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Sep 30, 2022
Array Technologies Q3 2022 Earnings Report
Array Technologies reported record revenue and gross margin improvement for the fourth consecutive quarter.
Key Takeaways
Array Technologies reported record revenue of $515 million, a 173% increase year-over-year. The company's gross margin improved to 15.6%, and they generated $102 million in free cash flow, which was used to fully pay down the revolving credit facility.
Revenue increased 173% to $515.0 million compared to the prior year.
Net income to common stockholders was $28.6 million compared to a net loss of $33.0 million during the same period in the prior year.
Adjusted EBITDA increased to $55.4 million, compared to a $3.9 million loss for the prior-year period.
Total executed contracts and awarded orders at September 30, 2022 were $1.8 billion, with $1.4 billion from Array Legacy Operations and $0.4 billion from STI Norland.
Forward Guidance
The Company updates it expectations for the year ending December 31, 2022.
Positive Outlook
- Revenue to be in the range of $1.50 billion to $1.60 billion
- Adjusted EBITDA to be in the range of $122.0 million to $132.0 million
- Adjusted net income per share to be in the range of $0.32 to $0.37
Challenges Ahead
- The implementation of the IRA may not deliver as much growth as we are anticipating.
- There is still much that is unknown about the final form of the Inflation Reduction Act.
- It is challenging to quantify specific revenue growth and the impacts to our margins at this time.
- The company will continue to actively participate in the processes established by the various governmental agencies tasked to implement it.
- The company will work with customers and suppliers to ensure the best outcome for the solar industry in general and Array specifically.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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