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Array Technologies (ARRY) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 5, 2026

Source: earnings call transcript

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

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

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——

Orderbook & backlog

Total order book $2.5 billion Q2 FY26

up 37% versus same period last year

80% expected to be converted in the next 6 quarters

New bookings over $500 million Q2 FY26

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

12-month trailing book-to-bill ratio 1.5x Q2 FY26

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

Domestic book-to-bill ratio over 1.4x Q2 FY26
Order book domestic content over 95% Q2 FY26

Fully supported by strategic customer commitments

Product announcements

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

Deals & partnerships

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.

APA Integration 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

Albuquerque facility plant setups underway
Period spend: $8 million

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

APA incremental production capacity underway

Capital expenditures for incremental production capacity at APA.

Atlas product suite tooling underway

Capital expenditures for tooling for the new Atlas product suite.

Risks & headwinds

Project timing shifts FY26

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 costs H2 FY26

Partially offset by productivity initiatives.

Mitigation:Continued focus on productivity initiatives.

Absence of one-time benefits H2 FY26

Impact on second-half gross margins.

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

Increased international mix H2 FY26

Impact on second-half gross margins.

Mitigation:Acknowledged as a factor influencing margins.

Section 232 tariffs Near-term

Not yet quantified, awaiting official language.

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

What to watch in Q3 FY26

AWM acquisition close and updated guidance

Q3 FY26
Current Pending regulatory approval, expected Q3 FY26 close
Target Acquisition 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.

Find out whether ARRY delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.