Array Technologies (ARRY) Q1 Losses Keep Margin Concerns Central To Bullish Profitability Narrative

Array Technologies (ARRY) opened Q1 2026 with revenue of US$223.4 million and a basic EPS loss of US$0.09, alongside a net income loss of US$13.5 million. These results put fresh numbers around a business that is still working through negative margins. The company’s quarterly revenue has moved from US$302.4 million and EPS of US$0.02 in Q1 2025 to US$223.4 million and an EPS loss of US$0.09 in the latest quarter. This frames a story where top-line scale is in place but profitability remains under pressure, so the key question for investors is how quickly margins can repair from here.

See our full analysis for Array Technologies.

With the headline figures on the table, the next step is to see how these results line up with the widely followed growth and profitability narratives around Array Technologies and where those stories may need updating.

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Q1 loss of US$13.5 million keeps margins in the red

• Q1 2026 net income shows a loss of US$13.5 million, following a Q4 2025 loss of US$161.2 million and trailing 12 month losses of US$127.9 million. The story here is still one of negative profitability rather than one isolated weak quarter.
• Bears focus on the track record of losses, and the data gives them support, with net losses over the last five years reported as having grown at about 30.1% per year and trailing 12 month EPS at a loss of US$0.84. This sits against the more optimistic view that earnings are projected to grow strongly in future.

Revenue around US$1.2b over 12 months but growth trails wider market

• On a trailing 12 month basis, Array has recorded US$1.2b of revenue with revenue growth forecast at 8.3% per year compared with an 11.4% forecast for the broader US market. Investors are therefore looking at a business with scale but forecasts that are not targeting top tier growth rates.
• What stands out for the bullish view that earnings could grow about 55.9% per year toward profitability within three years is that it rests on efficiency and margin gains rather than rapid sales expansion. The forecast revenue growth rate of 8.3% is below the broader market and sits alongside recent quarterly revenue levels that have stayed in a band of roughly US$223 million to US$393 million over the last year.

To see how other investors are connecting these revenue and margin trends into a bigger story for the stock, have a look at the Curious how numbers become stories that shape markets? Explore Community Narratives

P/S around 1x against industry 2.8x and DCF fair value of US$7.51

• The stock trades on a P/S of roughly 1x, compared with a 2.8x average for the US Electrical industry and 1.9x for peers, while the current share price of US$8.20 sits above the DCF fair value of US$7.51. This points to a mix of relative sales-based value and a more conservative cash flow based estimate.
• Critics highlight that this combination of a low P/S multiple and a share price above DCF fair value still comes with execution risk, since trailing 12 month net income is a loss of US$127.9 million and EPS over that period is a loss of US$0.84. The bearish concern is that valuation gaps versus industry reflect ongoing losses and a share price that already sits above one fair value reference point.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Array Technologies's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With both risks and rewards in the mix, are you comfortable relying on the current narrative, or do you want to pressure test it yourself quickly using the 2 key rewards and 1 important warning sign?

Explore Alternatives

Array is working with trailing 12 month losses of US$127.9 million, an EPS loss of US$0.84 and revenue growth forecasts below the broader US market.

If you want ideas with a stronger profile instead of wrestling with ongoing losses and modest growth expectations, check out the 72 resilient stocks with low risk scores now for companies scoring better on stability and downside protection.

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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