ABQ-based Array Technologies reports $231M revenue for Q3

Albuquerque-based Array Technologies reported big wins in a third quarter earnings call this month, as the company’s CEO said the domestic pipeline of opportunities was three times larger than at the same time last year.

The company, which is in the process of undergoing an expansion into a new Albuquerque facility, reported revenue of $231.4 million in the third quarter.

Kevin Hostetler, the company’s CEO, said in the company’s Nov. 7 earnings call that the quarter’s revenue was in the upper half of the guidance range in the company’s last call in August.

“While this quarter’s orders and the number of total projects awarded in the market were a bit muted given the election uncertainty and other market factors, the overall momentum of the business remains strong,” he told investors.

Hostetler, who’s been Array’s CEO since April 2022, also told investors this month the company’s win rate remains higher than its historical market share, pointing to “great traction with our recently expanded product portfolio.” That includes its OmniTrack terrain following tracker, which Hostetler said represents more than 20% of Array’s global order book.

“We believe the continued success of this product is indicative of the wide varieties of terrain now being used for solar projects, both in the U.S. and internationally,” he said. “It’s an exciting trend for the industry to continue to expand its total addressable market and remain one of the lowest cost options for new energy generation.”

"Many are speculating on overall U.S. utility-scale installation growth over the next few years,” Hostetler said.

Third-party projections estimate mid to high single-digit growth from 2024 for the industry," he said.

Near-term headwinds customers in the solar industry may expect include labor constraints and permitting and interconnection delays, he said. However, other factors, like a “favorable financing environment” due to the Federal Reserve’s interest rate cuts, and clarity on tariffs can help speed up project timing.

“We remain confident that solar maintains bipartisan support and would note that our industry performed well under the first Trump administration,” he added. “We have discussed at length how utility-scale solar incentives in the (Inflation Reduction Act) are creating good-paying jobs and opportunities for both Republican and Democratic districts alike.”

Meanwhile, he said, Array expects double-digit growth next year due to a variety of factors, including that the company’s order book is still scheduled for delivery between the fourth quarter and through the end of 2025 as well as its positioning in international markets.

“For instance, greener consultancy data recently confirmed that Array boasts the leading market share for distributed generation projects in Brazil,” he said. “In Europe, while overall market demand has been modest, we are confident that our targeted customer activities will continue to support share growth in the coming quarters.”

The company’s earnings call this month comes as it works through a roughly $50 million project on Albuquerque’s West Side that will expand its manufacturing capabilities for solar tracker technology.

The 216,000-square-foot facility, which broke ground in April, will employ more than 300 people, according to the company. And it will have an economic impact of $300 million over the next decade.

On Wednesday, the company’s stock on the Nasdaq Stock Market was trading around $6.76 a share, a 13% increase in the last five days.