Array Technologies reports Q2 adjusted EPS 47, consensus 18c

Reports Q2 revenue $507.7M, consensus $448.84M. “Array delivered another strong performance in the second quarter as we exceeded expectations across the board. Revenue grew 21% from the prior year, anchored by 124% year-over-year growth in our STI segment. Gross margin at 29.6% was particularly strong as we took advantage of cost-saving opportunities in the quarter and an increase in higher-margin non-tracker sales. Capitalizing on the strong margin performance, adjusted EBITDA was $116M for the second quarter, which was a $95M improvement from the prior year. And finally, we generated $57M of free cash flow in the first half of 2023, leaving us with an ending cash balance at June 30, 2023 of $156M, which represents an improvement of $105M from June 30, 2022,” said CEO Kevin Hostetler. “We also saw a meaningful increase in our sequential bookings, winning approximately $600M in the quarter. We were happy to see the preliminary guidance come out on IRA domestic content which led to an improved momentum in our conversion of pipeline to orders. That said, we did see a larger proportion of these bookings represent 2024 deliveries than we had expected going into the quarter. This fact, combined with larger than anticipated pushouts due to module availability, further IRA clarity, and permitting issues, has negatively impacted anticipated revenue for 2023. However, it is important to note that despite a lower outlook for revenue, we are increasing our forecasted adjusted EBITDA and adjusted EPS as we have increased our full-year gross margin expectation. Further, by delivering more earnings on less revenue, we are able to drive better than forecasted free cash flow performance this year, which we will use to accelerate our deleveraging.”