Array Technologies, Inc. (ARRY): A Bull Case Theory

We came across a bullish thesis on Array Technologies, Inc. on Value investing subreddit by c-u-in-da-ballpit. In this article, we will summarize the bulls’ thesis on ARRY. Array Technologies, Inc.'s share was trading at $8.19 as of September 10th. ARRY’s trailing and forward P/E were 63.59 and 8.80 respectively according to Yahoo Finance.

Array Technologies (ARRY) has been battered since its IPO, with shares down nearly 80% from inception and hitting a low of $3.98 earlier this year due to tariff headwinds, uncertainty around IRA revisions, and a weak balance sheet. Despite this, the company has staged a remarkable operational turnaround in 2025, creating renewed momentum in what remains a challenging financial backdrop. Array is the second-largest player in the solar tracker market behind Nextracker, with clear competitive advantages built around its patented single-motor design, modular tracker system, and ability to adapt to uneven terrain and extreme weather through products like OmniTrack and Hail XP, which now account for more than a third of orders.

These innovations lower installation and maintenance costs, provide flexibility amid supply chain disruptions, and drive sticky customer relationships. Additionally, its 93% U.S.-sourced supply chain ensures resilience when the 45x manufacturing credit sunsets in 2027, maintaining IRA qualification advantages.The broader solar tracker industry is projected to grow at a 17% CAGR through 2029, giving Array a secular growth tailwind.

Financially, the company has shifted from steep declines in 2024—marked by a 42% revenue drop, negative equity, and heavy losses—to robust growth in 2025. H1 revenue surged 62% year-over-year to $664.6 million, operating income reached $73.7 million, and net income turned positive at $28.5 million, with liquidity strengthened by $377 million in cash. Debt, however, remains elevated at ~$694 million, and equity is still negative, underscoring ongoing risks. Valuation at forward P/E 11.9x, EV/EBITDA 7.9x, and P/FCF 9.95x appears attractive given the turnaround and industry growth, making Array a cautiously compelling value play.

Previously we covered a bullish thesis on Nextracker Inc. (NXT) by Canopy Research in May 2025, highlighting its market leadership, software-driven profitability, and strong balance sheet. The stock has appreciated about 51% since our coverage as the thesis played out. The thesis still stands given NXT’s durable moat. c-u-in-da-ballpit shares a similar perspective but emphasizes Array’s operational turnaround, U.S. supply chain, and attractive valuation.

Array Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held ARRY at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the potential of ARRY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.