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Introduction & Market Context
Array Technologies, Inc. (NASDAQ:ARRY) presented its third quarter 2025 financial results on November 5, 2025, showcasing substantial growth across key metrics and raising its full-year guidance. The solar tracker manufacturer has capitalized on increasing demand for renewable energy solutions, particularly in the U.S. market where AI datacenter growth and manufacturing onshoring are driving energy needs.
Following the earnings announcement, Array’s stock climbed 7.63% in after-hours trading to $7.84, continuing its impressive performance that has seen shares gain nearly 69% over the past six months. The company’s strong quarterly results exceeded analyst expectations, with EPS of $0.30 surpassing forecasts by 58%.
Quarterly Performance Highlights
Array Technologies reported revenue of $393.5 million for Q3 2025, representing a 70% increase year-over-year and a 9% improvement sequentially from Q2 2025. This robust growth was primarily driven by increased market share and the successful adoption of new products.
As shown in the following chart of quarterly financial performance:
The company achieved gross profit of $105.7 million (26.9% margin) and adjusted gross profit of $110.5 million (28.1% margin), both increasing 35% compared to Q3 2024. Net income reached $18.4 million, a significant improvement from the $155 million net loss reported in the same quarter last year. Adjusted EBITDA of $72.2 million represented a 55% year-over-year increase.
The detailed financial results demonstrate consistent improvement across multiple metrics:
"We are thrilled to announce another exceptional quarter of commercial, operational, and financial performance," said Kevin Hostetler, CEO of Array Technologies during the earnings call. He emphasized the company’s competitive advantage, noting that "Our ability to generate more energy with our passive stow system and improved ground coverage ratio is really helpful."
Strategic Initiatives
Array Technologies’ strategic focus on product innovation and expansion is yielding significant results. The company reported that its newer products – OmniTrack, SkyLink, and Hail XP – now represent approximately 40% of its orderbook, a substantial increase from just 7% in Q1 2024.
The company’s commercial momentum is illustrated in the following chart showing pipeline expansion:
The integration of APA Solar, a recent acquisition, is progressing on schedule. Management reported that they are aligning processes, policies, and systems while leveraging Array’s scale and relationships to drive procurement synergies. The acquisition expands Array’s product portfolio to include engineered foundation solutions and fixed-tilt mounting systems.
The status of the APA Solar integration and product portfolio is detailed below:
Supply Chain and Operational Updates
Array Technologies has made significant progress in optimizing its supply chain to mitigate tariff exposure. Currently, less than 20% of a typical bill of materials is exposed to tariffs, with expectations to reduce this further to less than 14% by year-end.
The company’s supply chain strategy emphasizes flexibility and diversification:
This approach includes working with over 50 domestic and 100 international suppliers, offering 100% domestically sourced trackers, and leveraging more than 40GW of annual U.S. supplier capacity. The company is also upgrading its Albuquerque facility and utilizing APA’s Ohio facility to enhance domestic manufacturing capabilities.
From a financial perspective, Array has maintained strong liquidity with over $365 million available post-acquisition of APA Solar and a net debt leverage ratio of 2.1X.
Financial Outlook and Guidance
Based on its strong performance through the first three quarters, Array Technologies has raised its full-year 2025 guidance. The updated outlook now includes the contribution from APA Solar:
The company now projects revenue of $1.25-$1.28 billion, up from the previous guidance of $1.18-$1.215 billion. Adjusted EBITDA is forecast at $185-$195 million, with APA Solar expected to contribute approximately $50 million in revenue for the year.
Array Technologies’ management expressed optimism about 2026, citing a promising demand landscape and expectations for another year of strong growth. The company’s investment case centers on its position as a leading solution provider in a high-demand market, differentiated product portfolio, robust financial performance, and experienced management team:
Conclusion
Array Technologies’ Q3 2025 results demonstrate the company’s ability to execute on its strategic initiatives while delivering strong financial performance. The 70% year-over-year revenue growth, improving margins, and healthy orderbook of $1.9 billion position the company well for continued success.
While the company faces potential challenges including supply chain disruptions, tariff exposures, and increasing competition, its proactive approach to supply chain management and focus on product innovation appear to be effective strategies for navigating these risks. With raised guidance for 2025 and positive momentum heading into 2026, Array Technologies continues to strengthen its position in the growing solar energy market.
Full presentation:
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