Solar tracking systems manufacturer Array (NASDAQ:ARRY) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 70% year on year to $393.5 million. The company’s full-year revenue guidance of $1.27 billion at the midpoint came in 4.5% above analysts’ estimates. Its non-GAAP profit of $0.30 per share was 48.9% above analysts’ consensus estimates.
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Array (ARRY) Q3 CY2025 Highlights:
- Revenue: $393.5 million vs analyst estimates of $311.5 million (70% year-on-year growth, 26.3% beat)
- Adjusted EPS: $0.30 vs analyst estimates of $0.20 (48.9% beat)
- Adjusted EBITDA: $72.19 million vs analyst estimates of $56.76 million (18.3% margin, 27.2% beat)
- The company lifted its revenue guidance for the full year to $1.27 billion at the midpoint from $1.20 billion, a 5.6% increase
- Management slightly raised its full-year Adjusted EPS guidance to $0.67 at the midpoint
- EBITDA guidance for the full year is $190 million at the midpoint, below analyst estimates of $196 million
- Operating Margin: 11.6%, up from -57.3% in the same quarter last year
- Market Capitalization: $1.27 billion
StockStory’s Take
Array's third quarter saw significant revenue and profit growth, with management attributing these results to strong volume expansion, the initial contribution from the APA acquisition, and increasing adoption of its latest solar tracker products. CEO Kevin Hostetler emphasized that a 56% increase in shipment volume and the growing share of new offerings such as OmniTrack, Skylink, and Hail XP were key contributors. Hostetler stated, “These three recently launched products already account for nearly 40% of our order book,” highlighting customer demand for solutions that lower project costs and help manage severe weather risks. Operational improvements and flexibility in managing tariffs through supply chain adjustments also played a role, as noted by COO Neil Manning.
Looking ahead, Array’s updated guidance is anchored by a robust order book, continued integration of APA, and growing interest in both its new product suite and software solutions. Management cited expectations for both organic and inorganic growth in the coming year, with President and COO Neil Manning underscoring the importance of supply chain adaptability to manage tariff exposure and maintain margins. CFO Keith Jennings noted, “We are exceptionally well positioned with approximately $1.9 billion of backlog, added capabilities to seize new opportunities, deliver industry-leading growth and create lasting value for our shareholders.” Management also pointed to the expansion of customer relationships with Tier 1 utilities and the upcoming launch of integrated tracker and foundation solutions as future growth drivers.
Key Insights from Management’s Remarks
Management linked the quarter’s strong results to the surge in new product adoption, operational execution, and early benefits from the APA acquisition.
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New product momentum: Array’s OmniTrack, Skylink, and Hail XP—recently launched tracker and weather-resilient product lines—grew rapidly and now represent nearly 40% of the total order book. Management credited direct customer engagement and focus on lowering the levelized cost of energy (LCOE) as key reasons for the rapid uptake.
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APA acquisition integration: The acquisition of APA contributed to revenue and expanded Array’s product portfolio in engineered foundations and fixed tilt systems. Early integration steps included joint sales strategies and co-development of integrated solutions, which management expects will drive value and unlock new customer segments.
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Order book quality improvement: The company emphasized its order book now has a higher percentage of Tier 1 customers, which are large-scale, financially stable utility and independent power producer clients. This shift reduces the risk of project delays and de-bookings, improving revenue visibility and stability.
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Supply chain flexibility: Management highlighted the ability to navigate tariff volatility by sourcing from both domestic and international suppliers. Onshoring key components and negotiating tariff pass-throughs helped limit exposure to steel and aluminum tariffs, with less than 14% of the bill of materials expected to be tariff-impacted by year-end.
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Software and service traction: Array’s SmarTrack software deployments, which improve tracker performance and weather response, accelerated sharply. Active installations for hail alert and backtracking now exceed the historical base, supporting higher-margin service revenue growth and deeper customer integration.
Drivers of Future Performance
Array’s guidance reflects confidence in continued product adoption, successful APA integration, and supply chain agility, but also acknowledges persistent tariff and commodity cost headwinds.
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Product and customer diversification: Management believes new products and bundled solutions with APA will expand Array’s addressable market, especially among utility-scale customers. Deeper relationships with Tier 1 clients and the anticipated launch of integrated tracker-foundation products are expected to boost organic and inorganic growth.
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Margin management amid tariffs: The company’s ability to pass through steel and tariff costs to customers, combined with ongoing onshoring efforts and supplier negotiations, is intended to mitigate margin pressure. Management expects these actions, along with the 45X IRA credits for domestic content, to help sustain adjusted gross margins in the upper-20% range.
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International expansion and market shifts: While domestic business remains the focus, management is optimistic about growth in targeted international regions, supported by product adaptation for varying soil and weather conditions. However, ongoing regulatory and macroeconomic uncertainty, especially in regions like Brazil, remains a risk to near-term execution.
Catalysts in Upcoming Quarters
Looking ahead, StockStory analysts will watch (1) the pace of APA integration and the impact on revenue and customer mix; (2) the adoption rate of new products such as OmniTrack, Skylink, and Hail XP in both domestic and international markets; and (3) the effectiveness of supply chain strategies in limiting tariff exposure and supporting margins. Execution on the planned rollout of integrated tracker and foundation solutions, as well as further expansion in targeted international regions, will also be key signposts.
Array currently trades at $9.10, up from $8.35 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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