US Solar Tracker Manufacturer Array Technologies Reports $429 Million in New Bookings, Faces Orderbook Challenges
Key Highlights:
Revenue Decline: Array Technologies saw a 50% year-over-year drop in Q2 2024 revenues, totaling $256 million, which was still above the company's guidance of $225 million to $235 million. This decline was due to reduced volumes and lower average selling prices (ASPs) stemming from decreased input costs.
Market Uncertainty: Recent AD/CVD petitions and new IRA domestic content elective safe harbor provisions have led to market uncertainty, affecting project timelines.
Revised Guidance: The company has adjusted its full-year 2024 revenue outlook downward, anticipating continued lower volumes and ASPs compared to 2023.
Array Technologies, a leading US solar PV tracker manufacturer, concluded Q2 2024 with revenues of $256 million, surpassing its projected range but reflecting a 50% year-over-year decrease. This significant decline is attributed to reduced volumes and a drop in ASPs due to lower input costs.
The company has revised its annual guidance for 2024, forecasting reduced volumes driven by delays in customer projects and declining ASPs compared to the previous year.
CEO Kevin Hostetler noted, "While we observe positive long-term market momentum, short-term dynamics are causing project delays, which has led us to adjust our revenue forecast. Factors such as recent AD/CVD petitions and changes in the IRA domestic content elective safe harbor have introduced new uncertainties in the U.S. market, affecting project timelines."
Hostetler also highlighted the impact of the Brazilian real’s devaluation, which has led developers in Brazil to delay projects as they renegotiate power purchase agreements (PPAs).
Financial Performance:
Adjusted EBITDA for the quarter decreased by $60.2 million to $55.4 million.
Adjusted net income fell to $30.6 million, compared to $74.3 million in the previous year.
Backlog and New Bookings:
As of June 2024, Array Technologies had $2 billion in total executed contracts and awarded orders, with around 80% scheduled for delivery by the end of 2025.
The company secured $429 million in new bookings since the last report. However, the total orderbook has been affected by adjustments related to commodity prices, project scope changes, and foreign exchange impacts.
Analysts at Roth MKM warn of potential delays in orders from 2025 to 2026 but commend the company for managing controllable factors effectively, despite broader industry uncertainties complicating business forecasting.
Array Technologies remains optimistic about its future growth, buoyed by new bookings for its OmniTrack product and the introduction of its SkyLink tracker system, which features an 8-row configuration and PV power control to enhance tracker performance during grid power outages, particularly in regions prone to heavy snow and extreme weather.
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