Array (ARRY) 9 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the Array Technologies' First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Sarah Sheppard, Investor Relations at Array. Please go ahead.

Thank you, and welcome to Array Technologies first quarter 2024 financial conference call.

On the call with me today are Kevin Hostetler, our CEO; and Kurt Wood, our CFO.Today's call is being webcast from our Investor Relations site at ir.arraytechinc.com, including audio and slides.

unless release website.Today's quarterly is discussion a financial press posted has presented the non-GAAP the on of basis addition, detailing results our been on In specified. otherwise financial results our GAAP of measures found non-GAAP A website. reconciliation to can financial be on We on website arraytechinc.com include financial a we be quarter visit conferences throughout on the reminder, our current market demand expected regarding our other attending.As we statements today the that forward-looking most information to are the company, encourage the you supply, at for including discussing and matters information may and results matters. statements differ and uncertainties materially forward-looking that to statements subject the results today. made actual These to from are may risks cause recent Form for discussion you of may our are risks activity, performance in recent to affect future XX-K that achievements. documents cannot of statements forward-looking levels refer reflected results.Although reasonable, the with expectations the we that most guarantee we the the believe future file a We our we SEC, or including results,

We turn are these results.I'll any actual of statements to to no to now update forward-looking statements the call conform over Kevin. duty the under to

into stemming of high XX.X%, from call. benefit portfolio. of range of Adjusted product the at the one-time Thank quarter with the operational came slightly and provided our end first issue. margins supplier in Good company-specific around XXXX in quality resolution of a some started updates off I'll successful inclusive $X the you, we million on our experienced capabilities on XXXX, key We afternoon, Sarah. momentum generated a February Slide gross Year.Beginning highlights from everyone. $XXX We we the continuing X, with the New above of fourth start quarter and our million earnings revenue,

our seen last we from across scale the end types. over business for generation what excluding we points strategically XX been billion. Excluding certain is than this benefits that, booked percentage inclusive target. margin, EBITDA, activity success million tube.Having the content book the with gross of and and prior up of the X which reminder, wallet bookings internationally.In X quarter, last With revenue, experienced our capacity and new see greater million utility new XX% of which utilities continue of demand was quarter an only one-time mid-XXs that and our customer $X.X and inclusive $XXX credit gross are with was points Slide includes the the consistent million torque facility.Moving nearly up gross we We QX, adjusted range gaining margin of billion X have cash $X.X of the a including we to-date broad flow The X.Xx from we X, $X approximately core ratio XXXX.As we starting market distributed this undrawn would representing projects, approximately when domestically with quality have of consistent adjusted this derived as book-to-bill $XX.X EPCs, and long-term quarter, from a across our to end Total accounts to from of classify of first order reporting both reflects bookings XX.X% from which cumulatively we sequentially also quarters. underlying cash remains print, delivered said was from in percentage the million, our liquidity the won margins came independent million of QX quarter our Tier developers, with share XX.X%, This approximately in segments customers.We our quarter, to million. the the domestic the benefit over earlier. of on year. to to profile, XXX contribution new mentioned XXX, our item, $XX.X revolving of benefits, adjusted all balance have targeted $XXX generated and And a $XXX power quarter available historical free of related producers,

in world, quarter both in products and first weather the has orders our half was and been and of in the were North strong and for continued the software orders Array New highlights global of historically rest to which services, elongated for optimization customers America energy case. place the projects case on for our received solutions.As with mitigating the demand including discussed continue strong the deliveries second than last call, year-end more year timeframes severe

assets.This is where than are earlier, commentary revenue may conversion utility-scale generation rate our consistent and industry-wide result, we of what prior the year-end in is remains one in has also, to and options customers and for high-probability I to as and in in with to trend expectation the unchanged experienced lower solar, aging for of have capacity As lowest-cost the in energy energy-generating of developing the our book contracting demand dynamic growth be an pipeline be our funnel new perspective, years. of they order high-quality, satisfying XX-month will continues on projects out we past. a and time growth the our need portfolio have products provided of XXXX than part, continued This attributable call.From overall highlights with our robust growing This guidance to replacement further mentioned for of grow. aligns for opportunities solar the

the aspects have in around messaged business. we across have customers the dialogue we most and XXXX half conversations, permitting positive of long During lead-time both and interconnection, what on customer a reiterated This of issues to customers seeing large, of in outlooks.By prior as the appropriate last to in to we seeing and equipment, of these owners cases, and manner. there customers These they and moving much financing. projects communicate of the many segments year. we focused and growth on are to are that guided asset their quarter, normalized and, delays a customer ahead be as and customers with not ensure past.But industry broad-based is impact Throughout represented supply continue the second of discussed chain the the across our remain our of first are communication a are have in continue of on seeing all individual voice handful issues softer consistent call. the half who an trajectory all they business continue profiles, timing The cited the our and with their common before are

energy The outlets, stance that time-consuming in will globe. host our uncertain Summit in any held to higher sessions on success can the using our I to X, groundbreaking a like the the Abby than the filed customers facility our and U.S. at dynamics, return billion very during the clamping continue domestic offerings. different module good-paying patented and tracker variety of HXXX of be of of version projects the a minutes we have summits expensive providing HXXX removes energy and production, proud are greater EPC to tube potential We a the be didn't $X.X strengthen are our X% dialogue, well-positioned other this much very our our also with our was owners the incorporates cover addition to as bookings will some design supply received the in around features jobs, on American the of better point customer fit accomplishment, I'd of forward office availability.We the our uncertainty version Brazil already our remiss, our the more power virtually topics, module product, from design and third-party phase industry of Energy market lower to to is the on Brazil. and state-of-the-art of energy was independence. our seven to petitions groups several LCOE and XXXX technology. we levelized This Brazil's many software, drilling Heinrich forum and discussions closely module as the a in beneficial QX delays, at weeks with levels. in of program optionality. energy hosted XX Lujan, of in many investment.We're Jennifer most they new through where further adapted the and we to may feedback and our numerous this projects ago.As including of low-carbon an course, support a latest elements it Europe, And Albuquerque. book our cost for AD/CVD type of of data the uncertainty of in our in breadth immense torque duties feel energy media of recent at related overwhelmingly regulatory to and board.Finally, flexibility manufacturing tracking back highly their using patented at we we including our look even our from of technology, and product minimize you in independent impact developments year. excited periodic and a U.S. AD/CVD in as trackers offices which portfolio, and we the technology, work to and diverse is it the to positive of New Senior minimal recently from DuraTrack testament or years, utilize solutions, to This manufacturer team flagship the few this and our or of driving in seeing which Senators Granholm, driveline.Our manufacturing was top any According the need customers' work clean if changes.This our participants will more benefits, filed or cause both is productive any offering, around of clean continue amount have valuable slide boost holding part facility monitoring product and/or our becomes Mexico feedback to environment modification the value and latest Array Brazil articulating construction a times truly to this the value complete the movement, of XX customers President The as from order our top was deployment with success assess recently The This chain, selection and capabilities.Turning for project and region.We're employees asset the of and advantage unnecessary of create the our solar in a the services petitions.In talented One Array's Secretary our offerings goals. course, showcase Array Customer read current across ePowerBay, cited of highlight event products the earlier enhanced efficient Hopper, includes candid for ongoing few Arizona efficiency typical service we part and of business take plants meeting report XX

We expect in facility frame. come online this early to XXXX the time

this our to Slide a X, supply as lower part is to part enterprise strategy, this it of and quarter. around is exciting reduce and chain for While required certain we've software costs of key offerings introduced supply few continuity approach facility hardware our XXX not on of broader risk components.Moving

OmniTrack our software weather assets Hail and it's approach systems. to use the The and ensures and Hail event. the assets features stow backward-compatible system of to First, protect is prediction investments. for potential safeguarded leverages of are trackers advanced solar on which against solar damage, patented launched and longevity durability available groundbreaking Alert anticipated solar algorithms hail autonomously enhancing Alert we that officially This Response, set currently hail an Response before our a from DuraTrack damage, designed preemptively

sites Some capabilities Hail resulted a to There our Fort area, the in stow unfortunately impact which angle X- test XX-mile storm.We storm of located worst subject were the advance to X the X XX-degree confirmed with were that capabilities successfully commissioned of of to that Array sites. some those Bend X a County put the being with operators within recent the of of reaching optimal hail in sites in Texas, X-inch-sized trackers hit radius hail. these the Response Bend in sites sites at of solar Fort the panels storm in to utilized these

is owner example solar stow solution and to designed support and developed experienced report facilities strong an this board.According an the wind We utilized the was using obviously provide our insignificant of proof stow the completed proved of passive experienced are educate noted technology. active solution and the X, participants to the annually, recent and our energy the angle, help X.X% in mitigate very worked of resulting study a wanted to customer an the energy energy compared This production, technology risk.Turning from better and and we've our the damage. capabilities, upon depending D&B, around medium of technology. to This attractive Over determine stow highlight stowing Slide Array weather and proximity mitigation location stow high-resolution events have effective customer.During patented site model actual of we noted of work evaluations can had This asked we project be a simulate that asset enhancement generation site in losses data. was the market time, the in to Array by tracker can independent which how help close is regions.Specifically, competing our it's wind wind the report with high-wind verified utilized had our wind team they point. we passive customer another point ROI for energy as much that benefits to data engineering algorithms work and the passive as active more of the discussion, a and we a by and capabilities, innovative active trackers stow with other with our patented for stow across promote an severe as hail to model, our the very why.Our performed the With a to that significant customer Array customers consistently to our showed behavior. one sites passive stemmed with X articulating One another. out that tracker customer by teams, happy dialogue robustness stow effectiveness including similar stow

operating XXX-megawatt by on the half value asset the on zone enhanced energy $X.XX Active present economics about a benefit high-wind passive a meaning the million a stow contrary, is net stow design. rely owner.On it watt, to me top of patented yield, is as the is create would mechanical is a using and XX-year technology systems, solution, as means tremendous stow a high of to entire Let and the fail-safe is over articulate in The our ROI simple all, what unnecessary or passive technology the overall energy sensors. stowing facility from software this and fail incremental to tracker, This inserting hypothetical unnecessary algorithms cost risk and $XX per external wind period. thus That the site. production can or complexity increased asset potentially easily at stow trigger for owner. a

report a customers, the of additional go for on & before Products continue access this our the inherent the to and color within section insurers provide outlook. product wind the participants, will passive to remarks summary page questions. of solar educate on and features technology.We now differentiation the and to We our our some XXXX will opening you advantages I'll have website get our made and publicly stow 'XX Services concluding QX encourage line available banking then at it.Kurt of arraytechinc.com results to

you, start attention around Thank you and I X. would by additional Kevin. to off some first quarter the ask like your providing details that turn to Slide results,

moving on and for revenue the which of coming scheduled briefly the of we was sequentially communicated our speak $XX to we XXXX.Overall, our increase deposits revenue in year. slightly in this last quarter North by above margin, contractual balance down volume million, to range the later America $XXX international gross year-over-year XX% call. for line made on sheet QX down at from 'XX, As came deferred from locations.Before in like balance customers from we Kevin in remainder ahead of our the the represented in what to quarter, of fourth our high I'd revenue project as quarter, with the our XX% guidance mentioned, ASPs experienced and end revenue saw million note had with declining deliveries of XX% the Sales

quarter deposits revenue adjusted our inclusive an which margins $X of of first one-time earlier. million due of of in cost additional again goods our XX.X%, to ramp mentioned year-over-year, Kevin achieved expect in We in gross come quarter second expansion to half second the over percentage was XX revenues.We as increase benefit deferred points advance the of sold,

acquisition million $X period net Excluding we the that year, non-recurring diluted $XX.X was loss sequentially and of the guidance $XX.X in points was during same by This and XXXX, for the improvement to by per $XX.X in XX prior $X.XX, one-time for cash of gross of compared adjusted diluted the income on focus conclude XXX benefit, intangible nature expense XXXX. generation.Now basic adjusted the adjusted basis XX.X% XX%, during period prior inclusive prior no of by to year-over-year was of QX a income versus we'd the prior adjusted prior and basis of same year, last fourth $XX.X we $X.X quarter expand assets during a saw per year-over-year to net and negatively net million, compared to from compared million first the million of margins million, certain income benefits prior by during when and the of impacting $XX.X cash amortization associated of percentage XX, was items a $X.XX EBITDA XXX points previous the in share including the million down full driven and several STI period.Finally, the the margins improvements XXXX. one-time per tube.Our is the within common And same expenses versus quarter income the decline quarter our changes benefit, X% million for year with during quarter of per volume made and on million year. expand the affirming lower down the our million $X.XX to approximately torque share to at same or in million EBITDA from the year, to $X share quarters.Adjusted business. the of compared one-time operational diluted have to adjusted year.Adjusted first of income free loss to ability income net were $XX.X testament during from GAAP like million considerable period to net on $XX.X our $XX was relating basic net Slide flow to share year time. first to the $XX.X diluted and of basic demonstrating a attributable and go compared million shareholders GAAP period was period was continued XXXX our $X.XX, this to Operating

recap, of we billion year to back $X of to call, guided a to margin revenue XXs of our range, February adjusted we $X.X EBITDA revenue $XXX As billion, low half-loaded. communicated, the EPS $X.XX $X.XX.As on profile issued guidance million, adjusted XXXX and previously our $XXX gross in million is percentage adjusted full when

We revenue AD/CVD to the QX from to third into the quarter to earlier, fourth recent peak that million range $XXX the this petition sequential both continue year. the for growth sequentially with inject XXXX.In uncertainty and some $XXX touched upon of regard the expect Kevin to the grow in does QX being quarters, revenues to fourth expect and million

be projects are in those by how next mitigate, new awaiting that the is plan news prioritizing effect.Whether of few new or further Part starting details, modules their be play on some with of other to get projects may part risks tariff AD/CVD petitions and include could over of remains whole, to hearing would While any potential plans and imposed tariff. dependent put subject into effect ahead in short-term business designed scenarios mitigation prior manufacturers that digesting into these around to any seen the plans sourced to from we potentially customers months. out are going tariffs to the

this will and that full to net call the at this time is petition be quantify how impact a out, guidance, risk year of a many play a recent or ultimately news not the in Given are whether around our unanswered any questions opportunity. to the we how potential position

back further there to on some have when We and updates clarity will the our I'll any closing remarks. provide future impact is we if call turn full for over to expectations.Now, a year material Kevin earnings call

Thank Kurt. you,

continued positive momentum We are in very excited business. the about the

product. features Response, offering, weather quarter, mitigation our Alert out and we next successfully the launched new to including the officially of generation During we rolled HXXX severe Hail our

next to case healthy the amount includes growth would see this in million remain at of Array the importantly, service for as continue visibility by This in a and the products with quarter, well-received will for very bookings more general, portfolio.We XXXX. our order capitalize us a year of solar greater the We of industry book of and now portfolio at the open the evidenced time the into at year.We with call for on than $XXX the of billion approximately which customers, to $X.X Operator? meaningful orders excited very new historically product our up by gives quarter, be for questions. diverse end our

Instructions] question that have Mark Strouse [Operator of first comes JPMorgan. from we The

for the curious the to beyond. pricing XXs XXXX Obviously, that of kind kind Are high you there's you're of pricing. kind for but reiterating that I in That investors mid be your non-XXX might your for strategy delivery sacrificing your to start wanted and gross concern just for still margins. you're your confirming margins? margin been of some year, bookings for -- lowering I with think guidance gross with

increase ability to we're mid-XXs done sacrificing our over we've I'll time. And well give That's mid our that reductions which recovery, not and that not at those to is the a a margin as XXXX really result passing messaging piece margin, in reiterate in continued the just guidance margins the share we've QX.It point. really about structural that would as relative a really we rate our in weren't hit at drove by quite ready to of to consistent was evident margins the margins XXs. cost been very thought we those as around this in piece keeping customers. reductions market our momentum on Look, and what at our here price we're Kevin. It's that

our do we as So we to forward. in ability that remain confident go

yet the have see benefits. on We to plays passing XXX market how to relative out

that's to we'll wait margins as have that thus our just see few of margin low overall think reaffirmed gross the something to to far a year, quarters I benefits. far, how we've XXX transpires.But in continuing this benefits. the guidance we're without And XXs as inclusive mid-XXs see those XXX

very our out. feel we strategy comfortable playing in So

Okay. somewhat to And question then difficult this might be answer.

could of and AD/CVD X but offline, your you AD/CVD market with by of you can that share? we takes with years do kind early saw investigation with but And and that of puts ago the you think lot moving how much XXXX maybe case? was that with you just So upside up a follow know parts, kind maybe talk I of saw there's what the AD/CVD, about downside driven

AD/CVD I think back of look, we XXXX. we in -- were net a were benefit

that, do recall, not we of were several solution, clamp many on in gained into tubes with you As our our the we that market that as torque for a really and our pre-drill of call tube the you know, structure share torque points result spacing. as of

customers filing, us filing modules taken as frankly and prior to last greatly up those yet game, into that UFLPA, to really customers changes particular fully lot don't up installation.And was just that.As much installation. a not too that the have supportive -- very changing we a new. we're been this allowed allows as year. a withstand position it's not The understand what in and later to know in yet, impact product modules, don't the our way throughout in our all and that were of on have our And I changing We weeks time relates flexible first say configuration certainly are, the the really this X system benefited that and look, it time we to were hasn't think modules just readily to in results us very of

by what you to silent they on get to and investigation to have their received the approach the potential that But of coming from the in days. point. remiss on of continue market.We're if guess a again, that, basis, or this I'd we're on back certainly at a to be either ideas So And after ACP the not, what government and to customers there's understanding our tried of going to is going impact not until how for down several of impact remain that this be federal our understanding daily full further marketplace. the tariffs touch conference then and set the with I just continuing, that

question next Barclays. we Cho have is from of Christine The

margins back the So still on million gross gross settlement, was $X we just XX%. margin point, this if out supplier

You're guiding to low XXs.

from slowly to XXXX? be maybe higher as for we consistent of margins, like like that So up we think XQ? should of with the respect should of there should it's the remainder year? like the low in that And Or from decreases it just pretty it quarter any range this the then think sort XX% of kind pertains to was catch XQ, anything else gross driving cadence notable

Kurt. is This

have clocked That points I percentage settlement.We of see of one-time was in margins, right one-time think will different margin obviously, benefit $X the a with to project was it you about the item that margin million, related each did X.X slightly clearly profile. the gross that quarter. a

bit Now, that more we quarter. see this a benefited from did in XXX little

that year, it referenced, to there from had of we closer it, bit mention there is margin. So XXs movers did did advantage. gross certain powder XXX. we a heavier as more but be little XXX, We to type of the bit assuming that amount a on we in was get-backs the left first some think little that about that the in, where will that low benefit it that XX.X-ish of of the a we do do. the you be that We remainder in a case the weighting mean that won't last that we we call came call that lower mid, talked we're that's obviously about.And look And would through

a any the hundred question. couple you're seeing half back a talking quarter points in in answers in I basis hope in half what your here. first that direction the You're and

Yes, that was helpful. And my just follow-up.

in just last exited the these? your positive mentioned you quarter while. anything changed bookings quarter, and this this is function Has deposits of in time than prepared positive on collect lot your what contractually versus a Or was backlog larger it is how being You first your it a for that a remarks year?

developer an for we've in this timeframe and EPC, is cash inventory. we're that down seeing of put time, bit they project really to cash Obviously, longer that at-risk be That'll bookings more a little remarks IRR.So their If get standpoint the work, as shovel-ready. the that to any call when timeframe. a from a the meant is want or get put us last to in that, long-dated necessarily prepared hurt on are Kevin to the even buy -- we the we actually to mentioned from when a be don't his we what compensate we bookings, mentioned will seeing to capital

inventory on bit of and is to typically that that we ultimately we a we contract end signed to deposit.What there the that. get So will between when a actual is itself align we expect time lag when what exposure to our to mitigate do when the little is the get do the try deposit booking be

penalties up put us. front them there, cancellation for but in to Now, obviously, doesn't that cash any some there's require

throughout timeframes pretty a the little has last have year consistent the I So that's bit got that dynamic over elongated. you'll these that which see think But industry. changed

next Goldman Sachs. Lee have question The Instructions] we comes from Brian [Operator of

here. which gives high. you now some you the the here margins, decent of get to low than mentioned better on back I you one down would somewhere volume, I'll reiterating for to to the keep pricing into XX% is into but guidance, visibility normally part a the XX% you range revenue. know -- to like next don't have. flat on It's imply when it Kevin, based bookings and guidance said it year you're 'XX that between have year-on-year you backlog would try you want into you

and an for pricing. relative or the to decline So down XX% view presumably, XXXX? a think trying better sense early have of to in the the have of based for pricing the XX% or bookings Is get you you're implying year for to seeing that year Just backlog now. you're price Would you what a that part right on terms 'XX you on equal worse? about trends

impact here term. Yes, again, because, near to Brian, we're very steel really hard a that in I hyper think deflationary environment the in it's

The last I that down price looked when was circa from just So from last year-to-date steels steel think a about the time week. even pricing, XX%. down spot of you

So very significant.

amount decline related to mid say, single -- is would on to the decline, with decline amount to and cost that remember that of I it's of I of what then that our of and now, related to have decline seeing your we're period-over-period I nearly which a that customers.But now of pricing effectively. on call some ASP our are issue not passing last yet. the there really don't very the commodities, of hard we're us we've pass disproportionate premature is purely to low again, to is our very the pricing in certainly digits into XX%, on commodities, disproportionate it's and that. that far those translate high booking that.So costs margin end that And So Of I'm is what too for be to right? It'd portion our is our customers view do think savings in you just that. And translate pricing savvy said ready to a expect purely a of what

So helps. that hopefully

helpful. take Yes, offline, it. rest I'll that's the appreciate no,

Osha The Joe Partners. from Guggenheim question of comes have next we

an saga. we on status might panel of the the wondering there qualify? clamps, that have chance update to your sailed? Or see still XXX clamps the we a able in I'm be Has that can those if ship is

to tell. I information don't it's think that. Yes, We the too final have early on

clamps for in it may a One definition. value certainly lobby X has fastener areas under is that under. And to saying higher one remember, to that under That continue We been clamps. that. fall we've structural the different consistent there's

$X.XX it's think kilogram. I per

doing going the amount, feel backup are can I that part knew.This one still not, clarity? be get least fastener. of think why continue road. of which a at asked -- fasteners do they're our wish definition we the dollar is structure, torque structural If element for the they'll into be and other that down definition.We're we I piece kicked we of lower certainly has fit that pretty still to you it under tube the have when we're a to comfortable lobby less but The me, is considered provide can valuable to that structural other, and see to our structural continue think but something And thing. that clamps the we're can a under look, you part part steel to

guidance that some next the of We of this the I'll that additional structural form yet left we're this opportunity, year. are the into content unsure in what but for to will release.And everyone all domestic be have of take we to Joe, on weeks, in value put our guidance call remind covered few here expecting again, fasteners

comes we Securities. of The Jordan from next have Levy question Truist

Maybe just an OmniTrack, DuraTrack on rollout decreases HXXX you a if as well customers price to bookings the after nice update there. could again dynamics in are quarter provide of kind you're want as the versus to of just see us the seeing how reacting

sure. Yes,

become starting least HXXX And turn traction of with pleased DuraTrack unpack now orders, priced of platform spot HXXX, think HXXX the not the uptick discussed little in certainly pricing. really in quickly for relative pleased at and on And internationally, see the in last, I quotes, of the bit the least quantity our at happy that price win we've large with is Brazil, our the DuraTrack into gaining doing to to past, see any And well in we're and to new the this gain those for win OmniTrack rate really, them certainly offerings versus We're starting our at we've been it's will as really seeing as really in So X let that me intended our we version of dominant on look, we in months business, our of international And look say just win the the revised for win to pun our we're rate just internally. sweet rate, And lower Spain The the very the is reduced in we're just there. we've regions. the a proposition to very that.What hit starting acceleration. we're trend say those and at traction rate, different. X is U.S., continuing those other really the then market, customers. DuraTrack versus point. in a value winning.What can in the is very just no

continue. yes, I to going So think that's

would play is thing This our got of we orders OmniTrack that only we've I multiple The in regions the all is our -- Kurt. on from in order add in. that book

product, So higher well is featured product Kevin mentioned States the the right is the in or now, will winning given an that's or between received. people quality the a here I say, DuraTrack. HXXX being higher DuraTrack the DuraTrack, And for as which and go should choice

comes from The Piper of Kasope next Harrison question Sandler. we have

nature. understand think Tier your backlog proportion you trying or XX% in is sense over prepared of you us but that the has Kevin, of what multiple in I land a customers to 'XX. de-risked years, 'XX your volumes backlog equipment -- of that the are Can I'm on de-risked permitting also sense the even talked just Slide that mentioned you essentially of fully critical are in remarks, and than your X how interconnection? more a X get and give I

of we a we're our backlog, confidence when have Yes, I something all, level. think, high to we be into Kasope, first putting -- have

we criteria to months, the the going project over order. say, get a in XX forward. our have We start XX added other confidence several last, date. in that We've have, this to to And awarded been

So the And financing. and nature. months voltage look in adding recently, we permit. we look things supply the the We breakers of do components, ago of level of that X the surety started of interconnection high at about comfort at maybe

X terms I months would percentage to we've have backlog. been what know don't that have ago, it's several for of for better can So only because it into you that. today get than of I in other I our it added say, filters data

The Citi. next Bagri question have from we of is Vikram

in customers, differently you're you from, Kevin, do in that with some your from, you about I ask or in you with either the gaining was part to believe prepared earlier the mentioned wondering, do like, wanted relative what share note, more on share Array And I pricing Has the besides wallet remarks, on pricing then, getting action been your one? differently. beyond these clients. there clients, selected strategically clients or year, overall market?And overall? did is selected with you do share what a these

Vikram. to lot A there, unpack

all, just on a to for we've value savings me we're our proposition aligned pass drive the has to our customers. doing organization right that is, that taking effectively what continual basis been on gain market, priced to then we the Let the and of that ensuring our approach cost say analytical to can ensuring product share first and got that

of are we think could X customers the personally generate deal that the increasing those great then thing what's high a something The marketplace. paying significant. of highlighted I attention hail engagement a quite coming making incredibly and proposition, and funnel, That's here been customers several-day and an been wind give proposition.And has the other X%, clarity empirically I customers of show of event we've that that it's engaging difference. in propositions sites -- all and new things.And X%, on that been value call development new stow things, many such with the here It's we are a certainly study mid ago in that have the really sense customers engaged wind of of customers automated done response and X% we pursue. the our are of personal at this in to for And really life those we at product war. the the market. asset we've we such giving software responding We're all a year.We've sense my and customer to things.We're to amount that that's That's value the selective win doing energy those days and in So product And the that the the point orders getting a it's sharing the of changed. smarter above, incredibly into well the them those our a as brought not for value XX responding and them, thing improvements, well them forum the years, about we significant. to as really of customers more think having not year I being are this every customers innovation and that the want where think happening certainly a just a pricing XX

have comes The we from Jefferies. from next Ailani Dushyant question

on that plant western has one on just I do see in any as talked position million that? DLM yourself had solar a XX you about its updating And for timing acres. by well? How

I'm sorry, couldn't hear. I

We repeat you bad have connection. a the Can question?

on by that? talked Sure, see acres for the for western, about its XX solar of the and can states. -- question timing that updating yes, how can you was, yourself DLM you hear me speak positioning The question you now? plant basically the that on has you was Do the million western western

to will certainly about out customers, the really developers there will PCs for be of then it. those up business. We're to positioning it we'll certainly share excited take And our business. IPPs, that and the work our that that Well, fair be with developers,

directly. that good I we'll think participate. we'll and it's certainly, through our But not do a move, customers, very

The next have of question we comes ROTH Philip Shen from MKM.

QX bookings activity in from tariffs? mix can standpoint, U.S. impacted the take you QX be the How given bookings? a trend? new expect the uncertainty AD/CVD seen was around the housekeeping then do versus share what QX and Have to international pause separately, And you a or you

and booking want you take trend take to the the -- Yes, part I'll about Kevin, the then first

and to industry a booking get from seen about mean, the Yes, to several in cyclicality, the year of I'll don't really the think we've go bookings quarterly off current the to get with fits seasonality with think stayed of the just booking comfortable QX due the this in business long-term as QX We've We're and over and the of trend bookings. momentum and far as that so tried and market last that. trends we our the I it's, years. stops away or I quarterly we've that's

that to stay in that our and from I'll business, from QX going say just bookings. momentum underlying the QX date. with I'm away standpoint, pleased we're So to predicting

not any out. that in seen may term, or let in may but quarters the haven't Kurt significant We I I'll what happen the change part. near predict about will second talk

we're and QX shift in that, I'll low in immediately hit add international price just we pretty not quarter. why what away then It's like mix. from with we quarter go going a get the an here.From -- saw the a quarter what booking to by change with $XXX at any revenue consistent our you Phil, you look kind of to just as and had what seen do Yes, just you we the historical That's to number or go back historically is. just trends, we concession anything is end we do that bookings standpoint, with of not we've where try That's and type high price of haven't million. a any because

it should that at we'll get right out Q we look when standpoint. -- competitive a be that from you from and now think, our I you at look

in unpack you the worth certainly difference top X in And ability those Array with but mix fields our top numbers the track markets us XX share.Our And has say referenced my the than still in And think little is XX remarks technology but in XX in what And we're that been his is proof Kevin we points of competitive when that's points.For had year our that's have we yield the We perform a with same. seen percentage the more those about that have sites helping of through we in full seen know December, bit alluded Brazil, XX to and the we've efficiency. and example, prepared and record it's sites. remarks, past significant. there, from the better. in Array you phenomenal. to several Brazil getting In data it, the just I it's results, were as winning energy and the solar those

those where And about for results third It's results a in beating them is the we in love really that to So marketplace, is statistically capturing very talked competitors helping there we us routinely that putting this we've and compete party because see. down additional significantly there against out that everyone than rhetoric. markets. better results actual and win business those out it's

Mizuho. Capital we The from next comes of Mizuho Maheep -- Mandloi question have of

Maheep Yes, Mandloi here.

to looks Should of an mix rest on we it's of looks It year? might Just a like be also. Just XX-XX second AD/CVD margins the expect or revenues, similar U.S. of similar XX% talked XX-Q. part, expectations international. to international being here? It exposed international, like for any on competitive. something understanding here Should something the the And expect around we the you for trying on going the get your which question of rest improvements forward about there?

there. things of couple a Yes,

same the in those with in supply with ship there's coming Q&A, bit I as we accelerate mentioned it's we've customers. to We earlier the more some have book versus some markets but what the with supply. and quarter, obviously, here Regarding bit that lower improve fairly a burned can for consistent obviously little little on in that the margins work.As know, the think can be We burn sourced projects. time around regions we far Spain, already you some a mix, and sourced we've was got book, margins, see in of Brazil of It particular that fairly those we've In into there to in.But what through kind doing. second source regions move and and half more Spain how little any think consistent. that I quarter those in as coming will where inventory cost did to schedules going and the the secured Brazil in in we're a locally

can and the that that think I similar see lift you second half. see QX in range, you'll So the to kind of then starting

have Donovan comes Markets. Capital we The of Schafer next question Northland from

someone on it about incremental is with the the got doing this new that of commented the correctly? asked that HXXX well driveline attractive down be, DuraTrack more, actually it's that that you've but Kevin, Q&A the internationally, earlier is done the that more is interest the redesign swing U.S. that the the in instead cost Am intention market, so the that with suggesting, the else great that actually ask was that want I in that U.S. first the design, kind HXXX not there's I think to in structure, because you between of so rotating caused, that seems is the you tracker. now understanding to thing seem to doing I So it X pendulum driving be making shaft rows correct? it's of

what much time. period was hybrid we saw U.S., Yes, redesign. what originally line, in wanted the and say was purchases by that would and happen of our you're in access some had engineers I in in to targeted improving about FTI product U.S. disproportionate for customers has to internationally so amount the very for launch we do just accelerating of Array migrated did only that's much that. engineers and kind now effective this really we correct. with weren't the And DuraTrack. at a the business. large And targeting price we getting that that international enhancements cost.While product initially we market, accelerate was we're versions working of lower international cost with coming international quickly enhancements, its that The point that's right. ideas up booking And still the made to going it The then frankly a the of to longer product but is here of the absolutely the Not more reducing closely U.S. our

on new It's be Brazil. that'll that delivery and in again, platform, out. Now Spain for quarters several predicated both really

So that is being well platform received.

partnership like, sticking international, it's I with And still steel a think but And -- up then, there an interesting. company, Arabian, announcement, believe a the Okay. fabrication the I name I Saudi following sort the for is press think it's of it's was of their Aluminum then release, of that's with called kind subsidiary. kind

Is other least materials such and describing able And that, have in, portions, think the someone to still like sourced market East and And -- the built curious, maybe still, being that be as Saudi I does go so edge to conditions. a Arabia and as so significant a market in costs give locally your forth. Middle you that? know, of Does or there harsh that have like Africa after places of hypothetically. I is DuraTrack still participants? mean, I I you've don't I'm sense at it maybe that and bring perception? an the does tank.So can parts that taken not remember reputation among strong. Made weather North out, like once so

over what just as we're chain well meeting there. back I supply came of sense in end customers, I'll question. partners. on Great Abu with you and a a And use several Dubai Dhabi week as focused from give

lower in, a as huge But a a slightly East, be Middle going Africa, broadly well is at quickly to market, think than would domestically. it's this in here albeit the be very we I look, a more as developing enjoy market. price both So to market point going

on I putting and think position.When several us from a be done my Middle actively we would with And developers, team have a brand we chain seriously. to of positive thank allow we'll those biggest very of get how of and regions. a do are we lot team long, only example, the with Eastern quite Look, We're in beneficial welcome in our great visit.So in the have in was resources amount we God but been will tone my that well I going and pricing bidding content partner to our lining our the us able great and took takeaways And in what into supply actively honestly, here. takeaway say met up you're to in of market. was a this region, the we're for suppliers So So that region How together? that region Saudi, get our job in taking so first, you not consistently approach because domestic known market. and are was incredibly few hiring has tone, EPCs point. it at that work how

about but some spending to some So inquiries really a into we're orders. about market. excited team. it talk little growth be now, going I'm premature really with market more my once We'll of senior and is the we members leadership of A it personal the some of time converting of those start the there

we Seaport question of Global next have from The Tom Curran comes Securities.

how more you plan a are non-tracker Kevin did in to break this out something revenue disclosures or related year, us or is so, total XQ of working could maybe to Kurt, in we the idea and eventually just maybe to non-tracker give provide you an then X directionally XXXX? revenue And some see it? of sequentially that if on just could expect

obviously quarter when coming material saw do it We'll out break XXXX. and enough that. to We'll, I material becomes won't it but see out it We disclose we when in of it break it's strategy you'll this it will active enough some this don't not material our be year. think part to in.

question next The Colin comes Oppenheimer. have from of we Rusch

Guys, give on with a you a your those sense you labor talked or know us can can solutions? the customers give of different solutions. you've how or time-to-installation a about get CLIP you worked I from you and perspective efficiency some Can solution, of footing perspective much

You're talking solar that about? X talking CLIP the first in Series you're relative on to what Is our new particular?

for to some advantage market about like I'm drive share some opportunity you and an customers. talking value and for in guys pick competitive just area of seems up It general.

customers. and of we'll suffice was came Engineering, we installation costs to focus those our decided who's look, installation on ease and don't overall speed pillars of say in I here our we of was Head think one quantify to it Jerry, when working one reduce our to of but installation X avenues, with it of the of

from it's that enhanced them being be development focus time that. CLIP of installation, you well-received. of being telling than months.So I in design, and the of next huge ease better, would we It's and say that'll other focus of installation, ours started several our new of customers it studies those of more of on and a I over quantify months I can't we've in the several order launched leave initiatives installation it to of new product ease meaningful. with So working X X several just it's that, several could speed validating been that last I several guess, over launching at

Morgan comes we question next The of have Andrew from Percoco Stanley.

first would my it belaboring it's the your answered already more times it not your where fierce? continues already So seeing and price environment competitors on point, Is guess, you've what pricing this are an you're is at from your apologies, I price been you're drop doing something planning or you're question in guidance multiple rational embedded dropped and a year that I'm but market just to be already if get what seeing your to and competitors you sacrificing what pricing here, to understanding and on from or that's price? margin but this in response environment

and if We've price the take matters. look, in other choose use price we said each of many market, an few on So, industry that you can to certainly off us is basis the to. that top an routine a times between really this order

to feel current days, Kurt guide, use use pricing about couple behavior. as share should market half new.So really is that pursue key And certainly XXX back win savings what targeted win left the of our preserve behavior, competitors, now, or feel putting maybe tell and it. we I fact that our we've our programs price strategy you So that regain to they really a to to order acute reductions to in our some orders rational hoped had that's of say of good rate these in but do is to more And that It's but for will the some we I We seeing our need or it's either somewhat they're is you're times a in some changed larger additional nothing sustainable. still place room X historically. that. wouldn't to price X just said

Understood. it. Got

Okay. And is other continue inorganic you're free allocation your investments then Is on flow. my question whether to top that. organic? it capital priority? or as follow-up at, it pretty looking Or just any the continue deleveraging? priorities just there on thoughts I'd cash you be generate is healthy love internal that What's

take is that I'll one. This Kurt.

$XX to little to believe, wanted going We obviously, half growth. That's unless second want year, into was on $XX priorities, but half continue to on a It's there is some it the our to. of insurance to Term delever million, ready an de-leverage. We the to last Loan don't first the have ours. revolver through an inventory more of of policy. for we continue be for we we mentioned I about ramp of dip it's callbacks and last intent have at recall We bit as that which But to to pace.You the million focus that, call, get or on there's the the aggressive did an we was maybe B. get

got the take we be years, B during highest So we X have to our rate. we'll any Even the it's some, next the and don't would maturities next continue Term got Loan though out.

continue to Unless in can look we be to what going favorable something way. take very that's out. a So else to negotiate we

Capital that comes Karp [Operator we Instructions] KeyBanc of question Markets. The next Sophie have from

here? just to push are is end to predominant year, but your we outs a that, be to what there's following the that And understand but going we up beyond of be, maybe? the listed, that can not of of variety trend should confidence wondering if if the second more the talking was I of little a this that outs, it? predominant you And the are what you a get you've I could there's on into about factors guess, guys bit of like, are causes trying half kind degree know push year. granular I the delivery of

seeing where the in push any wonder first We're I you're hearing. half. outs not

May, we we just changed There in in when what our gave early still. That we did recall standpoint. would I see of the, it or about our we year. as that still late we from in into year You the we year artificially, hasn't own December, see looked and the consideration. talked when from guidance, And QX, to it's into that in aspect.But said for sleeping the to even projects QX, we a XX% X gave just half. the obviously, this know call, that were the is quarter X that put mindset, we knowing in open, under it's us in as What next revenue have. within first we it largest carefully we signaling, we'll that coming we've said, And all QX be around at still from from eye call, project I be before, early it going gave believe the here. customers year taken be CFO, time very we the we guidance, but it's are, we into a I'll revenue with standpoint. for the realm a full took, We put were said as our

and the As to chain talked the were just originally of call. thinking, We've the also as that again, thought rates refinance. the that got not far trying as expected the that and mentioned for included in on of and supply at end people reiterate timeframe, Obviously reasons as components, down we're signaled our seeing reasons transformer. wasn't outs, But critical last the people particularly as anticipated guidance aren't in year to necessarily first all the other in that want elongated what we the to come we call. half Kevin about, going the push

next comes BNP Sutton The we have of from Paribas. Moses question

guess we XXX the were XQ recognized maybe from dollar credits I you be that XQ. thought $XX the specific that the included, would million share differently, For put can in value,

the generated understand time? puts you of then XXX are Just and COGS through trying that and the to prior from over takes the periods how ones new recognize credit

talked Once forward, in was last call again, just one I I number XXX, going the want reiterate to get about to going would say. we what we're

with one forward within never it be that We over all the it that. on wasn't said through, we'll simplicity and leave going going get for number that. in our in guidance As going we was recognized at But we're at those that QX. that, and remaining volume be contracts just it all on going to we look to have would it, QX we said

not. Kurt, wasn't just was sure that just we're make included million disproportionate to add QX. of I amount that, would There to in clear. a $XX There

shifting there I that an was just think that on billion, $X.X Is So extended. be think was we maybe in a guess used like lead something how fluid? Is proxy XX is bookings, would annualized that point, basis, just And just that any that, around discussed, some at to that or or it's reflection, to for times would think too IPO, as, this do of general? of it to you a XX it way X-year how have but months? about be

I next give But the next for and do too the of visibility would that we have beginning typically range couple it's half right I of We would us near year, that wait think I predict conversion. the we're would to that now. of say certainly you for about feel it's amount first before good too say year. fluid a term into fluid we of to next year. quarters in

Research. Nassano from The of next Wolfe Dylan question we have comes

deflation margin profile. having the back of that to ASP conversation wanted we around and go the just to I were kind

would to those guess, pass any being in make it So, to able to levers kinds I customers, have to structure? kind savings when to of, at powder, some operating dry there mean, I'm of of spoke on figure out, the you but look and just kind versus, kind XXX? pull sense that's past, cost And actual flex is XXX I the the cost left in the to you other looking for of trying

don't quite Obviously, improved when look, I'm say, business you gearing to operational million I sure we're and our the operational for you a improve Yes, have quarter. get the understand not could continue to question. $XXX drive just going gearing. I

scale functions costs, within to that to leverage as the business really as the much such think margin had We mindful volume, we low there's the the signal I being seen, business up. and that's improving the on of back be gearing is a hard very feel great operational business this So a performance have we the back given that going is up. more operational business work that you've scales

Kurt, is And this I know, that, couple is, you is One get a supplier look, that, volume. you leverage. negotiations there's to that would add ways and

hit there's where Kevin out. reduced The costs what And of out maybe cost a is the then, rolled before which mentioned on An example engineering, HXXX, internationally. we and is other that that third, that was we we new and put that's it say Albuquerque we announced which to It's I'd things facility, of to groundbreaking cost in the a the script, our XXX. and not other meet, efficiency have.

down, It'll design XXXX, in-source a supply but what start a hitting including well in versus as not chain from we as that's well XXXX we outsource. an price Now, as comes operationally just look as we at thing. what as infrastructure, overall can do negotiation,

of The TD have comes question we Jeff Osborne last from Cowen.

follow-up Just in numbers I some Moses's was that are XX-Q. question. you the maybe help interpret could hoping on me a

compares and rebate think $XX.X million, last is to million million $XX.X in a of reference expenses, vendor I which that of there's a $XX quarter. prepaid to

help numbers you're numbers to how recognized disclosing? quarter, figure paying to be those what those that around, you as as just was we can out now move them what interpret us should with the in attention So

XXX might form we're that talking about -- have it get credits my the that just I'm get comes to details Q. back That the mind back of getting I'll in be to vendor to a without rebate. in of the the into trying

with us is? walk the how through XXX that -- you can

how Remember works. the XXX

You'll it that of will the ways recognize that different a couple monetized. see, P&L, we gets there's after but

you immediately. Some pay customers of will kind

a you remember, arrears, monetized some quarter will in this is pay customers do return. pay-as-paid, will tax Some a in and and

back us in their So XXXX what will not fourth happen when at come to which could that until file a year, returns quarter tax standpoint is they of for anything that's XXXX be we that. they earn corporate fiscal file pay-as-paid in XXXX then will the the

that of variety you show but XXX. things, that will a up different So line for see in

because our make that not that customers. That total we're portion multiple of we've to benefit that So different clear of a the is will be XXX on types sure want we're engaged Jeff, just I only. indicative that, contracts with of receiving the

would that Would through you say no? it's that item the or line flow majority

I we're to clarity. level give going that don't of think

you the to the with gross the I is the And guidance the in that's what probably and margin XXX do gross to an quickest and of the think best good XXX. margin and to way think we've tried get our of estimate math without I provide quarter.

sir. you answer our concludes Ladies gentlemen, question you, us. today's the reached Thank session. and and we have joining Thank This conference. for end of

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