Array Technologies Stock Drops After Mixed Q4 Results, Weak Forward Guidance

Array Technologies (ARRY) stock price took a hit on Wednesday, February 28, following the company's release of mixed fourth-quarter (Q4) 2024 financial results and weak forward guidance. The company reported revenue of $275.2 million and a net loss of $(141.2) million, primarily due to non-cash impairment charges related to the 2022 STI acquisition. Adjusted EBITDA for the quarter was $45.2 million, and the company reported a net loss per basic and diluted share of $(0.93) and adjusted net income per diluted share of $0.16.

For the full year 2024, Array Technologies reported revenue of $915.8 million, gross margin of 32.5%, and free cash flow of $135.4 million. The company's orderbook reached $2.0 billion, representing 10% year-over-year growth. The OmniTrack product now accounts for over 20% of the orderbook, indicating successful market adoption.

However, the company's forward guidance for 2025 was weak, with revenue projected between $1.05-1.15 billion and adjusted EBITDA of $180-200 million. The midpoint of the revenue guidance represents only a 20% year-over-year increase, which may have disappointed investors.

Array Technologies faces a mixed international outlook, with modest growth expected in Europe and challenges in Brazil due to currency devaluation, interest rate volatility, and newly introduced tariffs on solar components. Domestically, project timeline extensions due to permitting delays, component shortages, and labor constraints continue to impact the company's performance.

The company's progress toward 100% domestic content solar trackers by the first half of 2025 positions Array Technologies favorably under the Inflation Reduction Act (IRA) incentives. However, the weak forward guidance and mixed Q4 results may have raised concerns among investors about the company's ability to execute on its strategic initiatives and deliver long-term growth.

In conclusion, Array Technologies' mixed Q4 results and weak forward guidance led to a decline in the company's stock price. While the company's progress toward 100% domestic content and market adoption of the OmniTrack product are positive developments, investors may be concerned about the company's ability to execute on its strategic initiatives and deliver long-term growth. As the company continues to navigate a challenging market environment, investors will be closely watching Array Technologies' progress in achieving its strategic goals.