Array Technologies (ARRY) Q4 2025 earnings summary

Executive summary

• Achieved 40% year-over-year revenue growth in 2025, reaching $1.3 billion, with $50 million contributed by the APA acquisition and a record $2.2 billion order book; tracker volume grew 35%.

• Adjusted EBITDA grew 8% to $188 million, adjusted net income per share rose 12% to $0.67, and all key profitability metrics were within guidance.

• APA acquisition completed and integrated, expanding the product portfolio, manufacturing footprint, and contributing nearly half of the order book.

• Strategic imperatives for 2026 include innovation, international expansion (EMEA, LATAM), and a customer-first culture, with new product launches planned.

• Enhanced leadership team and launched new products, including Hail XP™ and expanded SmarTrack® capabilities.

Financial highlights

• FY25 revenue: $1.3 billion (+40% YoY); Q4 2025 revenue: $226 million (including $33 million from APA).

• Adjusted gross profit: $347 million (+11% YoY); adjusted gross margin: 27% (down YoY due to amortization and tariffs).

• Adjusted EBITDA: $188 million (+8% YoY), margin: 14.6% (down from 19% in 2024).

• Adjusted net income: $103 million (+13% YoY); adjusted diluted EPS: $0.67 (+12% YoY); GAAP net loss: $112 million, mainly from $103 million goodwill impairment and $30 million inventory charge.

• Free cash flow: $80 million, lower YoY due to working capital and rebate timing; cash and equivalents at year-end: $244.4 million.

Outlook and guidance

• 2026 revenue guidance: $1.4–$1.5 billion; adjusted gross margin: 26–27%.

• Adjusted EBITDA: $200–$230 million; adjusted diluted EPS: $0.65–$0.75.

• Revenue split expected to be 40% in H1 and 60% in H2 due to regulatory-driven contract timing; Q1 2026 revenue around $200 million.

• Free cash flow conversion as % of adjusted EBITDA to remain similar to 2025.