The Bull Case For Array Technologies (ARRY) Could Change Following Raised Outlook and Accelerated Market Share Gains

• Array Technologies recently reported over 40% year-over-year growth in Q2 revenue and raised its outlook, highlighting faster market share gains compared to its main competitor, Nextracker.
• Despite this strong performance, meaningful risks remain from tariff-driven margin pressures, the impending expiration of the U.S. solar tax credit in 2025, and revenue concentration with two clients accounting for more than a quarter of total sales.
• We will now explore how Array Technologies' raised guidance and strong market share gains could affect its overall investment narrative.

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Array Technologies Investment Narrative Recap

To consider Array Technologies as an investment, you need to believe in the multi-year expansion of utility-scale solar, accelerated by technology upgrades and strong customer adoption. While the company’s recent surge in Q2 revenue and raised outlook underscores progress on these themes, the importance of the U.S. solar tax credit and exposure to policy or tariff shocks continue to represent the clearest short-term catalyst and risk. This news doesn’t alter those dynamics in a material way, but it reinforces how quickly conditions can shift.

Of the company’s latest developments, the August update to full-year guidance stands out. The uptick in sales expectations, now between US$1,180,000,000 and US$1,215,000,000, gives clearer evidence of execution and momentum that directly supports the market share gains highlighted in recent results.

Yet, despite stronger numbers, it’s important for investors to consider the outsized effect of future tariff shifts on Array’s profitability...

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

Array Technologies' outlook forecasts $1.5 billion in revenue and $98.4 million in earnings by 2028. This scenario assumes revenue grows at 8.6% per year and earnings improve by $364.3 million from the current -$265.9 million position.

Uncover how Array Technologies' forecasts yield a $10.22 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community place Array’s fair value between US$10.05 and US$13 per share, highlighting a spread in viewpoints. While growth forecasts are robust, tariff and policy risks could quickly affect these projections, so consider several perspectives before you decide.

Explore 4 other fair value estimates on Array Technologies - why the stock might be worth just $10.05!

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 3 key rewards and 1 important warning sign 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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