Array Technologies (ARRY) Q2 2026 Earnings Report

The call communicated strong operational execution and commercial momentum: materially higher sequential revenue (+53%), record order book ($2.5B, +37% YoY), margin expansion (adjusted gross margin 30.8%) and improved adjusted EBITDA (+119% sequential). Significant product innovation and successful M&A integration (APA) plus a planned accretive AWM acquisition support medium-term growth and share-of-wallet expansion. Key risks include non-repeatable one-time margin benefits, rising international mix and input costs that may pressure H2 margins, timing-driven revenue/collections that reduce near-term free cash flow conversion, and external policy uncertainty (Section 232). On balance, the positives (top-line acceleration, margin recovery, cash build, product momentum, strong order book) outweigh the manageable near-term headwinds.

Array reaffirmed full‑year revenue guidance of $1.4–$1.5 billion and sees Q3 revenue of $310–$330 million, while raising consolidated adjusted gross margins to 27–28% (about 100 bps above prior guidance) and updating adjusted EBITDA to $210–$230 million and adjusted EPS to $0.68–$0.75 (guidance excludes the pending AWM deal). Management flagged timing risk—permitting/site readiness could push recognized revenue below the midpoint into 2027—but noted strong underlying momentum: Q2 revenue was $342M, backlog hit a record $2.5B (up 37% YoY) with >$500M bookings in the quarter, a 12‑month trailing book‑to‑bill of 1.5x, and an ~80% expected backlog conversion over the next six quarters. Financial flexibility remains solid with Q2 cash $307M, free cash flow $114M, total available liquidity >$640M (including a fully undrawn $370M revolver), net leverage at 2.1x LTM adj. EBITDA, and an expected FCF conversion of roughly 20–25% of EBITDA given the year‑end revenue cadence; the AWM acquisition (≈$60M TTM revenue, ~6x TTM EBITDA purchase multiple) is expected to be high single‑digit accretive to adjusted EPS in year one before synergies.