U.S.-based solar tracker company Array Technologies reported revenue of $342.1 million in the second quarter (Q2) of 2026, down 5.6% year-over-year (YoY) from $362.2 million. The revenue exceeded analysts’ expectations by $28.29 million.

The company’s revenue increased by 53% sequentially, driven by a 38% increase in tracker volumes, customer-led pull-forward activity in the domestic tracker business, and increased project activity following its acquisition of APA Solar.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $63.3 million. Adjusted EBITDA margin was 18.5%, improving 560 basis points sequentially, driven by higher volumes, gross margin flow-through, and operating cost controls.

Adjusted gross margin was 30.8%, up 300 basis points YoY. The company attributed the improvement to a higher domestic mix, including APA, cost-reduction initiatives, and incremental Section 45X manufacturing credits drove the improvement.

Net income attributable to common stockholders fell to $8.4 million from $28.5 million in the same period last year.

Adjusted net income per diluted common share was $0.24, compared with $0.25 in the year-ago quarter. This exceeded analysts’ expectations by $0.12.

Array generated $114 million in free cash flow during the quarter and ended the period with $307 million in cash, up more than $100 million sequentially, primarily due to accelerated Section 45X collections. Net debt leverage declined to 2.1x trailing twelve-month adjusted EBITDA from 2.7x at the end of the first quarter.

Array ended the quarter with a record order book of $2.5 billion, up 37% YoY. The company secured more than $500 million in new orders during the quarter, roughly half of which came from Tier 1 customers, including several projects exceeding 500 MW. Its trailing twelve-month book-to-bill ratio stood at 1.5x, with more than $1.8 billion in new bookings during the period.

The company said more than 95% of its order book is domestic, while half is tied to developer, independent power producer, or utility specifications. Array expects approximately 80% of the order book to convert into revenue over the next six quarters.

Array also surpassed 100 GW of cumulative tracker product deliveries worldwide.

APA’s first-half revenue was 17% higher than in 2025, while its year-to-date book-to-bill ratio exceeded 1.5x. Array said APA’s average pipeline project size has more than doubled since its acquisition and maintained its expectation of significant double-digit revenue growth and margin expansion for the business in 2026.

Outlook

Array maintained its 2026 revenue forecast at $1.4 billion to $1.5 billion. However, the company said the project timing related primarily to permitting and site readiness could result in revenue ending below the midpoint of the guidance range. The management said this would represent revenue shifting into 2027 rather than lost business.

The company raised its adjusted gross margin guidance to 27%-28%, 100 basis points above its previous forecast. It also raised the lower end of adjusted EBITDA guidance to $210 million-$230 million from $200 million-$230 million and increased its adjusted EPS guidance to $0.68-$0.75 from $0.65-$0.75.

Array expects its Q3 revenue to range between $310 million and $330 million. The management expects a heavier revenue concentration in the fourth quarter and said the resulting timing of customer collections would reduce 2026 free cash flow conversion to approximately 20%-25% of adjusted EBITDA, roughly half its expectation at the beginning of the year.

The updated guidance excludes any revenue or margin contribution from the pending acquisition of Affordable Wire Management, which Array expects to close in Q3 2026, subject to regulatory approvals and other customary closing conditions. The company expects the acquisition to be high-single-digit accretive to adjusted EPS in the first year before synergies.

Array Technologies reported revenue of $223.4 million in Q1 2026, down 26% YoY compared to $302.4 million.