Array Swings to $13.6 Million Profit in Q1 on Higher Solar Tracker Shipments

Utility-scale solar tracker company Array Technologies swung to a profit of $13.6 million for the first quarter (Q1) of the financial year (FY) 2023 from a loss of $37.5 million year-over-year (YoY), mainly on higher shipment of its products at a higher average selling price due to improved pass-through pricing.

The company’s revenue rose 25% YoY to $376.8 million for January-March.

Array’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization increased to $67 million compared to $0.7 million YoY.

The company’s financial performance was helped by a decline in operating expenses to $53.7 million in the first quarter compared to $64.9 million YoY.

The company attributed lower amortization expenses related to the acquisition of solar tracker manufacturer Soluciones Tecnicas Integrales Norland (STI) for the reduced expenses.

Array’s executed contracts and awarded orders totaled $1.6 billion by the end of Q1.

Array’s CEO Kevin Hostetler said, “When we compare Array’s performance this quarter to a year ago, the contrast is striking. We have not only continued to grow the business organically but have improved profitability at the same time. The meaningful expansion in our gross margin year over year represents our improved contracting process but is also indicative of the significant improvements we have made in our operational execution and our product and pricing strategies.”

“The margin performance was driven by favorable project mix and one-time benefits from lower-than-expected logistics costs as both ocean and domestic trucking rates came in lower than forecasted. It does not reflect benefits related to either the domestic content provisions or manufacturing credits included in the IRA, which we continue to view as potential upside.”

The net loss of Array Technologies narrowed to $17.3 million in the fourth quarter of 2022 compared with $32.1 million YoY, mainly driven by the additional revenue from the company’s acquisition of solar tracker manufacturer STI.

Array swung to profit in the third quarter of 2022 on the back of strong growth in sales volume and prices. The company’s quarterly net income came in at $28.6 million, compared to a net loss of $33 million (YoY).

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