Array Technologies Inc (NASDAQ: ARRY) reported a second-quarter revenue increase of 116% year-over-year to $424.9 million, beating the consensus estimate of $336.93 million.
It recorded organic growth in the legacy Array business of 79% Y/Y. Adjusted EPS was $0.09, beating the consensus of $0.03.
Gross profit increased 131% Y/Y to $47.4 million, and Gross margin increased to 11.1% from 10.4% in 2Q21, driven by a larger portion of higher-priced contracts and the addition of STI.
ARRY recorded a loss from operations of $(6.84) million versus $(0.57) million in 2Q22. Adjusted EBITDA increased by 162.3% Y/Y to $24.94 million, and margin expanded by 107 bps to 6.1%.
Total executed contracts and awarded orders at June 30, 2022, were $1.9 billion (+110% Y/Y), with $1.5 billion from the Array Legacy Operations segment and $0.4 billion from STI Norland.
Net cash used in operating activities year-to-date totaled $(60.76) million, compared to $(134.11) million a year ago. It held cash and cash equivalents of $51.05 million as of June 30, 2022.
“As we look at the current state of our industry in the U.S., we are encouraged by the recent executive order issued by President Biden in support of domestic clean energy. The executive order means that we believe the ~$240.0 million of projects we previously identified as at risk are now expected to move forward. While we don’t expect the majority of these projects will get delivered in 2022 due to lead times, it is important that this demand is now solidified,” commented Kevin Hostetler, Chief Executive Officer.
FY22 Guidance reaffirmed: Array Technologies expects revenue of $1.30 billion to $1.50 billion, versus a consensus of $1.4 billion, and adjusted EPS of $0.25 to $0.35, versus a consensus of $0.31.
It expects Adjusted EBITDA of $120 million to $140 million.
Price Action: ARRY shares are trading higher by 10.60% at $20.23 during the post-market session on Tuesday.
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