Key Takeaways
Array Technologies is expected to post a 23.7% revenue drop and breakeven Q4 earnings.
The company's backlog, APA acquisition, and higher volumes may support its results despite delays.
Array Technologies has been trading below the industry's P/E ratio, and policy risks cloud the near-term outlook.
Array Technologies, Inc. (Free Report) is expected to witness a decline in its top and bottom lines when it reports fourth-quarter 2025 results.
The Zacks Consensus Estimate for Array’s fourth-quarter revenues is pegged at $210 million, indicating a 23.7% decrease from the year-ago reported figure.
The consensus estimate for earnings is pegged at breakeven. The Zacks Consensus Estimate for Array’s fourth-quarter earnings witnessed no movement in the past 30 days. The company reported earnings of 16 cents per share in the year-ago quarter.
Image Source: Zacks Investment Research
Array’s Decent Earnings Surprise History
Array Technologies’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, with the average surprise recorded as 25.12%.
What the Zacks Model Unveils for Array Technologies
Our proven model does not conclusively predict an earnings beat for Array Technologies this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) rating, which increases the chances of an earnings beat. This is not the case for the stock, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Array Technologies has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $0.00.
Array Technologies, Inc. Price and EPS Surprise
Image Source: Zacks Investment Research|Array Technologies, Inc. Quote
Array Technologies stock currently has a Zacks Rank #3 (Hold) rating.
Factors Likely to Shape Array’s Q4 Results
Revenues are likely to have benefited from better performance at both its Array Legacy Operations and STI Operations. These segments are likely to have benefited from higher volume. The APA acquisition is likely to have contributed to the top line.
Array Technologies is well-positioned to benefit from long-term structural growth in renewable energy. The U.S. solar industry is experiencing strong underlying momentum, with utilities, businesses, and households increasingly adopting solar and storage. However, lag in project completions and deliveries is likely to have weighed on revenues.
Backlogs are likely to have improved owing to the company’s diverse and compelling portfolio of products and services, including OmniTrack, Skylink, and Hail XP.
Cost of revenues is likely to have increased due to the higher cost of product and service revenues, as well as amortization of developed technology and backlog.
The magnitude of the increase in revenues is likely to have been more than that of expenses, favoring higher profits. Operating expenses in the to-be-reported quarter are likely to have increased, attributable to higher general and administrative expenses.
Array’s Price Performance & Valuation
The stock underperformed the industry and the S&P 500 in the fourth quarter of 2025, but it outperformed the sector in the same time frame.
Image Source: Zacks Investment Research
The stock appears to be undervalued compared with its industry. It has recently been trading at a price-to-earnings multiple of 11.06, which is lower than the industry average of 18.69.
Image Source: Zacks Investment Research
However, the stock seems to be attractively valued compared with other insurers like Sunrun (Free Report) and First Solar (Free Report).
Investment Thesis
Array Technologies is well-positioned to capitalize on long-term structural growth in renewable energy. The U.S. solar market continues to gain momentum as utilities, corporations, and homeowners accelerate adoption of solar and storage, while global installations rise alongside government and corporate decarbonization commitments. A substantial order backlog provides strong revenue visibility for the coming quarters.
The company’s introduction of fully domestically-sourced trackers offers a meaningful competitive edge. Management expects both organic expansion in its core operations and inorganic growth through the integration of APA Solar, supported by a healthy order book and improving book-to-bill trends. Array has also bolstered its financial position by refinancing higher-cost debt, extending maturities, and enhancing liquidity.
However, shifting federal policies have introduced near-term uncertainty, disrupting permitting, procurement, and supply chains. Although module prices have declined, elevated U.S. tariffs continue to put pressure on system costs and margins.
How to Play Array Technologies Stock
Array Technologies stands to gain from solar infrastructure growth, supported by product innovation as well as domestic content advantage. Its VGM Score of B instills confidence. Its successful backlog conversion, cost discipline, and synergies from APA Solar bode well for long- term growth.
However, given muted analyst sentiment and federal policy changes, maintaining a wait-and-see stance appears to be a sensible approach for the stock.
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