Array Technologies (ARRY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $223.4 million, down 26% year-over-year, but with a record $2.4 billion order book and strong international diversification, including new projects in Turkey, Peru, and Colombia.

• Adjusted gross margin reached 30.7%, up 620 basis points sequentially, and gross margin improved to 28.2% from 25.3% year-over-year.

• Adjusted EBITDA was $28.8 million, up 157% sequentially but down from $40.6 million year-over-year.

• New product introductions, especially DuraTrack D2S and OmniTrack, are gaining traction, with over 50% of the order book now from products launched in the last two years.

• APA Solar acquisition completed in August 2025, expanding the product portfolio and resulting in $14.9 million in Q1 2026 revenue and a $10.2 million operating loss from APA.

Financial highlights

• Q1 2026 revenue: $223.4 million, with volumes up 15% quarter-over-quarter but down 26% year-over-year due to lower ASPs and STI Operations decline.

• Adjusted gross profit was $69 million, up 24% sequentially; adjusted gross margin was 30.7%, including one-time benefits of over 300 basis points.

• Adjusted EBITDA margin was 12.9% in Q1 2026, up 790 bps sequentially.

• Net loss to common shareholders was $13.5 million, or $(0.09) per share, a substantial improvement from the prior quarter but down from net income in Q1 2025.

• Free cash flow for Q1 2026 was $(36.9) million, impacted by seasonal working capital dynamics.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue of $1.4 billion–$1.5 billion, adjusted EBITDA of $200 million–$230 million, and adjusted net income per share of $0.65–$0.75.

• Q2 2026 revenue expected between $300 million–$320 million; Q2 adjusted gross margin at the higher end of the full-year range.

• 80% of the backlog is expected to convert over the next six quarters, providing strong visibility into 2026 and 2027.

• Management expects to recognize 94% of $544.0 million in remaining performance obligations as revenue in the next twelve months.

• Margin expansion levers include increased penetration of differentiated products, international scale, integrated systems, and productivity gains.