On August 8, 2024, Array Technologies Inc (ARRY, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Array Technologies Inc, a manufacturer of ground-mounting systems used in solar energy projects, reported notable financial achievements despite facing market challenges.
Company Overview
Array Technologies Inc (ARRY, Financial) is a leading provider of tracker solutions and services for utility-scale solar energy projects. The company's product, a single-axis tracker, integrates steel supports, electric motors, gearboxes, and electronic controllers to optimize solar panel orientation throughout the day, enhancing energy production. Array operates in the United States, Australia, Spain, Brazil, and other regions, with the majority of its revenue derived from the United States.
Q2 2024 Financial Performance
Array Technologies Inc (ARRY, Financial) reported revenue of $255.8 million for Q2 2024, surpassing the analyst estimate of $231.62 million. The company achieved a gross margin of 33.6%, with an adjusted gross margin of 35.0%. Net income to common shareholders was $12.0 million, translating to a basic and diluted net income per share of $0.08, exceeding the estimated earnings per share of $0.01. Adjusted diluted net income per share stood at $0.20.
“We finished the second quarter with strong performance and execution and are pleased with the continued demand we’re seeing in our high-probability pipeline. Our orderbook remains healthy at over $2 billion,” said Chief Executive Officer, Kevin Hostetler.
Financial Achievements and Challenges
Array Technologies Inc (ARRY, Financial) reported an adjusted EBITDA of $55.4 million for Q2 2024. The company's robust financial performance is significant in the semiconductor industry, where maintaining strong gross margins and EBITDA is crucial for sustaining growth and innovation. However, the company also faced challenges, including project delays due to short-term market dynamics and international currency fluctuations, particularly the devaluation of the Brazilian real.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $255.8 million | $507.7 million |
| Gross Margin | 33.6% | 28.4% |
| Net Income to Common Shareholders | $12.0 million | $52.4 million |
| Adjusted EBITDA | $55.4 million | $146.4 million |
| Basic and Diluted EPS | $0.08 | $0.34 |
Income Statement Highlights
For the three months ended June 30, 2024, Array Technologies Inc (ARRY, Financial) reported a gross profit of $85.9 million, down from $146.4 million in the same period last year. Operating expenses totaled $46.4 million, resulting in an income from operations of $39.6 million. The company also reported an income before income tax expense of $33.5 million and a net income of $25.7 million.
Balance Sheet and Cash Flow
As of June 30, 2024, Array Technologies Inc (ARRY, Financial) had total assets of $1.65 billion, with cash and cash equivalents amounting to $282.3 million. The company's total liabilities stood at $1.07 billion. Net cash provided by operating activities for the six months ended June 30, 2024, was $51.5 million, while net cash used in investing activities was $4.5 million.
Outlook and Guidance
For the full year 2024, Array Technologies Inc (ARRY, Financial) expects revenue to be in the range of $900 million to $1,000 million, with adjusted EBITDA between $185 million and $210 million. The company anticipates adjusted net income per share to be between $0.64 and $0.74. Despite the challenges, Array remains confident in its operational execution and long-term growth prospects.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Array Technologies Inc for further details.
