Slide 1: Array Technologies 3Q 2024 Earnings Call
Array Technologies 3Q 2024 Earnings Call November 7, 2024 0
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements and Other Information This presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our project
Slide 3: Business Update
Business Update Kevin Hostetler, CEO Neil Manning, President & COO 2
Slide 4: 3Q 2024 Executive Summary
3Q 2024 Executive Summary Revenue Gross Profit, Adj. Gross Profit(1) Gross Margin, Adj. Gross Margin(1) ($M) 26.0% 24.9% Revenue within Guidance Range 35.4% $91.0 33.8% $87.4 $82.0 $78.3 ► Solid execution in both U.S. and international markets $350.4 Strong Gross Margin Performance $231.4 ► Driven b
Slide 5: Growth Trajectory for Solar Remains Promising
Growth Trajectory for Solar Remains Promising Demand and Value Proposition for Solar Remains Strong Multiple Industry Tailwinds Near-term Growth Prospects ► Solar energy remains the leading source ► IRA legislation and bipartisan ► Forecasted U.S. utility-scale solar new of new electric capacity add
Slide 6: Current U.S. Market Dynamics
Current U.S. Market Dynamics Overall, market is stabilizing and improving from level of project pushouts witnessed in prior quarters Factors Facilitating Incremental Improvements in 2025: ► More favorable financing environment ► Clarity on AD/CVD tariffs ► Expected additional clarifications on domes
Slide 7: We Listen, We Innovate, We Deliver
We Listen, We Innovate, We Deliver Persistent development and enhancements to our solutions portfolio 2015 DuraTrack® HZ v3 ► Introduction of Passive Wind Stow 2022 STI H250 ► Array/STI Optimized Dual-row Tracker 1 2023 OmniTrack ► Terrain Following Tracker ► Hail Alert Response 2024 ► SkyLink ► Aut
Slide 8: Financial Update
Financial Update Kevin Hostetler, CEO 7
Slide 9: 3Q 2024 Financial Results
3Q 2024 Financial Results 3Q Snapshot Y/Y Comparison Three Months Ended ► Revenue down 34% primarily from lower volumes and ASP September 30, decline ($ in millions, except EPS Data) 2024 2023 Y/Y Revenue $231.4 $350.4 ($119.0) Gross margin 33.8% 24.9% + 890 bps ► Adjusted gross margin increased to
Slide 10: Full Year 2024 Guidance Update
Full Year 2024 Guidance Update Full Year Ending December 31, 2024 Planning Assumptions ► Adjusted GM of ~34%, inclusive of torque tube and structural fastener 45X $900 million to $920 million benefits Revenue Prior: $0.9 billion to $1.0 billion $170 million to $180 million ► Adjusted G&A between $13
Slide 11: Appendix
Appendix ARRAY
Slide 12: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation ($ in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenue 231,406 350,438 640,575 1,234,936 Cost of revenue 153,091 263,059 421,217 903,614 Gross profit 78,315 87,379 219,358 331,322 Gross margin 33.8% 24.9% 34.
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net (loss) income $ (141,354) $ 23,098 $ (113,491) $ 117,898 Preferred dividends and accretion 14,080 13,091 41,332 38,359 Net (loss) income to common shareholders $ (
Slide 14: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net (loss) income $ (141,354) $ 23,098 $ (113,491) $ 117,898 Preferred dividends and accretion 14,080 13,091 41,332 38,359 Net (loss) income to common shareholders
Slide 15: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation ($ in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Loss) income (Loss) income per per common common share share Basic Basic $ (1.02) $ (1.02) 0.07 0.07 $ (1.02) $ (1.02) $ 0.52 0.52 Diluted $
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net cash provided by operating activities 44,935 71,618 96,394 137,974 Purchase of property, plant and equipment (1,077) (2,191) (5,604) (11,615) Free cash flow 43,858