position will support its growth objectives in the coming quarters.