Array Technologies (ARRY) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $362.2M, up 42% year-over-year and 20% sequentially, driven by strong volume growth and marking the highest volume quarter in two years.

• Net income to common shareholders was $28.5M, with adjusted EBITDA of $63.6M, and adjusted net income per diluted share of $0.25.

• Announced a definitive agreement to acquire APA Solar, expected to close soon, to expand product offerings and market reach.

• New products, including OmniTrak, SkyLink, and Hail XP, now make up over 35% of the order book, with the first Hail XP project booked.

• Major financing moves included issuing $345M in convertible notes, repaying term loan, and repurchasing $100M of 2028 notes at a discount.

Financial highlights

• Q2 2025 revenue: $362.2M (+42% YoY); adjusted gross margin: 27.8%; gross margin: 26.8%.

• Adjusted EBITDA was $63.6M (17.5% margin), up from $55.4M in Q2 2024.

• Adjusted EPS was $0.25, up from $0.20 last year; diluted EPS was $0.19, up from $0.08.

• Free cash flow for Q2 2025 was $37.2M, up from $2M last year.

• Cash and equivalents at June 30, 2025: $377.3M; total liquidity above $500M.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.18B–$1.215B, with adjusted EBITDA guidance at $185M–$200M.

• Adjusted gross margin expected between 28% and 29%; adjusted net income per share guidance at $0.63–$0.70.

• Guidance includes benefits from Section 45X credits and excludes potential impact from APA Solar acquisition.

• Free cash flow guidance remains $115M–$130M, with capex of $30M–$35M.

• 97% of $644.5M in remaining performance obligations expected to be recognized in the next 12 months.