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Solar tracker manufacturer Array Technologies swung to profit in the third quarter (Q3) of 2022 on the back of strong growth in sales volume and prices. The company’s quarterly net income came in at $28.6 million, compared to a net loss of $33 million year-over-year (YoY).
The U.S-based firm updated its full-year 2022 revenue forecast upwards on the back of expected growth in utility-scale solar projects, partly due to the passage of the Inflation Reduction .
The company reported Q3 revenue at $515 million, a surge of 173% YoY, driven by the acquisition of STI Norland, which contributed $114.6 million in revenue, and by organic growth in its legacy business.
Array Technologies’ Q3 revenue grew by 112% YoY without considering the acquisition.
“In the last few months, we also debuted two new product offerings in the U.S. – the STI H250 and the Array OmniTrack. These product launches enable us to provide even greater site and weather flexibility at a time when the adoption of utility-scale solar is poised to expand to many new geographic locations,” Kevin Hostetler, Chief Executive Officer, said.
“With a full suite of products and the strength of our domestic supply chain, we believe we are incredibly well positioned to take advantage of the secular growth that is on the horizon due, in part, to the passage of the Inflation Reduction Act,” he added.
The company said the total executed contracts and awarded orders on September 30, 2022, stood at $1.8 billion, up 77% YoY. The contracts and orders include $1.4 billion from the Array Legacy Operations segment and $0.4 billion from STI Norland.
The company said its adjusted EBITDA increased to $55.4 million, compared to a $3.9 million loss for the prior year.
The firm’s gross profit in Q3 increased 1260% YoY to $80.2 million, helped by the and organic growth. The company said that the gross margin increased to 15.6% from 3.1%, driven by a larger portion of higher-priced contracts and the Norland.
Array’s gross profit increased by 131% to $47.4 million compared to $20.5 million during Q2 2021.