Array Technologies, Inc. (ARRY) — Fundamental Analysis

Snapshot & Big Picture

Array Technologies designs and manufactures solar tracking systems — the ground-mounted hardware that rotates solar panels to follow the sun and maximize energy output. The company went public in late 2020 and rode the solar boom to peak annual revenues exceeding $1.6 billion in fiscal year 2022. Since then, ARRY has navigated a turbulent stretch: revenue contracted, margins swung wildly, and the balance sheet reflected the strain of rapid growth followed by abrupt demand softness. The most recent annual filing (FY2025, ended December 31, 2025) shows revenue recovering toward $1.28 billion, though profitability remains fragile at the annual level. The most recent quarterly data (Q1 2026, ended March 31, 2026) offers a more encouraging near-term signal.

Latest Quarter Snapshot (Q1 2026 — Most Current Data)

The quarter ended March 31, 2026 is more recent than any annual figure and provides the freshest read on the business.

Q1 2026 marks a meaningful step in the right direction. Both EBITDA and operating margins turned positive, and gross margin of 28.2% is holding up reasonably well. Net income was slim but positive. The current ratio of 2.25x suggests adequate short-term liquidity. The negative debt-to-equity ratio reflects negative stockholders' equity on the balance sheet — a legacy of accumulated losses — rather than an absence of debt, so it should be interpreted with caution rather than as a sign of financial strength.

Profitability — Multi-Year Trend

ARRY's profitability history is choppy, reflecting supply chain shocks, steel cost inflation, and lumpy project-based revenue recognition.

The standout year was FY2023, when ARRY achieved its best-ever margins — gross margin of 26.4%, operating margin of 13.6%, and EBITDA of $253 million — likely aided by easing commodity costs and strong project execution. FY2024 was the low point: revenue nearly halved versus FY2023 and operating losses were severe, with a -$190.9M EBITDA print. FY2025 saw a revenue rebound and a dramatic narrowing of losses (EBITDA near breakeven at -$2.8M), while gross margin compressed to 23.2%, possibly reflecting pricing pressure or product mix. Q1 2026's positive EBITDA and operating margin suggest the trajectory is improving heading into 2026, though it remains early.

Financial Health

Liquidity has been consistently acceptable, with the current ratio staying above 1.7x throughout the company's public history and sitting at approximately 2.25–2.31x in the most recent periods. The debt-to-equity figures require careful interpretation: when stockholders' equity turns negative (as it has in several periods), the ratio itself becomes negative or extreme — it does not mean the company is debt-free. Accumulated net losses have eroded the equity base, and investors should review the absolute debt levels in the filings directly. The FY2022 period, when equity was positive, showed a debt-to-equity of 6.1x — indicating meaningful leverage. The current negative equity situation underscores balance sheet risk if losses continue.

Growth

The divergence across CAGR windows tells a nuanced story. Over the longer 5- and 10-year horizons, ARRY has been a strong revenue grower — nearly 18% annualized over the 10-year window — reflecting the structural rise of utility-scale solar deployment. However, the 3-year CAGR of -7.8% is a sobering reminder that ARRY's revenue peaked in FY2022 and has not yet recovered to that level, with FY2024's sharp contraction being the primary drag. The near-term challenge is whether the FY2025 rebound and positive Q1 2026 momentum can restore the growth trajectory.

Plain English Summary

Array Technologies is a solar tracker company that grew rapidly as the solar industry boomed, but hit a rough patch starting in late 2022 and through 2024 — a combination of input cost inflation, project delays, and a sharp demand slowdown that sent revenues and margins tumbling. FY2023 offered a brief window of genuine profitability, but FY2024 was the company's worst year as a public company, with revenues dropping sharply and heavy operating losses. FY2025 shows a meaningful recovery in revenue (back above $1.28 billion) and losses narrowed dramatically, while the most recent quarter (Q1 2026) actually turned both operating income and net income slightly positive — a potential inflection point. The balance sheet carries risk: accumulated losses have put stockholders' equity into negative territory, which complicates traditional leverage metrics. Liquidity, however, appears adequate with current ratios consistently above 2x. Longer-term, the company's growth record is strong, but investors need to see whether the current recovery is durable or whether ARRY will remain stuck in a boom-bust cycle tied to lumpy project demand and solar policy uncertainty.

Source Filings

• 10-Q filed May 6, 2026 — Period ending March 31, 2026 (Q1 2026)
• 10-K filed February 25, 2026 — Fiscal Year ending December 31, 2025