Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 5 of last 7 quarters
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Array's record order book and strong domestic demand signal continued momentum in utility-scale solar, a key component of the AI infrastructure buildout as data centers drive power demand. The AWM acquisition extends Array's reach into battery storage and data center applications, positioning the company to capture more of the balance-of-systems spend in these fast-growing segments.
Array delivered a strong Q2 with revenue of $342M, up 53% sequentially, driven by 38% tracker volume growth and strong APA momentum. Adjusted gross margin was 30.8%, with adjusted EBITDA of $63M (18.5% margin) and adjusted EPS of $0.24, beating consensus. The company achieved a third consecutive record order book of $2.5B, with over $500M in new bookings, and announced the pending acquisition of Affordable Wire Management (AWM) for ~6x EBITDA, expected to close in Q3. Cash generation was exceptional, with $114M in free cash flow and net leverage down to 2.1x.
Management reaffirmed full-year revenue guidance of $1.4B-$1.5B, noting that near-term project timing (permitting, site readiness) could push revenue below the midpoint, but that this would be timing shifts to 2027, not lost business. They raised full-year adjusted EBITDA guidance to $210M-$230M and adjusted EPS to $0.68-$0.75, driven by stronger-than-expected first-half execution and margin expansion. They now expect consolidated adjusted gross margins of 27%-28%, up 100 bps from prior guidance, with second-half margins impacted by the absence of one-time benefits, higher international mix, and increased commodity/logistics costs. Q3 revenue is guided to $310M-$330M, with a heavy Q4 expected. Free cash flow conversion is now expected at 20%-25% of EBITDA (roughly half of prior expectations) due to the timing of collections. The AWM acquisition is expected to close in Q3 2026, funded with cash on hand, and is expected to be high single-digit accretive to adjusted EPS in year one before synergies.
“Q2 was a quarter of exceptional momentum across every key metric on the page.”
on Quarterly performance
“Our innovation engine is working exactly as designed.”
on Innovation
“Our innovation engine is working exactly as designed.”
on Innovation
You've commented in the past regarding the pace of backlog conversions over the subsequent 6 quarters. I'm wondering if you might be able to provide us with an update today regarding that.
Kevin Hostetler confirmed that the pace remains consistent at 80% conversion over the next 6 quarters.
What changes in the second half to not maintain the gross margin run rate you saw in the first half?
Keith Jennings explained that first-half margins included one-time items (roughly 200 bps) and that second-half margins will be impacted by higher international mix, increased commodity/logistics costs, and the absence of one-time benefits.
Our quick math suggests bookings were $442 million, but you talked about $500 million. What might we be getting wrong? And would you expect bookings to accelerate?
Kevin Hostetler clarified that bookings were just over $500 million (rounding), with no significant cancellations. He noted strong commercial momentum, with over $1.8B in net bookings over the last 4 quarters, and highlighted that the order book is now over 95% domestic and half tied to developers/IPPs/utilities.