Solar tracker producer Array Technologies has published the financial results for the first quarter of 2024, with adjusted adjusted earnings before inflation, taxation, depreciation and amortisation (EBITDA) dropping by about 45% quarter-on-quarter.
In Q1, the company’s revenue was only US$153.4 million, down from US$341.6 million in Q4 2023. Adjusted EBITDA in Q1 was US$26.2 million, dropping from US$48.2 million.
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“In the first quarter we achieved revenue of US$153 million, which was slightly ahead of the expectations signalled on our last earnings call. Notably, we delivered record adjusted gross margin of 38.3%, which was a result of the realisation of 45X benefits associated with our torque tube, a one-time US$4 million benefit from a supplier settlement and our structural cost enhancements,” said Kevin Hostetler, CEO of Array Technologies.
The company added in a statement that it had negotiated agreements with key suppliers for around 45X manufacturing credit benefits associated with the torque tube since late 2023.
However, Array Technologies slightly lowered its research and development (R&D) expenses, as it only spent US$1.9 million on R&D activities in Q1 2024, down from US$2.1 million in Q1 2023.
As of the end of Q1 2024, the company’s total executed contracts and awarded orders were US$2.1 billion, while it had shipped 74.8GW of trackers to customers worldwide.
Looking ahead, the company announced that it expects to post revenue of US$1.25-1.4 billion in 2024, with adjusted EBITDA between US$285-315 million.
“We continue to expect relatively flat volume on a full-year basis in 2024 with declining average sales prices (ASP) when compared to 2023. We still anticipate gross margin in the low-thirties percent of sales for the year, driven by our structural cost enhancements and the realisation of certain 45X benefits,” the company said.
