• Revenue: $231.4 million, down 34% from Q3 2023.

• Adjusted Gross Margin: 35.4%, a 940 basis point improvement year-over-year.

• Adjusted EBITDA: $46.7 million, representing 20.2% of revenue.

• Free Cash Flow: $43.9 million.

• Cash Balance: $332 million at the end of the quarter.

• Order Book: Consistent at $2 billion.

• Operating Expenses: $211 million, up from $47.2 million due to a $162 million non-cash goodwill impairment charge.

• Net Loss: $155.4 million compared to net income of $10 million in Q3 2023.

• Adjusted Net Income: $26.5 million versus $31.7 million in Q3 2023.

• Adjusted Basic and Diluted Net Income Per Share: 17 compared to 21 in the prior year period.

• Full Year 2024 Revenue Guidance: Narrowed to $900 million to $920 million.

• Full Year 2024 Adjusted Gross Margin Guidance: Approximately 34%.

• Full Year 2024 Free Cash Flow Guidance: Raised to $100 million to $115 million.

• Warning! GuruFocus has detected 3 Warning Sign with ARRY.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Array Technologies Inc (NASDAQ:ARRY) achieved $231 million in revenue, which was in the upper half of their guidance range.

• The company reported an adjusted gross margin of 35.4%, reflecting a 940 basis point improvement from the previous year.

• Array Technologies Inc (NASDAQ:ARRY) delivered $46.7 million of adjusted EBITDA, representing 20.2% of revenue.

• The company's order book remained consistent at $2 billion, with a domestic pipeline over three times larger than the previous year.

• Array Technologies Inc (NASDAQ:ARRY) is seeing strong traction with its expanded product portfolio, notably the OmniTrack terrain-following tracker, which now represents more than 20% of their global order book.

Negative Points

• Revenue was down 34% from the third quarter of 2023, largely due to project pushouts experienced this year.

• Operating expenses increased significantly due to a $162 million non-cash goodwill impairment charge related to the 2022 STI acquisition.

• The company reported a net loss attributable to common shareholders of $155.4 million compared to net income of $10 million in the prior year period.

• There were project pushouts in Brazil due to continued real weakness impacting PPA negotiations.

• The company experienced declining volume and ASPs year over year in the US and international sales.

Q & A Highlights

Q: Can you comment on the realization of the $2 billion backlog and any delays or pushouts? A: Kevin Hostetler, CEO: The backlog realization remains consistent, with about 80% expected to convert between the end of Q2 and 2025. The business has returned to a normalized level of pushouts and pull-ins, and we feel good about our 2025 growth prospects, with strong growth already in our backlog.