Array Technologies, Inc. 2025 Annual Report – Key Investor Takeaways

Overview

Array Technologies, Inc. (Nasdaq: ARRY), a leading provider of utility-scale solar tracking solutions, has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The report contains several key developments and risk factors that investors and shareholders should be aware of—many of which may have a direct impact on the company’s share value.

Key Points and Potentially Price-Sensitive Information

1. Integration of APA Solar, LLC Acquisition

• Array completed the acquisition of APA Solar, LLC (“APA”) and is in the process of integrating the business. There are significant risks associated with this integration, including the challenge of merging operations, realizing anticipated synergies, and managing a larger, more complex entity.
• The company has identified that APA, as a previously private company, did not have internal controls over financial reporting at the level required for a public company. Array has one year from the acquisition to implement such controls and acknowledges the possibility of discovering deficiencies during this process.
• Failure to timely implement and maintain effective controls could result in reputational harm, restated financials, or a decline in the stock price.

2. Financial Position and Public Float

• As of June 30, 2025, the aggregate market value of Array’s common stock held by non-affiliates was approximately \$707 million.
• The number of shares outstanding as of February 23, 2026, was 152,848,992.
• The company is classified as a large accelerated filer, and its financial statements have been attested to by an independent auditor under Sarbanes-Oxley Section 404(b).

3. Forward-Looking Statements and Macroeconomic Uncertainty

• The report contains numerous forward-looking statements on operational, regulatory, and macroeconomic risks, including: changes to government incentives, tariffs, trade policy, expected macroeconomic conditions, and the ability to provide 100% domestic content trackers.
• These uncertainties, including regulatory reform and energy credit policies, could materially affect future performance and are closely monitored by management.

4. Principal Risks and Risk Factors

• Integration Risks: The risk that Array may not achieve the anticipated benefits or synergies from the APA acquisition, or may identify unknown or larger-than-expected liabilities.
• Internal Control Risks: The risk that effective internal controls may not be implemented in a timely manner, which could result in restated financials or regulatory actions.
• Market and Demand Risks: Slowdown or decline in the growth of solar energy project demand could negatively impact the company’s business.
• Customer Concentration: Array is dependent on a relatively small number of customers for a significant portion of its sales. Losing a major customer could materially affect revenue and profitability.
• Competitive Pressures: The solar tracker industry is highly competitive and fragmented, with both conventional (e.g., coal, gas, nuclear) and renewable energy sources (e.g., wind) posing significant competition. Large competitors may have greater resources for R&D and market penetration.
• Financial Market Risks: Increases in interest rates or reductions in the availability of tax equity/project debt capital could make it difficult for customers to finance projects, reducing demand for Array’s products.
• Operational and Regulatory Risks: The company is subject to fluctuations in results of operations across periods, exposure to severe weather events, regulatory changes, and legal proceedings.
• Cybersecurity and Technology Risks: The use of artificial intelligence presents risks and challenges, and cybersecurity incidents could materially harm the business.
• Indebtedness: Array has substantial debt, which could impact financial flexibility, competitive position, and the ability to service outstanding obligations.
• Preferred Stock: The company has issued, and may issue, preferred stock with terms that could adversely affect the value or voting power of common shareholders.
• Legal and Regulatory Proceedings: The company is subject to ongoing litigation and regulatory actions that may adversely affect financial results.

5. Tax Policy and Legislative Developments

• The company expects certain provisions of the OBBB (likely the “Offshore Bonus and Base Bill” or similar, contextually inferred) to reduce 2025 taxable income through accelerated depreciation and immediate R&D expensing, temporarily improving cash flow.
• These benefits are timing differences and, as assets become fully depreciated and R&D expensing normalizes, the company expects cash taxes to increase in future periods.
• Array is monitoring further guidance from the U.S. Treasury regarding these provisions.

What Shareholders Need to Know

• The integration of APA Solar, LLC is a material event for Array, with both significant upside for growth and substantial execution risk. The success or failure of this integration could move the stock price.
• Array’s reliance on a small customer base and its exposure to regulatory change, fluctuating interest rates, and competitive pressures represent ongoing risks that could affect the company’s valuation.
• Any issues with internal controls over financial reporting, especially stemming from the APA acquisition, could result in restated financials, regulatory scrutiny, and potential share price volatility.
• Tax and legislative changes may yield short-term benefits but could reverse in future periods, impacting cash flow and earnings.
• Array’s substantial debt load and potential future issuances of preferred stock could impact shareholder value and financial flexibility.
• Shareholders should closely monitor regulatory and legal developments, as well as management’s ability to execute on the integration plan and maintain effective controls.

Conclusion

Array Technologies’ 2025 Annual Report highlights a pivotal period of transformation and risk for the company. The successful integration of APA Solar, LLC, combined with ongoing macroeconomic, regulatory, and industry-specific risks, will be crucial to the company’s growth prospects and share price performance going forward. Investors should remain vigilant and monitor the company’s progress on these critical fronts.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult financial professionals before making investment decisions. The information presented is based on the company’s 2025 Annual Report and may be subject to change or revision.

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