Array Technologies 2025 Q1 Earnings Strong Performance as Net Income Skyrockets 673.5%
Daily EarningsWednesday, May 7, 2025 8:15 am ET
49min readArray Technologies (ARRY) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company exceeded revenue expectations, showcasing a remarkable 97.1% increase to $302.36 million compared to the previous year. Net income surged by a significant 673.5%, reaching $16.75 million from $2.17 million a year earlier. maintained its full-year guidance, projecting revenue of $1.05 to $1.15 billion, and adjusted EBITDA between $180 million and $200 million, reflecting confidence in its strategic outlook and operational resilience.
Revenue
Array Technologies achieved a substantial revenue increase of 97.1% year-over-year, totaling $302.36 million for Q1 2025. This growth was driven by strong performances across its segments, with Array Legacy Operations generating $213.21 million, while STI Operations contributed $89.15 million, collectively reinforcing the company's market position and strategic execution.
Earnings/Net Income
Array Technologies returned to profitability in Q1 2025, with earnings per share of $0.02, reversing a loss of $0.07 per share from the previous year. Net income reached $16.75 million, marking an impressive 673.5% increase from $2.17 million in Q1 2024. This positive EPS result demonstrates strong financial recovery and operational efficiency.
Price Action
The stock price of Array Technologies has dropped 7.21% during the latest trading day, has edged down 2.65% during the most recent full trading week, and has surged 16.25% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Array Technologies shares following a revenue drop quarter-over-quarter and holding them for 30 days has historically yielded a return of 12.63% over the past five years, against a benchmark return of 52.50%. This strategy's compound annual growth rate (CAGR) stood at 2.68%, with a maximum drawdown of -15.95%. With a Sharpe ratio of 0.21, the approach indicates moderate returns and associated risks, emphasizing the potential benefits of a tactical investment in the company despite market fluctuations.
CEO Commentary
Kevin Hostetler, CEO of Array Technologies, expressed optimism regarding the company’s performance, stating, “We are confident in the strength of our fundamentals and the resilience of our company.” He highlighted the strong first quarter, with a revenue increase of 97% year-over-year, driven by robust demand and focused execution. Hostetler acknowledged near-term challenges due to regulatory uncertainties but emphasized maintaining operational agility and delivering long-term value. He noted the importance of integrity and transparency, affirming that Array is well-positioned to navigate the evolving market dynamics. The CEO underscored the growth potential in utility-scale solar, stating, “We remain optimistic about our ability to deliver value to our shareholders.”
Guidance
Array Technologies reaffirms its full-year 2025 revenue guidance in the range of $1.05 billion to $1.15 billion, with adjusted gross margin expected between 29% to 30%. The company anticipates adjusted EBITDA to range from $180 million to $200 million, and adjusted diluted earnings per share is projected between $0.60 and $0.70. Additionally, free cash flow is expected to be between $115 million and $130 million for 2025, with capital expenditures anticipated in the range of $30 million to $35 million.
Additional News
In recent non-earnings news, Array Technologies has made notable leadership appointments to strengthen its strategic capabilities. Brian Pitel was named General Manager for Latin America on April 28, 2025, bringing 25 years of experience in technology and renewable energy to the role. On April 14, 2025, Nick Strevel was appointed Senior Vice President of Product Management and Technical Sales, tasked with leading global product strategy and enhancing customer engagement. Additionally, on January 6, 2025, Darin Green was appointed Chief Revenue Officer for North America, leveraging extensive experience in renewables and cross-functional revenue leadership to drive growth across the region.
Revenue
Array Technologies achieved a substantial revenue increase of 97.1% year-over-year, totaling $302.36 million for Q1 2025. This growth was driven by strong performances across its segments, with Array Legacy Operations generating $213.21 million, while STI Operations contributed $89.15 million, collectively reinforcing the company's market position and strategic execution.
Earnings/Net Income
Array Technologies returned to profitability in Q1 2025, with earnings per share of $0.02, reversing a loss of $0.07 per share from the previous year. Net income reached $16.75 million, marking an impressive 673.5% increase from $2.17 million in Q1 2024. This positive EPS result demonstrates strong financial recovery and operational efficiency.
Price Action
The stock price of Array Technologies has dropped 7.21% during the latest trading day, has edged down 2.65% during the most recent full trading week, and has surged 16.25% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Array Technologies shares following a revenue drop quarter-over-quarter and holding them for 30 days has historically yielded a return of 12.63% over the past five years, against a benchmark return of 52.50%. This strategy's compound annual growth rate (CAGR) stood at 2.68%, with a maximum drawdown of -15.95%. With a Sharpe ratio of 0.21, the approach indicates moderate returns and associated risks, emphasizing the potential benefits of a tactical investment in the company despite market fluctuations.
CEO Commentary
Kevin Hostetler, CEO of Array Technologies, expressed optimism regarding the company’s performance, stating, “We are confident in the strength of our fundamentals and the resilience of our company.” He highlighted the strong first quarter, with a revenue increase of 97% year-over-year, driven by robust demand and focused execution. Hostetler acknowledged near-term challenges due to regulatory uncertainties but emphasized maintaining operational agility and delivering long-term value. He noted the importance of integrity and transparency, affirming that Array is well-positioned to navigate the evolving market dynamics. The CEO underscored the growth potential in utility-scale solar, stating, “We remain optimistic about our ability to deliver value to our shareholders.”
Guidance
Array Technologies reaffirms its full-year 2025 revenue guidance in the range of $1.05 billion to $1.15 billion, with adjusted gross margin expected between 29% to 30%. The company anticipates adjusted EBITDA to range from $180 million to $200 million, and adjusted diluted earnings per share is projected between $0.60 and $0.70. Additionally, free cash flow is expected to be between $115 million and $130 million for 2025, with capital expenditures anticipated in the range of $30 million to $35 million.
Additional News
In recent non-earnings news, Array Technologies has made notable leadership appointments to strengthen its strategic capabilities. Brian Pitel was named General Manager for Latin America on April 28, 2025, bringing 25 years of experience in technology and renewable energy to the role. On April 14, 2025, Nick Strevel was appointed Senior Vice President of Product Management and Technical Sales, tasked with leading global product strategy and enhancing customer engagement. Additionally, on January 6, 2025, Darin Green was appointed Chief Revenue Officer for North America, leveraging extensive experience in renewables and cross-functional revenue leadership to drive growth across the region.
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