Array Technologies, a utility-scale solar tracker supplier, 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.

Revenue came in at $153.4 million, down 59% from $376.8 million in the prior year quarter. The timing of project deliveries drove the year-over-year (YoY) decline in revenue.

However, the company achieved record adjusted gross margins of 38.3%, up sharply from 26.9% in the same period last year. The over 11 percentage point increase was attributed to the realization of benefits from the company’s torque tube innovation, a one-time $4 million supplier settlement stemming from a supplier quality issue resolution, and structural cost enhancements.

Operating expenses of $46.7 million were down approximately 7% from $50.1 million during the same period of the previous year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $26.2 million in the current period, compared to $67 million, a 61% fall YoY. The decline was primarily due to the lower revenues, partially offset by the record gross margins.

“We started 2024 off strong with $400 million in new bookings, demonstrating continued robust global demand. Our record gross margins reflect our strategic priorities and relentless focus on innovation and operational excellence,” said CEO Kevin Hostetler.

Hostetler, however, alluded to longer timeframes, posing a challenge to converting orders to revenue during a post-earnings conference call with analysts. “Customers continue to place orders for projects with more elongated time frames for first deliveries than has historically been the case. As a result, our 12-month conversion rate of order book to revenue will be lower in 2024 than what we have experienced in prior years,” he said.

Despite the decline in profit metrics, Array remains optimistic with an order book of over $2.1 billion, adding nearly $400 million of new business in the quarter.

Array logged a net profit of $19.34 million in Q4 of 2023, an improvement of 268% YoY from a net loss of $5.25 million.