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    ARRY
    Earnings call· Jun 2026(Q2 FY26)

    Array Technologies Q2 FY26 earnings call ARRY

    Aug 5, 2026 Source

    Executive summary

    Array Technologies Q2 FY26 — Record Order Book and Strong Profitability

    Array Technologies delivered strong Q2 FY26 results, driven by robust tracker volume growth and successful APA integration, leading to record order book and improved profitability. The company is actively expanding its product portfolio and M&A strategy, with the AWM acquisition expected to close in Q3. While full-year revenue guidance remains, project timing shifts are anticipated to impact the cadence and free cash flow conversion.

    Highlights

    5

    • Revenue reached $342 million, up 53% sequentially, exceeding guidance of $300M-$320M.

    • Adjusted gross profit was $105 million, with adjusted gross margin at 30.8%, up 300 bps YoY.

    • Adjusted EBITDA more than doubled sequentially to $63 million, with adjusted EBITDA margin over 18%.

    • Achieved a third consecutive record order book of $2.5 billion, up 37% YoY, with over $500 million in new bookings.

    • Net debt leverage improved to 2.1x trailing 12-month adjusted EBITDA, down from 2.7x.

    Concerns

    3

    • Full-year revenue guidance of $1.4B-$1.5B reaffirmed, but near-term project timing may push recognized revenue below the midpoint.

    • Second-half gross margins expected to be influenced by absence of one-time tariff recovery and 45X benefits, and increased international mix.

    • Free cash flow conversion for FY26 is updated to 20%-25% of EBITDA, roughly half of initial expectations, due to Q4 revenue shift pushing collections into Q1 FY27.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full-year revenue
    $1.4 billion to $1.5 billion
    high materiality
    Medium
    Q3 revenue
    $310 million and $330 million
    medium materiality
    Medium
    Full-year adjusted gross margins
    27% to 28%
    high materiality
    High
    Full-year adjusted EBITDA
    $210 million to $230 million
    high materiality
    High
    Full-year adjusted EPS
    $0.68 to $0.75
    high materiality
    High
    AWM acquisition adjusted EPS accretion
    high single-digit accretive
    medium materiality
    High
    Full-year free cash flow conversion
    20% to 25% of EBITDA
    high materiality
    Medium

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    APA
    APA's integration is progressing well, with strong momentum in its first year under Array, expanding access to larger utility-scale opportunities and leveraging Array's scale for procurement and logistics.
    Year-to-date book-to-bill: over 1.5xPipeline quoting activity: growing substantially sequentiallyAverage pipeline project size: more than doubled since acquisition
    		—17% ahead of 2025——

    Operational metrics

    26
    Adjusted gross profit
    $105 millionup 53% sequentially
    Q2 FY26

    Reflects strong profitability improvements.

    Adjusted gross margin
    30.8%up 300 bps YoY
    Q2 FY26

    Driven by higher domestic mix, cost-out initiatives, and incremental 45X capture.

    Adjusted EBITDA
    $63 millionmore than doubling sequentially
    Q2 FY26

    Strong improvement driven by higher volume, gross margin flow-through, and operating cost discipline.

    Adjusted EBITDA margin
    18.5%up 560 bps sequentially
    Q2 FY26

    Reflects improved profitability.

    Net income
    $8 million
    Q2 FY26

    GAAP net income to common shareholders.

    Adjusted net income
    $37 millionincrease of nearly $30 million versus Q1
    Q2 FY26

    Strong increase reflecting improved profitability.

    Diluted EPS
    $0.05
    Q2 FY26

    GAAP diluted earnings per share.

    Adjusted EPS
    $0.24compared to $0.06 in Q1
    Q2 FY26

    Strong increase reflecting improved profitability.

    Cash balance
    $307 millionup over $100 million sequentially
    Q2 FY26

    Driven by accelerated 45X collections.

    Total available liquidity
    $640 million
    Q2 FY26

    Strong liquidity position.

    Net debt leverage
    2.1xdown from 2.7x at Q1 FY26
    Q2 FY26

    Well within targeted range, contributing to ability to fund AWM acquisition with cash on hand.

    Adjusted SG&A
    $44 million
    Q2 FY26

    Reflects targeted cost savings and incremental reductions through hiring and discretionary spend controls.

    Preferred equity dividend cash payment
    $12 million
    Remainder of FY26

    Dividends on Series A preferred equity will transition to cash pay in Q3 FY26.

    Tracker volume growth
    38%
    Q2 FY26

    Key driver of revenue growth.

    New product contribution to order book
    roughly 50%
    Q2 FY26

    Highlights the success of the innovation strategy.

    New product contribution to revenue
    nearly halfcompared to 1/3 in 2025
    FY26

    Demonstrates increasing customer adoption of new offerings.

    Software revenue growth
    doubled
    Year-to-date

    Indicates customer willingness to embrace value-maximizing offerings.

    OmniTrack 2.0 slope change capability
    up to 2 degrees
    Q2 FY26

    Allows system to traverse greater undulating terrain, cutting civil work and steel requirements.

    OmniTrack 2.0 savings per 100 MW
    $2.5 million
    Q2 FY26

    Significant cost savings for customers by reducing civil work and steel requirements.

    Atlas I average selling price per watt addition
    $0.03 to $0.04
    Q2 FY26

    Expected additional revenue per watt for the Atlas I product, expanding market opportunity.

    International revenue mix
    roughly 5%
    H1 FY26

    Expected to increase in H2 FY26, impacting gross margins.

    Order book tied to developers/IPPs/utilities
    halfsignificantly increased in last 2 years
    Q2 FY26

    Indicates strong demand driven by end-user specifications, even if purchase orders are from EPCs.

    AWM trailing 12-month revenue
    $60 million
    Trailing 12 months

    Revenue for Affordable Wire Management, the target of the pending acquisition.

    AWM acquisition EBITDA multiple
    6x
    Trailing 12 months

    Attractive valuation for the AWM acquisition.

    AWM company age
    5 years
    Q2 FY26

    AWM achieved market leadership in a short period due to strong engineering capabilities.

    APA traditional A-frame component reduction
    70%
    Q2 FY26

    Fewer components lead to fewer connection points and faster installation for Atlas II.

    Industry KPIs

    4
    MetricValueDetails
    Book to bill ratio1.5x
    Orders bookings growthover $500 millionUSD
    Gigawatts under contract100 GWGW
    Backlog by segment end market$2.5 billionUSD

    Orderbook & backlog

    5
    Total order book$2.5 billionQ2 FY26

    up 37% versus same period last year

    80% expected to be converted in the next 6 quarters

    New bookingsover $500 millionQ2 FY26

    Roughly half from Tier 1 customers, including several projects >500 MW

    12-month trailing book-to-bill ratio1.5xQ2 FY26

    Over $1.8 billion of new bookings in the last 12 months

    Domestic book-to-bill ratioover 1.4xQ2 FY26
    Order book domestic contentover 95%Q2 FY26

    Fully supported by strategic customer commitments

    Product announcements

    4
    ProductTypeDetails
    DuraTrack D2Slaunch
    OmniTrack 2.0launch
    DuraTrack 60-degree variantmilestone
    Array Atlas suite (Atlas I, Atlas II)launch

    Deals & partnerships

    2
    Affordable Wire Management (AWM)Acquisition of a leading provider of cable management and safety products serving solar, battery storage, and data center customers.6x trailing 12-month EBITDA multiple (base purchase price + tax basis step-up)

    AWM has nearly $60 million in trailing 12-month revenue. The acquisition expands Array's balance of systems offering, leverages global sales footprint and operational scale for synergies, and is de-risked by AWM's leadership team continuing to run the business.

    APAIntegration of fixed-tilt racking and engineered foundations business.

    The acquisition aimed to enable APA benefits from Array's scale and bankability, accelerating growth by expanding access to larger utility-scale solar opportunities. Array's scale is used for procurement, warehousing, and logistics to drive margin expansion.

    Capital programs

    3
    Albuquerque facility plant setupsunderway
    Period spend: $8 million

    Capital expenditures primarily associated with plant setups in the new Albuquerque facility.

    APA incremental production capacityunderway

    Capital expenditures for incremental production capacity at APA.

    Atlas product suite toolingunderway

    Capital expenditures for tooling for the new Atlas product suite.

    Risks & headwinds

    5
    Project timing shiftsFY26

    May push recognized revenue below the midpoint of full-year guidance range.

    Mitigation: Not lost business, but customer timing shifts to 2027. Company is focused on supporting shipment timing through securing supply and inventory logistics.

    Increased commodity and logistics input costsH2 FY26

    Partially offset by productivity initiatives.

    Mitigation: Continued focus on productivity initiatives.

    Absence of one-time benefitsH2 FY26

    Impact on second-half gross margins.

    Mitigation: Acknowledged as a factor influencing margins, partially offset by productivity.

    Increased international mixH2 FY26

    Impact on second-half gross margins.

    Mitigation: Acknowledged as a factor influencing margins.

    Section 232 tariffsNear-term

    Not yet quantified, awaiting official language.

    Mitigation: Monitoring situation, awaiting official language to assess impact.

    What to watch in Q3 FY26

    5

    AWM acquisition close and updated guidance

    Q3 FY26
    CurrentPending regulatory approval, expected Q3 FY26 close
    TargetAcquisition closed, updated FY26 guidance including AWM contribution

    Why it matters

    The acquisition is expected to be high single-digit accretive to adjusted EPS and broaden Array's balance of systems offering.

    We look forward to providing an update following the close of the acquisition, which we continue to believe to be in Q3 2026, subject to regulatory approval and satisfaction of customary closing conditions.

    Q&A highlights

    7

    Can you provide an update on the pace of backlog conversion over the subsequent 6 quarters?

    The pace of backlog conversion remains consistent, with approximately 80% expected to be converted in the next 6 quarters.

    “It's still very consistent at that 80% to be converted in the next 6 quarters.”

    asked by Joseph Osha · answered by Kevin Hostetler

    2 min read5 chapters

    Detailed Narrative

    01

    Q2 FY26 Financial Outperformance

    Array Technologies reported strong Q2 FY26 results, with revenue reaching $342 million, a 53% sequential increase, surpassing guidance. This top-line growth was driven by 38% tracker volume growth and accelerated project activity in the APA business. Profitability also saw significant improvement, with adjusted gross profit at $105 million (30.8% margin) and adjusted EBITDA more than doubling sequentially to $63 million (18.5% margin). Adjusted EPS was $0.24, a substantial increase from Q1.

    02

    Record Order Book and Commercial Momentum

    The company achieved its third consecutive record order book, reaching $2.5 billion, representing a 37% increase year-over-year. New bookings in the quarter exceeded $500 million, with approximately half originating from Tier 1 customers, including several projects over 500 megawatts. The 12-month trailing book-to-bill ratio stood at 1.5x, with over $1.8 billion in new bookings. The domestic book-to-bill ratio was particularly strong at over 1.4x, and over 95% of the order book is domestic, supported by strategic customer commitments.

    03

    Strategic M&A and Integration Success

    Array's M&A strategy is progressing well, highlighted by the successful integration of APA and the pending acquisition of Affordable Wire Management (AWM). APA's year-to-date book-to-bill is over 1.5x, and its first-half revenue is 17% ahead of 2025 targets, with average pipeline project size more than doubling. The AWM acquisition is expected to close in Q3 FY26, bringing a differentiated leader in cable management and safety products with nearly $60 million in trailing 12-month revenue, and is projected to be high single-digit accretive to adjusted EPS in year one before synergies.

    04

    Innovation Driving Product Portfolio Expansion

    2026 marks Array's largest launch year ever, with five significant product introductions. These include DuraTrack D2S for international markets, OmniTrack 2.0 for enhanced terrain-following capabilities (saving up to $2.5 million per 100 MW), and the DuraTrack 60-degree variant for extreme weather resilience. The Array Atlas suite, an integrated foundation-to-tracker solution developed with APA, was also launched, offering installation efficiency and qualifying for 45X manufacturing credits. Products launched since 2023 now account for over half of the order book and nearly half of 2026 revenue.

    05

    Financial Outlook and Cash Generation

    The company updated its full-year guidance, reaffirming revenue at $1.4 billion to $1.5 billion, but raising adjusted gross margin to 27%-28% and adjusted EBITDA to $210 million-$230 million, with adjusted EPS at $0.68-$0.75. Q3 revenue is projected between $310 million and $330 million. Cash generation was exceptional, with cash increasing by over $100 million sequentially to $307 million, driven by accelerated 45X collections. Free cash flow for the quarter was $114 million, and total available liquidity stands at over $640 million. Net debt leverage improved to 2.1x, enabling the AWM acquisition to be funded with cash on hand.

    AI-generated summary of the company’s earnings call. Not investment advice.