Array Technologies (ARRY) Is Down 5.9% After Bearish Options And Declining Returns On Capital

• In recent days, Array Technologies has drawn attention after options data showed a large bearish call sweep and fresh commentary highlighted consecutive annual declines in sales and earnings per share, alongside weakening returns on capital.
• This combination of options activity and deteriorating capital returns is prompting investors to question how effectively Array’s investments are supporting its competitive position in utility-scale solar tracking.
• We’ll now examine how concerns over eroding returns on capital might influence Array Technologies’ existing investment narrative and outlook.

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Array Technologies Investment Narrative Recap

To own Array Technologies, you need to believe that utility scale solar trackers remain essential hardware and that Array can translate that position into healthier returns on capital over time. The recent bearish call sweep and reported declines in sales, EPS, and returns on capital sharpen focus on near term execution, but they do not obviously change the key short term catalyst, which is how Q4 2025 results and 2026 guidance address profitability and capital efficiency. The biggest risk remains pressure on margins and returns if project volatility persists.

In that context, the upcoming Q4 2025 earnings report on 25 February 2026 is the most relevant near term announcement. It will give investors a clearer read on whether the reported deterioration in returns on capital is continuing, stabilizing, or starting to reverse, and how management is thinking about 2026 revenue and earnings quality. For anyone watching the options activity and worried about value destruction, this update could either reinforce those concerns or start to rebuild confidence in Array’s turnaround story.

Yet behind the improving earnings forecasts, you should be aware that margin pressure from tariffs and eroding returns on capital could...

Read the full narrative on Array Technologies (it's free!)

Array Technologies' narrative projects $1.5 billion revenue and $98.4 million earnings by 2028.

Uncover how Array Technologies' forecasts yield a $10.97 fair value, in line with its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were already cautious, assuming roughly US$1.2 billion of revenue and US$115.3 million of earnings by 2028, so this fresh options signal and focus on weakening returns may push those already pessimistic views even further, reminding you that opinions on Array’s future can differ sharply.

Explore 3 other fair value estimates on Array Technologies - why the stock might be worth as much as $11.00!

Build Your Own Array Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Array Technologies research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Array Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Array Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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