Array Technologies, Inc. (ARRY) Stock Analysis and Metrics

Array Technologies

NASDAQ: ARRY

$5.51 ▲ +0.19 (+3.67%)

At close: Jul 27, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap843.55 Mn

P/E-6.60

P/S0.70

Div. Yield0.00

ROIC (Qtr)-0.01

Total Debt (Qtr)667.21 Mn

Revenue Growth (1y) (Qtr)-26.11

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About

Array Technologies, Inc. is a leading global provider of solar tracking technology and fixed tilt systems for utility scale and distributed generation solar photovoltaic projects. The company designs manufactures and sells a range of products that include single axis tracker systems, software platforms, foundation solutions, racking systems and field services. Its tracker offerings move solar panels throughout the day to maintain optimal orientation to the sun thereby increasing energy production and lowering the levelized cost of energy for project owners. In addition to trackers Array provides fixed tilt mounting systems and a suite of complementary products that support the full life cycle of a solar installation.

Array Technologies generates revenue primarily from the sale of its tracker hardware software and related services. The company’s product portfolio includes the DuraTrack HZ v3 tracker the STI H250 dual row tracker the OmniTrack tracker and the SkyTracker system each accompanied by the SmarTrack software suite. Revenue also comes from foundation solutions supplied after the APA acquisition racking solutions and field service contracts that provide installation support training and ongoing maintenance. In the year ended December 31 2025 approximately 81% of revenue was derived from customers in the United States and 19% from the rest of the world. Since its inception the company has shipped more than 96 gigawatts of tracker capacity to customers worldwide.

The company operates through the following segments: Array Legacy Operations and STI Operations.

• Array Legacy Operations: This segment is US based and includes the company’s primary manufacturing facility in Albuquerque New Mexico its research and development organization and the design and production of DuraTrack OmniTrack and SkyTracker tracker systems as well as the SmarTrack software platform racking solutions and field service offerings that serve the North American market.

• STI Operations: This segment comprises the former Soluciones Técnicas Integrales Norland business and provides dual row tracker designs manufacturing and warehouse capacity in Spain approximately 67,000 square feet and in Brazil approximately 610,000 square feet to support global solar projects.

Array Technologies holds a strong position in the solar tracker industry as one of the largest global providers of single axis tracking solutions. The company’s competitive advantages stem from its patented linked row rotating gear drive which reduces the number of motors required per megawatt lowers installation and operating costs and is protected until February 5 2030. Its integrated software suite SmarTrack enhances energy yield and provides weather related risk mitigation adding value beyond hardware. Array competes with other tracker manufacturers such as Nextpower Inc (formerly Nextracker) PV Hardware and GameChange Solar and also faces competition from fixed tilt and foundation providers including UNIRAC Inc and Terrasmart a subsidiary of Gibraltar Industries Inc. The company’s broad product range global manufacturing footprint and focus on total cost of ownership help it maintain market leadership.

Array Technologies sells its products to solar developers independent power producers utilities and engineering procurement and construction firms that build solar energy projects. Transactions are often structured under master supply agreements or multi year procurement contracts. While the filing does not disclose specific customer names the company’s client base consists of firms engaged in the development construction and operation of utility scale and distributed generation solar installations worldwide.

Investment Thesis

▲ Bull case

Array Technologies (ARRY) is building significant long-term value through its innovation pipeline, particularly the DuraTrack D2S tracker designed for international markets, which combines patented passive wind stow technology delivering up to 4% additional energy production with terrain flexibility via OmniTrack integration and SmartTrack compatibility for intelligent system coordination. The early commercial deployment in Spain has generated outstanding customer feedback, with clients eager to expand deployments immediately due to the Jewel row configuration addressing specific international market needs for 2-row systems in areas with challenging topography and domestic content requirements. This product represents a structural shift from competing on price to competing on performance and lifecycle value, directly addressing the unspoken concern during Q&A about international pricing pressure by enabling Array to maintain margin integrity while winning share in markets where competitors struggle with site adaptability. The D2S launch at Intersolar Munich in June serves as a near-term catalyst that management understated, as it opens quoting opportunities across EMEA and Latin America where Array has already demonstrated traction in Turkey, Peru, and Colombia, creating a self-reinforcing cycle of product-led international expansion that could drive sustained backlog growth beyond current expectations.
The company's order book quality is substantially stronger than headline figures suggest, with over 95% domestic exposure and more than 50% comprised of newly launched products from the last two years, indicating that the record $2.4 billion backlog is not only resilient but increasingly weighted toward higher-margin, differentiated offerings. This shift is evidenced by the OmniTrack tracker now exceeding DuraTrack in backlog composition for the first time, reflecting market validation of Array's terrain-following technology in difficult geographies where competitors cannot compete effectively. Management's deliberate exclusion of certain international bookings from the backlog due to timing uncertainty—particularly in Brazil—creates a hidden upside potential, as these held orders are expected to begin converting into the order book in the second half of 2026, providing additional visibility and predictability that could support upward revisions to revenue guidance if project timelines firm sooner than anticipated. The 80% expected conversion of backlog over the next six quarters, combined with a 1.3x trailing twelve-month book-to-bill ratio, demonstrates a repeatable execution model that converts sales into revenue efficiently while protecting margins through disciplined risk screening and technical selling to asset owners rather than EPCs.
Array is leveraging its expanded Albuquerque facility, featuring a 5-acre solar test site and dedicated R&D center, to accelerate innovation cycles and validate new products like D2S under real-world conditions, directly supporting the APA Foundations Center of Excellence that enhances technical interoperability between tracker and foundation solutions. This integrated approach enables cross-selling opportunities that increase customer lifetime value and switching costs, particularly as Array targets 100-megawatt-plus opportunities tied to AI-driven data center development where APA's enhanced bankability is shifting conversations from megawatts to gigawatts. The strategic focus on LCOE-driven value selling—rather than lowest price—has improved win quality and execution confidence, with over 50% of the order book now coming from Tier 1 customers, creating a more stable and profitable customer base that reduces exposure to volatile developer financing and supports sustained margin expansion. This shift in commercial motion, validated by over $900 million in new orders across the last two quarters, represents a structural advantage that the market may be underestimating as it positions Array to capture share not just in trackers but in the broader balance-of-system value chain.

Array Technologies (ARRY) is building significant long-term value through its innovation pipeline, particularly the DuraTrack D2S tracker designed for international markets, which combines patented passive wind stow technology delivering up to 4% additional energy production with terrain flexibility via OmniTrack integration and SmartTrack compatibility for intelligent system coordination. The early commercial deployment in Spain has generated outstanding customer feedback, with clients eager to expand deployments immediately due to the Jewel row configuration addressing specific international market needs for 2-row systems in areas with challenging topography and domestic content requirements. This product represents a structural shift from competing on price to competing on performance and lifecycle value, directly addressing the unspoken concern during Q&A about international pricing pressure by enabling Array to maintain margin integrity while winning share in markets where competitors struggle with site adaptability. The D2S launch at Intersolar Munich in June serves as a near-term catalyst that management understated, as it opens quoting opportunities across EMEA and Latin America where Array has already demonstrated traction in Turkey, Peru, and Colombia, creating a self-reinforcing cycle of product-led international expansion that could drive sustained backlog growth beyond current expectations.
The company's order book quality is substantially stronger than headline figures suggest, with over 95% domestic exposure and more than 50% comprised of newly launched products from the last two years, indicating that the record $2.4 billion backlog is not only resilient but increasingly weighted toward higher-margin, differentiated offerings. This shift is evidenced by the OmniTrack tracker now exceeding DuraTrack in backlog composition for the first time, reflecting market validation of Array's terrain-following technology in difficult geographies where competitors cannot compete effectively. Management's deliberate exclusion of certain international bookings from the backlog due to timing uncertainty—particularly in Brazil—creates a hidden upside potential, as these held orders are expected to begin converting into the order book in the second half of 2026, providing additional visibility and predictability that could support upward revisions to revenue guidance if project timelines firm sooner than anticipated. The 80% expected conversion of backlog over the next six quarters, combined with a 1.3x trailing twelve-month book-to-bill ratio, demonstrates a repeatable execution model that converts sales into revenue efficiently while protecting margins through disciplined risk screening and technical selling to asset owners rather than EPCs.
Array is leveraging its expanded Albuquerque facility, featuring a 5-acre solar test site and dedicated R&D center, to accelerate innovation cycles and validate new products like D2S under real-world conditions, directly supporting the APA Foundations Center of Excellence that enhances technical interoperability between tracker and foundation solutions. This integrated approach enables cross-selling opportunities that increase customer lifetime value and switching costs, particularly as Array targets 100-megawatt-plus opportunities tied to AI-driven data center development where APA's enhanced bankability is shifting conversations from megawatts to gigawatts. The strategic focus on LCOE-driven value selling—rather than lowest price—has improved win quality and execution confidence, with over 50% of the order book now coming from Tier 1 customers, creating a more stable and profitable customer base that reduces exposure to volatile developer financing and supports sustained margin expansion. This shift in commercial motion, validated by over $900 million in new orders across the last two quarters, represents a structural advantage that the market may be underestimating as it positions Array to capture share not just in trackers but in the broader balance-of-system value chain.

▼ Bear case

Array Technologies (ARRY) faces significant near-term margin pressure as the benefits driving Q1's 30.7% adjusted gross margin—primarily a heavier domestic mix and one-time items contributing over 300 basis points—are unlikely to persist, with management explicitly guiding full-year adjusted gross margin to 26–27% and noting that Q2 will be at the higher end of that range while the second half will see a higher proportion of international business (SDI) that will drag down consolidated margins. The company's reliance on productivity gains and cost-out initiatives to offset ongoing logistics and freight cost inflation—evidenced by their acknowledgment that 4.5% of revenue is freight cost and their expectation of building fuel surcharges into cost models over the longer term—reveals vulnerability to persistent macroeconomic shocks, particularly given their history of annual black swan events and the ongoing Middle East conflict elevating global logistics costs without near-term relief in sight. This margin compression risk is exacerbated by the international business's inherently lower profitability, as acknowledged in the Q&A when Neil Manning confirmed that Array remains selective and returns-focused in difficult markets like Turkey, Peru, and Colombia precisely because these projects require localization efforts to achieve acceptable returns, implying that international expansion may not deliver the margin expansion hoped for by investors.
The company's order book, while record-sized at $2.4 billion, contains significant uncertainty regarding conversion timing, with management holding back certain international wins—particularly from Brazil—due to concerns about project timing reliability, and explicitly stating that they will not quantify these held orders until they are "much sure" of actual project progression. This conservative approach, while prudent, masks potential execution risk, as the 80% backlog conversion expectation over the next six quarters depends on projects moving forward as anticipated, yet the Q&A revealed that Array has experienced debookings in Brazil in the past that masked domestic momentum, suggesting that similar reversals could occur in other emerging markets where Array is now expanding. Furthermore, the shift in commercial engagement toward asset owners and utilities—while improving win quality—may be slowing the sales cycle, as evidenced by the need for deeper technical engagement and proof points, which could delay revenue recognition even if win rates improve, creating a mismatch between strong booking activity and actual revenue conversion that could disappoint investors expecting rapid top-line growth from the elevated backlog.
Array's growth strategy is increasingly dependent on successful international penetration through products like the DuraTrack D2S, yet the company faces intense competition in key markets where local players and low-cost Chinese manufacturers are gaining share, particularly in regions affected by curtailment and macroeconomic headwinds such as Spain and Brazil, where Neil Manning admitted that Array is seeing low-cost competitors enter the market amid ongoing challenges. The D2S, while innovative, requires significant investment in localized production to meet domestic content requirements—such as the efforts in Turkey—and its success hinges on Array's ability to navigate complex regulatory environments, secure local partnerships, and achieve scale in fragmented international markets, all of which remain unproven at scale. Additionally, the company's reliance on APA's growth in the fixed tilt and foundation business—now representing ~$150 million of the order book—introduces execution risk, as APA is a shorter-cycle business with different customer dynamics, and any slowdown in data center-related foundation demand tied to AI infrastructure could disproportionately impact this segment, especially given that Array's guidance assumes continued strength in this area without providing quantifiable sensitivity to shifts in AI-driven capex cycles.

Array Technologies (ARRY) faces significant near-term margin pressure as the benefits driving Q1's 30.7% adjusted gross margin—primarily a heavier domestic mix and one-time items contributing over 300 basis points—are unlikely to persist, with management explicitly guiding full-year adjusted gross margin to 26–27% and noting that Q2 will be at the higher end of that range while the second half will see a higher proportion of international business (SDI) that will drag down consolidated margins. The company's reliance on productivity gains and cost-out initiatives to offset ongoing logistics and freight cost inflation—evidenced by their acknowledgment that 4.5% of revenue is freight cost and their expectation of building fuel surcharges into cost models over the longer term—reveals vulnerability to persistent macroeconomic shocks, particularly given their history of annual black swan events and the ongoing Middle East conflict elevating global logistics costs without near-term relief in sight. This margin compression risk is exacerbated by the international business's inherently lower profitability, as acknowledged in the Q&A when Neil Manning confirmed that Array remains selective and returns-focused in difficult markets like Turkey, Peru, and Colombia precisely because these projects require localization efforts to achieve acceptable returns, implying that international expansion may not deliver the margin expansion hoped for by investors.
The company's order book, while record-sized at $2.4 billion, contains significant uncertainty regarding conversion timing, with management holding back certain international wins—particularly from Brazil—due to concerns about project timing reliability, and explicitly stating that they will not quantify these held orders until they are "much sure" of actual project progression. This conservative approach, while prudent, masks potential execution risk, as the 80% backlog conversion expectation over the next six quarters depends on projects moving forward as anticipated, yet the Q&A revealed that Array has experienced debookings in Brazil in the past that masked domestic momentum, suggesting that similar reversals could occur in other emerging markets where Array is now expanding. Furthermore, the shift in commercial engagement toward asset owners and utilities—while improving win quality—may be slowing the sales cycle, as evidenced by the need for deeper technical engagement and proof points, which could delay revenue recognition even if win rates improve, creating a mismatch between strong booking activity and actual revenue conversion that could disappoint investors expecting rapid top-line growth from the elevated backlog.
Array's growth strategy is increasingly dependent on successful international penetration through products like the DuraTrack D2S, yet the company faces intense competition in key markets where local players and low-cost Chinese manufacturers are gaining share, particularly in regions affected by curtailment and macroeconomic headwinds such as Spain and Brazil, where Neil Manning admitted that Array is seeing low-cost competitors enter the market amid ongoing challenges. The D2S, while innovative, requires significant investment in localized production to meet domestic content requirements—such as the efforts in Turkey—and its success hinges on Array's ability to navigate complex regulatory environments, secure local partnerships, and achieve scale in fragmented international markets, all of which remain unproven at scale. Additionally, the company's reliance on APA's growth in the fixed tilt and foundation business—now representing ~$150 million of the order book—introduces execution risk, as APA is a shorter-cycle business with different customer dynamics, and any slowdown in data center-related foundation demand tied to AI infrastructure could disproportionately impact this segment, especially given that Array's guidance assumes continued strength in this area without providing quantifiable sensitivity to shifts in AI-driven capex cycles.

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

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S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	FSLR	First Solar, Inc.	22.08 Bn	13.26	4.07	0.43 Bn
2	NXT	Nextpower Inc.	15.32 Bn	26.15	4.30	-
3	ENPH	Enphase Energy, Inc.	4.98 Bn	36.87	3.55	0.57 Bn
4	JKS	JinkoSolar Holding Co., Ltd.	3.20 Bn	1.39	0.35	2.75 Bn
5	SEDG	Solaredge Technologies, Inc.	2.60 Bn	-11.22	2.24	-
6	RUN	Sunrun Inc.	2.35 Bn	-2.28	0.74	0.44 Bn
7	SHLS	Shoals Technologies Group, Inc.	1.55 Bn	46.28	2.90	0.18 Bn
8	CSIQ	Canadian Solar Inc.	0.93 Bn	13.50	0.17	8.40 Bn

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Investment Thesis

Geographical Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Geographical Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

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