U.S.-based solar tracker company Array Technologies reported adjusted earnings per share (EPS) of $0.17 in the third quarter (Q3) of 2024, beating analyst estimates by $0.03. However, the revenue of $231.41 million missed expectations by $1.48 million, marking a 34% decline compared to the same period last year, affected by lower volumes and average selling price (ASP) decline.

Array faced a significant currency impact in Brazil, where it holds the leading market share in distributed generation projects. The recent devaluation of the Brazilian real meant that revenue, when converted to U.S. dollars, was lower despite stable volume and pricing in the local market.

The company reported adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $46.7 million, a 19% decrease from $57.4 million in the corresponding period last year.

The net loss for the period was $155.4 million compared to net income of $10 million YoY, partly due to a non-cash goodwill impairment charge.

Looking to 2025, ARRAY anticipates steady growth but is mindful of ongoing headwinds in the U.S. market, including interconnection delays, permitting challenges, and labor constraints.

The company expects revenue to be $900 million to $920 million for the year full. The adjusted EBITDA  to be in the range of $170 million to $180 million. Adjusted net income per share to be in the range of $0.60 to $0.65.

ARRAY’s guidance adjustments reflect continued challenges in Brazil and declining average selling prices in key markets. However, the company remains committed to operational efficiencies, leveraging gains from structural fastener and torque tube products.

CEO Kevin Hostetler remarked, “ARRAY had another impressive quarter of operational execution, achieving revenue within our guidance range and strong profitability, as evidenced by our adjusted gross margin of 35.4%. Our orderbook remains healthy, and we are greatly encouraged by the overall momentum in the business.”

Hostetler expressed optimism for double-digit solid top-line growth, supported by favorable factors such as clarity around tariffs, the Inflation Reduction Act (IRA) incentives for utility-scale solar, and a supportive financing environment.

The company maintains a strong market presence in North America, which generated 70% of Q3 revenue, while international sales accounted for 30%. Despite muted demand in some markets, according to recent data from Greener consultancy, ARRAY holds the leading market share for distributed generation projects in Brazil.

ARRAY is mindful of challenges impacting the U.S. solar sector, including interconnection delays, permitting challenges, shortages of high-voltage equipment, and labor constraints. However, Hostetler is optimistic about double-digit growth in 2025, driven by clarity on antidumping (AD/CVD) tariffs, IRA incentives, and a favorable financing environment.

Hostetler also noted that the preliminary determination on antidumping tariffs, expected later this month, should provide more stability by addressing cost uncertainty for solar panels. This is anticipated to positively impact ARRAY’s order pipeline, which has grown over threefold year-over-year in the U.S.

ARRAY’s 45X tax credits are supporting domestic production, creating more onshore jobs at its Albuquerque manufacturing facility. The recently solidified 45X guidance benefits ARRAY’s torque tube and longitudinal Perlin products, though structural fasteners like clamps were not included in the final definition. Hostetler also noted that the U.S. Treasury plans to release updated guidance on domestic content requirements by the end of the current administration, aiding customers pursuing the IRA’s domestic content adder.

ARRAY highlighted the bipartisan support for solar incentives, noting that the IRA is creating job opportunities across party lines and that solar incentives are expected to remain resilient regardless of political shifts.

Internationally, ARRAY is reassessing projections in Brazil due to the recent devaluation of the Brazilian real, which affected revenue after currency translation. Sales pricing remained stable, but lower revenue in dollar terms has led to a recalibration of the outlook for the region. ARRAY expects targeted customer activities to continue supporting share growth despite modest overall demand in Europe.

Array reported revenue of $255.77 million in the second quarter of 2024, a 50% YoY decrease from $507.7 million.

The company reported a net loss of $11.3 million in Q1 2024 from a net income of $17.2 million in the same quarter last year due to lower sales and declining average selling prices.