Array Technologies Shares Plunge 33.8% on Missed Earnings Guidance and Deutsche Bank Downgrade Ranks 490th in $280M Trading Volume

Market Snapshot

Array Technologies (ARRY) experienced a sharp decline of 33.82% on February 26, 2026, closing at a three-month low. Trading volume surged to $0.28 billion, a 226.71% increase from the previous day, ranking the stock 490th in market activity. Despite the significant drop in share price, the company’s revenue for FY2025 reached $1.3 billion, reflecting a 40% year-over-year growth. However, the stock’s performance was heavily influenced by its FY2026 guidance, which fell short of consensus estimates, triggering widespread investor concerns.

Key Drivers

The primary catalyst for Array Technologies’ steep decline was its FY2026 adjusted earnings per share (EPS) guidance of $0.65–$0.75, far below the $0.88 FactSet consensus. This projection signaled potential profitability challenges, eroding investor confidence. Additionally, the company’s adjusted EBITDA forecast of $200–$230 million for the year, compared to the $256.4 million consensus, underscored declining margins. Management acknowledged flat core margins year-over-year but failed to offset concerns over a 45x amortization falloff, which Deutsche Bank cited as a key factor in its downgrade of the stock.

A significant blow came from Deutsche Bank’s revised rating, which downgraded Array Technologies from “Buy” to “Hold” and slashed its price target from $11 to $9. The analyst highlighted weaker-than-expected guidance, particularly the EBITDA shortfall, as a critical risk. This downgrade amplified market volatility, as investors reacted to the reduced optimism about the company’s future performance. Despite management’s emphasis on a $2.2 billion order book and $380 million in liquidity, the negative guidance overshadowed these positives.

The company’s Q4 2025 results further contributed to the sell-off. While Q4 revenue of $226 million exceeded the $212 million consensus, it declined from $275 million in the same period the previous year. Array Technologies reported a net loss of $145.7 million in Q4, driven by a non-cash goodwill impairment charge and a one-time inventory valuation adjustment. These losses, combined with the muted guidance, raised questions about cost management and operational efficiency.

Market sentiment was further pressured by broader economic and sector trends. U.S. stocks, including the S&P 500, fell over 1% amid weak market conditions, with energy shares gaining while technology stocks declined. Array Technologies, as a technology firm, faced intensified scrutiny as investors shifted toward sectors perceived as more stable. Additionally, rising jobless claims and mixed earnings from peers like Hormel Foods added to the bearish environment, compounding concerns about Array’s prospects.

Despite the sharp drop, management expressed confidence in maintaining stable gross margins despite rising commodity costs and expanding into international markets. CEO Kevin Hostetler highlighted the company’s “resilience and agility” during the earnings call, emphasizing a $2.2 billion order book as a foundation for growth. However, these statements were insufficient to reassure investors, who prioritized near-term profitability over long-term strategic gains. The divergence between management’s optimism and the market’s pessimism underscored the stock’s volatility and the lingering uncertainty surrounding Array’s ability to meet its targets.

In summary, Array Technologies’ stock plummeted due to a combination of weak earnings guidance, a significant analyst downgrade, and broader market headwinds. While the company demonstrated revenue growth and a robust order book, its inability to meet EBITDA expectations and manage costs effectively led to a sharp loss of investor confidence. The market’s reaction highlights the importance of aligning guidance with expectations and maintaining operational efficiency in a competitive and volatile sector.