Array Technologies arrived at the second quarter of 2026 carrying its highest orderbook in company history - $2.5 billion of executed contracts and awarded orders at the end of June, up 37% year over year, with a trailing twelve-month book-to-bill of 1.5x. The quarter itself, measured against that backdrop, was quieter. Revenue of $342.1 million came in 5.6% below the year-ago quarter; gross margin expanded 230 basis points to 29.1% on a 25% increase in average selling price (ASP) gains; adjusted EBITDA of $63.3 million was essentially flat at $63.6 million a year ago. The story underneath splits cleanly into two very different businesses. The legacy U.S. tracker operation grew 10% on a 25% increase in average selling prices and now contributes the substantial majority of segment gross profit. The international STI (formerly STI Norland) operation shrank 69% as volumes fell by 60% and pricing fell another 26%, taking its gross margin from 18.6% down to 5.1%. Same company, two trajectories, and a record orderbook sitting between them.
The balance sheet is the third character in this story. Cash built to $307.3 million from $245.0 million at the start of the year as operating cash flow of $91.9 million for the half funded a $15.1 million capex program and a $12.8 million reduction in other debt. The capital structure has been almost completely re-shuffled: a $345 million 2031 convertible issue last summer extinguished the legacy term loan, the $370 million revolver sat undrawn with $332.9 million available, and convertible maturities now sit at December 2028 and July 2031. That leaves an enterprise value of $1.16 billion on a $796 million market cap, against a $2.5 billion orderbook and a tracker business that is being asked to underwrite both a domestic content premium and a new product cycle.
The thesis this quarter tests is whether the orderbook translates. The market priced it as if it would not - shares fell from a 52-week high of $11.96 in early February to a 52-week low of $4.81 on July 29, a 57% retracement, before recovering to $5.17 on August 13. The first half delivered $565.5 million of revenue against a $1.4–1.5 billion full-year guide, with adjusted EBITDA of $92.1 million against a raised $210–230 million guide, and the company lifted adjusted gross margin guidance to 27–28% for the year. Management is now telling the market the second half ramps; the report's job is to map which numbers in the third and fourth quarters have to land for that story to be credible.