Array Technologies (ARRY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $223.4 million, down 26% year-over-year, but with strong execution, margin expansion, and a record $2.4 billion order book, supported by new product launches and international contracts in Turkey, Peru, and Colombia.

• Adjusted EBITDA reached $29 million, up 157% sequentially, though down year-over-year, and net loss to common shareholders was $13.5 million due to preferred dividends and accretion.

• Strategic priorities advanced: innovation (notably DuraTrack D2S launch), APA integration, and international expansion, with over 50% of the order book from products launched in the last two years.

• Opened new headquarters and research center, enhancing innovation and product validation capabilities.

• Legal matters resolved, including dismissal of securities litigation affirmed by appellate court.

Financial highlights

• Adjusted gross margin reached 30.7%, up 620 basis points sequentially, with one-time benefits contributing over 300 basis points; gross margin improved to 28.2% year-over-year.

• Adjusted EBITDA was $28.8 million, margin at 12.9%, and adjusted net income was $8.8 million.

• Adjusted gross profit was $69 million, up 24% quarter-over-quarter.

• Free cash flow for Q1 2026 was $(36.9) million; cash and equivalents at quarter-end were $200.7 million.

• General and administrative expenses increased to $50.4 million, mainly due to personnel and acquisition-related costs.

Outlook and guidance

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

• Adjusted gross margin outlook for 2026 remains at 26%–27%; Q2 margin expected at the higher end of this range.

• Q2 2026 revenue expected between $300 million and $320 million.

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

• Management expects to recognize 94% of $544 million in remaining performance obligations as revenue in the next twelve months.