Array Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $330.2 million, down from $393.5 million in the same period in 2025.
• GAAP gross margin was 21.0%, compared to 26.9% in the prior year quarter.
• Adjusted gross margin was 22.8%, down from 28.1% in the prior year quarter.
• Net loss to common stockholders was $7.9 million, or $0.05 per share, compared to net income of $18.4 million, or $0.12 per share, in the prior year quarter.
• Adjusted EBITDA was $32.1 million, down from $72.2 million in the prior year quarter.
• Adjusted net income per diluted common share was $0.06, down from $0.30 in the prior year quarter.
• Nine months ended September 30, 2026 revenue was $895.7 million, down from $1.058 billion in the prior year period.
• Nine months ended September 30, 2026 Adjusted EBITDA was $124.1 million, down from $176.3 million in the prior year period.
• Free cash flow for the quarter was negative $1.1 million, compared to positive $21.9 million in the prior year quarter.
• Free cash flow for the nine months ended September 30, 2026 was $75.6 million, up from $43.6 million in the prior year period.
• Total assets were $1.58 billion as of September 30, 2026, compared to $1.45 billion as of December 31, 2025.
• Long-term debt was $658.6 million as of September 30, 2026, compared to $658.7 million as of December 31, 2025.
• Cash and cash equivalents were $143.3 million as of September 30, 2026, down from $244.4 million as of December 31, 2025.
• Total current liabilities were $454.0 million as of September 30, 2026, up from $377.0 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 Adjusted Gross Margin is now expected to be approximately 27%.
• Full-year 2026 revenue guidance is updated to $1.34 billion to $1.40 billion, down from the previous range of $1.4 billion to $1.5 billion.
• Full-year 2026 Adjusted EBITDA guidance is updated to $190 million to $210 million, down from the previous range of $210 million to $230 million.
• Full-year 2026 Adjusted net income per common share guidance is updated to $0.57 to $0.69, down from the previous range of $0.68 to $0.75.
• Fourth quarter 2026 revenue is expected to be in the range of $445 million to $505 million.
• Management stated that underlying customer demand remains strong despite shifts in project delivery timing.
• Management expects to enter 2027 with strong momentum and positioned to deliver profitable growth.

Business Segments and Product Lines:

• Completed the acquisition of Affordable Wire Management (AWM), expanding the product portfolio into wire management and entering the Battery Energy Storage System (BESS) and Datacenter markets.
• Formally launched Atlas I and II, integrated foundation-to-tracker solutions, advancing the APA integration strategy.
• Announced a new 60-degree U.S. tracker variant designed for high wind and hail regions.
• Opened a state-of-the-art manufacturing facility in Albuquerque, significantly expanding domestic manufacturing capabilities.
• Record total executed contracts and awarded orders reached $2.6 billion as of September 30, 2026, a 42% increase year-over-year.
• Trailing twelve-month net new orders exceeded $1.8 billion with a book-to-bill ratio of 1.6x.

Market and Competitive Landscape:

• The company is evolving from a tracker company to a provider of integrated energy infrastructure solutions.
• The acquisition of AWM provides access to fast-growing battery energy storage and data center markets.
• The company offers a more complete, interoperable solution set including solar trackers, fixed-tilt systems, foundations, wire management, and other balance-of-system solutions.

Risks and Challenges:

• Risks include changes in demand for solar energy projects, availability of in-demand components like high-voltage breakers, and regulatory policies regarding permitting, interconnection costs, and incentives.
• Potential impacts from the One Big Beautiful Bill Act (OBBB), including foreign entity of concern limitations and potential reduction or elimination of the Federal Investment Tax Credit.
• Risks related to supply chain interruptions, tariffs, trade policy changes, and fluctuations in raw material costs (steel and aluminum).
• Risks associated with the integration of APA and AWM, including the ability to realize synergies and unforeseen liabilities.
• Substantial indebtedness and the ability to repay, refinance, or settle convertible notes at maturity.
• Risks related to the Series A Redeemable Perpetual Preferred Stock, including dividend payments and potential share issuance.

Management Commentary and Tone:

• CEO Kevin G. Hostetler stated the third quarter marked a significant milestone in the company's evolution to an integrated energy infrastructure provider.
• Management highlighted strong commercial momentum driven by a record orderbook and expanded portfolio.
• Management emphasized continued operational execution and cost discipline driving improved gross margin expectations.
• The tone reflects confidence in delivering profitable growth and creating long-term shareholder value entering 2027.

Other Key Points:

• Announced an agreement to combine with Shoals Technologies Group, Inc. in a stock-for-stock merger to create an integrated energy infrastructure platform.
• The third quarter 2026 earnings call was conducted as a joint analyst call with Shoals Technologies Group, Inc. on November 4, 2026.
• The company reported a $10.3 million gain on the change in fair value of contingent consideration for the quarter ended September 30, 2026.
• Acquisition-related expenses were $10.5 million for the quarter and $21.4 million for the nine months ended September 30, 2026.
• Equity-based compensation was $2.5 million for the quarter and $11.0 million for the nine months ended September 30, 2026.
• The company paid $4.3 million in dividends on Series A Redeemable Perpetual Preferred Stock during the quarter.
• Goodwill increased to $231.8 million as of September 30, 2026, from $135.2 million as of December 31, 2025, largely due to the AWM acquisition.