Array's third quarter saw significant revenue and profit growth, with management attributing these results to strong volume expansion, the initial contribution from the APA acquisition, and increasing adoption of its latest solar tracker products. CEO Kevin Hostetler emphasized that a 56% increase in shipment volume and the growing share of new offerings such as OmniTrack, Skylink, and Hail XP were key contributors. Hostetler stated, “These three recently launched products already account for nearly 40% of our order book,” highlighting customer demand for solutions that lower project costs and help manage severe weather risks. Operational improvements and flexibility in managing tariffs through supply chain adjustments also played a role, as noted by COO Neil Manning.
Is now the time to buy ARRY? Find out in our full research report (it’s free for active Edge members).
Array (ARRY) Q3 CY2025 Highlights:
- Revenue: $393.5 million vs analyst estimates of $311.5 million (70% year-on-year growth, 26.3% beat)
- Adjusted EPS: $0.30 vs analyst estimates of $0.20 (48.9% beat)
- Adjusted EBITDA: $46.19 million vs analyst estimates of $56.76 million (11.7% margin, 18.6% miss)
- The company lifted its revenue guidance for the full year to $1.27 billion at the midpoint from $1.20 billion, a 5.6% increase
- Management slightly raised its full-year Adjusted EPS guidance to $0.67 at the midpoint
- EBITDA guidance for the full year is $190 million at the midpoint, below analyst estimates of $196 million
- Operating Margin: 11.6%, up from -57.3% in the same quarter last year
- Sales Volumes rose 72.6% year on year (-30.1% in the same quarter last year)
- Market Capitalization: $1.41 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Array’s Q3 Earnings Call
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Mark W. Strouse (JPMorgan Chase and Co.) asked about the normalization of demand post-Safe Harbor and implications for future backlog. CEO Kevin Hostetler replied that order flow is returning to historical norms with more stable Tier 1 customer bookings, reducing artificial volatility.
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Joseph Osha (Guggenheim Securities) questioned the impact of revenue pulled forward from Q4 and expectations for backlog visibility. CFO Keith Jennings confirmed the pull-in and signaled that further backlog growth is anticipated, especially as APA’s orders are incorporated.
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Julien Dumoulin-Smith (Jefferies) inquired about expansion beyond core products and the integrated foundation solution’s margin and investment profile. Hostetler emphasized minimal additional investment, strong customer interest, and a focus on cost competitiveness and interoperability.
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Philip Shen (ROTH Capital Partners) asked about upside potential from international markets and the APA revenue outlook. COO Neil Manning noted that awarded international business not yet in the order book could convert in future quarters, and Jennings described the APA outlook as stable with significant utility-scale growth potential.
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Dimple Gosai (Bank of America) sought clarification on cost pass-throughs amid tariff and steel price shifts. Jennings explained that most contracts allow direct tariff pass-through, and ASPs have risen in line with steel price increases, supporting margin stability.
Catalysts in Upcoming Quarters
Looking ahead, StockStory analysts will watch (1) the pace of APA integration and the impact on revenue and customer mix; (2) the adoption rate of new products such as OmniTrack, Skylink, and Hail XP in both domestic and international markets; and (3) the effectiveness of supply chain strategies in limiting tariff exposure and supporting margins. Execution on the planned rollout of integrated tracker and foundation solutions, as well as further expansion in targeted international regions, will also be key signposts.
Array currently trades at $9.28, up from $8.35 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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