Array Technologies (ARRY) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $302.4 million, up 97% year-over-year and 10% sequentially, driven by strong volume growth, market share recovery, and project pushouts from 2024.

• Net income attributable to common shareholders was $2.3 million, compared to a net loss of $11.3 million in the prior year; adjusted net income per diluted share was $0.13, up from $0.06 in Q1 2024.

• Maintained a $2.0 billion order book, with 18% sequential growth in contracting and over 40% of the order book set for delivery in the remainder of 2025.

• Strong momentum in new product adoption, with OmniTrack, SkyLink, and SmarTrack accounting for 15% of Q1 revenue and 30% of new bookings, and 3.5x growth in SmarTrack installations since 2023.

• Reaffirmed full-year 2025 guidance despite near-term policy and market uncertainties.

Financial highlights

• Adjusted gross margin was 26.5%, reflecting expected compression from legacy agreements and international projects; gross margin was 25.3%.

• Adjusted EBITDA reached $40.6 million (13.4% margin), up from $26.2 million in Q1 2024.

• Adjusted net income was $19.7 million, with adjusted diluted EPS of $0.13.

• Free cash flow was negative at $(15.4) million, compared to $45.1 million generated in Q1 2024.

• Ended the quarter with $348 million in cash and $510 million in total liquidity.

Outlook and guidance

• Full-year 2025 revenue expected between $1.05 billion and $1.15 billion; adjusted EBITDA of $180 million–$200 million; adjusted diluted EPS forecasted at $0.60–$0.70.

• Adjusted gross margin guidance maintained at 29%–30%; free cash flow projected at $115 million–$130 million after $30 million–$35 million in capex.

• Forecasts 30% volume growth and 20% revenue growth at midpoint for 2025.

• Guidance includes benefits from IRA Section 45X manufacturing credits.

• Management expects 97% of $631.2 million in remaining performance obligations to be recognized in the next 12 months.