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Jun 30, 2021
Array Technologies Q2 2021 Earnings Report
Reported strong financial results despite a challenging supply chain environment.
Key Takeaways
Array Technologies reported a 76% increase in revenue to $202.8 million compared to the prior-year period. Net loss was $17 thousand, and adjusted EBITDA grew 23% to $16.2 million compared to the same period last year. The company reintroduces full-year guidance after negotiating with customers and suppliers to reduce exposure to future increases in commodity prices and shipping costs.
Revenues increased 76% year-over-year to $202.8 million.
Adjusted EBITDA increased 23% to $16.2 million compared to the same period last year.
Gross margin decreased from 19.3% to 13.2% due to significantly higher input and freight costs.
Total executed contracts and awarded orders at June 30, 2021 was $882 million, representing a record level for the company.
Forward Guidance
For the full year 2021, Array Technologies expects revenues to be in the range of $850 million to $940 million, adjusted EBITDA to be in the range of $55 million to $75 million, and adjusted diluted net income per share to be in the range of $0.15 to $0.25.
Positive Outlook
- Margins on new orders are in line with past performance and in some instances even higher.
- Company is already seeing margins on new orders that are in line with past performance and in some instances even higher.
- Revenues to be in the range of $850 million to $940 million
- Adjusted EBITDA to be in the range of $55 million to $75 million
- Adjusted diluted net income per share to be in the range of $0.15 to $0.25
Challenges Ahead
- Results for the balance of the year will continue to be impacted by the roll-off of backlog from the beginning of this year which is predominantly contracts that were priced prior to the current inflationary environment.
- The ‘hangover’ effect of older backlog should dissipate by the first quarter of 2022
Historical Earnings Impact
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Avg. Return Before/After Earnings
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