The revenue of the solar company Array Technologies increased by 116%

The manufacturer of equipment for solar power plants, Array Technologies, Inc. (ARRY), has published a report for the second quarter of 2022. Strong revenue growth has become a driver of quotations. At the auction on August 11, ARRY’s stock was worth $21.31. In the last quarter, Array Technologies’ revenue grew by 116% to $424.9 million. The main driver was the acquisition of the manufacturer of trackers for solar panels, STI Norland. The acquisition’s contribution to revenue was about $73 million. But the main business of Array Technologies for producing kits for installing solar power plants shows strong performance. 

The company’s gross margin has increased for the third consecutive quarter and exceeded 11% last quarter. The long-term driver of Array Technologies may be the recently adopted US government program to support renewable energy. The company has announced that projects worth $240 million are under threat and will be in the coming years. This year, Array Technologies expects revenue of $1.3—$1.5 billion, adjusted EBITDA in the range of $120—$140 million, and earnings per share of $0.25—$0.35. Difficulties with supply chains and rising prices for raw materials remain a negative factors for 

Array Technologies. In the second quarter, this increased expenses to $54.2 million, compared with $21.1 million a year earlier. But an increase in income in a favorable environment compensates for increased spending. An additional factor in Array Technologies’ revenue growth may be the record heat in the United States this summer. Moreover, NASA observations have shown that there have been eight-year historical temperature records over the past decade. Every new form practically every year owing to global warming, and the situation is sure to worsen. It will need greater power for air conditioning, which implies the demand for solar energy will grow.