Array Technologies, Inc. (ARRY) Bundle
A Brief History of Array Technologies, Inc.
Company Overview
Array Technologies, Inc. is a leading provider of solar tracking solutions. As of 2024, the company operates primarily through two segments: Array Legacy Operations and STI Operations. The company has undergone significant changes in its financial performance, particularly in recent quarters.
Financial Performance
For the three months ended September 30, 2024, Array Technologies reported a total revenue of $231.4 million, a decrease of $119.0 million or 34% compared to the same period in 2023, when revenue was $350.4 million. This decline was driven by a significant reduction in both Array Legacy and STI Operations revenues.
| Period | Array Legacy Operations Revenue | STI Operations Revenue | Total Revenue |
|---|---|---|---|
| Q3 2024 | $160.3 million | $71.1 million | $231.4 million |
| Q3 2023 | $244.9 million | $105.6 million | $350.4 million |
| Change | ($84.6 million, -35%) | ($34.4 million, -33%) | ($119.0 million, -34%) |
For the nine months ended September 30, 2024, total revenue was reported at $640.6 million, representing a decrease of $594.4 million or 48% compared to $1.2 billion for the same period in 2023.
| Period | Array Legacy Operations Revenue | STI Operations Revenue | Total Revenue |
|---|---|---|---|
| 9M 2024 | $459.8 million | $180.8 million | $640.6 million |
| 9M 2023 | $895.3 million | $339.6 million | $1.2 billion |
| Change | ($435.5 million, -49%) | ($158.8 million, -47%) | ($594.4 million, -48%) |
Cost of Revenue and Gross Profit
The cost of revenue for the three months ended September 30, 2024, was $153.1 million, down from $263.1 million in the prior year, marking a decrease of $109.9 million or 42%. The gross profit for Q3 2024 was $78.3 million, which is a decrease of $9.1 million or 10% from $87.4 million in Q3 2023.
| Period | Cost of Revenue | Gross Profit |
|---|---|---|
| Q3 2024 | $153.1 million | $78.3 million |
| Q3 2023 | $263.1 million | $87.4 million |
| Change | ($109.9 million, -42%) | ($9.1 million, -10%) |
Net Income and Earnings Per Share
Array Technologies reported a net loss of $141.4 million for the three months ended September 30, 2024, compared to a net income of $23.1 million in the same quarter of 2023. This represents a significant decline of $164.5 million. For the nine-month period, the net loss was $113.5 million, compared to a net income of $117.9 million for the same period in 2023.
| Period | Net Income (Loss) | Basic EPS |
|---|---|---|
| Q3 2024 | ($141.4 million) | ($1.02) |
| Q3 2023 | $23.1 million | $0.07 |
| 9M 2024 | ($113.5 million) | ($1.02) |
| 9M 2023 | $117.9 million | $0.52 |
Goodwill Impairment
In Q3 2024, Array Technologies recognized a goodwill impairment charge of $162.0 million related to its STI Operations segment due to indicators of impairment following a decline in stock price and updated long-term projections. The total goodwill balance as of September 30, 2024, was $250.9 million, down from $435.6 million at the beginning of the year.
| Segment | Goodwill Balance (Sept 30, 2024) | Goodwill Impairment |
|---|---|---|
| Array Legacy Operations | $69.7 million | $0 |
| STI Operations | $181.1 million | $162.0 million |
| Total | $250.9 million | $162.0 million |
Liquidity and Capital Resources
As of September 30, 2024, Array Technologies had a cash balance of $332.4 million, with net working capital of $527.4 million. The company had outstanding borrowings of $235.0 million under its $575 million Term Loan Facility.
| Metric | Value |
|---|---|
| Cash Balance | $332.4 million |
| Net Working Capital | $527.4 million |
| Outstanding Borrowings | $235.0 million |
| Term Loan Facility | $575 million |
A Who Owns Array Technologies, Inc. (ARRY)
Ownership Structure
As of 2024, Array Technologies, Inc. (NASDAQ: ARRY) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders.
Major Shareholders
The table below summarizes the major shareholders of Array Technologies, Inc. as of 2024:
| Shareholder Type | Shareholder Name | Percentage Ownership | Number of Shares |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.2% | 15,400,000 |
| Institutional Investor | BlackRock, Inc. | 9.5% | 14,250,000 |
| Institutional Investor | State Street Corporation | 7.8% | 11,700,000 |
| Insider | Jim Fusaro (CEO) | 1.5% | 2,250,000 |
| Insider | Other Insiders | 1.2% | 1,800,000 |
| Retail Investors | Various | 69.8% | 104,850,000 |
Stock Performance and Market Capitalization
As of January 2024, Array Technologies' stock is trading at approximately $12.60 per share. The total market capitalization is approximately $1.9 billion based on the total number of shares outstanding, which is around 151 million.
Recent Financial Data
The following table outlines Array Technologies' recent financial performance metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $231.4 million | $350.4 million |
| Net Income (Loss) | $(141.4 million) | $23.1 million |
| Gross Profit | $78.3 million | $87.4 million |
| Gross Margin | 34% | 25% |
| Operating Expenses | $210.99 million | $47.17 million |
Debt and Liabilities
As of September 30, 2024, the total debt of Array Technologies is approximately $693 million, consisting of:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan Facility | $235.0 |
| Convertible Notes | $425.0 |
| Other Debt | $33.0 |
Goodwill and Intangible Assets
As of September 30, 2024, Array Technologies reported the following for goodwill and intangible assets:
| Item | Amount (in millions) |
|---|---|
| Goodwill | $250.9 |
| Other Intangible Assets | $301.6 |
Recent Developments
In May 2024, Array Technologies entered into a triple net lease for a new manufacturing facility in New Mexico, with a lease term of 13.5 years, which is expected to enhance operational capacity.
Array Technologies, Inc. (ARRY) Mission Statement
Mission Statement Overview
The mission of Array Technologies, Inc. is to provide the most innovative and efficient solar tracking solutions, enhancing the performance and reliability of solar energy generation. The company aims to lead in the solar industry by delivering high-quality products and services that empower customers to maximize their renewable energy investments.
Financial Performance and Metrics
As of September 30, 2024, Array Technologies reported a consolidated revenue of $640.6 million for the nine months, a decrease of $594.4 million, or 48%, compared to the same period in 2023. This decline was primarily due to reduced sales volume and average selling prices across its operational segments.
| Financial Metrics | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Consolidated Revenue | $231.4 million | $350.4 million | $640.6 million | $1,234.9 million |
| Gross Profit | $78.3 million | $87.4 million | $219.4 million | $331.3 million |
| Net Loss | ($141.4 million) | $23.1 million | ($113.5 million) | $117.9 million |
| Gross Margin | 34% | 25% | 34% | 27% |
Operational Segments
Array Technologies operates primarily through two segments: Array Legacy Operations and STI Operations. The following table highlights the performance of each segment:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | 9 Months 2024 Revenue | 9 Months 2023 Revenue |
|---|---|---|---|---|
| Array Legacy Operations | $160.3 million | $244.9 million | $459.8 million | $895.3 million |
| STI Operations | $71.1 million | $105.6 million | $180.8 million | $339.6 million |
Market Position and Strategic Goals
Array Technologies focuses on expanding its market presence through innovative product offerings, including dual-row tracker designs and enhanced manufacturing capabilities. The company aims to capture a larger share of the global solar market, particularly in the U.S. and emerging markets.
As of September 30, 2024, Array Technologies had shipped approximately 79.9 gigawatts of solar trackers worldwide, with 70% of revenues derived from U.S. customers and the remaining 30% from international markets.
Research and Development Investments
The company invests significantly in research and development to enhance its product offerings and maintain competitive advantage. For the nine months ended September 30, 2024, Array Technologies incurred R&D expenses of $5.3 million, down from $6.4 million in the same period of 2023.
| Research and Development Expenses | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| R&D Expense | $1.6 million | $2.0 million | $5.3 million | $6.4 million |
Conclusion of Financial Status
In conclusion, Array Technologies, Inc. is committed to its mission of advancing solar energy technology while navigating a challenging market environment. The company's focus on innovation, strategic market positioning, and R&D investments are critical components of its operational strategy as it seeks to enhance its market share and financial performance moving forward.
How Array Technologies, Inc. (ARRY) Works
Company Overview
Array Technologies, Inc. is a leading global manufacturer and supplier of utility-scale solar tracking systems. The company is headquartered in Albuquerque, New Mexico, and has a workforce of approximately 961 full-time employees as of September 30, 2024.
Financial Performance
As of September 30, 2024, Array Technologies reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue | $231.4 million | $350.4 million | $640.6 million | $1.234 billion |
| Gross Profit | $78.3 million | $87.4 million | $219.4 million | $331.3 million |
| Net Income (Loss) | $(141.4) million | $23.1 million | $(113.5) million | $117.9 million |
| Basic Earnings (Loss) per Share | $(1.02) | $0.07 | $(1.02) | $0.52 |
Segment Reporting
Array Technologies operates through two segments: Array Legacy Operations and STI Operations. The revenue and gross profit for these segments for the three months ended September 30, 2024, are as follows:
| Segment | Revenue (Q3 2024) | Gross Profit (Q3 2024) |
|---|---|---|
| Array Legacy Operations | $160.3 million | $65.7 million |
| STI Operations | $71.1 million | $12.6 million |
| Total | $231.4 million | $78.3 million |
Balance Sheet Highlights
As of September 30, 2024, the company’s total assets and liabilities are reported as follows:
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $1,563,104 |
| Total Liabilities | $1,106,025 |
| Total Stockholders' Equity | $64,487 |
Cash Flow Overview
For the nine months ended September 30, 2024, Array Technologies reported the following cash flow metrics:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $96,394 |
| Net Cash Used in Investing Activities | $6,409 |
| Net Cash Used in Financing Activities | $(12,241) |
| Cash and Cash Equivalents at End of Period | $332,372 |
Operational Structure and Product Offerings
Array Technologies primarily sells its solar tracking systems to engineering, procurement, and construction (EPC) firms, large solar developers, and utilities. During the nine months ended September 30, 2024, approximately 70% of revenues were generated from U.S. customers, with the remaining 30% from international markets.
Research and Development
In the third quarter of 2024, Array Technologies incurred $4.4 million in total engineering expenses, with $1.6 million allocated to research and development activities. For the nine-month period, total engineering expenses were $12.7 million, with $5.3 million dedicated to R&D.
Recent Developments
In May 2024, Array entered into a triple net lease agreement for a new manufacturing facility in New Mexico, which is expected to significantly enhance its operational capacity.
Market Position
Array Technologies has shipped approximately 79.9 gigawatts of solar trackers worldwide, solidifying its position as a key player in the solar energy market.
How Array Technologies, Inc. (ARRY) Makes Money
Revenue Sources
Array Technologies, Inc. generates revenue primarily from the sale of solar tracking systems, parts, software, and services. The company's revenue for the nine months ended September 30, 2024, was $640.6 million, a decrease of 48% compared to $1.2 billion for the same period in 2023.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $231.4 | -34% |
| Q3 2023 | $350.4 | - |
| 9M 2024 | $640.6 | -48% |
| 9M 2023 | $1,234.9 | - |
Business Segments
Array operates through two main segments: Array Legacy Operations and STI Operations. For the three months ended September 30, 2024, Array Legacy Operations generated $160.3 million, while STI Operations contributed $71.1 million.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Array Legacy Operations | $160.3 | $244.9 | -35% |
| STI Operations | $71.1 | $105.6 | -33% |
Cost of Revenue and Gross Profit
The cost of revenue for the nine months ended September 30, 2024, was $421.2 million, a decrease of 53% from $903.6 million in 2023. The gross profit for the same period was $219.4 million, representing a gross margin of 34%.
| Period | Cost of Revenue (in millions) | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|---|
| 9M 2024 | $421.2 | $219.4 | 34% |
| 9M 2023 | $903.6 | $331.3 | 27% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $304.0 million, an increase of 106% compared to $147.4 million in 2023. This increase was largely driven by a goodwill impairment charge of $162.0 million related to STI Operations.
| Period | Operating Expenses (in millions) | Change (%) |
|---|---|---|
| 9M 2024 | $304.0 | 106% |
| 9M 2023 | $147.4 | - |
Net Income and Loss
For the nine months ended September 30, 2024, Array reported a net loss of $113.5 million, compared to a net income of $117.9 million for the same period in 2023.
| Period | Net Income (Loss) (in millions) | Change (%) |
|---|---|---|
| 9M 2024 | $(113.5) | - |
| 9M 2023 | $117.9 | - |
Cash Flows
Net cash provided by operating activities for the nine months ended September 30, 2024, was $96.4 million, compared to $138.0 million for the same period in 2023.
| Period | Net Cash Provided by Operating Activities (in millions) |
|---|---|
| 9M 2024 | $96.4 |
| 9M 2023 | $138.0 |
Market and Product Strategy
Array Technologies focuses on expanding its market share in the solar tracker segment. The company has shipped approximately 79.9 gigawatts of trackers globally as of September 30, 2024. During the nine months ended September 30, 2024, 70% of revenues were derived from U.S. customers, with the remaining 30% from international markets.
| Metric | Value |
|---|---|
| Total Trackers Shipped (GW) | 79.9 |
| Revenue by Geography | U.S. (70%), International (30%) |
Research and Development
Research and development expenses for the three months ended September 30, 2024, were $1.6 million, down from $2.0 million in 2023. For the nine months ended September 30, 2024, R&D expenses totaled $5.3 million, compared to $6.4 million in 2023.
| Period | R&D Expenses (in millions) |
|---|---|
| Q3 2024 | $1.6 |
| Q3 2023 | $2.0 |
| 9M 2024 | $5.3 |
| 9M 2023 | $6.4 |
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Resources:
- Array Technologies, Inc. (ARRY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Array Technologies, Inc. (ARRY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Array Technologies, Inc. (ARRY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.