Array Technologies Inc (ARRY) Posts Strong 2023 Financial Results with Record Adjusted EBITDA
Revenue: Array Technologies reported full-year 2023 revenue of $1,576.6 million.
Net Income: Net income to common stockholders reached $85.5 million for the year.
Adjusted EBITDA: A record full-year Adjusted EBITDA of $288.1 million was achieved.
Earnings Per Share: Basic and diluted net income per share stood at $0.57 and $0.56, respectively.
Free Cash Flow: The company generated a robust free cash flow of $215.0 million.
Future Outlook: For 2024, revenue is expected to be between $1,250 million to $1,400 million with Adjusted EBITDA in the range of $285 million to $315 million.
On February 27, 2024, Array Technologies Inc (NASDAQ:ARRY), a leading manufacturer of ground-mounting systems used in solar energy projects, released its 8-K filing, announcing financial results for the fourth quarter and full year of 2023. The company, which operates primarily in the United States but also has a presence in Australia, Spain, Brazil, and other regions, reported a net income of $86 million for the full year and a record Adjusted EBITDA of $288 million.
Array Technologies' performance in 2023 was marked by significant achievements, including a substantial increase in revenue to $1,577 million, which exceeded expectations. The company's strategic enhancements to its business structure improved its margin profile, allowing it to more than double its Adjusted EBITDA from the previous year and generate a strong free cash flow of $215 million. This financial strength enabled Array Technologies to pay down $87 million of its outstanding debt, ending the year with a cash balance of $250 million and total liquidity of $424 million.
Financial Performance Highlights
Array Technologies' revenue for the fourth quarter stood at $341.6 million, with net income to common stockholders at $6.0 million. The basic and diluted net income per share was $0.04, with an adjusted diluted net income per share of $0.21. The company also recognized $9.3 million in its statement of operations from the 45X benefit earned for 2023 torque tube deliveries.
The company's balance sheet reflects a strong financial position, with cash and cash equivalents of $249.1 million as of December 31, 2023. The total assets matched the total liabilities and stockholders' equity at $1,706.7 million.
Array Technologies' cash flow statement shows a healthy cash flow from operating activities at $232.0 million for the full year, with free cash flow reaching $215.0 million after accounting for capital expenditures. This indicates the company's ability to generate cash and fund its operations effectively.
Challenges and Industry Outlook
Despite its strong performance, Array Technologies faces industry challenges, including competitive pressures, fluctuations in raw material costs, and the need to maintain effective internal controls over financial reporting. The company's ability to navigate these challenges will be crucial for its continued success.
Looking ahead, Array Technologies anticipates revenue for 2024 to be in the range of $1,250 million to $1,400 million, with Adjusted EBITDA expected to be between $285 million and $315 million. The company's focus on adjusted gross margin growth and the realization of certain 45X benefits are expected to contribute to another year of adjusted EBITDA and margin growth.
Array Technologies' CEO, Kevin Hostetler, expressed confidence in the company's momentum entering 2024, citing meaningful additions to the U.S. pipeline and a global order book increase to $1.8 billion. The company's focus on delivering attractive returns on investment and cost-effective energy through its products, software, and services positions it well for future growth.
Value investors and potential GuruFocus.com members interested in the solar energy sector and companies like Array Technologies Inc (NASDAQ:ARRY) can find more detailed financial analysis and updates at GuruFocus.com.
For further information and to access the full earnings report, please visit the Investor Relations section of Array Technologies' website or listen to the webcast of the live conference call.
Explore the complete 8-K earnings release (here) from Array Technologies Inc for further details.
This article first appeared on GuruFocus.
