Array Technologies Inc Stock

Good morning, everyone, and welcome. Thank you for joining us for Array Technologies APA Investor Technology Showcase. Whether you've joined us here in person or you're attending virtually, we appreciate you spending your day with us. We're excited to bring together leaders from the Array and APA teams to provide a deeper look at our business, our technology and our next phase of growth. This afternoon, we'll also have the opportunity to visit APA's manufacturing and engineering facilities where you see many of these technologies in action and meet the teams behind them. We hope today's program gives you a deeper understanding of how Array and APA are working together to deliver value for our customers and our shareholders.

Before we begin, I'd like to remind everyone that today's presentation includes forward-looking statements and certain non-GAAP financial statements measures. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to this slide as well as our SEC filings for additional information regarding these statements and the associated risks.

Let's take a quick look at today's agenda. We'll begin with remarks from our CEO, Kevin Hostetler, who will discuss how the utility scale solar market is evolving and detail the strategy behind Array's expansion into a broader balance assisted platform. Kevin will then be joined by members of our leadership team, including APA founders and leaders, Josh and Joe Von Deylen, who will provide an overview of the APA business, its product portfolio, engineering expertise and growth opportunities.

Following a short break, you'll hear from Nick Strevel and Darin Green as they discuss Array's innovation road map, new product development and technical sales strategy. Kevin will then return to close the morning presentations before we open the floor for a Q&A with members of our executive leadership team. After lunch, we'll head to APA's facilities for a manufacturing tour, engineering demonstrations and product showcases that bring much of today's presentation to life.

To get us started, I'd like to share a short video highlighting the innovation and engineering they're at the core of what we're building together.

[Presentation]

Good morning, everyone. Can I make sure we're on the right slide? Okay. Good morning, everyone. It's great to have you here with me today, and I can't tell you how excited I am to talk about the future of Array and what we have ahead of us. The backdrop for our business remains incredibly strong and incredibly compelling. Demand for energy continues to grow, driven by electrification, data centers, transportation and growth in some of the leading industries in the world.

At the same time, we recognize our customer needs are changing. Utility-scale solar projects are becoming larger and more complex. Those dynamics are creating new opportunities for Array to build on our leadership in trackers and to deliver more value to our customers across these projects. Today, we'll show you how our Balance-of-System Strategy or BOS, is coming to life and why we believe the thesis around APA is both compelling and excelling and what it means for the opportunity ahead.

I want to start with the most important message for today. Array is evolving from a pure-play tracker company into a technically integrated energy infrastructure platform. This expands our project share through interoperable solutions. While tracking will always remain one of the core elements of Array and a critical source of our differentiation, we see an opportunity that extends well beyond the tracker itself to capitalize on this growing demand for energy. We're building a broader interoperable platform that brings together services, hardware, software and complementary technologies to improve the economics and execution of our customers' projects. Over time, that creates an opportunity to extend our capabilities into some of the rapidly growing energy adjacent areas, including battery energy storage and the build-out of AI data centers.

Importantly, we're building on what has always made Array successful. That is our strengths in engineering, innovation and customer partnerships. We're applying these strengths across a greater portion of our customer projects. The result is more value for our customers, greater participation in project spend and more opportunities for us to drive profitable growth.

As we move through today's presentation, there are 5 key ideas I'll encourage you to keep in mind. First, APA is a highly differentiated strategic asset with proven synergy potential. Second, customer demand is shifting toward more integrated utility-scale solar solutions that simplify our customers' execution and improve their project economics. Third, our Balance-of-System Strategy is expanding our addressable market and increasing the opportunity for us to capture a greater share of customers' wallet.

Fourth, APA and AWM demonstrate the disciplined and repeatable M&A framework that we're executing. We're focused on strong businesses with complementary capabilities, meaningful synergy potential and experienced management teams and cultures that we know will succeed as part of Array. And finally, these pieces come together to create what we believe is a sustainable customer value, more technically integrated platform that deepens our customer relationships and supports their long-term value creation.

Before we go deeper, I want to take a minute to highlight a few numbers that demonstrate who Array is and the momentum that we currently have across our business today. As many of you in the audience know, we ended the second quarter with our third consecutive record order book of $2.5 billion, up an impressive 37% year-over-year and with a 1.5x trailing 12-month book-to-bill. Clearly, you see that our growth is outpacing that of the industry. Importantly, the quality of our order book continues to improve. 50% of the order book is now with Tier 1 utilities, IPPs and developers. This speaks to both the quality of the backlog and the strength of our customer relationships behind that backlog.

Our very purposeful innovation is accelerating. And you'll note that we have already launched 5 major new products this year. The moat around our technology is also strengthening at an incredible pace. We have 259 active patents protecting the technology in Array. And what you may not realize is that we have another 230 patents pending with more patents filed in the last 4.5 years than in the entire 30 years of Array's history prior to that combined, right?

So what I want you to take away from this slide is one word, and that's momentum. We have momentum in our order book. We have momentum with our customers and momentum across our innovation pipeline. We believe the strategy we're discussing today gives us an opportunity to further build upon that momentum.

These are the strategic priorities that we laid out at the start of the year. We've made meaningful progress across each of these. We've accelerated new product development. We've expanded in key international markets, and we continue to put customer needs at the center of our innovation and our investment decisions. You can see that momentum in our numbers as new products now account for roughly 50% of that record order book. And as we disclosed in our recent earnings materials, the new products also will represent 50% of our 2026 revenues as well. Importantly, the strategy we're discussing today builds directly on these priorities and the progress we've already made.

A few words about the market backdrop that we're participating in. We're operating in a significant market, and it gives us room to execute our strategy. The overall utility scale tracker market domestically represents about $4.3 billion of addressable market. As we add the foundations in fixed tilt by bringing on APA, we add another approximately $1.7 billion opportunity. AWM adds another $150 million in wire management opportunity in the U.S. and up to an additional $250 million market opportunity globally.

At the same time, underlying demand remains strong with utility-scale solar deployments expected to range between 36 and 39 gigawatts per year through 2030. Utility scale and battery storage now represents 79% of the planned U.S. electricity capacity additions this year in 2026. So we're not simply participating in an attractive market. We're expanding the number of ways that Array can participate in that market and the amount we can deliver in terms of value on each project.

And while this slide focuses on the U.S. domestic opportunity, over time, we also see opportunities to extend APA and AWM and other parts of our existing platform faster internationally. Longer term, our ambition extends into adjacent energy infrastructure markets where our capabilities and our customer relationships can create additional value.

So the reason we believe our strategy is working starts with our customers. The size of each and every project we deliver is growing. The site environments are more diverse and much more difficult and soil conditions are much more complex. All of this creates greater execution complexity and risk for our development partners. As a result, our customers and EPC partners are increasingly valuing solutions that reduce the number of interfaces, simplify installation and coordination and lower their execution risk while improving their total cost of ownership. This is also an important part of differentiation for Array.

Our goal is to continue to support our EPC partners not to put a portfolio together that begins to compete with those EPC partners. We want to engineer solutions that make their jobs easier, fewer interfaces, simpler installation, better reliability and greater confidence in delivering their projects on schedule. This is what is meant by an integrated solution. We're integrating our technology so customers and EPC partners can execute with more certainty and more efficiency. To be very clear, it's our customers' needs that is ultimately driving the evolution of our platform.

What you see here is how we've responded to those changing customer needs over time. We've continued to innovate around our core tracker platform while deliberately expanding into complementary capabilities through both organic innovation and M&A. Late in 2024, we had a vision to create a world-class engineering and innovation center, where we would relocate and co-locate engineering resources, product management, product marketing and our technical selling resources. We also added an expanded customer experience and conference center dedicated to the rapid collection of direct voice of our customer.

Now those of you that know Array may know that prior to this, our engineering resources and marketing resources, and frankly, we didn't have a whole lot of product management resources back then prior to this launch were spread throughout the U.S. We'd have pockets of engineers in Houston, in North Carolina, in Denver, in Austin, and it was really suboptimized. We had the opportunity to bring them together into one location, increase our investment in innovation and new product development, increase the strength of those teams and really focusing on acceleration of our new product development initiatives. It was a really simple thesis, bring in high-performing teams, increase the investment in new product development and drive customer-centered innovation. This is exactly what you're seeing today.

Our pace of innovation is accelerating with those 5 major product launches in 2026 alone, including the OmniTrack 2.0, the DuraTrack D2S, the DuraTrack 60-degree variant and the Atlas suite of products that was the joint effort between Array and the APA team, you'll hear about a little bit later.

So a couple of important points. In the first 3 years since we launched our terrain following tracker OmniTrack, the OmniTrack has now taken over the DuraTrack in terms of percentage of our backlog. That speaks to 2 things. One, the customers are adopting our terrain following tracker. Its features and benefits are really being realized and appreciated. And second, that the sites our customers are working on are getting more and more difficult with a lot more terrain flexibility requirements.

In terms of our portfolio for severe weather mitigation, we now have a portfolio of standard and higher angle tracker solutions for 52 degrees 60 degrees and the extreme 77-degree stow angles, which allow our customers to optimize the intersection of their capital expenditures and the severe weather mitigation requirements for each specific site. When you combine this with our leading SmarTrack software suite, including our patented and leading hail alert response system, we believe we have the best-in-class solutions for our customers relative to severe weather mitigation.

At the same time, APA brings into our business engineered foundations, the new alternative foundation lines, fixed tilt and then the team at AWM adds another critical interface through wire management, engineering, design and product solutions. So embedded in the DNA of each of these products we're now delivering is the voice of customer. They are engineered to expand our addressable market, increase our share of wallet and ultimately improve the economics and execution of our customers' projects. These are the common threads behind how we're growing our platform.

So while we sit in and watch the presentation materials today, I can't wait. I'm literally giddy and excited to have you join us out in the field to see these products. This is where the rubber meets the road. When you come out this afternoon and look, we're -- we may be dancing through rain drops, I'm not sure. So don't wear your best shoes. But when you actually see these products out, this is where the rhetoric is going to -- it will resonate, right? You will see how we've integrated these products. You will very clearly see the value driven by integration of these products. You will see how interoperable we've made these products to work and optimize together. And then we'll talk a lot about how each one of these innovations are going to save our customers' money, increase their reliability and increase their confidence in delivering their projects on time with lower risk.

So when we talk about our Balance-of-System Strategy or BOS, this is ultimately where we're going. We're building from a foundation of trackers into a broader platform spanning engineering and design services, foundations, electrical balance of systems, controls and software and AI. The opportunity for us isn't simply to sell more products. It's to engineer these technologies together so the entire system performs better. For our customers, that means we can help them generate a higher energy yield, lower their installed cost, get greater installation efficiency in a market where labor is becoming increasingly more critical and ultimately drive stronger project economics.

For us at Array, it means greater participation in the overall project spend, higher recurring revenues through expansion of our engineering software and services platforms, deeper customer relationships and additional avenues for longer-term growth. And increasingly, we see the opportunity to take the same model beyond utility scale into the broader energy infrastructure ecosystem.

So this is a very deliberate and differentiated framework behind how we're building our platform. First, we look for category-leading businesses in adjacent markets where we believe Array can add value. Then we integrate those capabilities into a broader platform. And importantly, we co-engineer and integrate the technologies together. That will be on full display this afternoon for you. This technical interoperability is very critical to our thesis. Look, procurement is literally the middle name of many of our EPC industry partners. We aren't interested in a basic assembly of a collection of unrelated businesses or products simply to provide our customers one invoice. We don't think of the word bundling as advantageous long term, right?

Our goal is to create better customer outcomes, improved performance, simpler installation, stronger project economics and to translate those outcomes for us into higher share of wallet, improved value capture, stronger customer relationships and long-term shareholder value. And APA is an excellent example of that model in practice and AWM gives us an opportunity to repeat it.

So I want to talk a little bit more about how we approach M&A and how we think differently about M&A than others because we're very disciplined about what belongs within the Array platform. We'll start with strategic fit and market leadership. We want leading businesses in each of these areas that we pursue. We want them to be differentiated businesses with strong customer pool that advances our long-term platform strategy.

The technical interoperability, as we talked about earlier, is critical to us, incredibly important. We want products and capabilities that can work with our core Array technologies and create a more integrated and compelling customer offering. Again, you'll see that on full display this afternoon. The business also needs to meet our financial criteria. We want very attractive profitability or a clear very near-term path to it. We have a disciplined valuation approach, and we're looking for strong cash generation potential.

And finally, management and culture matter tremendously to us. With both APA and AWM, we are partnering with strong operators with an incredible depth of knowledge in their sectors who want to remain part of the business and want to continue to go building their business alongside us at Array. You'll hear shortly from Josh and Joe Von Deylen, the founders of APA, who are great examples of exactly this.

And I'll take a minute to note that Scott Rand and Dan Smith, the co-founders of AWM have joined us in the audience today, and they'll be on site a little bit later this afternoon to help you further understand how the wire management adjacency fits into our platform. So you'll see that they'll be joining us in the field visit this afternoon.

We also then look very, very closely at synergy potential, both in terms of revenue opportunities from our cross-selling initiatives, but also cost opportunities, leveraging Array's scale across our supply chain and through SG&A leverage. So let me be absolutely clear. We're not looking for M&A just for M&A's sake or just to get bigger. We're looking for businesses that make our integrated solutions much, much stronger. So when you think about this framework and you apply it to APA and then to AWM, you can easily see why we were attracted to both of these businesses.

APA gives us a leading position in fixed tilt applications and foundations and an experienced engineering-led management team and technology that can be integrated directly into our Array's existing hardware and software platforms. Importantly, we also saw meaningful opportunities for commercial and operational synergies. And you'll hear shortly from Josh and Joe Von Deylen how much evidence we're already seeing and how our thesis is playing out exactly as expected.

AWM checks many of the same boxes in terms of a market-leading position in wire management, proprietary engineering and IP, strong operators and products that fit naturally across our Balance-of-Systems platform. It also gives us that exposure into adjacent opportunities where they're driving high growth in battery energy storage systems and data center applications, extending our platform beyond utility-scale solar.

So the takeaway I want to emphasize here is repeatability. We have a framework. We know what we're looking for, and we intend to remain disciplined in terms of how we deploy capital against our framework. So a few more words about AWM in terms of how we're actuating our strategy. Look, AWM is just the latest example of our Balance-of-System Strategy in action and how we're demonstrating how we're thinking about expanding the Array platform beyond trackers. It is a leading wire management provider with proprietary engineering and IP, and strong position in utility-scale solar.

What makes the opportunity particularly compelling is that its capabilities extend beyond solar. AWM now gives us entry and a platform to participate in battery energy storage and the high-growth data center applications, 2 attractive adjacencies within the broader energy infrastructure market. Strategically, we see opportunities to leverage Array's global commercial reach and operating scale while creating more integrated solutions that strengthen the value we can deliver to our customers.

The financial profile is equally attractive with $153 million base purchase price, which is approximately 6x trailing EBITDA, mid- to high 30% EBITDA margins and expected high single-digit plus adjusted EPS accretion in year 1 before synergies. This is exactly the type of acquisition we're looking for, a well-run market leader with strong financial characteristics differentiated and protected technology and clear opportunities to create additional value once they become part of Array. Our transaction is expected to close in the third quarter, subject to customary closing conditions and approvals.

Now let me spend a few minutes on APA because that's what we're here to talk about today. It gives you real tangible evidence of what our model can deliver. So 1 year ago this week, we acquired APA in August of 2025. And you'll witness today, the integration is far ahead of schedule. The commercial momentum together has been strong with APA having a 1.5x year-to-date book-to-bill, A-frame quote requests up approximately 50% quarter-over-quarter in Q2. In our earnings, we referenced that the APA revenue was up 17% year-over-year. This is a number that will accelerate as we progress through the balance of the year.

APA's average project pipeline size is up 155%. It has more than doubled compared to the pre-acquisition levels, reflecting APA's increasing penetration into the larger utility scale projects. Innovation at APA has accelerated as well with 32 active and pending patents. This is evidence that the strategic thesis we had when we acquired APA is being validated and executed. And importantly, we believe there is considerably more opportunity ahead for us working together with APA.

So while we're incredibly pleased with the APA progress to date, we're still early in what we believe APA can become as part of Array. Over the next year, we're focused on 4 areas. The first is to continue to strengthen the operating model by further either integrating or aligning finance, IT, supply chain, commercial and product functions. Second is in scaling the integrated product offering, including the launch of our recently launched Atlas suite of products, our new Tracker Plus Foundation solutions and further execution into our now aligned Array and APA product road maps.

Third, continuing to capture our synergy savings in sourcing, supply chain, procurement and maximizing the 45X capture and synergies we have ahead of us. And fourth, accelerating the commercial momentum by bringing APA's foundation expertise to Array's customer relationships, therefore, pursuing larger utility scale opportunities, including some of those larger international opportunities.

This brings us to what the opportunity can mean on a financial basis. We see a path for APA to deliver significant double-digit revenue CAGR over the next 3 years while continuing to improve an already attractive margin profile. We expect engineered foundations to become a much larger portion of the business. And as you get out to the field this afternoon, you'll very quickly understand exactly why, moving from approximately 20% to approximately 50% of the revenue within our near-term strategic horizon. We also see an opportunity to build the international business towards approximately 15% of revenue in the same time period. And over time, we believe the APA business can operate at an adjusted gross margin in the high 20% range. The result is a business that we believe can become higher growth, higher margin and a more diversified part of Array.

So next, that brings us to a few words about our capital allocation strategy. APA and AWM demonstrate how we think about capital allocation for Array more broadly. First, we will continue to invest organically in our business, funding high-return opportunities that extend our product leadership and expand areas like software, services and some of our adjacent solutions. Second, we remain focused on strengthening our capital structure. This includes options to take out our preferred shares as they transition to cash service, managing our leverage over time and proactively addressing our 2028 tranche of convert maturity, all while preserving the flexibility to continue investing in growth.

And third, we will remain disciplined and strategic on M&A. We're focused on businesses that strengthen our platform, meet our financial return criteria and create clear customer and shareholder value. Our record $2.5 billion order book supports our growing earnings and free cash flow trajectory, which we expect will expand our capacity across each of these 3 priorities.

Now before I turn it over to Josh and Joe, let me bring this back to the bigger picture, and I'll finish by reiterating how our platform strategy creates sustainable customer value. We're expanding beyond trackers, which increases our addressable market, our share of wallet and the amount of project spend where Array gets to participate. We're strengthening the customer value proposition through better project economics, improved installation efficiency and lowering customer execution risk.

And we're building a more integrated platform that increases our relevance to our customers while creating additional avenues for growth tomorrow. This is what we believe creates sustainable customer value, not simply having more products, but engineering those products together in a way that delivers measurable value to our customers. APA is one of the clearest examples of this strategy and how it's coming to life.

And with that, I'd like to turn it over to Josh and Joe Von Deylen to take you deeper into APA, the business that they've built, the technology behind it and where we see the opportunity from here. So Josh, Joe?

All right. Mic working. Thank you, Kevin. Appreciate it. Great. Good morning, everyone. All right. Good morning. I'm Josh Von Deylen. I'm CEO and one of the co-founders of APA.

Hi. I'm Joe Von Deylen. I'm the COO and also one of the co-founders of APA Solar.

We are brothers. I'm the older brother. That's why I'm the CEO. So who we are? Our dad, Dave Von Deylen. He started an automotive company 40-plus years ago. And the company that you'll be at today is Alex Products. So Alex Products was his company. It was a Tier 2 automotive company. He grew it to be a very successful company, well known in the local community as one of the best companies out there, hired a lot of employees.

So Joe and I's history where we grew up, we grew up in business. We grew up in manufacturing. We grew up in automation. So this is what we've done our entire lives. We've never done anything else between automotive manufacturing and APA Solar. So this is our career. This is our life. This has been our business. We've enjoyed every minute of it. And then in 2008, when I graduated college, it was the automotive downturn in the banking industry. You guys are probably familiar with the automotive downturn. Alex Products and my dad said, okay, what can we do besides automotive? What are the other options out there to look at? And so it was my job at the time to say, what can we do that is alternative to automotive. So that's where Alex Products alternatives. So APA, that's where you get the name.

So APA Solar, that's the name. We rebranded. It is just APA Solar now, so no Alex products. So Alex Products, my dad actually sold his company about 10 years ago, which actually worked out really well for us because the owners were from Tennessee and they decided to go back to Tennessee. And we get -- take over their manufacturing building that you'll get to see today. And they actually recently left one of their other buildings in Bryan, Ohio, which we got to take over also.

Also a lot of the management that they have there, which was Grade A management team, we were able -- we knew these people for a long time, so we were able to partner with them and bring them on at APA. So a lot of the people that you'll meet today, Kim over there. She's from Alex Products. Joe Schliesser, our CFO. He's over there. He's from Alex Products. You'll meet James Eiden today. He's also from Alex Products. So great team that we got to bring over to the APA team.

So 17 years ago, 2008, we started APA Solar. Who we are? We're a leading -- currently now, we're a leading provider in the fixed tilt racking industry, serving both the fixed-tilt market and the tracker market in alternative foundations, and we do a lot of engineering services for the solar industry. We serve both distributed generation market, the DG market. That's the smaller projects that you guys are familiar with like the community solar projects. That's really where we got our start from every company basically and the DG got their start in that spot. And over the past 2, 3, 4 years, we've really been now growing into that utility space and the acquisition with Array Technologies with APA has really now catapulted us into that utility space, which has been absolutely exciting for the past 12-plus months here.

We have a strong Midwest and Northeast presence. We do projects all over the country, and we're really growing into that more utility space out there in the Southwest market. So why customers choose APA? Foundations. Foundations on your project is really the pinnacle to start all your engineering, your entire job, your geotech. If the foundations on your projects are designed wrong and it goes bad, pretty much your entire project is going to go bad, generally from day 1. So if you design with the right foundation from day 1 and have your project engineered right, generally, your project is going to go very smooth.

Early-stage engineering, getting those geotechs, looking at that corrosion studies, getting on site, learning more about that project than almost the owners of the project even know about their own site. So that is what APA does, and you'll get a see today.

Vertical integration, the structure of APA's company is absolutely awesome. We have so much control over what we do from the engineering to the on-site testing to the actual manufacturing for on-time deliveries, customer service and then even an installation. We offer installation service to customers if they're not familiar with a ground screw helical, we can install it for them.

Proven track record. Most of APA's clients, almost basically all of our clients are repeat clients. They use our product. They like our product. Our products are just not the cheap products that you can roll form and put pull-throughs and assemble like a -- our products are engineered products, they're thought through products. These are the premium products out there. Customers like it. They use it. They want to continue to use it. These are what makes their projects successful.

Positioned for growth. We are absolutely in a great position right now. The acquisition with Array couldn't have been a better decision for Joe and I. The bankability of APA being a privately held company has maybe held us back a little bit because you just can't catapult into those monster utility scale projects, who's going to award Joe and I a gigawatt project. Probably not a whole lot, but who's going to award it to Array Technologies, a lot of people. That is what they do.

Integrated tracker and foundation solutions. That's what we've been working on for a long time, but we now, since we are partnering with Array, we got access right to their engineering team, we can do so much more now integrating our products together.

Scaling manufacturing for larger and more complex projects as we're really getting into this utility space. We are positioned really well with our 150,000 square foot manufacturing facility that you're going to see today. And we already had been working on 130,000 square foot manufacturing facility 18 minutes down the road from that in Bryan, Ohio, and that is online now. It does have a first shift now. Products are starting to go through there, but we have a ton of floor space for scaling opportunity at that particular facility.

So looking at the time line here in 2008, that's when we started. That's when APA was created. And from that 2008 to 2017, we were really focused on that above-ground racking system that making the actual racking hardware, making the steel components. And we had this modular racking system. If we had hours to get into the history of APA, I would love it. I would talk forever about our modular racking system. It wasn't the best system in the world. At the time, it was cool. It was unique. It was creative. We utilized the microhelical with it. I think it was around the 2017, though. That's when we are kind of introduced to ground screws and looking at the Titan system and alternate foundations. And we really switched from being an above-ground racking company to more a foundations company. And the foundation is where everything for your clients to make sure everything is successful.

So if you look at that chart, in 2018, that's when we looked at the Titan product to bring that online. It was a culmination of the last 10 years of let's take everything we've learned and how can you make the best product in the fixed-tilt industry that clients are looking for to make successful. As we looked at the Titan and introduced the ground screws, that's where you can quickly see there was a Titan Duo product there launched in 2019. And that product was the one that really catapulted APA, taking the best product that we knew, combining it with ground screws that took us from basically that straight-up trajectory that you see on there that had been very exciting for the last how many years at APA in that very rapid growth pattern.

In that 2019 time frame also, we were introduced to tracker Foundation. So at the time, we didn't produce a tracker. We're not interested in producing a tracker. Fixed tilt, we are very good at it, really focused in that market, but there was clearly a need in the foundation industry for trackers. Everybody uses a W-beam, a driven pile, and there's hard soil conditions, there's soft soil conditions and how can you combat those on a tracker project. It's a lot of risk for a project when you have those. So we introduced A-Frame in 2019, and that's really been Joe's part of the business that he really took a hold of and really focused on, and he really grew that A-Frame business in that time frame. 2025, we were acquired by Array, very exciting times for us and in 2026, launching that Atlas product only 2 weeks ago. So just into that. So very exciting on that portion of the business.

I really like this slide because this tells you a lot about APA. So you'll see the products on here. When you go to the display field earlier today, there will be a lot more, but this really kind of shows it in a nutshell of who we really are. So if you look at the foundation side of screen, you see a ground screw and the helical. Those are the main 2. So 80% of the foundations we put in the ground are the ground screw. The ground screw is just -- it's the ideal foundation. We manufacture them right in-house. You'll see lots of equipment manufacturing these in-house. These are good for hard soils, rocky soils, cobble soils, cliche soils, bedrock soils, almost every type of soil a ground screw works for.

The only place that a ground screw doesn't work is when the ground is soft. When the ground is soft, you can't use a ground screw because there's not enough threads on it. It doesn't hold. So that's where you have a helical. So it's the opposite almost a ground screw. I have these big flights on there that really hold that soil. So between the ground screw and the helical, we can cover almost every soil condition that's out there subsurface underneath the ground. Underneath there, so those top 2, the ground screw and the helical, they work for all of our fixed-tilt products and all of our tracker products, the ground screw and the helical.

The other 3 below there, the C-pile, the Pour-N-Go, the Geoballast, those are fixed-tilt only products. The C-pile is really important. We don't sell a lot of it. Maybe it's 1%, 2% of our business. But it is important because we learned a lot about C-Pile foundation in the fixed-tilt industry. It's a roll form 11-gauge or 9-gauge C-pile that 80 ksi, so very high-strength steel that we can drive into a ground with a pile driver, and we've had a ton of success with it. So we took that success, and that's really how we implemented that on our Atlas I product, which is a Sigma pile, which is quite a bit different than a C-pile, but has a lot of the characteristics, just a little bit different engineering that goes into it to create a very good solution for the tracker portion of the industry.

So the Pour-N-Go solution, that's a ballasted. It looks cool, but has concrete in it. Concrete is very expensive, but some customers really like the idea of concrete. The Geoballast, that's a product you'll get to see today. It's very cool, very inventive. It's one of a kind at APA, and it's actually the leading ballasted solution that's out there. Is there a ton of ballasted projects? No, but they're very nice revenue, high-margin job that APA does enjoy being one of the leaders in that business.

Fixed-tilt mining systems. On the top, you'll see that's our Titan system, our Titan system, that is our #1 racking system. So the top one Titan Pile, again, we only do maybe 1% or 2% with that. The Titan Duo, that's 80-plus percent of what we do. That particular product, you'll get to see it out there. There's quite a few different versions of the Titan Duo from a crystalline version from then a First Solar version. We actually have a Titan 3-high portrait, Titan Duo 3-high portrait, and we have a Titan Duo East-West system. So those are really unique products that you'll get to see in the field today.

The Titan Go system, that's something we actually did a soft launch on this year. So it's a super exciting product because it's for really a distribution model. With normal racking systems, it's a time. You give us your site layout, we engineer the product, we create a BOM. It has to go to manufacturing. So by the time you get a PO, it's 10 to 12 weeks for a lead time to produce your custom racking system. The Titan Go is different. It has this really optimized engineering design that clients can place an order and in 2 to 3 weeks, we can deliver the racking system to them.

So really designed for more of that DG space, that 1, 2, 3, 5 megawatt size projects, but we're also finding really from the smaller project size. And then actually in the utility, there's a good place for it, too, because we can really optimize some of the solutions there with a bolt-through and it has a very unique pattern on it that we can show that it actually has a really good place in that particular market.

Underneath there is the Ready Rack. That's really kind of a legacy product of APA. We still do a lot with it. When I say a lot, maybe it's 10% of our business, really in the distribution portion of a company. A lot of people like the Ready Rack. We have a large following of clients still like to use the Ready Rack. So it's a very versatile system. So we will keep it in our portfolio of products probably forever just because it is a very good product that can be used on a lot of sites and clients really like it.

Then you got the tracker interface portion. So the A-frame system that we originally started out was a welded version, then we quickly graduated to a 2.0 version. The 2.0 is what we currently sell still today. The 2.0, we do sell to Array Technology clients, but we also sell to all clients. So it is agnostic. So EPC can choose any tracker they want, they can come to APA and they can buy the A-Frame 2.0 from us, and we can supply it to them. That being said, as we acquired by Array Technologies, it gave us the opportunity to work directly with Array, with their engineering team to really create an optimized solution. So we took full advantage of that right out of the gate as soon as we acquired soon as every thing was good to move forward. Their engineering team, our engineering put their heads together, and that's where we create the Atlas product.

I won't talk too much more about it because then I'll steal all Joe's thunder, so we'll keep going here. Unmatched customer value proposition. This slide is great for the vertical integration of APA. The in-house engineering that we have, we take all the customers' information. We have a great sales team. We have a great engineering team. We have a great project management team. They all sit almost in Northwest Ohio, where you will see today all on the same campus. So we're very well integrated together as a team.

In-house manufacturing, how many other companies like APA can produce almost all their products in-house under 1 or 2 roofs that we own. The vertical integration, it really allows us to be able to do that custom manufacturing, guarantee that on-time delivery and a customer needs something in a hurry or rush, we have the capabilities to do it. So we are the manufacturers of it. We can do it. We can make it right there in the U.S.A.

Foundation testing. We have one of the premier foundation testing programs of the industry. There's -- I don't know if there's really any other company out there that has a testing program as large as APA and does the amount of testing that we do on every single site. So this -- when we get into testing information, I think Nick said earlier, it might have been a little bit boring, but the testing portion is, in my mind, one of the greatest values of APA. We really derisked that project site for you, for the EPCs, for the customers. And derisking a project site for the customers, that is one of the biggest values of APA, providing a solution, derisking that site and basically guaranteeing their bottom line at the end of the job.

Field execution and support, there's not too many other companies that have 100-plus -- actually, we have -- I can't say how many people, but it's a very large amount of people in the field today all the way across the country right now working in the field. So we can install if you're not familiar with ground screws, if EPCs are, I'm normally used to talking and selling to people. So when I say, yes, trying to sell you guys on solar side. But usually, our clients aren't familiar with selling ground screws or helicals. So if they're not familiar with it, we can install it. We can offer a quote. We can offer to say, hey, it only -- some customers are like, hey, it costs x amount to install it. We're like, no, it's only half that. We can give you a quote. We can provide it. If you want a full turnkey service. APA can provide that.

Not only that, it gives us -- since we're on so many projects, we're in probably 15-plus projects right now in the field installing services. We have an employee basically in every corner of the United States right now. So if a customer has a question, they need service, they need something, APA can go to that site. We can help them. We can provide that service. If they need us building Golden Row, we can do that.

The APA display field. We're actually building an 8-megawatt project right down the road. They came and built the entire display field in 2 weeks. And it was probably more like 5 days. They built the whole thing in 5 days, very rapid, very quick. How many other people have that capability in-house that have that team. So it's exciting at APA to have that.

Drivers for the fixed-tilt and engineered foundation. So one major growth factor for APA has been the instant bankability. As I talked about before, being a privately held company, that was one thing that held us back. These large customers having these 100, 200 gigawatt size project would always talk to Joe and I, would get quotes from us and say, how can we really give you guys a $20 million or $30 million purchase order. You guys are this privately held company. So we acquired by Array, that changed everything. It gave us the bankability of being a part of a large publicly traded company. It quickly turned all their heads and said, okay, this is a viable solution for us. We are interested. Can we come, have those conversations, open up those doors. So that is very exciting.

So we're also benefiting from 2 important market trends at the same time. So fixed-tilt demand continues to benefit from AI data center demand and utility scale growth. So this is something that was kind of surprising to us. We didn't see this coming in the fixed-tilt market. But the fixed-tilt market, every single year for the past 3 years, we have had a record year on fixed-tilt. We are going to have another record year on fixed-tilt this year, and we're going to have another record year on fixed-tilt next year. So fixed-tilt is very exciting times right now in our industry. So it's largely driven right now by that utility scale growth for those data centers.

So solar development expanding into more difficult terrain, engineered foundation is becoming increasingly valuable. So in the past, a lot of tracker projects would be cherry pick a little bit of the sites that the driven piles have worked really well in. Now it's what sites are available and what sites they can build on and then they figure out what foundation they have to do -- use to build that site. So a lot of those great sites are gone, and now you got a lot more difficult sites with topography and hard subsurface conditions, and that is where APA we really excel at. So we're already seeing that reflection in our own business since joining Array, our average pipeline project size has doubled as we participate in more large utility-scale solar projects.

From there, I'll turn it over to Joe, so he can walk through a few slides to talk more about the foundations.

Cool. Thank you, Josh. Hi, everybody, Joe Von Deylen. I'm going to kind of go through kind of what are the soil conditions or why do people have an interest in our foundation solutions. Really, if you look at the slide here, you can see there's kind of 4 main categories. We have areas of the country where you have a lot of ground frost conditions. And these ground frost conditions, if they penetrate the ground more than, say, about 2 feet, it becomes very difficult for driven piles that rely solely on skin friction to hold on the ground. As you go through seasonal freeze thaw, those piles can heave and move and that can create issues over time for them with the O&M and just the general function of the racking systems. So those ground frost conditions can cause an issue.

Another thing is the shallow restrictive layers. There's other parts of the country where it's just physically hard to get something to go on the ground. You have bedrock, you have cobbles, boulders, cemented soils and it doesn't matter how hard you pound a pile. Even if you get to go in, it's likely that you damaged it or you might then need to remediate the top of that pile because it went through a very hard layer of the ground. So we see that pretty consistently through different areas of the country.

There's another area, which is expansive soils, expansive clay type soils. These are really kind of when the ground becomes wet and then it dries, it shrinks and it swells and expands and it contracts and it does it over time. And again, that can lead to movement of your foundations, which can cause issues for the racking system. So we have solutions that we can help combat expansive soils.

And then finally, we have conditions with weak soils. And that's basically where you have loose sands, you have high water tables, saturated soils, soft organic soils where you don't get very much skin friction. The density is just not there. It does not hold the foundations very well.

And something to note is if you look at for these different -- these 4 maps, if you overlay them, this isn't a niche market. Like these things happen all over the country at large scales. So there are areas of the country that driven piles work great, but there's just as much of the country that driven piles, they have issues in APA, we have solutions to solve those issues.

So historically, kind of let's talk about the more traditional approach. It was with the driven beams. And the driven beams, H-piles, I-beams, W-Piles, a lot of different names for it. But they're very good if you don't have too much ground frost, say 2 feet or less, you can pound and then, you can get enough skin friction to hold them, and they're not going to move and heave. But if you have more than that, the surface area of them pretty large and that can become a tremendous force pulling on them and you have to add additional depth or additional steel to get them to hold in place. So that additional steel is just additional cost. It's additional weight. It's harder to handle. It can make a project more challenging to build.

Again, we kind of talked about how if you have hard cemented soils, if you have boulders, cobbles, it doesn't matter how hard you pound the piles, you're going to have issues with those piles. They're going to become twisted, damaged. They may not actually reach the proper embedment depth and then you have to pull it out and remediate it, drill a hole, put it in concrete, something like that, very time-consuming, very expensive to do that remediation process.

And there's another things with kind of that soft soil we talked about where you have to put those piles very deep to hopefully find some sort of layer that has bearing capacity. And again, any time you have to put those deeper, you're exposing yourself to more subsurface risk, more possibilities you might hit something or just again, more steel, more cost to produce a foundation that's going to support your solar tracker system. So historically, that's where APA, we've differentiated ourselves from the driven pile market. That's kind of been we are a good solution provider when you have those soil conditions. And those soil conditions, as I mentioned, they exist all across the country. And so when you have solutions like ground screws or helical piles, they can alleviate basically any concern you have of frost heave because we're putting the threads of those screws or those helical flights down below the frost line and non-frost-susceptible soils, and it doesn't expose that foundation to frost heaving anymore. It works very similarly with the expansive clay. Once you get below that expansive layer into a nonactive zone, we can eliminate the risk that those piles could move over time.

The ground screws, as Josh mentioned, they work really great for cobbly, rocky, dense hard soils. They even go into solid bedrock if you use a small predrilled pilot hole. And that predrilled pilot hole is significantly different than predrilling for a driven beam. It's much smaller. It's much more cost effective and a repeatable process that we can recommend customers to deal with those challenging soils.

I think Josh already hit a little bit on the helical piles, how they work really great in soft soils. We have a lot of projects here in the Midwest where you have organic soils or sand, the helicals, we can adjust the diameter. We can put a couple of different helical flights on them to increase the bearing capacity and get more holding strength in shallower embedment depths. We don't have to go nearly as deep. We can reduce the amount of steel and reduce the amount of risk by putting more steel in the ground.

Another cool feature with these products is that you're using 2 small foundations and you're sharing the load through an A-Frame tracker interface. And that A-Frame interface benefits from the geometry basically of a triangle. It's very strong and strong access, which means we can use a lot less steel again above ground because we're not supporting all that load just on one foundation that has to support. We're using 2 foundations that can support strong load. So you also get features with vertical height adjustment and east-west adjustment, which makes it easier to build over topography.

So now that we kind of talked about where we've came from, how our solutions kind of solve some of the issues with soil. Let's talk about kind of the new feature that we've come out with Array. As we mentioned, the A-Frame 2.0, it works with basically all the tracker companies on the market today. It is agnostic. It's been very successful, one of the fastest-growing parts of our business. But a little over a year ago, it was like we need to get API and arrays engineers and let's co-develop an integrated solution that is not cumbersome by extra parts and pieces because we're making it for everybody. We're specifically designing it for one purpose. And that's where the Atlas and the Atlas II comes into play.

First, the top of the pile, we have a new Atlas bearing. The Atlas Bearing is pretty cool because it's been designed specifically to accommodate all the new stow strategies Array has come out. So if you have the 52-degree system for moderate hail, you have the new 60-degree system for a little bit more extreme and then it also can accommodate the 77 Hail XP simply by changing the hard stop, and that's done in the factory, delivered to the customers with that correct hard stop. So whatever your hail stow strategy is, the Atlas Bearing can accommodate that.

Another cool feature is we have an Atlas I, which is entering into the driven pile market. Historically, those driven piles, they all come straight from the mill. They're hot forged beams. They're kind of a commodity thing. There's no proprietary secret sauce to it. When you have the Atlas I, we've created value. We have a new interface. We have adjustment. We have a new bearing, and we give the customers more solution for driven pile, standard soil Josh will talk about that here in a second.

And then the Atlas II is the new A frame that's specifically designed for Array that reduces components. It listens to customer feedback of how do we reduce the amount of fasteners that we have to assemble in the field and how do we make it easier for those contractors to deploy at a mass scale.

So I'll hand it over to Josh quick to go through the Atlas I Foundation.

Thank you, Joe. Got excited to use the click. All right. The Atlas I. So what is the Atlas I? From my knowledge, I don't believe there's anything else like it in North America that is offered out there right now. So the Atlas I really came from APA, we talked a little bit about our testing program. Joe will talk about it more. We have this premier testing program that we go on site to test these challenging sites for hard soil conditions for ground screws and helicals. Well, a lot of times on these particular projects, there is good soil conditions for a driven I-beam.

So how can we look at providing our clients a good alternative solution to an I-beam. There's got to better -- be a better way than just taking a huge extruded piece of steel and just smashing this thing into the ground repeatedly every single time. So it works. It works great, but there's got to be a better way, a smarter way, a way to engineer around it to provide a lot of value for our clients. So that's where we took the best ideas from APA in our 18 years of history, worked with the Array technology engineers and say, "Guys, what can we do with your guys' loads? What can we do with our C-pile and our foundation experience? And we created the Atlas I foundation.

So what is it? It's a 2-part pile. So the pile that goes in the ground, most people use today that W-beam, you could still use the W-beam. You can still drive it in the ground, but basically, we cut off 3, 4 feet of it. So you only have to drive it in the ground whatever normal depth you would, and then you leave it out of the ground 24 inches, plus or minus 2 inches. So you've got this huge 4-inch window. So it's not precision-driven in it's just drive it in on the pin and go to the next one. You can use the W-beam or you can use a Sigma pile.

A Sigma pile is much more like the C-pile that we talked about earlier. There's a lot of advantages to the Sigma pile because this is coiled steel that we can roll form, we can roll form in-house. We can really control the cost of it. We can control the lead time of it and you can prepunch all the holes in it. So there's just a lot of value to it versus like a W-beam, you have to understand what W-beams you would need, then you would have to place an order with the mill and you're really at that mill, steel mills mercy on when you're going to get that lead time and you're going to get your piece of component versus a roll forming machine, the coils are there. They're ready to go. It's kind of like a big printer. Tell us what you need to print, we start printing it. It does take a little bit longer, but we can print all this coiled steel off, palletize it and get it shipped to the site.

So the bottom portion in the foundation is the W-beam or Sigma pile, either one that a customer wants to choose. The Sigma pile is just a much better cost point if a client is looking to utilize that product for their site.

Then you go above there. Now you got the interface. So this interface is where a lot of the magic happens on the Atlas I. It has the adjustability. There's a large amount of hole patterns that you can see in the bottom. This gives you plus or minus 3 inches of adjustability in 1-inch increments, and there's actually more adjustability in there as we get to particular sites like on the interior. That also that interface piece, there's also different heights of it. So if we do need to extend it and go higher out of that plus or minus 3 inches, you simply swap it out for the different piece, which is all not generally a swap. It's generally all laid out in the engineering, so you know where those particular pieces go on site.

And then you've got -- on top, then you got the Atlas Bearing. So the Atlas Bearing, Joe talked a little bit about. It's a steel bearing, basically like Array Technology steel bearing, but the steel bearing has 6 nuts and bolts and fasteners so that you have a lot of adjustment in it. But we don't need all that adjustment because we now have that adjustment in the interface portion. And Joe will also talk about the Atlas II, we don't need that adjustment. So the bearing, we took a lot of that adjustment out so that the bearing is a very cost-effective bearing. It's also a 2-part bearing that you can take off, so you can put torque tubes on there. So a lot of cool features in that bearing.

I'll quit talking about it, so I don't steal Joe's thunder on that one either. So there's a lot of highlights on this slide. So there's a lot of value you can provide today when we go out to the display field, I'll spend a lot more time on it. You're going to see it in real life. We'll get into it in more detail, and a lot of it will make sense and go through every single one of these bullet points on that.

Joe, I'll turn it back over to you.

Cool. Thanks, Josh. So Atlas II, really, where is this coming at? We're coming at customer feedback. Customers have told us with the A-Frame 2.0, they would like to see some fewer connections, fewer torque connections to use in the field. And so that's really what we've aimed to optimize. At the top of the pile with the Atlas Bearing, we only have 2 bolts that go through it to connect it.

Today, with the A-Frame 2.0, you have 6 bolts at the top of the pier, plus another 2 bolts, 8 volts that you have to tighten versus 2. So we've reduced the number of connections that they touch. Today, with the steel bearing and A-Frame 2.0, you have 90-degree side brackets, a bearing and an interface. You have 3 components versus this, you just have a bearing and interface. So we reduced also the number of components they physically have to bring into the field with them, making their jobs a lot easier to deploy this at a large scale. We're talking hundreds of thousands of foundations on some of these sites. And the easier we can make it for them, it's just going to be a much more well-recepted product.

Also, we're keeping a lot of the feedback that they said they really like exactly the same. So at the bottom of the peer, we have those riser tubes. It gives a vertical height adjustment. You'll see it in the field, how we can telescope in and out of the ground screws to raise and lower that pier, and that makes building over undulating topography a lot easier because you can go through, set all your foundations and then independently of the foundation, raise or lower that top of pile to make sure it matches the curvature of the torque tube, especially if you're building train following trackers like OmniTrack where the torque tube actually flex with the curvature of the weigh in.

Some other unique features are -- is the component to just in general, mainframe 2.0 has over 60 components that make that product up. Atlas II has less than 20 components or between like 14 and 18 components. So significantly fewer components, which means it's easier for us as supply chain, easier for us for preassembly, easier for the guys in the field just to manage that number of parts and pieces. So pretty cool features. It is fully domestically made. So it will be made right there and probably the new Bryan, Ohio facility that we're making investments into new tooling with and then the ground screws and helical piles pair with it. And so those helical piles and screws as we talk, they complement each other very well. So you can go through different soil variations.

Speaking of soil variations and kind of that, let's go into kind of testing and engineering, how we design our foundations. This is kind of, again, the foundation's first approach. This is what has made us really successful as a company because we can help derisk your project from what's under the ground. Nobody can see it, they don't understand and they find surprises. So we can help reduce some of those costs, reduce some of those risks and improve just overall your project execution if you have a well laid out plan ahead of time before you get those guys in the field that are getting paid these expensive wages to deploy solar.

So having that plan starts with the geotech. Every company gets a geotech for their site. The problem with these geotechs is they're usually pretty limited. They have a boring maybe every 20 to 40 acres across these 1,000-acre site or 2,000-acre sites, and that leaves you with large blind spots of areas that you don't really know what happened there. It's just so I can see what happened here and I can see what happened there, but everything in between, we don't really know. And that's -- historically, that's been an issue for us, building our own projects is we thought it was this here and here, but in the middle, we had an issue and cost overruns, remediation. How do we avoid that from happening again? What is the lessons learned?

So really, we've started taking those geotechs compiling them all into a huge library of information based on region, based on soil classification saying, here's what historically we've seen with the geotech borings, and it can help shape our opinion. But again, we still have kind of those large blind spots because we're not getting enough data ahead of time. So how do we get more data? We develop the best testing program in the industry to go out and physically collect that data. And so we have APA employees, our own dedicated crews. This is all they do. They go around the country to all these solar projects, and they do these capacity and soil probings. Capacity tests, they're similar to what most geotech companies do, they're tension and lateral tests. They measure the mechanical capacity of that soil to hold the foundation, so it doesn't pull out of the ground or in event, it doesn't dip or fall over, horizontal and tension capacity test.

The difference with our capacity testing is the rate at which we do it. We do a capacity test every 5 to 7 acres. So you think on these utility projects where there's thousands of acres, we're doing hundreds of tests. We're doing tests all across the site. We're reducing those blind spots and we're being better prepared for what's happening in the soil. And if we know how the soil is reacting to the foundations, it gives us a chance to optimize those foundations to reduce steel costs, to reduce embedment debt. And if you can reduce steel costs, good, you're reducing money, you reduce embedment debt, you're reducing exposure into the soil or you could possibly have risk of hitting something or something changing. So we'll go through, we'll do those capacity tests, and we'll understand what is the best foundation and how can we optimize that foundation.

But then the next part of it is we're installing tens of thousands, hundreds of thousands of foundations. We have to make sure those foundations are actually practical to install at that scale. And I think that's where the industry is lacking quite a bit. And most people can do that first part. They can design a foundation and they can even do some more tests and say, yes, we're pretty confident it's going to work across the site. But the soil probings, that's where we gain an entire another layer of data. And you can see all those purple diamonds.

We do these in a grid-type pattern every 250, 300 feet across the site. And it tells you, did that foundation actually go in the ground as we expected it to? Or did it hit a refusal? It was a high torque value. It's a low torque value. What happened basically during the installation of it. We're not measuring any test, any capacity of it, just can it actually be deployed in the field or is there going to be an issue? And I think a lot of people don't do that stuff and then they run into areas of the site where, yes, it will hold, but we can't get them to go on the ground. Or yes, we got them to go on the ground, but they basically fell in the ground in this area. And now all of a sudden, we have to remediate those. We have good concrete. We have additional costs because we didn't check that spot.

So going through and doing both parts of that, both with the capacity test and the soil probing can tell you, here's the best optimized foundation and here's the best method to install that foundation. And we can zone that out into a nice zone map, which will tell you based on color code, what the foundation should be. And then based on each one of those sites, usually, they're broken out into different blocks, you can kind of see how you should install it. If it needs to be predrilled, if it can directly drive into the ground, is there different things you need to consider.

So you can build that battle plan ahead of time and be prepared going into these projects so you don't end up with surprises that are going to cost you money for rework, for change orders, for remediation. And that's where the customers can see the value. They do this, they get the information and they know what's happening underneath the soil and they can be prepared for it. That's historically, they've lost so much of that money, and we're giving them that information to say, here's how you should build it right from the beginning.

I'm going to hand it back over to Josh, and he's going to kind of wrap it up here for us.

All right. Thanks, Joe. So on the last slide, there was 2 -- probably there was one very important thing that we did forget -- I forgot and Joe forgot the Atlas I and the Atlas II, all the aboveground steel portions and the bearing are 45X eligible. So those -- both those 2 products are 45X eligible. We'll go through that a little bit later today, point out the product in the field and 45X eligibility. It's not the subsurface stuff, but above ground, those components are eligible.

All right. So Kevin highlighted our strong performance and financial targets earlier today. Those are a testament to the value we create through better engineering and execution. So cost efficiency, APA and Array working together, we reduced system overdesign. Risk reduction, the APA on-site testing program, we can dramatically reduce the project risk for our clients. Capital efficiency, designing the project with the right foundation from the beginning, reduce refusal costs and project risk. Financial impact, better engineering ultimately improves project margins and predictability.

So what's next for APA's growth? The Atlas portfolio that we just launched 2 weeks ago, we're getting tremendous feedback from clients. So calls are coming in. Our sales team is really reaching out to clients. Those doors are opening up. Everybody is interested in taking a look at the Atlas product. So lots of webinars. We actually have basically a line right now of clients that want to come to the APA Sandbox and see the actual product and get a hands-on feel for installing these in real life. So the client -- it's -- I think the client feedback on the product has been overwhelming, even a lot more than we were really expecting on it. So we're super excited for that Atlas portfolio of products that we recently launched.

Further expansion in the utility-scale solar industry. Right now, again, APA in the past, a lot of DG entering into that utility scale. We're building a lot of those relationships with those utility scale clients. Majority of them have not used APA's products in the past. So we still have the majority of them to prove our products to them and how well our products work. So once we can get through those doors, Array is really helping on that. They utilize our product. Hopefully, the trend will be just like the rest of our clients, repeat clients 100% of the time.

Growth opportunities, expanding manufacturing capabilities and automation. I really talked about that earlier, and you'll get to see it, our 150,000 square foot manufacturing facility has a lot of automation, has a lot of new equipment. It has a lot of new pieces of that are very unique and then opening up the door on the 130,000 square foot manufacturing in Bryan, Ohio, which will have some really new CNC tube lasers and a new CNC vendor that is very state-of-the-art.

So extending that foundation solution into other markets. So currently, today, we do some wire management on our foundation systems. We are starting to do inverter skids on our foundation systems, and we're looking at quite a few large BESS projects. Those battery storage systems fit really well on our helical foundations and designing systems for that particular space.

And expanding into existing product portfolios. If our products work this well in the United States, they're going to work really well all over the country. We have great solutions. It's a matter of APA continuing to grow and entering into those space. Right now, in North America, there's just so much opportunity right now. We're really focused in this space. But as soon as we get there, we can definitely expand into those international markets.

So Joe and I are very excited to host you guys today at our campus, our facility, show you our new sandbox that we recently put in ground. So everybody say a little prayer for no rain this afternoon, and we all stay dry because it will be a great experience if it's dry out there. All right. Appreciate it. Thanks, everyone. I think we're going to take a quick 10-minute break. 10-minute break. So grab water, go to the restroom, anything you need to do. And then after that, we'll turn it over to the rest of the team.

[Break]

All right, everybody. Thank you. Welcome back. Hopefully, you've enjoyed the materials so far. My name is Nick Strevel. I'm our Chief Product Officer. I'm here with Darin Green. We've been working together a long time, and we're pretty excited to talk about really bridging the gap between technology and the customer and how we do that.

So I'll let Darin start and walk us through our customer journey and our customer strategy, and then I'll bring it through and help you understand how that works into our product strategy, our technical selling, and you guys can see how that all works together.

Thanks, Nick. So a quick word on my background. I've had the privilege of serving as Array's Chief Revenue Officer since January of 2025, following more than 15 years in the renewable energy product and sales strategy and another 10 years in energy and arbitrage trading. Over the past 2 decades together, Nick and I have built a symbiotic commercial and technical partnership, a collaborative approach that we've refined over time to be a deep industry exhibiting built on passion, integrity, culture and thought leadership.

Let me start with the model that underpins everything Nick and I are about to walk through. What we want to share with you over the next several minutes is, frankly, one of the things we're most excited about here at Array. It's the clearest evidence we have that our strategy is starting to take hold. Here's the thesis in one line. We have and we continue to build differentiated products supported by an innovation that drives real value for customers. And when we drive value for customers, that translates into long-term shareholder value.

It starts with discovery. We begin with field realities, customer economics and execution risk, not just what's easiest for us to build. From there, we focus on innovation, translating pain points into interoperable engineering, foundation and tracker solutions. This is exactly why the APA acquisition matters as does AWM. Trackers, foundations and the balance of plant as one integrated connected system, not separate products from the same vendor. That leads to differentiation, site optimization, faster installation, reduced logistics and a more efficient use of materials on every project, not just the flagship ones.

And it's how we solve critical customer challenges with patented products, real IP, not just a marketing claim. That's profitable. And all of that converts to value capture, a greater share of project economics, a lower cost structure and margin expansion. That's profitable growth, higher returns and a stronger competitive advantage. And it's not just our own math. It's validated and backed by third-party engineering. So when we make a claim like this, it's been independently tested. Put it all together, and that's how innovation and differentiation drive shareholder value. That's the model. And it's exactly what Nick will highlight with specific product examples.

With that, I'll turn it over to Nick, who will walk you through our journey.

All right. Thanks. So we're going to talk through a bunch of different things here over the next few minutes. And I think there'll be some concepts that are really meaningful to the selection of this technology and the things that we've developed, the things that we've patented, the things that are core to what Array has been and will be as a company. We think about the changing and evolving sites.

Joe and Josh talked to you about that a lot. They talked about the geotechnical engineering, the boring. I think it said boring 5 times on that slide, to be clear, there was a joke about that. But we have to do the testing. We have to build those foundations into it, understand the differences. A lot of people don't recognize this, but the tracker really is that core element of the engineering of the project. The modules sit on it, all the forces that go into those structures are required to be engineered by the tracker and then the Balance of System hangs on it or is attached to it. It's that central element of what's going on there.

We think about the below ground, as we talked about, Array thinks a lot about the stuff that's above ground. I'll point to a couple of things that are important about our technology that are even more important as we think about what's going on today. Our torque tube is different. We don't drill the torque tube. We don't predrill the torque tube. And that's been a nice feature for us, and I'll tell you a couple of reasons why.

One is that it's easier to put the mounts and attachments on the field. You have some field flexibility there. Number two, from a retrofit perspective, a repowering perspective, Array trackers, I believe, are much more conducive to a repower situation where you don't have all that pre-integer setup for modules. The last one is kind of what's going on today is that there's a lot of trade and policy things that are affecting modules, making late-stage decisions on that. Having been able to order your tracker components with potential flexibility around that makes a big difference to our customers.

We think about installation. You'll see today out in the field, our FASTMount system, Joe and Josh talked about fasteners. Installers don't like them. They're important. However, if we can eliminate them -- and one of the reasons they like them is because of that torquing where you have to check it was it was the right amount of force onto that fastener. We get to check it, double check it, sometimes triple check it. We've developed solutions that eliminate that with our FASTMount Easy Clip solution you'll see in the market at our showcase.

We've really considered as well the operational considerations of projects. We think about energy production. We don't just think about the tracker as parts and pieces, nuts and bolts. We think about it as the key element that drives energy production. And we think about it from a risk protection perspective as well. A lot of weight has been put on the tracker. And I think we've come up with innovative solutions to the industry's problems of extreme weather, whether that's building projects in extreme windy conditions, and we'll talk to you about our wind technology, but also around hail. Building projects in the hail belt is a reality and having tracker solutions, both on the hardware and the software side to manage that is something that I think we're doing very well.

So our platform has expanded over time, and it's really starting to -- as Kevin mentioned and others, it's really starting to grow quite quickly because of that innovation, because of that collaboration, we're bringing to market the best ideas that we have, a collection of our best thoughts and our engineers' capabilities as well combined with our customers' recommendations and feedback. We have over 100 gigawatts of trackers installed. The DuraTrack platform is that long trusted tried and true system. You'll see that today. What we're doing is expanding on that platform -- on that trusted platform, not starting over.

So you could see a few variants here of DuraTrack, the OmniTrack, which is terrain following. Not only do we have a nice train following solution, we just launched an addition and upgrade to that to have OmniTrack 2.0. It's additional engineering. It's additional understanding that saves our customers money. It doesn't cost more to build OmniTrack 2.0 than OmniTrack 1.0, and it provides additional flexibility. What that means is that you can have less cut and fill, where you take dirt from one place and move it to another place on the project site because you're trying to balance out those foundation heights. It also means that you can go across different terrains, right?

Those sites we talked about. The Hail, really important. We'll talk more about that, and I'll talk about our hail technology, but we now have multiple variants to really fill in the gaps of what hail risk is driving into those systems. So you have multiple hail zones across. This is predominantly a North America phenomenon and in the United States here. There's multiple zones where you have extreme risk and you may need to go to a very steep angle to reduce that cross-section where the high energy, the large hail balls can strike the solar modules, potentially break them or cause cell cracking, a bunch of other things that are not desirable.

The tracker can go steeper, but to go steeper, you generally have to go a little higher that introduces some cost. So optimizing the amount of angle to what the risk profile is, is really important. So that's why we have our Hail XP at the steep angle. We have a 60-degree we just announced. We developed that very quickly with our customers. They asked us, can you do this? We thought about it. We said, well, we want to build in all of our tried and true technology around our wind stow and the AC power that reliably gets at the stow and we launched it to market coincident with our insurance forum this year.

And then SkyLink, in areas where you have difficult soils to do trenching in, we have a solution that's DC powered, powered from the sun, also with no batteries. So we have 2 main systems, an AC-powered system that's connected. It's powered directly from an auxiliary transformer on the inverter pad, which connects directly to the flow of electricity into the substation, connected to the large utility grids that the utility scale projects are interconnected to. Those are high reliable connections. Those transmission lines don't go down in a thunderstorm.

And that's very important when we think about hail resilience in terms of not just having a steep tracker, but getting there, getting there every time, being able to -- so the concept of reliability of stow is something that the industry is really starting to cue in on and not having -- not counting on a battery that could have been discharged or not properly maintained or not changed frequently enough over the project's life cycle when you need -- when the hailstorm comes at night and there's no sunlight to power your tracker, ours is powered by that reliable grid.

So Kevin mentioned a number of product launches. You've seen and heard about a few of those already, but -- and you're going to see them today out in the field. These really, I think, complement and are showing that the innovation is targeting specific areas of the market that drive additional growth for us and fill gaps where customers are looking for that optimized or even suboptimized product lines. We're also what you'll see is that we're using a family of components. We're not driving in a bunch of complexity into our business. We're standardizing it, and that was one of the big things around the D2S product.

So we had our legacy STI H250 product that we've been selling internationally for quite some time. We looked at how can we bring our technology feature set that our customers like, OmniTrack terrain following as well as the passive stow technology. There'll be more on that, don't worry, to our international markets, 2 big things that customers -- it saves them money or delivers on project returns. We did it in a smart way of bringing similar components to those international markets. So now we have a streamlined supply chain for global technology, not bifurcated across different market sets.

I talked about OmniTrack 2.0. It really, really helps. This is just straight feedback and a great way to give back to those that are installing out there and make that civil engineering costs go down. So really exciting here on this product suite, but what I really want you to take away from this is to see these are variants and they solve customer challenges, but they're made with essentially the same family of components and the same technology core elements of our innovation that provide bankability and long-term performance.

So it's not just the hardware. Our in-house engineers have developed some of the most innovative solutions to increase project yields, reduce commissioning risk and deliver long-term extreme weather risk reductions that enable lower premiums and deductibles. I'll talk to you about 2 of the energy performance elements of our software technology, back tracking and diffuse. So for silicon modules, they're arranged with an arrangement of individual solar cells on a module. I think everybody hopefully knows this.

However, when a tracker systems in the morning and the evening, they're casting a shadow upon adjacent rows. You wouldn't spread them out infinitely wide because then your land utilization would be a problem. So you have to accept some amount of shading in the morning and the evening and the project economics drive that optimization. When you cast a shadow across silicon cells, they do not -- the output of the module doesn't reflect proportionately to that shadow. And therefore, a disproportionately small shadow can increase the losses on that module to the effect where you want to avoid that. And that's what backtracking technology does. And these shadows aren't just caused by the horizon and the simple adjacent structures, they also happen and need to be optimized for the topology of the site, right?

We talked about not disturbing the soils. We talked about having products that can go over and undulating terrain. We have the technology to optimize those morning and evening shading conditions. And these are upgrades to our products, right? These are software upgrades that our customers pay for. They drive value. They have bankability associated with them, and they build them right into their pro formas. They're in the energy prediction models. They all can measure this correctly, and they're starting to gain a lot of traction. So we see this as a great way to bring more value to our customers and also experience a nice profitable area for our company to grow into.

Diffuse is a little bit different. So the backtracking kind of takes into account where we know where the sun and the solar modules and the earth are at kind of any given time. Diffuse is something that's a little bit more subject to change. So diffuse stow technology is based on the phenomena that clouds on cloudy days, the sunlight is scattered. So it's not coming as a direct beam from the sun where you just simply say, the easy question is what's the best place to point the solar panel? Well, at the sun, right? That's the obvious answer to that question.

The reality is on cloudy days, the best place and sometimes to point the solar panel is not at the sun, but it may be flat to harvest more of that diffuse reflected light, the scattered light in the atmosphere. And we are constantly monitoring with these software technologies, we're monitoring the proportion of diffused light in -- of the solar resource, and we're making decisions for the plant to go to a diffused stow condition, but also potentially looking at what is the frequency of those clouds.

So we're not just quickly going back and forth doing things like that, that would be very disruptive to performance. We're looking at, is it going to be a cloudy day. It looks like it's very cloudy. Now we can get into a diffused condition and harvest more light. These things aren't like enormous amounts of energy. They're in the low single-digit percentages. However, those low single-digit percentages make a big difference on a project pro forma.

So just a couple of stats on this, right? We're at this year, about 50% attach rate on those energy software technologies. And then 2026 deliveries are already above -- so this year so far on this are already above the entirety of last year. So gaining momentum. And I think it's pretty obvious that pretty much every project can benefit from these technologies.

One other key point on these is that we got 100 gigawatts of stuff, over 100 gigawatts of trackers installed. About over half of that is available to be upgraded to this. So that's a legacy pipeline that we can go back, talk to those customers, show them those benefits and then create a revenue stream from projects that we may have sold many years in the past.

So moving on to the extreme weather portion of the software portfolio. This is another area where bringing these tools combined with the hardware is really creating that interoperable solution that we've talked about. It's not just saying, I see a weather, can I see a hailstorm coming in. Let's still my tracker. There's a lot of ways that folks have tried to do that. We have a completely autonomous patented solution for this where a weather signal is inputed into our system from weather data sources, which describes the probability, the size, the direction, et cetera, of the pending hailstorm.

That comes into the automated hail stow response system. And then without any human intervention, the tracker is preemptively put into a stow condition. And because of our wind stow capabilities, we are able to take the strength in both directions, either front-winded or back winded of our tracker, so we can store into the best situation where you have the least amount of either hail falling from the sky or potentially wind-driven hail that can also be a severe problem.

Getting to stow really matters. I talked about this before. Here's the data point. We look at our -- at the information coming back from those project sites, and we're seeing a greater than 99% of getting to stow on a hail signal input. And you also got to be able to get there quickly. And the way our system is built, the customers really understand this is the right solution for this problem set.

Finally, on software, we're trying to make things easier and faster. We know installers want to get off the site. They want to commission the project quickly. We developed a simple smartphone app that allows them to commission those trackers and controllers and build in those capabilities there for the software tools. What's important about this one as well is not just that, hey, you can do it quickly with the smartphone. It kind of goes back to our architecture. With our Dura OmniTrack technology, the amount of tracker controllers and driveline and drive systems out there could be up to 30x less than our competitors. That's 30x less going there, optimizing a controller, doing all of that work. That's time. It's -- we think it's wasted time on the project and it's wasted cost. Our system is connected mechanically. It's a robust system, and it really provides for a great long-term performance model on the O&M basis of the system.

Okay. So how do we translate some of those things, benefits to our customers, and we're going to talk to you about how we do this, what is the technical sales function, what is the core element of that and then also a couple of the key things that are really resonating with our customer base. One is our Wind XP patented passive stow technology as well as a simple fact of how we designed our product a long time ago that's really creating some design flexibility and some benefits for project sites today, which is an efficiency element of our tracker system.

So technical sales are near and dear to my heart. I've been doing it a long time. I strongly believe that having those crossover people, that crossover skill in that business development process is really important. These are technical products. They're sold to engineers. They need to understand what's going on. We need to understand our customers, right?

So we kind of have 2 areas where we focus on, on this to really drive value. The first is the developer IPP utility persona and the other is the EPC. And they have different motivations for what they're looking for and what's important to them and why they make technology choices and decisions. And we really think about the right communication to have to those different parties.

Firstly, on the developers, what we've done to really change the communication around this topic is to understand what they do. We've built the same project finance models that they have. We use the same contemporary project finance sensitivities in our models. We stay up to date on the PPA trends, what's the price of energy. You need to know all of these things. You need to know the price of labor. You need to know the price of land. Pretty much every single element that goes into a customer's development plan for their project early on. We built our own models on that.

And then we could integrate into that model some of the sensitivities that the tracker system and the technology that we offer brings to that. And that really helps sell our technology. It really helps them understand the difference that not all of these trackers are the same. And while we bring a competitive offering to the market, we're also really bringing a differentiated one at the same time. So we've done a lot of work to change our culture on that. We've done training internally to educate our leaders and the rest of our associates to understand this and to really understand how our customers think and build that into the way we present our products and our features.

For the installers, we really think about ease of construction, pre-kitting, fast pace, reducing nuts and bolts, thinking about product innovations that drive that. We also understand commissioning is important, commissioning test. If you have a higher-performing tracker, less things to commission, something that has less errors and things of that nature, their ability to pass their capacity test, do their commissioning and move on to the next project is going to be benefited by our technology, and we're innovating in that space as well.

So when we think about all these areas of kind of -- we look for a balance. We look for a balance, and this is our design philosophy is how do we balance performance and energy, and we'll talk to you -- I'll talk to you a little bit more about that in a moment. How do we balance project returns for our customers, reliability and resilience, right? We don't just add more stuff that's in an unoptimized way, just making things thicker, heavier that you have to do it in an optimized way and thinking about simple design philosophies, building intellectual property around that and then illustrating the value of it with the right people having those conversations really makes a difference in who we sell to and I think why they buy our products.

We have to balance all of that with cost, right? And that's why we look for not only ways just to -- through supply chains, et cetera, component standardization to save cost, but also through innovation. And that's exciting about the foundation addition to our business. One of the things that wasn't mentioned is that having a 2-part foundation allows you to optimize something that is essentially impossible to optimize on a single pile, which is the corrosive coatings, the galvanization coatings on piles.

When a standard pile is dipped, it's -- you don't dip the portion that's in the ground differently than the top. And what that generally means is you're putting a lot of excess material where you don't need it. We're able to optimize that between the top and the part that's above ground. The corrosive environment above ground and in the ground are quite different. And optimizing those coatings for that application makes a lot of sense and is a way to save cost and -- those are just those -- like we're looking for those areas, those pockets of opportunity, those white spaces in this business to drive that really helpful thing for our customer.

Okay. So check this out. All trackers have to deal with wind. And it's the biggest challenge associated with what we do. The solar modules on there effectively act like a big sail and they're getting bigger and bigger all the time. We're seeing that trend in the industry. So we have to manage through that. And one of the things that we have to manage through is not just the strength at the highest wind condition, but also a circumstance, which is called torsional divergence, which essentially means that under -- when you're at different angles, particularly ones that are kind of in that middle of the day angles, the wind can pass through the project and get to the point where even at medium wind speeds, it can -- the currents, the vortices that are formed in those winds can actually drive the tracker system into an unstable condition.

So all tracker manufacturers are aware of this condition, and they've come up with different ways and approaches to solve that problem. However, I'll bucket those into 2 buckets. the way Array does it and kind of the way everybody else has done it. The way we did it was through a mechanical system and a mechanical system that doesn't rely upon sensors, electronics or even the motor of the tracker to articulate away from the unsafe angle. We rely upon a system where when the tracker experiences a torque that is in excess of a friction clutch that we have, it automatically, mechanically instantaneously rotates to its safe stow position, and that allows only the rows for which experience a concerning wind speed to go into a stow condition.

Alternatively, the way the field does this is that they're looking at -- no one knows when that gust of wind is going to happen and trackers don't articulate with their motor and drive systems instantaneously. So to solve that problem, generally, the way it's done is that you're looking at wind speeds around the site, you're looking at gust coefficient. And when those experience a certain threshold, you put the whole site to safe stow because you can't tell -- you don't know if that gust is going to come down and swoop into the middle coming from this side or that side, probably an idea, but you can't bank on it. You can't put the tracker and the modules and the whole project at risk for that.

And what that means is, generally, when we add up all of those losses of the site being put at stow versus only the few rows that actually need to be at stow, if you add those losses up, that's what this math is showing is that, that turns into a specific yield benefit for our mechanical passive stow system, up to about 4% in areas. And -- also interestingly, I'll point out on the map is that this isn't concentrated in the highest wind areas, the Gulf, Florida, et cetera. It's concentrated in areas where the probability of medium sustained winds are higher, and those winds are where the tracker is going to stow in the daytime when the sun is shining. And when your tracker is not pointed at the sun, it's not doing its job.

Our system is really only -- when these wind conditions happen, a very small percentage of the site, like 2% or less are going to stow under the same conditions where our competitors put most or all of their site into stow condition. That difference is 98% of the site is still tracking. It's protected by the ones that have experienced that. You have to preemptively go to stow, whether it's wind or rain -- or excuse me, wind or hail, However, unless you have something that can instantaneously respond, which is what we have. And this is a patented technology that Array has. We built it not only into our DuraTrack gear drive clutch system, but we've also integrated into a slew drive system that we use in our D2S solution.

I talked about those LCOE models, 4% energy. If you look at kind of a general average to put some numbers to this, a general average PPA price around the country in those areas there, you can be looking at a sensitivity of about $0.015 of NPV, $0.015 per watt of NPV for every percent of specific yield gained on a utility scale PV project site. So you can do the math. This could be a large portion of the entire value of product that we're selling. Our customers are starting to understand this, and Darin will talk to you about what they're saying actually.

So I'll show you a quick video on this to show -- this is in Colorado. So keep your eyes on these 2 trackers. This is how the system operates. This is an area where we consistently see 50, 60-mile an hour winds quite frequently and the air kind of rushes through these valleys. That tracker just went to stow and this isn't set up or anything. It just happens automatically. There's no motors or drives that did that. It experienced its a limit on its torque and it immediately without any human intervention, without any technology intervention, without a sensor that could fail or an anemometer that's not giving the right signal, it just went to a safe position and it is protecting the road next to it. The wind didn't change, right? It's still coming across that. And that kind of flat area is where those trackers can experience those harmonics and that can have that torsional divergence. So it's pretty interesting to watch this happen in real time. It's hard to catch it in the field because it's -- I showed the numbers, right? They're low single digits. So we have good cameras out here, and we catch that.

Okay. The last one I want to talk about is also, I think, something near and dear to both developers and EPCs. This is our table density benefit. You'll see it at the site. It's very simple. The way we designed our system from a long time ago is that the modules go across the bearings. That means that from the driveline to the end of the row, there's no module gaps that are built into the structure. That's wasted torque tube, that's wasted land, that's wasted space. Module companies work really hard to improve the efficiency of their semiconductors. They spend billions and billions of dollars to do that to give it up by just creating these large gaps on the tracker, really, I don't think is providing service to what the industry is looking for.

So I'll talk about what that means. But basically, what you can see here is that by compressing those modules on the site, and this is across the product line of our DuraTrack and OmniTrack products, we get about 5% more power density on the system. So what does that mean? 5% more density? Well, it allows you to do a couple of different things. You can take that density just straight off the top and add more capacity on the same land. We understand the fixed costs of solar project development. You have fixed costs, you have a set of land, a set of boundaries. If you could put more capacity through that, the project economics get better.

You could also take the same capacity of modules equipment of the DC capacity of the system and spread it out a little bit. Remember, I talked about that shadow optimization that's required on every system where you're going to have to accept some shading from adjacent rows. Well, if you have more capacity or more efficiency, that -- and you use the same land, you could spread out the trackers a little bit and provide more energy because there's less shading. So that could be up to 1% additional specific yield. So vis-a-vis $0.015 a watt of net present value by doing that by using the same land.

The second 2 are less intuitive, but they really matter to building sites. So if you have a more energy dense, a more capacity dense system, you can -- instead of -- when we look at site plans of our competitors versus ours, we see a lot more different SKUs and row lengths and all sorts of variability. Every single one of those is building something different. The installers have to get the right parts and pieces. They hate looking for stuff on the project site. I've heard them say it many, many times. We can do the same capacity with fewer SKUs on the site.

Also, the last one here, that's pretty interesting is that with the same land, and Joe talked very clearly about this is that even intra the project, you have varying conditions, underground potential moving of dirt, et cetera, you could avoid some of those areas. Those are the costliest areas to build, and that drives -- minimizes civil engineering.

So I'm going to turn it back over to Darin to let him talk to you about what the customers are saying about this stuff and how this technical sales, the value discussion, building it into our customers' models is really creating measurable results for our business.

Thanks, Nick. Yes. So that's a bird's eye view of our tech. And here's how that translates into the market. And this is where it gets exciting. Two real proof points in 2 of the most sophisticated buyers in the market. The first, starting from the bottom, was a 1.4 gigawatt OmniTrack solar plus storage portfolio -- I'm sorry, single project at a high wind site for a Tier 1 ITP. In their words, maximizing energy in a high wind environment was a key selection criteria and Array's patented Wind XP technology was a compelling solution that minimized their stow losses and enhance their project finance model.

The second is our DuraTrack 60-degree variant that Nick described earlier. And I want to talk through this one a little differently because it's less about a single project, and it's more about how we build products. So this variant came out of -- directly out of our voice of customer process, a customer need fed directly into our road map, and we enhanced the product and met it. The near-term opportunity, this single enhancement should unlock gigawatts of pipeline on an annual basis in hail-prone region.

Now that's not hypothetical. That's a real market opening directly tied to listening to our customers. And the bigger story is what it represents. We're bringing customers closer to our innovation process, and that's compounding into real market share gains. Customers increasingly see Array as the partner who builds products with them, not just a vendor who they buy from. That's a hard thing to replicate, and it's a growing part of our competitive moat. Two of the most demanding buyers in the market, 2 real-time problems, 2 real-time solutions and a growing pipeline of customers who trust us enough to not only brainstorm and build with us. And it's not anecdotal.

Let me show you what this looks like at scale. So this is the slide I'm most excited to talk to you about because it shows you where the strategy meets the actual results. Differentiated innovation is translating into measurable customer adoption and growth right now, not someday or in the future. Look at this trajectory. Our order book has climbed every single quarter from $1.8 billion in 2Q '25 to our record $2.5 billion that we recently announced. As Kevin mentioned, that's 37% growth year-over-year. And this show has real staying power behind it. Customers are actively diversifying their supply base. As older long-term frameworks start to roll off, there are only a handful of qualified suppliers to choose from, and we're winning back share across the board.

Now here's the one that should really get your attention. As Nick mentioned, Array software revenue is growing at more than 100% year-over-year. I let that sit for a second. This is a platform Nick and I have been building towards and scaling faster than almost anything in our portfolio. And the runway behind that is pretty significant. As Nick mentioned, we have a captive pipeline of over 50 gigawatts on the software side alone, which is exactly why we expect this growth to keep compounding. And it's not legacy products that are carrying this. New introductions like OmniTrack, SkyLink, Hail XP and now the full suite of APA products already make up roughly 50% of our order book. That's our innovation engine, driving half of our -- everything we're winning, and we're just getting warmed up here. So that's the proof at the company level.

Now let me zoom out a bit and tell you where this puts us. This is a slide that ties everything together because it's not just about winning individual deals. It's about how we position our platform long term. We're no longer seen as just a pure-play tracker company. Review is a broader integrated solutions platform spanning trackers, foundations, software and services. And that's a very different conversation than we've had a few years back. We're applying customer-specific engineering solutions earlier in the project life cycle to drive differentiated technical advantages, which is exactly what you saw in the DuraTrack 60-degree variant a minute ago.

Our transparent LCOE-focused strategy is unlocking considerable value for our customers, bringing a seat at the table earlier and a higher quality conversation at that. As important, we're building AI-enabled products and processes with a focus -- with a heavy focus on design from automation lens that improves speed and consistency today. We expect this to only widen our differentiation going forward. Put simply, Array and APA are building an interoperable platform designed to improve overall project economics and deepen customer intimacy. That's the thesis Nick and I opened with, and that's what you've just seen show up in the numbers.

Now before I hand it back, I want to leave you with one more thought. Our President, Neil Manning, recently recommended a great book called The Killer Angels. It went on to win the Pulitzer Prize, highly recommended. Set during the civil war and the striking part isn't the military strategy or the artillery deployments, but account after account, the unwavering belief of the soldier that they could win was what really made the difference in these accounts. that's precisely the culture we're building here at Array, hiring people with the passion and drive to believe we can overcome whatever is in front of us. That mindset is what makes work fun. And to be honest, that enables the guard of the possible.

And with that, I'll hand it back to Kevin to bring us home. Thank you.

Thank you. Great. Well, hopefully, you're getting a sense of why we're so excited about the future of Array as we move forward. I think I'll leave you with a couple of messages. The first is Array is incredibly well positioned to participate in this high-growth solar market as we move forward.

Second, we have an incredible amount of momentum as we're driving forward our innovation, our customer engagement, and we are doing that with differentiated technology. And honestly, while the presentations were very good this morning, I can't wait for you to see this live in the field this afternoon. You will see that, and I promise you, you will walk away with a different perspective.

Third, we're going to continue to expand our platform. We're not done. We're gaining share, scaling our footprint and yet we have a lot of opportunity additionally in some of the international markets.

And fourth, as we're doing this, we're doing this with a mind to create longer-term shareholder value, disciplined cost structure, margin expansion initiatives through new product development and supply chain, strong cash flow generation, and a balanced capital allocation view where our priorities are intended to support both our long-term growth, our near-term investments and obviously, long-term returns.

So again, we presented a lot to you today. Remember some of those key talking points. You'll see it live and in action in a couple of hours. And with that, let me invite Neil, Keith and Sarah to join me on stage to answer any questions you may have about what you heard today or about our business Array. Come up, guys.

All right, everyone. We're going to now move into our Q&A portion of the day. Joining me on stage, as Kevin mentioned, Kevin, our CEO; Neil, our President and COO; and Keith, our CFO. And then we also have our other presenters from today available here in the front row for questions. So for the next 30 minutes, we're going to take questions from the room and online from the webcast.

And I just have a few quick notes before we start. [Operator Instructions] And with that, we'll get started. Who is the first question?

Vikram Bagri, Citi. Thanks for having us here and walking us through the new and improved Array. One of the themes that came out very clearly is that the innovation cycle has shortened a lot. You've launched 5 products in the last 1 year. There's a lot more focus on innovation. Could you talk about how you're collecting voice of the customer, as you highlighted in the presentation? Are you hosting more events? Are you hosting more EPCs at the site? How is that feedback channeled through the company? And how do you handle that feedback? How does it go into different departments? You have a lot more talent at the company from affordable wire management and APA, like how do they come together and sort of like help shorten that innovation cycle?

Yes, that's a great question. So about 3 years ago, we began this program that we call Array Days. And this was an aggressive view of -- the genesis of that was me going out and meeting a lot of my customers and finding that at that point, our sales team were doing a good job calling on purchasing departments, if you will, of a lot of the large developers. But we were missing the finance teams. We were missing the engineering teams, and we weren't engaging enough at that level.

So we had this kind of view we could do a couple of things. One is that we can do a matrix of all our innovation and new products and all the departments of all the customers and spend time having every time a salesperson goes out, check that box and make this color coded kind of cool thing. And we said, well, that's going to take a long time. Let's do it differently. Let's start bringing all our customers in for days at a time, and we're going to spend 3 days at a time with the finance team members, with the engineers of those customers and with the purchasing departments. And we're going to not only in one direction, show them all our innovation, but a huge portion of those meetings that we call Array Days was all about getting their voice of customer.

So one of the things that you have to do when you come to an Array Days is to spend a couple of hours in a room on the value stream of what we do, everything from identification of customer to collection of cash, which means how do we think about warranty service between us? How do we project manage between. And frankly, we ask them who's best-in-class in each one of those categories and why? So it goes beyond product. It was warranty service. Array, when I have a warranty issue, you're harder to do business with. Some of your competitors will just, yes, send me the replacement parts, so don't worry about it. You guys want us to fill out forms and do things like that. And that's just an example of the feedback we got.

Array, you guys have to do better on our quarterly business reviews. Your competitor has an engineer assigned to every review such that if there's a technical question, you don't have to get back to us in 24 hours. It's answered on the call live. Okay, we can learn from that. So that was the beginning of our really intensely mapped out voice of customer. Now we've had those Array Days. We have 3 or 4 a year for the last 3 or 4 years. And if you come down to our AIC, you'll see this map on the wall of every one of those steps. And we're not ashamed. We think sunlight is the best disinfectant. I like to say that around the office. So we have good and bad in every one of those areas, what the customer comments were, who in my organization is responsible for fixing it and by when.

Some of them are pretty easy. To assign an engineer to every quarterly business review, that's easy to do. Others maybe take a little bit longer. So we began that journey about 3 years ago of continually moving the needle and improving the customer experience that our customers have. And then we also focus heavily, heavily on those meetings about our -- we used to take the approach, frankly, of we'll develop it super secret, then throw it over the wall to the customers and say, "What do you guys think of what we just did? Come on, buy into it, like it." We don't do that anymore. We bring customers in and we develop them before we launch something here, before we tell the market we've done something, that has been in the field working with customers for some time.

So yes, we have some of the new APA products already been in the field being tested and collecting feedback before we launch it. SkyLink was out in the field far before we told the market about it, collecting real data from real sites with partner customers that may say, "Hey, Kevin, we're going to build this 500 gigawatt site over here. What do you need? Like, hey, look, I just need 2 gigawatts for my new product. Just give me a few lanes. Let's test that, keep it private and let us keep coming to the site and test it." That stuff is really working.

So we're engaging our customers. We're getting their feedback more. And in fact, one of the key elements of building the AIC was to have an entire new customer center where we can host lots of customers at any one time with product on the floor that we could share and walk around, feel and touch much like you're seeing this afternoon. So it's been a lot of effort going in to collect better VOC, but we also had to demonstrate to our customers that we were willing to respond to the feedback they were giving us, right? No institutionalized arrogance, you tell us change happens immediately. And that was really about driving execution through the organization. So great question.

Colin Rusch from Oppenheimer. With the incremental shift in the business strategy, the incremental offerings and the legacy contracts rolling off here, can you talk a little bit about the evolving pricing strategy and how we should think about margins progressing here as you see some of those legacy contracts roll off and you see the monetization of these newer capabilities?

Yes. That's a great question. I think the way I look at this is, look, we talk about that word, the B word, the bundling word, right? That's not our approach. You've heard me say on our public calls, we are not about fries with that shake. We are about saying, listen, when you see these products this afternoon, you will instantly understand the amount of labor savings we're driving for our customers in the field. The amount of certainty we're giving them about execution. And when you think of things like the APA and the subsurface, I know you analysts follow a lot of others in the industry. And you've seen others in the industry this year have really difficult times underestimating subsurface conditions in the marketplace, right, that have cost literally billions of dollars of market cap out there.

This is -- these are the things we're doing. We understand that value. We don't give those services away for free at all, but that we understand the value as a developer of not having subsurface issues creep up and surprise you more broadly, right? So we charge more. We make sure that you understand the value in that. We make sure that the product, be it an engineering service or an actual product is incredibly well done. So when you get to see APA later today and understand their engineering services team, this is not a -- as they described in the press, this is not a flyby night, "Hey, quick, we think that's going to be good enough." This is an incredible depth of comfort we're giving our customers in terms of we know these foundations are going to work and your project is going to be successful, very, very different than others.

So as it relates to pricing and margins, look, we've continued to say that we are comfortable that Array over time will return to those high 20s, low 30s margins. And we're doing that through these things we're talking about. One, certainly with Neil and the management of our supply chain and continually improving our supply chain. Number two, these new products, we tend to not launch products that are dilutive in margin to the ones they're replacing. Everything we're doing is about capturing more margin, better price capture, right, so that we know that, that will lend to more margins.

And then as we built this portfolio, it's also about using portfolio strategy to bring in products that we think are accretive margin. And you see that play out very, very well with AWM as we started disclosing some of the financial numbers there. All of this is how we're going to build a higher quality portfolio with higher margins as well as making sure that the technical sales is selling the value to the customers.

Yes, when I first came in 4 years ago, all this was an EPC price war, right? We're dealing with an EPC. It's all about price. As we're now going to the utilities, that 4% higher energy generation really, really, really matters to a utility. It really, really matters to an asset owner who's going to build that asset and keep it. Does it matter to an asset owner that's an asset flipper? No. They want the cheapest CapEx. They want to build this thing. Hey, if the warranty is 3 years, they're going to flip it in year 2, right?

So we had to segment our customers and say, which ones we want to do more business with, where does our value proposition really matter? And let's reorient the sales team to start selling more there. And that's when we talk to you about the quality of our order book and the fact that 50% now is direct to utilities and direct to the kind of the developer non-flippers, if you think of it that way, that's what's really powerful because then we're not in a price discussion down at an EPC level. We may still get a purchase order from the EPC, but that EPC is now directed to buy from Array from the ultimate owner. And those are the things driving positive margin improvement in our business.

Can I get just a follow-up here around capital allocation. So you mentioned in the presentation, the preferred and retiring that, and you've had some success with acquisitions and integrating -- can you just talk about the framework that you work with internally to make those capital allocation decisions and how we should think about the cash generation and where that ends up over the next 2 to 3 years?

Thank you, Colin. Good question. So internally, Internally, we're focused on 2 things when we think about capital allocation. First, cash generation and make sure that we have good free cash flow conversion. Thank you.

I think that microphone has seen better days.

So thank you. So first, we think about free cash flow conversion. Are we -- how much of our earned EBITDA are we converting each year? And then we think about what are the things in front of us that we have to do. And first, we have to make sure that we are reinvesting in our business for sustainability. So CapEx expansion and so forth. And then we think about making sure that we have the right level of flexibility in the capital structure, right? As we think about how do we deal with debt, how we deal with the upcoming maturities for the converts, how we think about the pref.

And so it's really about what's the best return for the company. What's the risk return along the spectrum of things that we are faced with. And of course, we continue to look across what are the opportunities we have for M&A because, of course, we are building out the Balance-of-System strategy. And so when we look across the things that we are faced with, we think about liquidity, we think about returns, we think about ensuring that we have the flexibility to operate the business. And so that's kind of the lens we're following -- we're looking to each year.

I think if I could just add on some more specificity in that. I think when we think about the pref going cash pay now, right? Look, we'll do a little bit more in providing some clarity to you guys and to our shareholders in terms of how we feel about that. So first of all, we've talked in some of the Q&A post earnings about the fact that, that's circa $11 million to $12 million this year, not an issue. And as it -- and you start with the 6.25% paper that we have in the pref, that is an incredibly good piece of paper today. There's nothing we can do to go out and replace that in kind today as good.

Now we're mindful that, that does step up over coming years. And what we're constantly working on is the conflicts of interest rates, discounts that we may be able to achieve, the M&A strategy, how's our free cash flow. And we have particular ranges that we expect to stay below in terms of the pref as a percentage of free cash flow. We're very comfortable as we have our backlog, as you see our improving profitability as a business, we're very, very comfortable with our cash flow generation and the ability to service that pref as we move forward without limiting our decisions in terms of some of the other areas of driving organic growth or even continuing our M&A strategy. If you guys simply do the math and you look at our free cash flow, you will very quickly get to a point where you're not worried either, to be clear.

Mike Multi from Deutsche Bank. You showed a lot of great products today, some of which were developed internally, some of which work through M&A. Looking forward, how do you see your balance systems evolving? And then do you plan on doing that internally or through external M&A? And how do you weigh those decisions?

So that's an excellent question. And to be clear, we don't have a philosophy that everything has to be invented here at Array. So as such, what we didn't spend a lot of time on today is that the work that our team under Nick is working on where we have partners. We are working very, very closely with partners on automation, for example, and not partner on automation, but 4 partners on automation. So we don't think we have to do everything internally. We think as we recognize the ecosystem, we're forming more partnerships with other companies. And there are things that we can continue to do to alter our products to make their products better.

And while we talked about that interoperability here with APA and AWM, to be clear, we started both of those journeys before we started talking about acquisition of either company. We began working together on what we could do in the ecosystem to strengthen both of our products. And then it became obvious that we're stronger together than separate. So we continue to work with other partners out in the ecosystem. Key focus is obviously on wire, key focuses on automation, key focuses on how we play a bigger role in battery storage. All of those things we can do with partners, we don't have to do it alone. And I think one of the interesting things that's happened is as the industry has become more driven towards some consolidation of some of these things, look, Array becomes a really attractive partner.

So as one of our competitors goes and buy XYZ company, every other company in that space looks and says, "Oh, I should reach out to Array then." So the amount of inbound partner requests we're getting now is just one of the more exciting things that Dr. Aaron Gabelnick, our Head of M&A and I are spending a disproportionate amount of our time are just fielding the inbound numbers of people in that ecosystem that want to work closer with Array and see what we're building. So it's really getting exciting, but we don't have to do everything internally. We'll still do a lot internally because we believe innovation is at the core of who we are, but we're also beginning to partner with a lot of other ecosystem partners at this point.

Chris Dendrinos with RBC. Just going back to the opportunity with APA, and I'm just curious how you all are thinking about the potential, call it, attach rates for that foundation system over time? Like what are the core drivers behind that attach rate increasing? And then maybe just -- I think you laid out a bit of an outlook for the revs there, but what would drive that above expectations and then below expectations?

So there's 2 things we think about. The first is the attach rate and increasing that penetration. And what's going to drive that is the fact that those beautiful postage stamp, nice, Arizona, Southern California, those solar sites are gone. Now we're doing Upper Midwest. We're doing Louisiana. We're doing New York State. We're doing Oregon. You need more understanding of your subsurface conditions than you think you had to have.

So where these sites are being built and all of you have access to that data, it's all in a government database. You could look over the next several years and look at where those sites are going to be built. That was some of the work we did before we began talking to APA. We recognized, my God, if you look at where things are being built in rocky soils in Texas, Texas will be the largest build-out for the next 5 years. That is some really difficult soil down there, and we needed a solution, right? When you look at stuff going up in Idaho, in Oregon, right down the Hail Alley down through Texas.

So the attachment rate of engineered foundations is going to go up. Now it will be driven by, again, the more difficult soils, but also in our ability to make an engineered foundation closer in cost to standard foundations, right? So let me be clear, Array sells foundations today, and I hate it, right? So for me, when you're one of my partners and you come to me and say, look, I want to bundle, we use that bad word. I want to bundle foundations and trackers. And Kevin, you need to go buy foundations for me for this project from this guy over here. I only get to mark them up 10%. That is highly dilutive to my gross margin journey, as you can imagine. And yes, does it increase that invoice by 20% or 30%? Sure. But if I do that, and I hate doing it, but I'm forced into doing it, I really struggle hitting my margin ambitions, right?

So this is a way for us to say, hold on a second. I know you want us to go buy the foundations from over there. But guys, I've got a better foundation that I could offer you at a comparable price that is an engineered foundation. So by doing it in-house, controlling the design and when you see later today the manufacturing capabilities at APA and what we're doing on these foundations, both in terms of Atlas I and Atlas II, we're going to be able to offer you a very compelling, better foundation solution that will work in any type of your soils.

And because I'm vertically integrated, I get a full margin on that, right? And it increases my average ticket price, as you see in the math, 30% to 40%. That's incredibly significant. So it's going to be driven by growth in terms of more difficult soils and then also increasing the attachment rate because I can compete with standard foundations very, very economically.

And oh, by the way, I get 45X on my new design, right? So it becomes pretty compelling for us. So we're really comfortable with our ability to take on the foundation market, both in terms of engineered foundations and what we're calling, kind of, the Atlas I is alternative foundation.

So when we think about our business, you have standard piles, standard foundations, then you have alternative, that's the Atlas I, and then you have engineered in terms of Atlas II. So that's kind of the 3 buckets of how we're thinking about this. The more I could pull in, the more I could take 45X for myself, the more I could have full margin on foundations that my customers want me to sell them, the better.

Maheep Mandloi from Mizuho. You talked about the middle name of your EPCs the procurement. The first name is engineering and you're kind of offering them engineered products, right? So is there a push-pull between, like, what they want to engineer versus what they're comfortable with you guys?

And as you kind of expand this BOS strategy, and then maybe in the future, like there's demand elsewhere, maybe EPCs want to automate or offshore a lot of it over here. So what are you seeing over there?

So when we think about engineering for us, we're already the ones responsible for engineering the tracker systems. With AWM, one of their core things that they do better than anyone is engineer the wire management system, right? And what they're doing is by providing a higher degree of engineering in that system, they're enabling an EPC to use thinner wire, higher gauge wire, which is thinner wire, saving a tremendous amount of money.

With AWM, they're engineering that site and providing an entire site to reduce your risk. So we think engineering services becomes a larger piece of our business as we move forward. And we think there's other areas that our EPC partners are doing engineering that they would allow us to do for them with them as we build out a broader engineering capability.

One of the things that you may know about my background, Neil and I ran together a nearly $400 million engineering services company for many, many years. So we understand how to do that and how to bring that to bear, and we're excited about doing more of that with the products that you see represented today.

Yes. One thing I'll add to that, just based on what Kevin mentioned as far as making things easier for our customers with the engineering side of things. Nick Strevel's team and I are working on an AI initiative to help drive automation in overall quotations. What that's going to allow us to do is drive a lot more optionality and consultative discussions with our customers, whether it's developer or whether it's EPCs, around ways they could optimize their particular site design.

So if you look back to the presentation with -- that you saw earlier with Nick, he was talking about optionality around different sites. Do you want to optimize your power? Do you want to optimize your ground cover ratio? All the different things that can optimize the overall performance for a long-term asset, we can bring that back now and do it in a matter of just a couple of days, which was previously was 10 days to kind of get back to a quote. Now we can do it in a matter of a couple of days. Now it's going to get down to hours when we have this fully initiated later this year.

So there's a lot of things we're really investing in internally to drive that level of intimacy with our customers to make it much easier for them to look at the different options for them to maximize the investment that they're making.

And maybe if I can, a different question just on the APA growth. You guys talked about 17% in the first half, significant double-digit going forward. If you could break down, like, what's driving that seasonality, new customers, anything else which can kind of help us understand, like, how to think about that next year.

Again, good question. So yes, there was some seasonality in that 17% for the first half, but not in the direction you may think. It was weighed down by the fact that Q1 was incredibly low for APA simply due to the frozen tundra that was the Northeast of the U.S., which is one of their primary markets. It was an incredibly slow start to the year, yet we were up 17% at the midyear.

So when we talk about acceleration through the back half, it's significant acceleration through the back half. We talked about their backlog growth, their penetration. And it's not in one part of their business. It's in every part of their business. Their fixed tilt, as Josh mentioned, will have a record year this year. And he also disclosed that we'll have a record year next year because we already see what's coming our way for next year.

And then with the -- when you see later on today, you see the adoption of the engineered foundations growing and growing, and quotes growing and growing, it's going to be growth throughout all parts of their business at this point. And you'll see that. It'll make all the sense in the world in an hour.

Jeremy Herring with Morgan Stanley. I wanted to ask about the battery storage opportunity. What types of, kind of, products and solutions we're talking about with APA and then AWM? How material could that revenue be to the business and then the kind of timing and introduction of those solutions?

Sure. Great. So we have products that have already been introduced, and we're now focused on increasing the adoption. So with AWM, it's about really smart cable management systems for battery storage. Look, the way AWM approached utility-scale solar was unique. Kudos to these 2 guys in the room, right? They identified an area of utility-scale solar that was what I like to call under-engineered, hadn't been looked at, right? And the reason it hadn't been looked at was, hey, these aren't incredibly expensive components. It's a small portion of the bill of materials and hey, it was good enough as is, right? And you think it was good enough until you see what it could be when these guys applied some really great engineering principles to that.

And if you look at their growth rate. And one of the other things tying back to the voice of customers, I love to spend time in the field. And every time I'm going out into the field in the last 6 months and talking about wire management and seeing it because we had already been working with the team at AWM on some joint things. I was like, hey, what's happening in wire management? And you hear, oh, AWM, they've really solved this problem. AWM, they're the fastest-growing wire. AWM is kicking so-and-so's butt, right? That was the conversations we were having and saying, wow, these guys really have something special. So while they've done that really, really well in utility-scale, they began to pivot and identify some opportunities in the battery storage and then that led them to some additional opportunities over in the data center. So we think that's really strong.

When you think about what happens on these sites and battery storage and stuff, you'll get a sense of it when we get out to the field today. But on the APA side, you can go out and pour a concrete pad and wait for that to dry for days and then figure out how you're going to mount your stuff on it and put your piping, drill holes and get through all that or, hey, these alternative foundations actually hold up that inverter skid. They hold up parts of that battery storage system. So it's a different way to do it quickly, almost instantaneously to get some of those same products above ground where they need to be very quickly.

So we have products. We will continue to enhance selling those products into those other markets. I think it's going to become an important part. I would say the AWM guys will tell you, it's a fast-growing part. Their adoption of their great engineered products is going really well for them at this point. We're going to piggyback on that and expand it with -- as we do, working with APA and AWM together. And some of the products you're going to see out in the field today are where these 2 teams, not Array, but these 2 teams have gotten together and co-developed products. And you're going to see some of those today as well already. Even before we're part of the same company, they were working together on some new products, which make it real exciting.

All right. We are coming up on time. So we'll take one final question. We have one in the room.

All right. A twofer.

Vikram again, from Citi. I'll ask a 3-part question. First, from -- I think from Neil, software revenues are up 100%. I was wondering what's driving that? Is it pricing? Is it upselling to existing customers? Are you, sort of like, you've made significant changes to software revenues? Or it's a function of just law of small numbers, right? It's rising from small numbers.

Then to Kevin, it sounds like we saw the BESS and the DCI products, right, and foundations in BESS, wire management in DCI. Does Array have bigger ambitions in these 2 categories through M&A, part one? And then am I -- is it fair to say that the M&A strategies focus more on non-solar or solar adjacent, but not purely solar at this point, so diversify out of solar for M&A?

And then finally, to Keith, you mentioned 3 uses of cash, FCF to EBITDA, annual reinvestment into sustainability. Is there a thumb rule for that? What percentage are you targeting for conversion of EBITDA to FCF? Given your view about solar installs, how much do you need for investment into the business? And what does that leave you in terms of flexibility into M&A? And when you look at M&A, would you use equity more prominently going forward? You've used cash a lot in previous acquisitions. Is that going to be the strategy going forward?

I think that was a 7-part question. There's a lot in there. Neil, you start.

All right. So let me take the first part of that. So software certainly has been a really compelling story, as Darin mentioned during his portion of the presentation. And I think it was a little bit earlier in the year, Keith talked about software being probably one of our longest-term kind of proof of concepts around a business model, ultimately.

So we've evolved our strategy as it relates to software. We've talked about SmarTrack being a compelling value, and Nick took us through all the features and functionalities and value that brings to a customer over the long-term life of the asset. But initially, we're selling it as kind of a onetime sale attached to the tracker, and that was it. And we're letting the EPC then kind of run with it. And we took a step back a couple quarters ago and said, hey, there's a better way for us to do this. And it goes right in alignment with our focus on technical selling.

When you look at the investments we've made in the technical sales teams, the Array Innovation Center, and we started looking at the discrete value that our SmarTrack software and all the features and capability that it brings, brings to a customer, we said, hey, let's take a step back. Let's look at this a little bit differently and let's then look at this on a go-forward basis in a twofold way. One is obviously for new tracker sales and making sure we're looking at that not as a onetime sale, but looking at that as a recurring revenue opportunity going forward.

And then when you look at the many gigawatts of deployments we've had to date, we just crossed, as we very publicly talked about, 100 gigawatts of embedded base sold around the world. We have a great embedded base in the United States to go back and look at SmarTrack software for that embedded base in locations where it's being underutilized. And doing software trials, having a specific sales team that's focused around it and then building from there.

So what you see in momentum when you look at the doubling of that revenue year-over-year and the trajectory continuing, it's a specific result of the change in strategy that we've had, the investments we've made and frankly, the value that customers are seeing in the value that we bring along the way. So we think that trajectory is going to continue, and we're going to continue making investments in the software platform itself, along with the selling techniques to continue to see in that progression.

I would say one of the things to add on there is that probably about 1.5 years ago or so now, we changed the leadership of our software organization from engineering-led, so highly technical. Yes, we know we have great to commercial led. So we brought in people that knew how to sell software differently, and that's the pivot from -- you imagine we were giving our software away one time at an upfront sales price of $1,500. Yet with Nick's technical sales team coming in and then starting to do the valuation of that 1% that we talked about and how much that's really worth, oh my God, were we leaving a lot on the table.

So now it is a subscription service you buy into and you pay, and that's how we're getting a higher quality recurring revenue at ultra-high margin. So while it's impressive to say that we've doubled the sales of software, look, this is going to continue to grow recurring revenues at much, much higher margins, right? But it took rebuilding a team and refocusing the team, not on, wow, we could have really cool technology, we have something to sell and get value for and extract value. And that's kind of a big part of the pivot that we did.

So I got part 2, which was about M&A, I believe. And I think -- so the question is really about, are we going to continue to do M&A in utility-scale solar? Look, I think there are some things in utility-scale solar we can continue to partner with. There may be some continued bolt-ons.

But to your point, we are looking at how do we do things to move faster into some of those high-growth adjacencies using what we have, strong customer relationships, strong platform of technology and engineering, and how do we platform that into battery energy storage, and then also take advantage of more of some of the hyper growth in data centers. So I will say it wouldn't surprise me if we did something more in utility as long as it lends itself to those adjacencies, but also looking at those adjacencies more wholeheartedly.

All right, Vikram, you asked a few questions. But knowing you well enough, I think you're going at something. And so I'll go straight to it. The pref is not a problem. And so the pref today goes cash pay here in August. It will divert some of our free cash flow to service the pref. However, when you think about how much free cash flow we can generate or convert from EBITDA, we're going to be very mindful to monitor so that, that percentage of free cash flow used by the pref still leaves us with enough flexibility to reinvest in our platform to also then to continue to do some tuck-in acquisitions.

Why have we used cash more than we've used equity so far? It's because we have been cash generative. We've long said that at the stage of the core of the business, we run this business with a target for having about $0.5 billion of net available liquidity, which we have. We've stepped up the revolver. Revolver is about $370 million. We closed this quarter Q2 with $300 million of cash on hand, which puts us well over $600 million plus of net available liquidity.

With the equity under current pressure, which we can't understand, and you and I will talk about this all the time, that doesn't leave me much option to go out and use equity right now. So because I have the liquidity, these are tuck-in acquisitions, I think it's best to use the cash to do it.

And so when I think about the pref, I recognize the common shareholders will always write, now that has gone cash pay, be very focused on what's diverting from reinvesting in growth in the business and/or being diverted to the pref. But look, if I was to go out and refinance the pref tomorrow with term debt, given where -- I'll put it even to perspective. My revolver is based on SOFR plus 300 plus of spread. If I drew my revolver tomorrow, the all-in interest cost is higher than the pref. And so the pref does have its idiosyncrasies, meaning, hey, you're not getting a tax deduction for the coupon and so forth.

So that's why in Kevin's thoughts about it earlier, as he shared, we monitor it vigilantly. We are monitoring the interest rate environment. We are monitoring where our equity is. We are monitoring what all the optionalities are because we're always going to look to try to optimize the capital structure. But at this moment, the pref is not a problem. In 2027, the pref will not be a problem, right? So it will take up $35 million of cash, but we're hoping that we will revert to our long-term free cash flow conversion levels. We are in a growth mode. We have a back-ended year this year.

So Q4 is going to be a significantly high quarter. So the inventory investment, the receivables get piled up at the end of the year. That's why the free cash conversion is low this year. So hopefully, I got to the core of where you were going.

And look, as you would expect, we've stress tested our views on cash flow relative to servicing the pref as well. And we feel very comfortable that even in stressful conditions, we get that this is a market that has cycles. So even under stress scenarios, we don't have an issue servicing the pref at this point.

All right. So with that, we're going to conclude our live Q&A session. And on behalf of Array Technologies and APA, we thank you for all your thoughtful questions today and for being here. A replay of today's webcast, along with our presentation materials, will be posted to our Investor Relations website. So thank you again. And for those in person, we will be providing lunch in the adjacent room, and we'll be departing for APA for the second portion of our day at about 12:15. Thank you.

Feel free for those of you going with us this afternoon to dress down a little bit. We're going to be in kind of a sandbox. So just know that we're okay. We'll all be changing into kind of like Peter Millar pullovers and jeans, right? So feel free to dress down if you have that option because it's going to be more casual as we go out into the field.

And we're going to be in a real working factory with lots of stuff at 1,800 degrees and welders going and stuff like that. So just know that while we appreciate you adhering for the video to our dress code, you're really welcome to dress down as we go through the rest of the day, okay? Thank you, guys.

Thank you. Good afternoon ladies and gentlemen and welcome to RAA Technologies' second quarter 2026 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. at any time during this call, you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, August 5, 2026. I would now like to turn the conference over to Sarah Shepard, Senior Director of Investor Relations. Please go ahead.

Thank you. I would like to welcome everyone to Array Technologies' second quarter 2026 earnings conference call. I am joined on this call by Kevin Hofstetler, our CEO, Keith Jennings, our CFO, and Neil Manning, our President and COO. Today's call is being webcast via our investor relations site at ir.araytechinc.com, where the related presentation and press release are also available. Today's discussion of financial results includes non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures can be found in the related presentation and on our website. We encourage you to visit our website at arrayteching.com for the most current information on our company. As a reminder, the matters we are discussing today include forward-looking statements regarding market demand and supply, our expected results, and other matters.

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made on this call. We refer you to the periodic reports we file with the SEC for a discussion of risks that may affect our future results. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of these forward-looking statements to conform these statements to actual results, except as required by law. I'll now turn the call over to Kevin.

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us. I'll begin with second quarter highlights and recent business updates. I'll then pass it to Neil and Keith to cover our innovation updates and financial performance. Let's begin on slide four with a brief discussion of our financial performance for the court. Q2 is a quarter of exceptional momentum across every key metric on the page. Revenue came in at $342 million, up 53% versus the first quarter, driven by 38% tracker volume growth and substantial sequential growth within our APA business as project activity accelerated. That top line strength flowed through to profitability.

Adjusted gross profit was $105 million, up 53% sequentially versus the first quarter, with an adjusted gross margin of 30.8%. Our year-to-date figure also stands at an impressive 30.8%, reflecting strong first-half execution. We also achieved adjusted EBITDA of $63 million, more than doubling the first quarter, with adjusted EBITDA margins also improving 560 basis points sequentially, coming in over 18%. On the bottom line, we delivered net income of $8 million and adjusted net income of $37 million, an increase of nearly $30 million versus the first quarter. Our traction on new products and our continued commercial, supply chain, and operational execution give us real confidence in our profitability trajectory for the balance of the year. Finally, as a continuing proof point of our strong commercial momentum, I'm pleased to report we achieved a third consecutive record order book this quarter of $2.5 billion, up 37% versus the same period last year, with over $500 million of new bookings in the quarter, roughly half of which came from our Tier 1 customers, including several projects greater than 500 megawatts. This brings our 12-month trailing book-to-bill ratio to an impressive 1.5 times with over $1.8 billion of new bookings.

I'll now turn to slide five to discuss some of our recent business updates and how we continue to execute against our strategic priorities. Our focus remains anchored in our three strategic priorities, innovating our future, elevating our international business, and advancing a customer-first culture. I want to begin by recognizing our cross-functional teams whose execution has enabled our most ambitious and prolific year of new product introductions in Array's history. We're listening to our customers, translating their feedback into differentiated solutions, and leading through innovation in utility-scale solar. In the past few months, we formally launched Duratrac D2S for international markets at Intersolar Munich, extending our differentiated flagship technology into important new growth geographies. During the second quarter, we also announced OmniTrack 2.0, our next-generation terrain-following tracker. And in July, we announced the development of our Duratrack 60-degree variant, which is engineered for greater resilience in extreme weather environments while optimizing CAPEX and low-impact weather. insurance costs for our customers.

In partnership with APA, we also launched the Array Atlas suite of foundation to tracker solutions that gives customers a more complete integrated offering engineered from the ground up and bringing a real competitive solution to traditional PIOS. Neil will provide more details on each of these exciting innovations shortly. Finally, touching on our M&A strategy, our APA integration is progressing very well, and we signed a definitive agreement to acquire Affordable Wire Management, or AWM, which we expect to broaden our electrical balance of system offering, deepening the value we deliver to customers, while also extending our business into battery storage and data center. application. We expect to close this acquisition in the third quarter of 2026, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. Moving to slide six, I want to take the time to discuss our M&A updates in greater detail, beginning with APA's progress now that we are nearly one year post-close. When we acquired APA last August, the thesis was simple. Take a strong, well-led, growing, fixed-tilt-racking and engineered foundations business, enable benefits from a raised scale and bankability, and then accelerate its growth by expanding its access to significantly larger utility-scale solar opportunities.

One year in, our results say we did exactly that. APA's year-to-date book-to-bill is over 1.5 times, and pipeline quoting activity continues to grow substantially sequentially. This early momentum has resulted in a first-half revenue 17% ahead of 2025, and the business remains on track to hit our 2026 targets of significant double-digit revenue growth and margin expansion. APA's average pipeline project size has more than doubled since the acquisition. clear signal that demand is rapidly accelerating and the playbook we are deploying is working. So what has enabled this progress? It starts with the market intimacy and foundation engineering expertise brought forward by the leadership of APA. This, when coupled with the credibility and bankability of Array, brings APA into utility-scale conversations that simply weren't available to it on a standalone basis across both the fixed tilt and A-frame portions of their business. We're also putting array scale to work in procurement, warehousing, and logistics, leveraging our supplier relationships to drive margin expansion.

The bigger story, though, is what this combination has unlocked for array as a whole. We are pleased to introduce the Array Atlas suite of products, the first step of many into integrated innovation between Array and APA. Our first integrated foundation to tracker products designed exclusively for multiple array tracker platforms with APA engineered foundations. The array Atlas products meaningfully reduce component count and are designed to dramatically improve installation efficiency in the field. Our engineered foundations now attach to Tracker Awards, expanding our share of wallet on projects and creating additional opportunities for margin accretion over time. Since closing, we've seen an ever-expanding pipeline of joint opportunities. And importantly, we've proven we can acquire, integrate, and scale.

Our integration process serves as the template for expanding across the balance of systems. And it's exactly the playbook we're applying to AWM, which I'll turn to next. Affordable Wire is a leading provider of cable management and safety products. serving solar, battery storage, and data center customers with nearly $60 million in trailing 12-month revenue. The pending acquisition reflects our disciplined M&A strategy, acquiring category-leading, profitable businesses with differentiated technology that strengthen our integrated platform and create real customer value through a high degree of technical interoperability and ease of installation. The strategic rationale of the deal comes down to four points. First, we're executing our balance of systems strategy by acquiring a differentiated leader in an adjacent segment with a suite of proven and highly engineered products. While lower priced than trackers, these products are critical for installer and asset owners.

Second, our global sales footprint combined with our operational scale. cross-selling to our existing global customers and leveraging our economies of scale across our manufacturing, sourcing, and logistics footprint creates very real revenue and cost synergy opportunities. Third, a disciplined financial approach. AWM is a consistently profitable market leader, which we expect to be high single-digit accretive to raise adjusted EPS in year one before synergies. The base purchase price, combined with the anticipated benefit of stepping up the tax basis of AWM's assets, represents an attractive six-times trailing 12-month EBITDA multiple, which, by design, improves further as the earn-out is achieved. And fourth, we believe the integration is de-risked. Like in the case of our acquisition of APA, AWM's founders and existing leadership team will continue to run the business, supported by the same integration process that helped drive APA's outstanding year one results. With that, I'll turn it over to Neil to discuss our recent innovation update.

Thank you, Kevin. 2026 is our largest launch year ever, with five significant product introductions, each developed through deep voice of customer engagement, and each expanding our addressable market or potential share of wallet on every project. Innovation continues to be the driving force behind our record $2.5 billion order book. Products launched since 2023, Omnitrack, SkyLink, SmartTrack, HaleXP, and APA account for roughly 50% of our order book and drive nearly half of our revenue in 2026, compared to a third in 2025. A powerful indicator that our focused innovation strategy is translating into customer adoption and real commercial success. Software revenue alone doubled year-to-date, demonstrating our customers' willingness to embrace our value-maximizing offerings. Feedback from the hundreds of customers and industry contacts we've consulted over the last two years has informed the next evolution of our portfolio. Let's walk through these exciting updates.

Turning to slide 10. In the first half of 2026, we launched Omnitrack 2.0 and formally launched Duratrack D2S. Last quarter, we highlighted D2S, a purpose-built international tracker, which we formally launched at InterCellular Munich in June. Earlier customer reception has been strong. It delivers door-to-door reliability with our patented differentiated passive windstow technology and our proven architecture. This is a two-row format that international markets have been demanding. This supports our momentum in markets like Turkey, Colombia, and Peru with regionally optimized design and logistics. We're equally as excited about OmniTrack 2.0, our next generation terrain following tracker.

This upgrade now accommodates an industry-leading slope change up to two degrees between adjacent posts, allowing the system to traverse a greater degree of undulating terrain. This cuts site grading, civil work, and structural steel requirements by a substantial amount, up to $2.5 million for every 100 megawatts. For reference, this would be between 20% to 25% of the overall cost of the tracker in this application. This grading also means reduced permitting scope and shorter timelines and expands buildable land on constrained sites, directly improving project returns for our customers. Also, recently at our third annual insurance forum in Boston, attended by insurance leaders from more than 25 companies, we announced the DoorTrac 6-degree variant, delivering extreme weather resilience at a lower capital cost. This product was built with direct input from customers and insurers, as that continues to be our standard practice in new product development. What are insurers asking us for? Protect the asset in a hailstorm without paying for greater tracker capability than the site needs.

That's what this product does. 60 degree so is paired with our patented SmartTrack hail alert response and executes reliably more than 99% of the time. And because it runs on a wired AC motor with wired communications, it keeps working precisely when severe weather takes down battery-powered wireless systems. This solution delivers an incredible resilience at a lower capital cost than higher angle trackers, including foundations. a third-party validated, unique to our array, WindXP passive stove protects only the rows that need it, preserving up to a 4% energy yield benefit in high wind regions. The 60-degree variant fills the portfolio between the standard door track and Hale XP, cost-effective risk mitigation for moderate Hale regions such as Texas and the Great Plains. It is expected to be available, to quote, later this year with deliveries expected in mid-2027. Finally, turning to slide 11 in the Array Atlas Suite, which launched just last week. Atlas is a foundation of the Tracker product line engineered with APA and is our first integrated array APA platform, integrated foundation and bearing housing interface, above grade, capable of performing in any soil conditions.

Atlas One is how we enter the more than $1 billion traditional foundation market for standard soils. It's a cost-competitive, insulation-optimized alternative to the commodity pile approach and a more efficient use of steel versus a standard pile. The problem in soils for customers is its variability in the field. It's adjustable, sigma-shaped channels. correctional, correctional pile driving variation on site, displacing the commodity driven steel beams and the shortened driven portion of the blow grade foundation lowers deformation risk. Atlas II takes that same approach into challenging soils, pairing heel copiles and ground screws with a dual leg bearing interface and an integrated bearing housing. What that means on site is simple. 70% fewer components than APA's traditional A-frame, fewer connection points, faster installs, and more vertical and east-west adjustability when the topography demands it. Notably, both solutions are engineered to work with AWM's wire management products through predefined holes, again focusing on installation efficiency for EPC partners.

As both Atlas solutions seamlessly optimize foundation integration with the array tracker, they qualify for 45X manufacturing credits. Together, the Atlas platform allows us to serve virtually the entire foundation market, modernizing fragmented commodity steel driven interfaces, deepening our share of wallet in every project we win, and delivering a more integrated, efficient solution for customers that further differentiates our array in the market. Let me be clear, these innovations aren't happenstance. They're a result of a deliberate multi-year investment in our product development engine. In 2025, we opened our Array Innovation Center, or AIC, in our Chandler, Arizona facility. Our purpose was threefold. One, we co-located our existing engineering resources with product management, product marketing, and dedicated engineering labs for software, hardware, and electronics. Two, we partnered with the U.S.

Department of Energy and the U.S. Department of Energy We partnered locally with Arizona State University to develop a pipeline of new engineering talent working with several ASU engineering teams to accelerate our development efforts. And three, we launched our Customer Experience Center where we host our Array Days and Industry Forums. Coupled with the investments in our technical sales team, the collective results of these efforts is what we are experiencing today. a richer, customer-driven new product development pipeline with reduced development cycle times, enabling consistent quarter-over-quarter execution. We welcome our analysts, customers, and shareholders to visit our Array Innovation Center to experience the energy of our development efforts firsthand. Across our portfolio, the common threads are terrain adaptability, severe weather mitigation, domestic content confidence, and software-enabled optimization through SmartTrack, continuing to raise evolution from a traditional tracker supplier to a differentiated technology and solutions partner. is our innovation engine working exactly as designed. All in all, when you view our collective efforts in new product development with our continued investments in supply chain, AI automation, and commercial engagement, you see the basis for our continued strong execution quarter over quarter.

With that, I'll turn it over to Keith to discuss the quarter's financials in more detail.

Thank you, Neil. Slides 13 and 14 summarize our second quarter financial performance. outperformed across all P&L targets. Revenue, adjusted gross margin, EBITDA, and EPS, all outperformed. Revenue was $342 million, which was a 53% improvement over our first quarter results and above our guidance of $300 to $320 million, primarily driven by customer-driven, pull-forward activity in our domestic tracker business, strong execution against a healthy domestic backlog and continued strong commercial momentum at APA. We continue to meaningfully improve our profitability through sourcing, productivity initiatives, and cost management. Advantages Adjusted gross profit was $105 million, up 53% sequentially, versus the first quarter, and adjusted gross margin was 30.8%, up 300 basis points year over year, and up 10 basis points sequentially, versus the first quarter. Importantly, unlike the first quarter, which included over 300 basis points of one-time benefits, one-time items this quarter had less than 50 basis points of impact. Our margin performance was driven by higher domestic mix, including APA, strong execution on our cost-out initiatives, and incremental 45x capture.

As we look forward, we expect second half margins to be influenced primarily by the absence of the one-time tariff recovery and catch-up 45x benefits we achieved in the first quarter, as well as our previously guided increase in international mix. We continue to see the strong results on our productivity initiatives largely offset increased commodity and logistics input costs. Adjusted SG&A was $44 million, or just under 13% of revenue. This represents 570 basis points of improvement from the previous quarter as we delivered our targeted cost savings plus incremental reductions through hiring and discretionary spend control. Adjusted EBITDA was $63 million of 119% sequentially and our adjusted EBITDA margin was 18.5% of 560 basis points from the first quarter. The improvement was driven by higher volume, gross margin flow-through, and continued discipline on operating costs. Gap net income to common shareholders was $8 million, a substantial improvement over the first quarter. while adjusted earnings per share was $0.24, compared to adjusted earnings per share in the first quarter of $0.06.

I want to highlight our outstanding cash generation this quarter. We ended the quarter with $307 million of cash, up over $100 million sequentially, driven by accelerated 45X collections. Free cash flow in the quarter was $114 million, and we invested $8 million in capital expenditures primarily associated with the plant setups in our new Albuquerque facility, plus incremental production capacity at APA, along with tooling for the new Atlas product suite. We ended the quarter with more than $640 million of total available liquidity, including our fully undrawn $370 million revolver net of letters of credit. Net debt leverage was 2.1 times trailing 12-month adjusted EBITDA, down from 2.7 times at the end of the first quarter, and well within our targeted range. With this strong cash and liquidity position, we expect, when approved, to fully fund the acquisition of AWM with cash on hand. Finally, a word on our Series A Preferred Equity Capital.

Dividends on this instrument will transition to cash pay in the third quarter, and this is reflected in our 2026 expectations. we continue to evaluate our alternatives regarding the preferred shares, and will balance any decision against our leverage targets, the after-tax cash cost of refinancing alternatives, available liquidity, and the opportunities available across our capital allocation priorities. Turning to our 2026 outlook on slide 16, with the support of our strong first half performance, we are updating our full year guidance. It is clear to us, based on the reported utility-scale solar activity, conversations with our customers and our growing $2.5 billion order book that demand remains strong. As a reminder, we guide to what our visibility supports. Our revenue guidance reflects a bottoms-up view of customer delivery schedules, order book coverage, and our latest commercial discussion. Accordingly, we are reaffirming our full year revenue guidance of $1.4 to $1.5 billion. we are monitoring near-term project timing primarily related to permitting and site readiness, which may push recognized revenue below the midpoint of the full-year guidance range. Importantly, this would not be lost business, but customer timing shifts to 2027.

While our quarterly revenue cadence continues to be influenced by seasonality and customer project timing, the underlying demand and pipeline activity remain very healthy. Given these timing dynamics, we expect revenue in the third quarter to be between $310 and $330 million. The team has been focused on supporting shipment timing in the second half through securing the required supply and inventory logistics. The incremental shift of revenues from Q3 to Q4 will impact our free cash flow conversion timing shift collecting some collections into Q1-27. As a result of our operations team's excellent execution, we now expect consolidated adjusted gross margins to expand 27 to 28%, 100 basis points above our previously communicated guidance range. Our strong first half performance benefited from one-time items, tariff recovery, and incremental 45x catch-up benefits that will likely not repeat in the second half. Second half gross margins will also be impacted by increased international mix.

Our continued focus on productivity initiatives is expected to partially offset higher metals and logistics costs in the second half of the year. We are increasing the lower end of our full-year adjusted earnings ranges. We now expect to deliver adjusted EBITDA in the range of $210 to $230 million and adjusted EPS in the range of $0.68 to $0.75, driven by the adjusted gross margin expansion and continued growth. continued focus on cost discipline. Be clear, our updated guidance excludes any expected revenue and margin contribution from our recently announced planned acquisition of AWM. We look forward to providing an update following the close of the acquisition, which we continue to believe to be in Q3 2026, subject to regulatory approval and satisfaction of customary closing conditions. AWM will be an exciting addition to our portfolio. We expect high single-digit accretion to adjusted EPS in year one before synergies.

Let me leave you with three takeaways that reinforce that array is working well. First, Q2 was a quarter of execution-driven outperformance. Revenue, margin, and earnings all came in ahead of our forecast. Second, cash generation was exceptional, more than $100 million of sequential bills, net leverage down to 2.1 times on continued trailing and LTM EBITDA growth, contributing to the ability to comfortably fund AWM with cash in hand. And third, operational resilience and execution capabilities are enabling us to improve our full year earnings guidance. With that, I'll now turn it back to Kevin for closing remarks. Thank you, Keith.

wrap up, I'm proud of how the team executed in the second quarter. Delivering results well above expectation. Our third consecutive record order book of $2.5 billion, strong cash generation, and surpassing 100 gigawatts of trackers delivered globally. while demonstrating our incredible innovation engines. We are using 2026 to expand the platform, strengthen margins, and set up durable growth. five significant new product launches, APA's first year validating our M&A Playbook, and now AWM extending it. We remain laser focused on delivering our strategic initiatives. Thank you for your time today and for your continued interest in ARRAY. With that, we'll open the line for questions.

Thank you. Ladies and gentlemen, we will now conduct a question and answer session. If you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt. A three-tone prompt acknowledging your request. If you would like to cancel your request, please press star 2. Please ensure you lift the handset before pressing any keys. Your first question comes from the line of Joe Orsha from Guggenheim Partners. Please go ahead.

Gosh, thanks. I made it first. Hello, everybody. You've commented in the past regarding the pace of backlog conversions sort of over the subsequent six quarters. I'm wondering if you might be able to provide us with an update today regarding that. Thank you.

Yes, Joe, great question. It's still very consistent at that 80% to be converted in the next six quarters.

Okay, very well. Thanks. So I'll yield to the next person. You got it, Joe.

Your next question comes from the line of Brian Lee from Goldman Sachs. Please go ahead.

Hey, guys. Good afternoon. Thanks for taking the questions. Maybe first on the gross margins, I mean, you guys have been doing a fantastic job, 30% plus, both in 1Q and 2Q. I know you inched up the margin guidance for the year, 27 to 28 now. But I guess what changes in the second half to maybe not maintain the run? late you saw in the first half, even though it does look, based on the revenue guidance, that you're going to have better volumes and revenue in the second half? I don't know if it's just a mixed thing, but can you kind of walk through some of the puts and takes for the second half versus first half sort of margin step down here? Sure.

Hi, Brian. Good to hear you. Well, first, the first half margins are to be commended at, I think, 30.8 percent on average. However, they're not to be fully extrapolated. In the first half, we had a few one-time items, particularly in Q1, that you know, should be adjusted out and they account for roughly 200 basis points of that. So you're looking at a normal to normalize 28.8 for H1. When we look at H2, there's a few things that are happening. First, we will have the step up of international mix.

I think international in H1 only accounted for roughly 5% of our revenues. And then in H2, they will go back up to a higher number. not as close as our past run rate, but it does step back up very strongly. The second thing that happens in the second half, is we have a few domestic projects and some input costs to deal with. So while we're doing well in the US, we have to remember that the macro factors have created increased and logistics costs that we have to deal with in the second half. And also, we will not have the, you know, again, we talked about that, the benefit of some of the one-time items in the second half.

Okay, super helpful. That color definitely makes sense. And then maybe the second question could also be for you, Keith. I appreciate you alluding to the PREF here. I guess housekeeping, that does flip the cash payment starting in Q4 of this year, correct? And then I guess in relation to that, are you currently engaged in looking at alternative financing options? Or are you, I mean, what's the sort of sense of urgency? Are you not looking for something there until maybe the payments step up in future years? Just trying to understand your thought process around how you're going to approach the prep. Thank you. Sure.

Sure. So yes, so the prep flips to cash pay, I think, in August of this year. we will be obligated to pay roughly $12 million through the remainder of 2026. It starts at a coupon rate of roughly six and a quarter, and it does step by 50 basis points each year. So let's, you know, as we think about PREV, First, I want to say that we are very comfortable in servicing the prep. We are cash generative. We continue to grow EBITDA and earnings. And. And so, you know, our outlook on the prep is the same. You know, we look at it against all the options that we have. We look at it against our leverage level.

We look at it against the available capital market options that we have. So, at six and a quarter, you know, a coupon rate, you know, until interest rates change or come down or our credit profile changes, you know, then it becomes, you know, very competitive against the cost of debt that could replace that. So, we always look at the after-tax cash cost of servicing any instrument. And of course, you know, we're balanced against what our, you know, strategic options are, or in terms of, you know, the priorities ahead of the business in terms of organic or inorganic options. So, you know, we are looking at it. We're looking at, you know, we've always been looking at it. And so we will continue to look at it.

But in terms of the servicing, you know, we're comfortable. double servicing it where it is. And if there's something that comes out to be, you know, has a better profile of a corporate finance standpoint and we will go ahead and executed so we are always and by the way we're always in dialogue with our investment banking partners on what the options are.

makes sense I'll pass it on thank you guys thanks.

Your next question comes from the line of Philip Shen from Roth Capital. Please go ahead.

hey guys thanks for taking my questions um first ones on bookings are quick math suggests bookings were 442 million but Kevin, I think you talked about 500 million of bookings in the quarter. My guess is it's some rounding. So I just wanted to understand what might we be getting wrong there. And then, importantly, on a go-forward basis, you've been on this pretty healthy $400 million to $500 million kind of quarterly bookings cadence. Would you expect that to maybe...

even accelerate and pick up in the coming quarters? Thanks. Yes, Phil, look, I'll take the first one. You're right. It's rounding. We did over $500 million, just over $500 million of gross bookings in the quarter. And I should note that no significant cancellations out of the order book as well. So really strong quarter of commercial momentum. Again, to note that our $2.5 billion backlog is now 37% ahead of where it was this time last year. It's just incredibly significant. Look, we don't project or forecast bookings externally.

We think we have now, as you put it, consistently, we've booked over 1.8 billion of new orders. net in the last four quarters and we think that's just substantial commercial momentum. So it's not only the quantum, but we're winning larger programs, more multi-program awards as well. So we feel really, really good about our commercial momentum at this point. And the fact, again, the quality of the order book is quite substantial at this point. We talked a few times about some of the elements of that being that it is now over 95% domestic. and fully supported by really good strategic customer commitments. Should also note, as I do on every one of these calls, Phil, we've not made any changes in the definition of our order book. So the increase that you're seeing is truly continued strength and momentum, primarily in domestic bookings, which are really a direct result of our successful commercial transformation that we've been talking about now for about two years, right? The domestic book to bill was well over 1.4 times in the quarter, so again, quite substantial.

Thanks for the call. Yes. Go ahead. Sorry. You're welcome. No, I was saying, and the other point we continue to make is that half of the order book now is tied to developers, IPPs, or utility specifications at this point. Even if we may get a purchase order from an EPC, ultimately, half of the order book is now being driven by those specifications at the developers, IPPs, and utilities, which has significantly increased in the last two years. So we're really proud of our commercial momentum at this point.

Great. That's important to have them require you guys in their projects. Absolutely. at AWM, wanted to just check in and get some additional detail about this acquisition. Sounds like there's some really nice margins there. was wondering if you could share what kind of market share AWM has in the US. Our work suggests it's kind of an oligopoly between you and CAB Solar, and maybe the AWM share is closer to 40%. And then what happens? has prevented them from going international, and is that an opportunity for you guys ahead as well? Thanks.

Yes, those are great questions. Look, we love the AWM acquisition. It's disciplined adjacency, not just a roll-up strategy, really expanding our balance of systems offering to a great engineered category that we really understand and with customers that we're already serving domestically, right? So start there. So when we talk about our trailing 12 months, that was as of May. We feel they are a market leader at this point domestically. To your point, it is largely an oligopoly with two leaders and others below that. But I can tell you that the growth rate of AWM, remember, this is a company that's only five years old. So five years ago, they entered the market, and they're already a market leader in this space due to some very, very strong engineering capabilities.

And effectively, they looked at this space and said this was a space that hadn't had innovation and engineering thrust upon it, and noting that its largest component was the technology. competitor is primarily a not for profit, right? So we really liked this acquisition. We think it has a lot of opportunities to expand. International is certainly one of the legs that we will help them expand significantly, but likely not for the first, say, six to nine months post acquisition. We're going to stay very, very focused on the supply chain synergy opportunities. And when we did a side by side set of analytics on our customers, some of their strongest targeted customers happened to be our largest customers, right? So we're going to stay focused on the front end commercial synergies first, back end synergies, that is the supply chain logistics warehousing, and that's going to be the first six to nine months before we begin to platform them internationally, but there's substantial growth opportunities internationally.

Great. Thanks, Kevin. I'll pass it on. Your next question coming from the line of Colin Rush from Oppenheimer. Please go ahead.

Hi there, guys. This is Andre Adams on for Colin. Just hoping to stick on the order book for a second. Could you give us a sense of the share of orders with both array and APA content in there? And how much cross-selling opportunity remains? And how quickly do you think you could get to comparable sales synergies with AWM?.

Yes, so I would say while we're just now getting our first series of orders with the joint orders, that is, between APA and Array, they're just beginning at this point, right? just landing and we've landed our first and we have several now in the very I would say near bucket. And this is really about us learning to jointly quote, jointly put packages together, take them to our customers. So that's still very new, but we couldn't be more excited about the pipeline of those joint orders at this point. So I think we'll talk more about it at our APA days coming up in a few weeks, but quite significant opportunity. I think the bigger is as we've gone out and sold joint customers, APA is now bidding on much many, many more utility scale projects. And we referenced that in their average size of their order has more than doubled in its first year under Ray. So while we're working on some together. joint programs, we're being very, very careful to not bring it jointly and then ask your customer for a discount.

If we could sell them individually at a higher price, we're going to focus there, but make it easy for the customer to give us an order for both parts of that business, if that makes sense. So stay tuned. We're really excited about that. I think with AWM, again, That ability to look at the customer lists, share that, and very aggressively work together, that's going to be near immediate. We're excited about what we can do with AWM as well in that same space.

Great. Thank you for the color. And just on the field labor savings that you're able to drive with some of the new product introductions, can you speak to kind of rate of adoption and incremental opportunities for improvement in field labor savings?.

that you're focused on. Hey, it's Neil, I'll take that one. So just for example, when you look at the Atlas product that we announced last week, Atlas 2, 70% fewer components than the legacy A-frame product. So it's got fewer connection points, overall driving and faster installation. And ultimately, when you look at the Atlas 1 product, It solves for a lot of problems that the EPCs have in the field with pile variability. So when that happens, you know, it takes a lot of extra time from an EPC. So one of the things that this allows us to do is to custom fit and size each pile height with the adjustable channel that slides into a Sigma pile. So ultimately that also drives a lot of effective efficiency in the field for EPCs as well.

And we think that particular product will bring with it roughly three to four cents of average selling price per watt in addition to a typical tracker sale. So that opportunity really expands the market for us as well. So we think there's a lot of interest in that. efficiency for Atlas, along with the other products we've launched in the last couple of years. So one important point that we'll say is that when you look at our order book, it's made up of over half of it is now a new product launch since 2023, and over half our revenue in 2026 will be around new products as well. And one of the things that's really resonating is around that installation efficiency, in addition to solving customer problems in the field. So overall, the innovation pipeline is really driving strong and installation efficiency is a big part of that. Let me just add to that that, look,.

We've been co-developing some ideas with AWM for some time, for almost a year at this point. So as we were developing the Atlas suite of products post APA acquisition, those teams worked together very, very effectively. In fact, AWM launched a new product that is actually being manufactured at APA Those that are going to join us at the APA days in a couple of weeks, the technical days, We'll look forward to showing you some of that. And then as we design the Atlas One, the foundation in the Sigma pile with the C channel that we talked about earlier, that was also designed with particular hole and bolt patterns to be able to bolt the AWM wire management directly on without having to drill additional holes in the field. So it's really about that interoperability. So the foundations, the AWM system, and the trackers, and the components that we provide in the field are all very, very interoperable, and we had a key eye on interoperability, both when we acquired APA and then extended that I to AWM. So we really look forward to hosting...

Some of you that are going to join us in a couple of weeks at the APA technical days, you'll be able to see that integration of both products. And it's pretty impressive.

Thanks so much for all the call, guys. You're welcome. Your next question comes from the line of Corinne Blanchard from Deutsche Bank. Please go ahead.

Hi, good afternoon. Thank you for taking my question. Could you talk a little bit about the guidance and maybe, you know, that seems like a pretty heavy 4Q. I'm just trying to understand what gives you the full confidence to achieve that 4Q. and to be within the guidance, that would be helpful. Thank you.

Good. Thank you, Connie. Great question. Look, we're maintaining the revenue range because our current customer schedule and order book visibility continue to support it. You know, we are, however, raising profitability because the first off execution, you know, makes cost of progress and so forth. and 45x capture are stronger than expected. So that explains the earnings push up. But when you think about the revenue side of it, the shape of the year, You know, we tend to guide to what our visibility supports. And at the moment, we do see the customer orders. We do see the schedules change.

And when we think about it, we do believe that we can deliver into this zone. And if you think about it from a context standpoint, yes, the space of H2 has roughly a 60-40 between Q3 and Q4. But to give you context, this business shipped approximately 4.5 gigawatts of product by back in Q2 2023 printing greater than $500 million of revenue. And so that was pre APA in our portfolio. And when you add APA and you add a stronger suite of execution capabilities, I'm confident that with the preparations taken, that if the externalities hold, we will deliver this guidance. And so the externalities, as you know, are, of course, interconnection, weather, site readiness, and customer timing. But those things that are outside of our ring fence those externalities we try to adjust our range, indication and risk by using the data pointing towards being probably below the midpoint of the guidance range.

But at the same time, everything that is inside of our fence post in terms of inventory, logistics, readiness, crews, we are taking all the steps to ensure that we.

deliver on this. Thank you. And maybe for the follow-up, can you talk about the free cash flow? conversion that you're expecting for the rest of the year and you still expect it to be similar to 2020,.

or do you expect any change there? So we are changing our free cash flow guide. or i should say updating it so when we entered the year we expected to convert about the same pace which we converted in 2025 however with the shift in the cadence and shape of the year and having you know, a 500 million plus Q4 of revenues. The ramp for that or the peak in that quarter pushes our collections into 2027. And so we at this time are, you know, are expecting to convert, I would guess, somewhere in the range not guess but you know our models are showing that it's in the range of 20 to 25 percent of EBITDA so it's roughly you know half of what we were expecting when we started the year not because of anything else other than just the shape of how working capital and collections moved.

All right, thank you. As a reminder, if you have any questions or follow-up, please press star 1. Your next question comes from the line of Chris Dendrinos from RBC Capital Markets. Please go ahead.

Yes, good evening and thanks for taking the question. I wanted to follow up here on the AWM acquisition, I guess maybe more just from a strategic standpoint. And you've got the connectors now, but you don't have the eBOS wires. And so just how do you think about the eBOS wire strategically? Is that something you ultimately go after? given the synergies of having that complete system. Thanks.

Yes, I mean, that's a great question. Obviously, we look at that as a very logical extension of what we're doing. We like that space. I think we're waiting a little bit for some of the noise in the space to settle, right? We think it's certainly an attractive space. I'll leave it at that. Got it. Thank you.

That was it for me. Great. Thank you. Your next question comes from the line of Dylan Asano from Wolf Research. Please go ahead.

Yes, hi, thanks for taking my question. Sorry I joined a little late. I don't think anybody's touched on the Section 232 that's kind of been in the news the past couple days. Just wanted to check in if you guys have any updated news on kind of how that could impact you and the sector overall.

Yes, look, I mean, you're reading probably everything we are. We're on calls with the leading industry associations and having that, but I think we'll reserve common until we see the actual language that is likely expected to come out here before the end of the week. So I just don't think it would be wise for us to opine on that until we get a really good view of that. there's lots of different views out there in the in the ethosphere on that one right now so bear with us as we get through the actual language um because and we'll try to get a better understanding of what it means for the industry and then what it means for Array.

So stay tuned. Okay, thank you. This is the conclusion of our Q&A session. This concludes today's conference call. Thank you for your participation. You may now disconnect.

This live transcript is auto-generated without human intervention or review.

[Call has ended.]

Greetings. Welcome to ARRAY Technologies conference call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Sarah Sheppard of Investor Relations. Thank you. You may begin.

Thank you. I would like to welcome everyone to ARRAY Technologies conference call concerning our recently announced proposed acquisition of Affordable Wire Management. I'm joined on this call by Kevin Hostetler, our CEO; Keith Jennings, our CFO; and Dr. Aaron Gabelnick, our Chief Strategy and Technology Officer. Today's call is being webcast via our Investor Relations site at ir.arraytechinc.com, including audio and slides. In addition, the press release and the presentation detailing our proposed acquisitions have been posted on the website.

As a reminder, the matters we are discussing today include forward-looking statements regarding the proposed acquisition of AWM, the anticipated benefits, including synergies and increased competitive advantages, the anticipated impact of the acquisition on our business and future financial and operating results and other matters. I would also like to kindly remind you that our second quarter ended on June 30, and we expect to announce earnings on August 5, which means we will not discuss second quarter results on this webcast. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made on this call. For details, please see the information at the beginning of the presentation materials.

And as always, we refer you to the documents we file with the SEC for a discussion of risks that may affect our future results. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results, except as required by law. During this call, we will refer to AWM's trailing 12-month EBITDA as of May 31, 2026, which is defined in the presentation materials posted to our website.

I'll now turn the call over to Kevin.

Thank you, and good afternoon, everyone. I appreciate you joining us on short notice today to discuss another exciting transaction milestone for ARRAY, one that extends the balance of system strategy we laid out for you last year when we welcomed APA Solar to the ARRAY family. This pending acquisition reflects the disciplined M&A strategy we've discussed, acquiring leading profitable businesses with differentiated technology that complement and strengthen our full stack platform and create value through a high degree of technical interoperability.

Let's begin on Slide 2. This afternoon, we announced that we have signed a definitive agreement to acquire 100% of Affordable Wire Management, or AWM, a leading independent provider of cable management systems for utility-scale solar projects in the United States with an increasingly growing presence in battery energy storage solutions and data center applications. The total consideration of $203 million consists of a base purchase price of $153 million and up to $50 million of additional consideration. At full value of total consideration, this represents an attractive multiple of approximately 8.8x trailing 12-month EBITDA of AWM.

We expect the transaction to be high single-digit accretive to ARRAY's adjusted EPS in year 1 before synergies. Closing is expected in the third quarter of this year, subject to regulatory clearance and customary closing conditions. And consistent with our disciplined approach to capital allocation and the strong cash generation of our business, we expect to fund the base purchase price at closing entirely with cash on hand while maintaining an appropriate level of liquidity for our operations.

Let's continue on Slide 3. I want to start with the underlying why of this acquisition, which comes down to 4 points. First, AWM meaningfully expands our share of wallet. Wire management is one of the most technically important segments of the electrical balance of system. We estimate the global addressable market for AWM's current products at $200 million to $250 million annually with core U.S. cable management alone representing an approximately $150 million annual opportunity. And critically, this is a market where AWM is already a leader. Beyond the core, we see significant growth vectors in international markets, battery storage and data center applications, segments that are being propelled by AI-driven load growth and U.S. onshoring.

Second, this deal is financially compelling. We signed this transaction at an attractive total consideration of approximately 8.8x trailing 12-month EBITDA of AWM, a multiple that only improves with expected tax benefits and as the EBITDA-based earn-out is achieved for a business with a track record of consistent profitability and rapid growth. We expect the transaction to be high single-digit accretive to our adjusted EPS in year 1 before any synergies.

Third, this acquisition is another deliberate step in building the industry's leading full stack balance of system platform. Our strategy is to bring together leading technologies in each critical solar infrastructure category, trackers, foundations, fixed tilt structure, wire management and software and engineer them to work as one integrated system. We believe we can engineer these systems to work together, driving higher energy yield and lower installed costs for our customers with one accountable supplier. Aaron will walk you through what the interoperability unlocks in a few minutes. And fourth, we see significant cost and revenue synergies.

On the cost side, we see opportunities across procurement and application engineering. On the revenue side, we see opportunities to cross-sell across our respective customer bases, leverage ARRAY's global channel for international expansion and over time, bring a more integrated product offering to the market. We believe the greatest value isn't created by assembling unrelated products. It's created by bringing together category leaders whose technologies become even more valuable when engineered as one system.

Let's move to Slide 4. I want to spend a moment on the company itself because AWM story is a remarkable one. Founded in 2020 by Scott Rand and Dan Smith, AWM has scaled from a standing start to nearly $60 million in revenue in just 5 years, building a leading cable management franchise in utility-scale solar while remaining consistently profitable along the way. This is an exceptional entrepreneurial achievement, and it speaks to the quality of the products and the team. AWM is headquartered in Tempe, Arizona, with a diversified global supply chain. The company is a leader in U.S. utility-scale solar wire management with a strong presence throughout North America and each of the top 10 EPCs in the country has selected AWM for their projects.

The business has an installed base of more than 40 gigawatts, supply chain capacity supporting over 150 gigawatts and a portfolio of over 70 patents protecting its innovative suite of products. And notably, AWM operates an asset-light business model. The team focuses its resources on engineering, design and customer support while largely outsourcing manufacturing to its diversified global supply base. That model has enabled AWM to scale rapidly with minimal capital intensity, and it underpins the consistent profitability. Much like APA last year, AWM is a founder-led business with a culture of customer service, engineering rigor and speed, a culture we believe will integrate very well with ARRAY's values and execution framework. We're thrilled to welcome Scott, Dan and the entire AWM team who are expected to remain with the business following the closing.

With that, I'll turn it over to Dr. Aaron Gabelnick, our Chief Strategy and Technology Officer, to take you deeper into AWM's products and the strategic value they bring to ARRAY.

Thanks, Kevin. Let's turn to Slide 5. For those less familiar with the category, wire management is the system of hangers, clips, rails and cable protection hardware that routes and secures the electrical cabling across utility-scale solar or storage project. It may not be the largest line item on a project, but it's technically very critical and touches every row of every site. When done poorly, it drives rework, failures in the field and long-term O&M costs. When done well, it is a meaningful lever to improve installation speed, system reliability and overall project performance.

Along with their leading engineering and design capabilities, AWM has built one of the most comprehensive product suites in the space. On the solar side, that includes its core cable management system, or CMS, the flagship hanger system, the Bonsai, back-of-module line, the SUMAC Rail solution for cluster disconnects and the Solar lockout/tagout or LOTO line of safety products. On the storage side, its Strata Cleat System and Strata Pack System platform serve Utility-Scale BESS and increasingly data center applications. Like ARRAY, AWM competes through innovative engineering rather than commodity hardware, designing products that reduce installation labor, improve long-term reliability, enhance system performance and deliver better overall project economics.

Moving to Slide 6. I want to highlight what we believe is AWM's most differentiated capability and frankly, one of the things that most impressed us during diligence, it's ampacity modeling. Ampacity is the amount of electrical current that a cable can safely carry, and it is directly influenced by how cables are routed, bundled and spaced. AWM has a sophisticated industry-leading ampacity model that analyzes cable arrangements against the engineer of records design plans and produces cable-specific ampacity tables. The result is generally an increase in ampacity of more than 20% compared to other solutions. In practical terms, that means customers can carry more current on the same cable or use higher gauge or thinner cable to carry the same current. In a market where copper and labor are two of the largest cost drivers, that is a real engineered value, not commodity hardware. It's the same engineered value philosophy that underpins ARRAY's product portfolio and is a big part of why the top EPCs have selected AWM.

Let's turn to Slide 7 and talk about the market opportunity. As Kevin mentioned, we sized the global wire management opportunity for AWM's existing product portfolio at $200 million to $250 million annually, grounded in third-party installed capacity forecasts. Within that, AWM is a market leader in U.S. utility scale solar with their core CMS product. Following AWM's track record of new product development, we're excited about the significant incremental opportunity across the broader electrical balance of systems market in solar, BESS and data centers. What makes this particularly attractive is the attach rate dynamic.

Beyond the core hanger system, AWM's attached products, Bonsai, SUMAC, Kitting services, BESS solutions and its proprietary Ez Pile Post can more than double revenue per megawatt versus CMS alone on a given project. And just as we described with APA, these are expected to be at an attractive contribution margin on incremental sales, the same sales conversation driving a larger share of the project. Layer in international expansion through ARRAY's global channel and the extension into BESS and data centers and the next phases of expected growth become clear.

Slide 8 shows why this pending acquisition is strategically important. It brings together the key components of our balance of system strategy and expands our ability to deliver more integrated solutions for customers. We are focused on acquiring leading profitable infrastructure companies with differentiated engineering capabilities. Individually, these businesses are leaders in their categories. Together, they become something competitors cannot easily replicate, a technically integrated platform that improves customer economics across the entire project.

Starting with the tracker and software layer, DuraTrack, OmniTrack, Skylink, D2S and SmartTrack. As the engineered foundations and fixed-tilt capabilities we gained with APA was an ideal production partner for AWM's Ez Pile, now add wire management with ampacity and routing optimized to and from the tracker itself. Together, these capabilities are expected to create a more integrated balance of systems offering, which features leading brands in each segment, which together are expected to produce higher energy yield, lower cost and faster installations and a single accountable business partner.

Let me make this interoperability concrete with a couple of examples. Because we provide the tracker architecture, we can optimize harness lengths and deliver the lowest voltage drop with no bearing gap penalty. AWM's single-sided pinyon hanger allows us to shorten the torque tube and tighten module gaps, that's taking steel out of the system. And looking forward, we see many potential product integration opportunities to drive better system costs and faster installs. These are the kind of step-change system cost reductions that are enabled when the tracker, foundation and wire management are designed together.

Turning to Slide 9. I want to spend a moment on what we believe is a very exciting growth dimension of this acquisition, battery storage and data centers. AI-driven load growth and U.S. onshoring are accelerating demand for battery storage and data center power infrastructure and AWM's Strata Pack platform is purpose-built for these applications. It offers prebuilt adjustability to handle variable lengths and offsets between the BESS unit and the transformer, a platform rated to support personnel for safe access during commissioning and maintenance and compatibility with a full range of foundation types, precast blocks, posts or anchors. Combined with the Strata Cleat system and AWM's ampacity modeling, it is a complete solution. And this is not theoretical. The first BESS installations are already shipping and AWM has secured its first data center backlog order through the Strata Pack application. We believe this positions us at the front end of 2 of the fastest-growing demand curves in energy infrastructure.

Let's turn to Slide 10. As with APA, we will be integrating AWM from a position of strength and the value flows in both directions. First, our global sales channel. ARRAY's distribution across Latin America, EMEA and Asia Pacific opens near immediate international revenue expansion opportunity for AWM's products, which today are concentrated in the U.S. market. Second, ARRAY and APA's operational scale. ARRAY brings significant economies of scale through our extensive global networks across manufacturing, procurement and logistics. This provides ample opportunity to drive product cost and efficiency. Third, the APA connection. APA is planned to produce AWM's proprietary EZ Pile and brings a leading domestic fixed tilt market position. We believe this pending acquisition immediately deepens the strategic value of last year's APA transaction by adding in-house scalable foundation manufacturing behind AWM's product road map.

And finally, our balance sheet and R&D capabilities. We believe ARRAY's bankability, an installed base of more than 100 gigawatts and a robust combined patent portfolio gives AWM an accelerated, better finance product road map than they could pursue independently. As we look ahead, we expect to continue applying the same disciplined approach, adding leading technologies that complement the platform, expand our share of wallet and create additional opportunities for technical integration across the system.

Now I'd like to turn the call over to Keith to walk through the transaction terms and financial rationale.

Thank you, Aaron. I will begin with a brief overview of the transaction terms. The base purchase price is $153 million, subject to customary purchase price adjustments with 100% of the base purchase price payable in cash at closing. In addition, the sellers are eligible for additional consideration of up to $50 million payable through 2028. This is comprised of 2 components: first, $5 million payable on each of the first and second anniversaries of the closing conditioned on the continued employment of the 2 founders. Second, up to $40 million based on the percentage achievement of certain EBITDA targets. This $40 million is payable in 3 installments of up to $8 million based on 2026 full year performance and up to $16 million for each of 2027 and 2028 performance.

ARRAY may elect to pay the deferred consideration and performance earn-out in cash or shares of ARRAY common stock. If paid in stock, the number of shares will be determined by the 10-day VWAP ending immediately prior to payment. We structured the additional consideration deliberately to align the founders with delivering AWM's growth trajectory while focusing on the envisioned effective integration and synergy capture. It retains the leadership that built this business and means our implied multiple effectively improves as the targeted performance is achieved. This provides a strong incentive for both parties to accelerate the integration of our organizations in pursuit of both commercial and supply chain synergies.

Importantly, upon closing, ARRAY expects to step up the tax basis in AWM's assets, resulting in the opportunity for incremental tax-driven value, enhancing the effective economics of the transaction. As Kevin mentioned, we expect the transaction to close in the third quarter of 2026, following HSR clearance and satisfaction of other customary closing conditions.

Moving to Slide 12. Let me briefly reiterate why this transaction creates value for ARRAY shareholders. AWM expands ARRAY's share of wallet with entry into wire management through a leading suite of proven, highly engineered products and the ability to use ARRAY's global footprint to bring these solutions to international partners. And it gives us an additional platform for BESS and data centers entry to support the fast-growing AI-driven demand opportunities. It is financially compelling. The total consideration represents approximately 8.8x trailing 12-month EBITDA for a consistently profitable business with a highly attractive and accretive EBITDA margin with expected high single-digit accretion to our adjusted EPS in year 1 before synergies and meaningful tax benefits from the basis step-up. It advances our strategy to offer an integrated balance of systems platform, tracker, foundations and wire management designed together for higher yield and lower cost with system optimization opportunities through interoperability.

Lastly, there is significant opportunity to drive incremental value through both cost and commercial synergies. Cost synergies driven by procurement, engineering optimization and commercial synergy opportunities through cross-selling, market and product expansion. The timing of close for this acquisition will dictate the 2026 financial year impact. We expect to update the full year outlook for AWM's contribution following closing.

With that, I'll turn it back over to Kevin for closing remarks.

Thank you, Keith. To wrap up, the addition of AWM to APA and ARRAY will bring together a suite of fit-for-purpose tracker solutions, software, engineered foundations, fixed-tilt systems and wire management solutions under one umbrella. And most importantly, we'll do so with leading brands in each aspect. This is a differentiated position in this industry, and it reflects the deliberate disciplined strategy we've been executing, expanding what we deliver under the panel, deepening the value we create for developers and EPCs and doing it at valuations and structures that are financially attractive for our shareholders. This acquisition is expected to strengthen our product portfolio, extend our reach into battery storage and data center applications and enhance our ability to deliver integrated high-value solutions to our customers. It also supports our long-term growth, margin expansion and shareholder value creation.

This transaction is another step in executing the strategy we've consistently outlined, building the leading full stack infrastructure platform beneath the solar panel. By combining the best technologies in each category, focusing on profitable market leaders and engineering those solutions to work together, we believe we are creating a business with stronger competitive advantages, greater customer value and more durable long-term growth. I want to thank Scott, Dan and the entire AWM team for their collaboration throughout this process. Their team, technology and track record are a strong fit with our culture and vision, and we look forward to welcoming them to the ARRAY family and to the value we'll create together. We could not be more excited about the future of ARRAY, the platform we are building and the value we can create for our customers, shareholders and employees. Thank you again for joining us today, and that concludes today's presentation.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines, and have a wonderful day.

Welcome to the JPMorgan TMC Conference. My name is Michael Fairbanks. I cover clean energy and power infrastructure at JPMorgan. Glad to have Array Technologies here. Neil Manning, President and Chief Operating Officer. Neil, maybe if you could just get us started and give a one-on-one overview of Array and what you're all about.

Sure. Thanks for having us here this morning. I'm here joined by Nick Strevel, our Chief Product Officer; and Sarah Sheppard, our Director of Investor Relations. And Array Technologies is a leading provider of utility-scale solar tracking technology. So that's a bit of a mouthful. So let me break it down a little bit.

So solar trackers do a number of important things for utility solar plants. The tracker technologies, first and foremost, hold the solar module structurally in position. But then solar trackers then move the modules and orient it to the optimal sun angle throughout the course of the day to optimize energy performance and energy yield overall. And this is really important for as developers and utilities are developing their business plans. It's important that they maximize the performance of the modules that they're putting forth as part of the power purchase agreements and PPAs.

And so trackers are a really important part of that, and Array Technologies has been in the industry now for several decades and ultimately is a leading provider in the space. Now solar trackers do another couple of things beyond optimizing the performance of solar plants. So the tracker technologies can increase the energy yield of a solar module by upwards of 25% over a fixed tilt solution that you may see on much smaller installations. So it's important to know that tracker technology is the predominant utility scale chosen source of -- for mounting in the United States and many places around the world.

Now in addition to optimizing the energy yield, it's also -- trackers also do a number of important things as part of protecting the modules. So the solar modules, obviously, are made from glass and are inherently fragile. So solar trackers also will protect modules during inclement and extreme weather events, including hail, wind, snow and also during the suboptimal conditions when it comes to cloudiness or shading. So trackers do a number of important things around protecting the modules and optimizing the modules overall.

Now what Array does via our DuraTrack platform is a number of important things that are very differentiated from a market perspective. We have a patented technology called Passive Wind Stow that ultimately protects the modules in a way that's very different. It's patent protected and very different than what other providers do in the market.

Now when the wind reaches a certain wind speed, it's important that the trackers protect the tracker technology itself and also the modules and go into a defensive position called stow. Now the Array Solution, which was invented by our founder, ultimately uses a patented clutch technology that puts the stow position in a manual kind of passive case where it doesn't require any active equipment or any technology to do so. It does so without regard for anything other than the wind speed.

Alternative solutions using kind of more active algorithms and technology that may be coming from off-premise rely on sensors and other positioning to do so. Now the difference with the Array Solution that's really important for people to understand is that because we don't require outside source, we actively only put the row into stow that requires it and sees the full effect of the extreme weather and wind. And the rest of the solar array will stay in optimal tracking position and optimal performance and energy yield.

Separate to that, the rest of the -- only the panels will stay offline and the rest of them are online energy producing. Now alternative solutions ultimately will take more modules offline than necessary because they can't predict the direction of the wind coming in specifically because you're relying on third-party information technology. So they won't have the same level of energy yield and they'll be coming offline for a much longer period of time.

Now with that, they'll lose performance and yield. So we worked with a third-party company called DNV several years ago to do a study, and they determined over the course of a 30-year lifespan of a utility solar tracking plant, we'll see from an Array Solution up to 4% increased energy yield, which really means a lot for the utility and the developer over the long-term course of the solution. So there's a number of things that Array has done innovatively and technologically to maximize performance and energy generation from a utility solar plant.

And our technology, as I mentioned before, is built on the DuraTrack product line. DuraTrack has now been in the market for a number of years. And ultimately, we've been able to extend that product line as customer requirements have changed and morphed and evolved over periods of time.

Early on, the original solar plants are being deployed often were fairly flat, but there is certain leveling that would take place called cut and fill. But that ultimately, those flatter parcels eventually became all used up and ultimately, developers, utilities have to find alternative locations to deploy tracking technology in solar plants. And so train following and working with rocky soil conditions became really important.

We brought OmniTrack to market to support those needs. Since then, we've also brought solutions such as SkyLink over the last couple of years, which eliminates the need for trenching, has wireless capability and a smaller footprint that makes it ultimately more adaptable to smaller parcels, along with things like Hail XP. Hail can be particularly damaging for solar -- utility-grade solar plants, particularly where you see in areas of Texas and Oklahoma and elsewhere, where you may see extreme hail, hail that could be 2 to 3 inches in diameter. And so working with our customers and insurance providers, we developed Hail XP, which has a more acute angle of stow to help protect and minimize impact from extreme hail events.

The DuraTrack platform does very well in hail events more broadly. But when you have extreme events of 2 to 3 inches, it requires a more tailored solution at times. And all of this is then controlled by our SmarTrack software that optimizes using AI algorithms, the overall performance of the solar plants on a day-to-day basis, but also then in times of inclement or extreme weather, certainly protects the solar array as well as this optimizes it.

So it's great to be here. It's great to talk about Array, and hopefully, this gives you a little bit idea of what we do from a solar tracking and how it comes into play for an overall solar plant standpoint.

Great. Yes. So obviously, a lot of innovation in the space. Can you maybe talk about some of the things on the horizon maybe this year or just things that you guys are working on?

Yes. So we -- just in our last earnings a couple of weeks ago as part of our Q1 results, we talked about one of the new platforms we're bringing to market called DuraTrack D2S. So now I mentioned a few minutes ago about some of the differentiating aspects and characteristics of the DuraTrack platform. Internationally, markets are a little bit different.

And we acquired a company a few years ago called STI Norland, and they had a 2-row tracker technology that they were deploying primarily in the Spain and Brazil markets. We have worked obviously in those markets now. And as we're working to grow more and more in EMEA and Latin America, we spend time with customers doing voice of customer events and spend a lot of time looking at what could be best used to meet their needs. And we determined that a 2-row architecture could be optimal for customer needs in international markets.

So we developed the D2S platform, which is a derivative of DuraTrack and it takes the best of the DuraTrack technologies and then puts it into a 2-row format and has all the same advantages for extreme weather events, passive wind stow, backtracking diffuse and snow alert response. So it's really important that, again, we're differentiating on our passive wind stow technology that's patented. We're the only solar tracker company in the world that has this capability.

And so D2S builds upon this and it's really custom tailored for international markets overall. So we're really excited about that.

Okay. Maybe on M&A, can you characterize the M&A landscape today? And then maybe talk about the integration of APA. I think it's 9 months in now.

Yes. Yes. So hey, M&A certainly remains a key area of interest for Array. We've talked very openly about our balance of system strategy, our under the module strategy, and we certainly are looking to bring integrated solutions that make things easier for customers on the design and deployment side and ultimately drive cost effectiveness and efficiencies along the way.

So ultimately, we do believe that the industry is consolidating over time. And we certainly are always as part of that, looking to expand how we can support customers in making things easier for them on the upfront part of planning and also during the deployment process. So now just touching on the APA acquisition. We closed on acquiring a company called APA last August. And I could just say that, hey, we're happier today about that acquisition than we were at the time we even closed.

The integration is going really, really well. We talked about it a little bit during our Q1 earnings call. And ultimately, what APA does is they make foundation solutions along with they have a portfolio of fixed tilt solutions as well that broadens the portfolio for where we can apply our expertise in the solar domain. And now one of the things we talked about that we're really excited about is that APA's first quarter order book grew by over 50% sequentially quarter-over-quarter. And that was also with a sharp increase of 100-megawatt-plus opportunities. So across both the legacy fixed tilt solutions and also with A-frame.

Now what's really interesting for the audience to hear today is that the fixed tilt business, which is historically the bigger part of the portfolio for APA is showing great momentum in 2026. And a lot of this is driven by data center deployments. Data centers, in particular, have a preference for fixed tilt solutions because they basically want to have 0 management and maintenance. They just want to set it and forget it from an operational perspective. So ultimately, APA is a great indicator of what we're seeing on the AI and data center front.

Great. Maybe just on continuous technology and innovation. What is -- can you talk about your AI strategy internally at Array and how the company is leveraging AI?

Yes. So AI is really a key part of how we're looking at managing the business internally and also externally moving forward. So I joined Array about 3.5 years ago. Kevin Hostetler, our CEO, joined about a year before that. And since that time, we've really been on a journey of driving operational effectiveness and efficiencies across the organization. And now over the last quarters, AI is very much central to that strategy overall.

Last year, I onboarded a new leader to drive our AI strategy. And we're really looking at the foundational architecture within our current systems and then looking at prioritizing areas beyond that where we can come over the top or on a day-to-day basis to improve effectiveness and efficiencies. So just one example of that overall is that we have a program that we call AI champions.

So we've designated individuals and leaders from every functional part of the company, whether it be finance, supply chain, sales and sales operations. So we have about 12 of these overall, and the representatives and designates from their respective function on how they can take and drive and leverage AI to drive more efficiency within their overall function, whether it be by leveraging agents and driving specific automation of tasks or other more sophisticated opportunities to drive efficiencies and cost out of the business. So one really interesting program we have now.

So we're looking at things from not just a day-to-day perspective, but also the large, more transformative opportunities as well, what we refer to as the larger boulders. And we're working with a top-tier AI partner and an integrator on really reimagining our design and quotation process for customers. At times, it could take 7 to 10 days to respond to a particular customer request given the size and complexity of these projects overall.

And what we're looking to now is to drive that down from 7 to 10 days down to sometimes just a matter of hours. But what's more important than that is not just being responsive to customers, but because we can now do this in a much more effective and efficient manner as this program rolls out, we go back to customers and not just respond to what they requested, but then also give them opportunities to optimize your request in other ways and say, hey, what are you looking to solve for most effectively? Are you looking to drive to your lowest CapEx solution? Are you looking to maximize your energy yield? Are you looking to maximize utilization of this particular parcel?

So not only can we respond specifically to the ask that they came back with or that they made upon us, but we can then come back with options and solutions and scenarios to give them ability to optimize their requests in ways that they hadn't even thought of previously. So it's going to allow us to be far more consultative in nature, and we're really excited by just one -- this is just one program we have in flight right now around AI operationally.

And then we're certainly also looking at from a new product development standpoint as well as it relates to our next-generation controller technology to help drive ultimate more insights and actions and abilities for owners and operators to understand real time what's happening with their solar plants and help them drive efficiencies and effectiveness overall.

So we're very much looking at AI as a true transformative capability, both operationally and internally, but also then that best helps our customers, both the product and from a service standpoint.

Great. And you touched on this a bit earlier, but can you talk some more about the impact of AI data center power demand on the business and then maybe differentiating between behind the meter front of the meter, what you're seeing in the marketplace?

Yes. So ultimately, we are seeing, obviously, demand as it relates to AI and data centers, but also as part of the broader insatiable demand for increased energy across the U.S., not only driven by AI and data centers, but also by the electrification of industry. So we're certainly seeing -- we all see ultimately, the challenges from an energy supply and what's happening now with the impacts from the Middle East.

And ultimately, we do believe that solar is very well positioned and Array is part of that dynamic to be very well suited to be a key supporter and solution provider as it relates to solving the energy shortages that we see, not just in the United States, but now around the world. And that's specifically for a couple of reasons. Solar is the lowest cost to deploy technology and also is the lowest cost and quickest to deploy overall. So whether it be the continuing evolution of data center demand growth, electrification of industry, electrification more broadly via autonomous vehicles, it's going to be -- solar is uniquely positioned at the center of that solution set overall.

Now for Array, we really believe that this provides long-term structural support and demand for our solution suite. Now the timing of this demand, obviously, can ebb and flow based on other factors as well, including interconnection queues and permitting and those types of things. But ultimately, we're really bullish over the long-term demand for solar just based on the structural demand for energy and then how well positioned solar is to meet those energy needs.

Great. Order activity has been really strong in the last 2 quarters, I think 2x book-to-bill, order book of $2.4 billion. Can you talk about that momentum in the business? And then maybe just about order quality and customer quality in the book?

Yes. So hey, we're really encouraged and excited by how the order book has progressed over the last 3 to 4 quarters. We talked in our most recent earnings that $2.4 billion is a record order book for us. And it's really driven by a couple of factors overall from a quality standpoint in addition to just the overall size. To be clear, we also are driving a higher domestic mix within that order book. And it's important. We note that for a couple of reasons.

One is that average price points and selling prices in the United States for solar are higher than you generally see elsewhere around the world. Ultimately, that then drops through to a higher profit pool here in the United States. So a more domestically oriented order book indicates greater profit opportunity overall.

Now international is a key part of our business as well, and we'll probably talk about that in a little bit. But ultimately, a high domestic order book is a real indicator of a strong order book quality overall. And also strong Tier 1 representation. So whether it's utilities and really high-performing developers. And the reason why that's important is that there tends to be a little bit less volatility in their project pipelines.

So having a high domestic mix along with a strong Tier 1 customer representation is really important, coupled with the increasing representation for our new products of the portfolio in our order book as well. So we also talked about in our earnings for Q1 that over 50% of our order book is now made up of our new products that we've launched within the last 8 quarters.

And that's really, really compelling because it shows that our innovation is making traction with customers and customers are pulling through and demanding the new technologies and capabilities we're bringing to market. So that's a great ability for us to continue driving innovation on the front end because we're seeing that traction that's pulling through into the order book, and we really are excited by what this means for our customers as well as our prospects moving forward.

One other important note is that we also talked about 80% of our order book does convert over the next 6 quarters. So this order book is not generated for deals out in 2028 and 2029 or beyond. These are real projects with names, with project time lines, with purchase agreements that ultimately will convert over primarily the next 6 quarters.

It's not specific that every project hits exactly on schedule given a number of factors that may take place. But generally speaking, we feel really good that 80% of the order book will pull through in those -- that time line. And it just speaks to the momentum and the return on investments we're seeing from a new commercial front-end standpoint. We spent a lot of time building up our commercial capabilities in the 4 to 6 quarters.

We brought in industry experts to help drive that and particularly around technical selling. We talked quite a bit over the last few minutes around the different types of features and capabilities that Array brings to market that can be quite technically oriented and complex from a selling standpoint.

And so we brought in industry experts to help define the value of that and quantify it in terms that customers can put into their modeling into the power purchase agreement calculations so they can make sure that they understand the yield and improvements that our technologies are bringing. So having that technical sales ability is really, really important as well. So we're just really excited by the momentum in the order book and ultimately the prospects moving forward.

Great. Could you touch on that international piece, just what the strategy is today?

Yes. So international is really important for us. So I mentioned a few minutes ago that we acquired a company called STI Norland back in 2021. STI Norland was headquartered in Spain, operated primarily out of Spain and Brazil. And those are great markets. Historically, they have been among the top 5 in solar markets globally.

But for -- in the last couple of years for reasons of energy saturation and curtailments, both of those markets have slowed down. So we've been driving a diversification campaign as we maintain our homes in those markets overall. Now we're being really selective about this as well. It's important, as I mentioned before, because the U.S. is the predominant profit pool from an overall market and industry standpoint, we want to be very selective about where we diversify internationally and not try to be all places for all sake and referring to what our CEO, Kevin Hostetler will refer to as [ brag ].

For us, it's not just about deploying everywhere, oftentimes in what can be sometimes commoditized markets internationally. The U.S. operates with kind of 3 top-tier providers. So it's a fairly protected IP moat for our market. International markets are quite different where you may have 8 to 10 market participants or more in given geographies, and that drives oftentimes fierce price competition, particularly from lower-cost Asian competitors.

So when we target international markets, we're very disciplined to look at locations that have a full appreciation for the technical differentiation that we bring. So areas with tougher soil conditions, topographies that may not be even that may be well suited for our OmniTrack solution, extreme weather locations, and also areas where we can domesticate supply chain. We've been very effective over the past years in certain countries and certain markets to be able to take what is oftentimes a very diverse international supply chain and custom tailoring it for a particular market.

So in our Q1 earnings, we talked quite openly around the progress and excitement we have for Turkey. They have a great appreciation for the differentiation that we bring via DuraTrack. And also in South America, in Colombia and Peru, we highlighted with the press release right before earnings, a project called Lupi in Peru that actually is being deployed at 5,000 meters or roughly 15,000 feet. And so when you think about the complexity of that, it's one of the highest solar installations for utility-grade solar in the world.

And you think about the complexity, not just from a soil condition standpoint, but also from just an installation and supply chain perspective as well. So where Array really differentiates itself from others in the market is around those tough deployments, extreme weather conditions, and we really target countries and customers who have a need and have a desire for our solutions that can meet those requirements because ultimately, there's a differentiating price point and margin opportunity that comes with that as well.

Great. Really strong 1Q gross margin in the high 20s. How should we think about margins from here? And what are the -- what would you characterize as kind of the levers for expansion beyond '26?

Yes. So margin certainly has been a big -- we're very excited by the Q1. We printed a 30.7% gross margin on an adjusted basis, which was driven by a couple of things. Certainly, one was on timing. We had some pull forwards, and we always maintain the ability from a supply chain perspective to meet customer requests. If they need to ship projects from a timing perspective, we can pull them in when appropriate. So that was part of the Q1 kind of overdrive on that front.

Also an additional domestic mix, as I mentioned previously, domestic comes with a higher margin opportunity. So that drove part of the Q1 performance. And also great execution by our supply chain and engineering teams on the cost-out programs that we drive on a quarter-over-quarter and annual basis as well. There's also some one-timers sprinkled in there for Q1, recognition of 45x tax benefits that were rolled over from 2025 and also a tariff reimbursement from the government that was a onetime effect as well. So that was really what kind of underpinned the first quarter.

Just a couple of notes that I think are important and helpful for people to understand. As the year progresses overall, international will be an increasing amount of the mix. So obviously, that will come into play, which is why we reiterated our 26% to 27% gross margin guide overall for the year, even with the outperform in Q1. But then to your point around the longer-term kind of structural opportunities for margin expansion, there's a number of things that we're particularly excited about on that front beyond 2026.

Ultimately, when we think about product productivity, driving the effectiveness of our new factories with APA and with Array in our Albuquerque facility, it's allowing us the opportunity to in-source more components that can ultimately drive a full 45x tax benefit overall. Also looking at the continued progression of new products and the differentiation that those bring into the pipeline and order book as well.

So when you look at the overall, not just the landscape for 2026, we're bullish about the long-term opportunities for gross margin expansion based on our factors and our ability to execute and also deliver continued technological differentiation for our customers, which ultimately then does fall through to the bottom line.

Great. And then maybe more near term, logistics and fuel costs, how would you say how exposed you are there? And how much of that can you pass through to customers?

Yes. So logistics certainly has been quite the topic with obviously the -- everything going on in the Middle East. So to be clear, we have seen in Q1, higher fuel costs due to a number of things, fuel surcharges, lane congestion, tighter lane availability for carriers. And with that, we responded with a couple of specific targeted actions. We renegotiated carrier agreements.

We optimized regional routings for supply chains. We also increased the amount of contracted freight capacity we had versus going with spot rates. And ultimately, we then took all those changes and updates and put them into our new proposals and new contracts along the way. So overall, from an Array standpoint, we're very much looking at this as a controllable work stream.

We're reacting real time and then putting all those new updates into our proposals and contracts. So it doesn't upset our overall framework for the year. But one key thing to note, though, is when there is an impact during a project deployment, oftentimes, it's important to note that pricing is fixed with the customer.

So there isn't necessarily an opportunity all the time to -- whether it's on tariffs or in this particular case with logistics to push those cost increase to the customers. Depending on the contract, sometimes we can. But in many cases, we cannot. So ultimately, we have to kind of work with customers to absorb those in certain instances. But then moving forward for new proposals and new contracts, we always make sure that our systems are updated real time to make sure that we're protecting the future pipeline with those impacts.

So one thing that's really important to note, though, is that our guidance for 2026 does not expect or anticipate a normalization throughout the remainder of this year. We expect the volatility to sustain and remain. And so we built our planning around that expectation.

Great. Can you talk about the impact of Section 232 and then how we should think about kind of tariff risk in the business moving forward?

Yes. So tariffs certainly were the key topic from last year, and they're still percolating around as we now have our fund with logistics. But ultimately, our main tariff exposure for 232 tariffs remain. So when we look at 232 tariffs versus IEEPA, it was the IEEPA tariffs that the Supreme Court struck down a couple of months back. And to put it in perspective for those here, about 5% of our overall tariff burden last year was on the IEEPA tariffs, about 95% was on the Section 232 tariffs.

Now with that, a couple of interesting nuances, obviously, with the ruling that came forth in April, where the derivative tariffs on 232 for steel and aluminum were taken from 50% to 25%. But it was previously 50% on the derivative, only the steel and aluminum content. It's now 25% on the total value of the particular component. So when you net it all out, it's roughly kind of net neutral for us overall on that front. So tariffs certainly are something that we're managing to very carefully.

We work with our customers, and we've had a great deal of success and be able to pass through the majority of those tariff burdens that we experienced last year based on our contracts that we had in place. And now obviously, we're working through the new updates that came through after the April ruling. But the good news on that front is though, with the tariff going from 50% to 25% on the total component value, it is a little bit easier to administer. We're not having to do sub calculations on specific derivative content. So it's quite easier to do calculations operationally.

So overall, we're keeping a close eye on tariffs. It's something we'll be mindful of throughout the course of the year, but we've gotten pretty good experience over the last 4 quarters or so reacting to it. So we feel pretty good about our ability to manage it.

Great. I think we'll leave it there. Thanks, Neil.

Greetings, and welcome to Array Technologies First Quarter and FY 2026 Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to introduce Sarah Sheppard, Array's Head of Investor Relations. Thank you, and you may proceed, Sarah.

Thank you. I would like to welcome everyone to Array Technologies First Quarter 2026 Earnings Conference Call. I'm joined on this call by Kevin Hostetler, our CEO; Keith Jennings, our CFO; and Neil Manning, our President and COO.

Today's call is being webcast via our Investor Relations site at ir.arraytechinc.com, where the related presentation and press release are also available. In addition, the press release and the presentation detailing our quarterly results have been posted on the website. Today's discussion of financial results includes non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures can be found in the related presentation and on our website. We encourage you to visit our website at arraytechinc.com for the most current information on our company.

As a reminder, the matters we are discussing today include forward-looking statements regarding market demand and supply, our expected results and other matters. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made on this call. We refer you to the periodic reports we file with the SEC for a discussion of risks that may affect our future results. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievement. We are under no duty to update any of the forward-looking statements to conform these statements to actual results, except as required by law.

I'll now turn the call over to Kevin.

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us. Our performance this quarter reinforces that demand across our core and differentiated products remains strong, and our adjusted gross margin is durable and execution-driven. I'll begin by highlighting some key achievements from the first quarter, followed by a discussion of how our 2026 performance is trending and an update on our strategic priorities. I'll then pass it to Neil and Keith for an update on our product and operational initiatives and a walk-through of our financial performance.

Let's begin on Slide 4 with a brief discussion of our financial highlights for the quarter. Q1 was a strong start to the year for Array. We delivered $223 million in revenue and achieved significant profitability improvements with adjusted gross margins reaching 30.7%, a significant improvement versus the prior quarter and adjusted EBITDA came in at $29 million, an $18 million improvement sequentially. These numbers include onetime benefits of a little over 300 basis points.

Volumes increased approximately 15% quarter-over-quarter, with revenue stable due to lower ASPs driven by project mix. Importantly, that volume growth, combined with improved execution drove meaningful margin expansion sequentially, reinforcing that our profitability improvement in the quarter is execution-driven, not price dependent. I'm pleased to report we achieved another record order book this quarter of $2.4 billion, marking the second consecutive quarter with a roughly 2x book-to-bill ratio. We now have a 12-month trailing book-to-bill ratio of 1.3x.

I'll now turn to Slide 5 to discuss our business highlights for the quarter. On the commercial front, our momentum continues to build. As noted, our new record order book of $2.4 billion represents growing traction across our new product introductions. We also began multiple deployments of SkyLink, reinforcing our ability to deliver on our innovative product road map.

Internationally, we executed contracts in 3 expansion countries across EMEA and Latin America during the quarter, demonstrating the broadening reach of our global platform as we extend our industry-leading platforms internationally. Taken together, these updates reflect our execution-driven culture, investing in innovation, scaling new products and expanding our geographic footprint, all while growing a high-quality order book, positioning us well for the future.

At APA, we officially opened our new 30,000 square foot headquarters, bringing together our functional teams under one roof to drive closer collaboration and faster innovation cycles. Our campus now includes a dedicated research, testing and training center for new product development, anchored by a 5-acre solar site where we can validate new product innovations in real-world conditions. This expanded facility also houses APA's Foundations Center of Excellence, which is central to delivering differentiated customer value through integrated offerings and strengthening the technical interoperability between APA Foundations and Array Tracker solutions.

Moving to Slide 6. I'll revisit our strategic priorities for 2026 introduced on our last call. Q1 execution delivered tangible progress across all 3 pillars. First, innovation. We're introducing our highly anticipated DuraTrack D2S tracker internationally, and the APA integration is progressing very well, broadening our product portfolio and tracker foundation interoperability. We're planning to host members of the investor community at APA around the first anniversary of our acquisition, where we will showcase our vision for APA within the Array portfolio. We look forward to sharing more details on this event in the coming weeks.

Second, international expansion. We executed OmniTrack and DuraTrack contracts in Turkey, Peru and Colombia, building real geographic diversification on a proven unified product platform. We believe the execution of our international strategy will only strengthen with our introduction of the D2S.

Third, customer-first culture. Our record order book and 2x book-to-bill reflects strong customer confidence. Our technical sales efforts are lifting win rates through deeper engagement as we provide our customers with technical data supporting our elevated performance in real-world conditions. As many of you are reading in recent industry reports, Array is showing up. Our priorities continue to work in concert. Innovation feeds our international expansion and both are supported by the deep customer relationships we've built and continue to reinforce. We're executing with discipline and the results this quarter validate our strategy.

With that, I'll turn it over to Neil to discuss some of the proof points of our success against our priorities in greater detail.

Thank you, Kevin. Starting on Slide 7, I'd like to introduce our first major new product of the year, the DuraTrack D2S, our new dual-row tracker designed for international markets. The D2S combines the differentiated features and innovations of our flagship DuraTrack technology platform with the 2-row architecture of our legacy STI H250 to create one single flexible solution. It's built for high reliability, enhanced performance and durability in projects that benefit from a 2-row configuration, which is a preferred format across many international markets.

Let me walk you through the key differentiators. First, D2S features our patented passive wind stow technology. The third-party study by D&V confirmed that this exclusive to Array capability can boost power production by up to 4% by minimizing wind-related energy losses from unnecessary snowing. It's a very meaningful yield advantage for our customers, which dramatically enhances their economics.

Second, we've incorporated OmniTrack terrain flexibility into the platform, giving a critical terrain adaptability. This means D2S can be deployed on sites with challenging topography where competitors struggle, opening up a wider range of project opportunities for our developers.

Third, the system includes optimal backtracking, diffuse and inhaled snow alert response through SmartTrack compatibility, ensuring intelligent road-to-road coordination that optimizes energy output across an entire solar array. Importantly, it's powered by an integrated TV panel with dependable battery backup. There's a resilient, self-sustaining power supply, reducing balance of system cost and improving reliability in remote installations. From concept through design and launch to installation, the D2S platform was built with a keen focus on driving improved economics for our customers.

We're already seeing strong customer reception for D2S. Our first commercial installation in Spain is up and running, and the early feedback has been outstanding. Our customer is eager to deploy D2S as soon as it was presented. The Jewel row configuration with passive wind stow technology is exactly what international markets have been demanding. D2S is a great example of how we're innovating our future, taking our core technology strengths in passive wind stow, great adaptability and smart controls and packaging them into a purpose-built solution that directly addresses what international customers need. We expect the D2S to be a significant differentiator as we diversify our international business. D2S will formally launch and be available for quoting at Intersolar Munich in June.

Turning to Slide 8. Momentum strengthened in Q1 across regions, and we're seeing the results of a more disciplined, standardized approach in how we go-to-market globally. In North America, we've highlighted the strength of the U.S. business, including the momentum APA is building. APA's enhanced bankability is expanding opportunities in both utility scale tracker projects and large-scale fixed tilt projects often tied to growing data center development in support of AI-driven demand.

We're increasingly seeing 100-megawatt-plus opportunities for APA. In several cases, the dialogue has shifted from megawatts to gigawatts. That momentum showed up in Q1 with a record level of foundation testing activity, an early indicator of future demand. In EMEA, we're driving a focus on global accounts and the disciplined diversification model. Notably, we contracted a meaningful OmniTrack deal in Turkey where OmniTrack is solving difficult terrain challenges. Our emphasis is on engaged partnership alignments enabled by standardized platforms to deliver repeatable results, not one-off wins.

In Latin America, we've expanded our pipeline beyond Brazil, driven by our OmniTrack and DuraTrack technology value propositions. We executed contracts in both Peru and Colombia, which reinforces our momentum in the Ian growth markets. We continue to prioritize projects where our technical engagement supports LCOE-driven value. We're being selective and returns focused.

In Asia Pacific, we continue to advance large-scale projects with strong local partners. Australia remains a key market, our execution capability and customer relationships are enabling share capture and our track record of deploying local domestic content projects there continues to be a differentiator. In short, the common thread across all 3 regions is that we're moving toward a standardized model centered on our differentiated flagship technology. The progress in Q1 demonstrates that this approach is working and positions us well to scale internationally over time.

Turning to commercial execution. This quarter marked a step-up in how we go-to-market and more importantly, how consistently we execute. Across regions and customer segments, we are seeing the benefits of a more disciplined technology-led selling approach. We are anchoring conversations around LCOE-driven value, not lowest price outcomes, and we're engaging earlier and more deeply from a technical advantage on complex projects. That's improving both win quality and execution confidence.

Differentiated offerings like D2S, OmniTrack and APA foundations are playing a critical role here. They allow us to compete on performance, reliability and life cycle value, broadening our addressable opportunity while supporting pricing discipline. These execution improvements are clearly reflected in the order book. We exited the quarter with a $2.4 billion record order book, approximately 50% with Tier 1 customers and over 95% domestic, speaking to the quality and resilience of demand we're capturing.

We're also seeing strong momentum for new products, which now represent over half the order book, a clear validation of our innovation road map and customer adoption. Importantly, about 80% of the backlog is expected to convert over the next 6 quarters, providing strong visibility and predictability as we move through the year and into 2027. This is not a 1-quarter outcome. Over the past 4 quarters, we've achieved a 1.3x book-to-bill ratio. The combination of standardized global platforms, title commercial coordination and disciplined risk screening is creating a more repeatable execution model.

This positions us well to convert backlog efficiently, protect margins and scale profitably as demand continues to normalize and grow. To summarize, we're building a commercial force that is more consistent, more selective and more returns focused that we believe fosters our durable performance in 2026 and beyond.

With that, I'll turn it over to Keith to discuss this quarter's financials in more detail.

Thank you, Neil. Slides 11 and 12 summarize our first quarter financial performance and the primary drivers behind the sequential changes we're seeing in the business. We had a strong start to the year. Revenue was $223 million, and we delivered meaningful sequential profit improvement, driven primarily by geographic mix, incremental 45x from supply partners onshoring and our productivity initiatives.

While our quarterly revenue cadence continues to be influenced by seasonality and customer project timing, the underlying demand and pipeline activity remained very healthy. Adjusted gross profit was $69 million, up 24% quarter-over-quarter and adjusted gross margin was 30.7%, up 620 basis points from Q4. Our margin performance was driven by a heavier domestic mix and cost-out initiatives with onetime items contributing a little over 300 basis points in the quarter. These onetime items were primarily driven by a 2023 to '24 tariff recovery and an incremental 45x benefit resulting from our continuing efforts to onshore additional components.

As we look forward, we expect margins to be influenced by normal variability in project sequencing, international versus domestic mix plus commodity and logistics input costs. Adjusted SG&A was $41 million, an improvement of 9% sequentially and in line with our expectations. Adjusted EBITDA was $29 million, up 157% sequentially, and our adjusted EBITDA margin was 12.9%, up from 5% in the fourth quarter. The improvement was driven primarily by the gross margin flow-through, along with continued discipline on operating costs.

GAAP net loss to common shareholders was $14 million, a substantial improvement over the fourth quarter, which included a onetime $103 million and $30 million goodwill and inventory valuation charges, respectively. Diluted loss per share was $0.09, while adjusted earnings per share was $0.06 compared to a loss of $0.01 in the fourth quarter.

Before turning to the balance sheet, I want to briefly touch on cash generation. As expected, free cash flow performance in the first quarter is a result of normal seasonal working capital dynamics, including inventory positioning for our business acceleration in the coming quarters. We continue to expect working capital to cycle upwards in the first half and become a source of cash as we move through the second half of the year, consistent with our historical pattern and aligned with adjusted EBITDA performance.

Additionally, we invested $7.5 million in capital expenditures, primarily towards completing the build-out of our new manufacturing capabilities. We maintain our guidance of 2026 being a cash-generative fiscal year, and we believe our strong balance sheet has us well positioned. In the first quarter, we continued to improve our financial flexibility. As we previously discussed, we upsized and extended our revolving credit facility, which meaningfully expanded our total available liquidity.

We ended the quarter with approximately $550 million of total available liquidity, including $200 million of cash and a fully undrawn $370 million revolver, net of letters of credit. Net debt leverage was 2.7x trailing 12-month adjusted EBITDA, well within our targeted range and providing ample flexibility as we execute through the year.

Turning to our overall outlook on Slide 13. We had strong first quarter execution and demand indicators remain healthy across our core markets. Commercial engagement is strong, and our backlog and pipeline continue to support our 2026 framework and our view into 2027. Consistent with that view, we are reaffirming our full-year 2026 guidance across all key metrics, reflecting continued confidence in demand, backlog assurance and our execution capabilities.

Our adjusted gross margin outlook of 26% to 27% for the year is unchanged. Excluding the onetime benefits in Q1, our underlying margin profile remains stable even as we manage through some current macro impacts. Looking beyond this fiscal year, we see multiple structural levers for margin expansion. These include increased penetration of differentiated products and software, including DuraTrack D2S, OmniTrack, APA Foundations and SmartTrack. International scale benefits as our execution model firms, integrated systems value from cross-selling trackers, foundations and smart controls and continued productivity gains, including efficiencies from our new Albuquerque facility.

To summarize, we expect to protect margins today through focused execution, while innovation and diversification are positioning us for margin expansion over time. As we look at the year's cadence, it's important to note a modest shift in expected first and second half split. Based on our latest assessment of our customers' project sequencing and/or delivery preferences, we expect revenue in the second quarter in the range of $300 million to $320 million. Q2 adjusted gross margin is expected to be at the higher end of our full-year guidance range with second half margins largely influenced by mix with a ramp in international volume.

We continue to manage the business for the long term with a responsible eye on the fiscal year, prioritizing disciplined execution, backlog conversion, margin protection and operational flexibility as projects move through permitting, interconnection and customer-focused delivery milestones.

With that, I'll now turn it back to Kevin for closing remarks.

Thank you, Keith. To wrap up, we're proud of the way the team has executed in the first quarter, delivering results above our expectations, driving another 2x book-to-bill quarter and reaching a record $2.4 billion order book. These are important indicators of both overall industry demand and our recovering position within our industry. We are further pleased with the continued improving visibility in our business.

While the macro and regulatory backdrop remains fluid, we're executing with discipline, converting our backlog, protecting our margins and investing in differentiated products that support long-term value creation. In Q2, we expect to reach an important milestone surpassing 100 gigawatts of trackers deployed globally. We're incredibly proud of our accomplished track record of excellence, and we're excited for the next 100 gigawatts.

Thank you for your time today and for your continued interest in Array. With that, we'll open the line for questions.

[Operator Instructions]. The first question comes from Julien Dumoulin-Smith from Jefferies.

Kevin, nicely done. I got to hand it to you guys on that market share commentary at the end there. Really kudos on the recovery here. Maybe just to that end, actually, while we're talking about it, can you talk a little bit about what you're doing on the gross margin side on the -- you just did hedging the background, energy commodity, shipping, logistics, just kudos on holding the line on margins here.

Just talk about the hedging strategy, mitigation offsets and just altogether, how you're seeing this year come together. Again, obviously, probably some legacy contracts here on '26. I've got a quick follow-up.

Yes. Thanks, Julien. Look, we're really proud of how the quarter shaped up. I can only say that 2 weeks ago, I celebrated my fourth year anniversary and every year for the first 4 years, we've experienced a black swan event. As one of my colleagues reminded me that when you have a black swan event every year, it's no longer a black swan, right?

When we came out with the margin guide, we took that into account and ensured that we can withstand some level of shock to the system, for lack of a better word, throughout the year. Certainly, 48 hours after our last earnings call, we began a war in Iran, and now we're subsequently dealing with elevated logistics costs. We're pretty proud of our ability to be able to absorb those elevated logistics costs and not have to change a guide 1 quarter after we just gave it.

I think we took a very prudent approach. We have lots of puts and takes in our business, but you have rising commodities, rising logistics offset with a lot of heavy work we've been doing in the business, driving productivity gains as well as the new product success, right? We've been giving the market that chart of showing just the continual increase in new product development as a percentage of our backlog, and it's just got some incredible momentum here.

The fact that we're over 50% new products in the backlog as products launched in the last 2 years, those are the ones we've highlighted over and over again is a great proof point of our ability to drive higher margin in the outer years. We're quite excited about where we sit today.

Then maybe if I can follow this up on there's a lot of talk in the market about this tax equity issue, and it seems more of a resi issue than utility scale issue, but with that said, how are you seeing, if any, project push from maybe '27 FIDs? Any shift in your time lines, anticipated project in services, anything like that, that you're looking across your book of business? I'm just curious, even if on the horizon here, do you see anything on '27, '28?

Look, we really haven't seen any shifts derived from that. Obviously, in the near term, our current near-term guide is predicated on pretty well-financed projects already. To your point, you'd only be looking in the outer years, and we just haven't seen an impact or haven't seen any material changes to our schedule as of yet.

I think part of the proof points we've been explicit in is giving, again, that conversion rate that we did in our script that we expect about 80% of the order book to deliver over the next 6 quarters. Clearly, that's not a promise on any single project timing, but it's an important signal that our backlog is increasingly aligned to the near-term delivery windows versus being kind of long-dated and opaque. We feel pretty good about that.

The next question comes from Philip Shen from ROTH Capital Partners.

First one is on diversification. We've written a fair amount that a lot of customers out there, developers, IPPs are looking to diversify their tracker sources, even some with meaningful exposure to one of your peers. I was wondering if you could share some color on what you're seeing, those conversations you're having with customers and what the opportunity might be for even accelerating bookings beyond what you've shown in this quarter here?

Yes. I think, first, I want to make sure we get a couple of really good proof points out into the market. I think one of the great proof points of our momentum, you'll note that we've had over $900 million in new orders over the last 2 quarters. That's quite significant for a business our size. I should also note that while we're really proud of having a record order book for Array, we would have a record order book for Array even if we excluded the APA bookings at this point. Again, it's organic and inorganic traction that we have going on in our business.

I think that the single biggest change, you know we've been on a journey commercially now for probably about 18 months. where we've been rebuilding the commercial team, strengthening it and bringing to bear a whole new way of selling, which is highly technical, having engineers sell to the engineers of our customers and bringing proof points and third-party engineering data to bear that shows that in many cases, we simply generate more energy than some of the competitors out in the marketplace.

When we can demonstrate mathematically using real-world conditions, not lab conditions, that we could generate 2%, 3%, 4% more energy, that's really, really meaningful to a couple of the constituencies we now sell directly to. That's really meaningful to utilities and developer asset owners in particular. We've always done well with EPCs because of our ease of installation. Now rather than have a -- get into a price war down at the EPC level, we're trying to get specified much more by the asset owners ultimately. They're really recognizing some of the technical differences and benefits that we provide. We see really good traction, and you're seeing that in our win rate and our order book.

Then back to margins for a bit. I think, Keith, you talked about Q2 being at the higher end of the range for the year and then Q3 and Q4 maybe being lower, but still maybe within that 26% to 27% range. I just want to make sure we have that right cadence. Then you talked about expansion levers for beyond this year. I was wondering if you might be able to talk about or quantify where '27, I know we're a little bit early, but where '27 ultimately could go. Are we talking about 100 basis points? Or is there some potential for something more meeting?

Look, I'll let Keith talk more of the proof points in the margin this year and the flow, but I'll just jump in and caution that we're not ready to guide '27 margin yet. We've certainly provided the market with several initiatives that are very tangible that drive margin improvement in outer years, and we're going to continue to execute on those. We're not this early going to guide. Look, in particular, we're still in a very dynamic marketplace, right? We're going to be very cautious and not guide '27 just yet.

Thank you for your questions, Phil. Look, when we think about Q1 gross margins, you have to separate it into 2 components. There's the one-timers of roughly 300 basis points that came from the tariff protest that we filed for 2023, 2024 tax years and also what can be best characterized as a prior year 45x adjustment. Then the second component is the core. The core margins of around 27% reflects outsized proportion of having a strong ATI versus STI quarter in Q1.

As we look forward to the rest of the year, we are still very confident that despite all the different things happening out there, logistic costs, inflation pressures on transportation, freight, other things, whether driven by macro or otherwise, we are forecasting that our productivity and cost-out initiatives will balance that out. At the same time, as the international business comes back in the second half, that will play on the margin mix at the consolidated level.

The next question comes from Joseph Osha from Guggenheim Partners.

You all have said in the past as a result of what's been happening in Brazil that you were not actually putting those bookings into the backlog number. I'm wondering if that's still the case? If so, what the story might be there?

No, it's a great question, Joe. First, I'd like to remind everyone on the call that we've made no changes to our definition of order book. I think there may have been some confusion here during our last quarter's call because I did see some write-ups, frankly, get this wrong. The only difference is how we're treating some of the international orders, to your point, Joe, where we're taking a more conservative approach and holding them out of our order book until such time as we feel sure of the actual project timing.

Yes, so in that respect, is the record order book still a conservative view of our order book? Yes, it is. We are still holding some of those wins on the sideline until we're more sure that these projects are actually going to move forward in the time line we expect. The reason being is that, look, we experienced this last year, whenever you would have a debooking in Brazil, which we had a few, it would mask the underlying great momentum we had domestically on the commercial recovery.

We decided just to hold them site and not have to have dialogue in our earnings calls about this gross to net bookings and the momentum. We'll continue that practice of holding some of those on the sidelines, and we're not going to quantify that yet. We're going to continue that practice of holding them on the sidelines until we're much sure of the actual project timing.

You anticipated the question, I was going to ask for a number and you don't want to give it. Might you be able to weigh in on some timing? Is there a point at which some of this backlog might find its way into the order book?

I think it will begin in the second half of this year, Joe, as we start getting sure of some of the timing of projects moving forward. internationally. You'll see a little bit more of that leaking in, in the second half of the year. Look, I think it's important to say not only the headline records, the second consecutive record order book we've had over the last 2 quarters, right?

We're pairing it with several quality indicators that improves our convertibility, namely, look, we've got a higher domestic mix, greater than 95% of that order book is domestic, meaningful higher-quality Tier 1 representation, a lot more being sold direct to the utilities and to Tier 1 developers and a growing mix of our recently launched higher-value differentiated products, right? That's really meaningful here. The improving quality of our order book translates for us into clearer execution visibility as we move throughout the year.

Again, we gave the conversion of the 80% of the order book to deliver in the next 6 quarters, and we feel really good about the shape of our order book and the quality there in. We're getting there without changing the definition of what we consider in our order book, to be clear.

The next question comes from Ben Kallo from Baird.

Congrats on the quarter. I wanted to talk -- stick on Joe's topic of the international business. Just maybe match that with -- when you talk about share gains, are you talking about share gains against trackers or against trackers and fixed tilt maybe is one.

Then when you talk about international, you spoke about, I think, more of a value-based approach to selling or at least customers appreciating the value that you bring. Typically, international carry lower margin. Is that still the same with this change in thinking about the total value you create? Or are you getting better pricing there, I guess, is the question?

Sure. Let me start with just an explanation of the order book and the proportion of APA, right? First, the look, APA, as you recall, last quarter, we noted that APA was roughly about $100 million of our order book. We actually saw a 50% increase this quarter. Directionally, they're about $150 million of the order book that we just talked about. I think it's important to provide some context here. APA is a shorter cycle business than Array. You'll recall, they had a full-year 2025 revenues of $130 million.

Sitting on an order book already in a short-cycle business of $150 million is really demonstrating that they are taking market share in fixed tilt, their traditional legacy portion that made up a disproportionate amount of their business. They're getting larger programs. The average size of orders they're now participating in since being part of Array is up significantly. As Neil said, we're talking about programs and discussion points rather than megawatts in terms of gigawatts at this point. The thesis is playing out very, very effectively for us. It supports the strong double-digit revenue growth we've already called out for APA in 2026.

Domestically, for the legacy Array business, it is obviously tracker penetration that's driving the increase in our order book. Then I'll let Neil weigh in a little bit on what we're seeing internationally just in terms of pricing and the dynamics we still see on the international. Go ahead Neil.

Yes. I'll certainly weigh in. On the international front, certainly from a Spain and Brazil standpoint, both of those markets are going through a number of macro issues, including curtailment. As part of that, we've also then seen some low-cost competitors in the parts of the world come in as well. We've been very open in past quarters about talking about being selective and returns focused about where we strive to diversify internationally.

We've been looking to locations that specifically have an appreciation for the value proposition that we bring for difficult train, potentially extreme weather and also areas where domestic content is a requirement. That's where we're really now seeing returns as we referenced in the updates around the new projects in Turkey and Colombia and Peru. All of those are examples of difficult train or local content requirements where Array can really differentiate from the competition and then drive to a margin level that's more within our expectations.

As we go forward, we look at the international recovery beyond that, that's going to be really our prism. We're going to be looking for areas that have an appreciation for the differentiation that we bring. That's also been a key part of why we brought D2S to market because it's bringing a 2-row configuration then combined with the best features from DuraTrack that allow us to drive that different value proposition for customers.

The next question comes from Brian Lee from Goldman Sachs.

This is Tylor Bison on for Brian. I appreciate the nice to see the continued traction on the new products. I guess out of the 80% of the order book that's getting delivered in the next 6 quarters, how much of that is related to new products? Like is that split pretty similar to the current 53% today? Or is there a slightly heavier weighting to the 20% beyond that 6-quarter time frame?

No, I think it's very similar weighting, frankly. Yes.

Then I guess just from a capital allocation.

I guess one other – sorry, one other proof point I'll give you is that this was a critical quarter because the percentage of our backlog that's from OmniTrack, our terrain following tracker versus DuraTrack flipped for the first time this quarter. Now we have more OmniTrack in the backlog. That just gives you a sense of how strong that product is being accepted by the market at this point. This is the first quarter where that has gone the other way. It's flipped now.

Then just from a capital allocation standpoint, how are you thinking about future potential M&A opportunities versus investing in your existing business today?

This is Keith Jennings. The way we think about it is, right now, we are running the business as best as we can, disciplined, earnings and cash focused. As we generate cash, we're thinking about managing our flexibility, of course, making sure that we can take advantage of opportunities. We continue to think about our capital structure and opportunistically, we are scanning the marketplace to make sure that we continue to add to the portfolio under the theme we laid out last quarter about ensuring that as we acquire new businesses, we can prove that there is interoperability between the parts and increase our relevance to our customer base.

The next question come from Corinne Blanchard from Deutsche Bank. Ladies and gentlemen, apologies, we do apologize for that, but we have been rejoined by the main speaker. Corinne, I would like to hand over to you to pose your questions.

I just wanted to ask actually on the cost profile. I think 1Q was slightly better maybe than expectations. If you can just walk us through expectation and your view into 2Q and the second half of the year, that would be helpful.

When it comes to our gross margin profile, again, looking at Q1. Q1 was heavily influenced by the segment mix of ATI versus SPI, once you separate out the onetime items. When we look to the second quarter, we expect to be at the higher end of our full-year range of 26% to 27%. We expect to average across the full-year in line with our guide of being inside of 26% to 27%. The second half of the year will see a higher SDI proportion, and that will impact the consolidated margins.

I appreciate it. Maybe like one more question, Middle East conflict and any potential like any impact or anything that has maybe changed your view in terms of your geographies and portfolio diversification?

This is Neil Manning. Not at this point. We're obviously monitoring it closely. We've seen from a logistics perspective, obviously, what that's done from an elevated cost standpoint on that front that we're managing very effectively. When it comes to delivery time lines and other impacts, we have not seen it other than elevated costs that we're seeing around the world as is most industries at this point.

The next question comes from David Benjamin from Mizuho.

Of the remaining 2026 guidance, can you talk about how much of that is already booked versus -- is there any booking turn required to achieve that?

When it comes to the revenue guide, we do have some normal amount of go get left to close it. However, we are working off a very elevated backlog, a record backlog of $2.4 billion that gives us some level of flexibility. We are really confident in the guide at this point in time.

A follow-up as you guys are increasingly selling to developers, are you able to leverage the safe harbor process where the customer development customers have better visibility into the project pipeline in order to convert longer-term agreements and book a little bit of more work?

Look, I think for the Tier 1 customers, that's the disproportionate amount of our current backlog, they've safe harbored for a long time. We have very little incremental near-term rush for safe harbor. You'll see a little bit of that in the APA business in those smaller size orders, but the size and programs that we're working to, these top developers have safe harbored for some time now. We're not seeing any acceleration from that -- any meaningful acceleration, I should say.

The next question comes from Colin Rusch from Oppenheimer & Co.

Could you talk about some of the international sales activity that you've got going on and how we should think about acceleration in that part of your business and thinking about it from a regional perspective with the EU, Middle East and Latin America along with Australia?

Colin, it's Neil. I'll take that one. When we look at international, we've talked quite openly that it's a strategic priority for us, but we're also being really targeted and selective about where we want to go. We obviously have well embedded home bases in our legacy markets in Spain and Brazil, which historically have been some of the largest in the world, but now obviously, they're facing some macro challenges with curtailments and other factors are slowing those down.

When we look at areas of opportunity for us, it is specifically in the markets that have appreciation that -- of what the DuraTrack platform and OmniTrack platforms bring to bear, which is train adaptability, SmarTrack software-enabled controls, passive wind stow and the things that make a tracker perform at a higher level and also present less risk to developers over the life cycle of the opportunity.

We also then look from a supply chain standpoint where areas of local content are required that we do exceptionally well at when we can localize production to meet specific requirements in certain countries. We're doing that currently in Turkey, and we've done that historically very effectively in Australia. We look for areas of opportunity that allow Array to differentiate from what is often a more crowded space, and set ourselves apart, and we get a lot of great traction when we do so. That was really what then led us to develop the D2S DuraTrack platform that we talked about that we'll be introducing in Munich here next month.

It really is bringing the best to bear of the DuraTrack platform that customers have appreciated here in North America for a long, long time and then configuring a 2-row configuration that we've seen that international customers prefer based on parcel sizes being smaller and more varied from a training standpoint. 2-row configurations allow a lot more optionality for deployment and customization to a particular parcel.

The D2S was developed specifically in mind for those international markets. You're going to see us going forward talking more and more about these countries and areas of opportunity that allow us to set ourselves apart from what is oftentimes a crowded space. We're really excited by the recent wins we've had in Turkey and Colombia and Peru, and we expect to see more coming from there.

Then can you talk a little bit about the cadence for deployment time lines? This is your R&D effort in terms of shortening infield deployments for your customers. Just curious about how we should think about that coming into the market and how much you can really pull out of the process?

Yes. I think that's really customer-driven. We've historically said that we can deliver any of our products within a 16-week time period, which includes that period of design, sourcing, customization for the site-specific elements that we have to deal with. We've routinely been able to accelerate that for customers when they get into a gem and ask us to. We can pull that in substantially. We have -- it's -- for us, with the build-out of our global supply chain and the optionality we have, we've created an environment that we could pull forward when our customers.

Look, you got to see some of that in Q1. We had customers ask us to accelerate midway through the quarter, and we were able to accelerate and bring some things into the first quarter that was originally scheduled for the second quarter. I think we've got a lot of flexibility there ourselves.

Now we're going to continue working on the upfront work in our business. We have several projects on to collapse the design cycle, quote cycle, those kind of things. to just be even more responsive to our customers. We're going to continue our programs internally to drive that even better, but once we have the locked down order, we can still accelerate for our customers.

The next question comes from Chris Dendrinos from RBC Capital Markets.

Maybe just one for me here. I wanted to go back to maybe the answer to the first question around gross margins and the cost structure here. Clearly doing a good job offsetting some of the inflationary cost pressures, particularly freight. If I look at the 10-Q, I think it's maybe 4.5% of revs is freight cost. Can you maybe walk us through a bit here how we think about the impact of that cost inflation there and how quickly you all can offset that? Is that just a process of changing your bid process to reflect higher freight? Or how should we think about that?

Sure. Great question. As you know, we are a project-based business with contracting and scheduled deliveries. We've all experienced the shock of the Iran-U.S.-Israel war in Q1, which had an immediate impact on freight costs. Everything that was already in flight in Q1 for scheduled deliveries, we couldn't change that. We can adjust our bid processes for new projects, which are going to be delivered somewhere out in Q3 and Q4. The items that are contracted and already scheduled for Q2, early Q3, also probably will not be easily changed.

We are working through contracts with our legal team to see where we can apply fuel surcharges to recover some of the things. For the most part, we're not expecting a quick snapback. We're expecting to build this into our cost and bid models over the longer term. However, over the short term, we're still driving productivity and cost-out initiatives to manage this.

Yes, I'll just weigh in from there, Chris. Any time we see a shock, we've talked in the past about supply chain resiliency. We really don't know when the next shock will come, but we need to be ready for it. In this particular case, when it came to logistics and the conflict in the Middle East, we had a really impressive response. We renegotiated carrier agreements. We looked at our routings by region for optimization. Then we also updated our contracted freight capacity moving to more contract-based versus spot.

Then while we did that, we're then embedding it rapidly into new bids and new contracting. To Keith's point, for the projects that are in flight, obviously, those flow through, and we have to deal with that, but for anything new in the pipeline, we're rapidly updating our cost modeling and methodology and making sure we're protecting margins from that standpoint.

There are no further questions, and this does conclude the question-and-answer session as well as the conference call as well. Thank you very much for participating and joining this call. This does conclude the call, and you may disconnect your lines. Thank you.

Good afternoon. Welcome to Array Technologies Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Sarah Sheppard, Investor Relations at Array. Please go ahead.

Thank you. I would like to welcome everyone to Array Technologies' fourth quarter and full year 2025 earnings conference call. I'm joined on this call by Kevin Hostetler, our CEO; Keith Jennings, our CFO; and Neil Manning, our President and COO.

Today's call is being webcast via our Investor Relations site at ir.arraytechinc.com, where the related presentation and press release are also available. In addition, the press release and the presentation detailing our quarterly and full year results have been posted on the website.

Today's discussion of financial results includes non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures can be found in the related presentation and on our website. We encourage you to visit our website at arraytechinc.com for the most current information on our company.

As a reminder, the matters we are discussing today include forward-looking statements regarding market demand and supply, our expected results and other matters. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made on this call. We refer you to the periodic reports we file with the SEC for a discussion of risks that may affect our future results.

Although, we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results, except as required by law.

I'll now turn the call over to Kevin.

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us. I'll begin by highlighting our key achievements from 2025 before transitioning to our strategic imperatives for 2026. Neil will provide additional detail on these objectives, and Keith will conclude with an in-depth review of our financial results and introduce our 2026 financial guidance. Then we'll open the line for your questions.

I'll begin on Slide 4. 2025 marked a year of pivotal growth, commercial momentum and strategic execution for Array. We closed the year with nearly $1.3 billion in revenue, achieving an exceptional 40% year-over-year increase, supported by 35% tracker volume growth. This result underscores our team's unwavering dedication and resilience as we continue to outpace broader industry growth trends.

Our profitability remains strong with adjusted gross margin, adjusted EBITDA and adjusted net income per share, all landing within our guidance range and adjusted net income delivering solid double-digit growth year-over-year. After the regulatory-related uncertainty throughout 2025, commercial activity built meaningfully as we exited the year, driving strong bookings momentum across our core markets and enhancing our visibility entering 2026.

Importantly, we closed 2025 with a record $2.2 billion order book, reflecting both sustained customer demand and improved commercial execution across our portfolio. This performance was enabled by the commitment and discipline of our commercial teams as demonstrated by a 2x book-to-bill for both total Array and our recently acquired APA business.

As committed last quarter, APA is now incorporated into our order book, contributing approximately $100 million. We remain highly confident in APA's growth trajectory, and APA, along with our recent new product introductions, now comprise close to half of our total order book value.

Turning to Slide 5. I'd like to reflect on what has been a standout year for Array. Our progress and achievements are a direct testament to the strength, resilience and commitment of our employees. Together, we didn't just meet challenges, we transformed them into opportunities to engage, evolve and innovate, positioning Array for sustained growth.

I'm especially proud of the successful completion of the APA acquisition, which brought over 200 talented new team members to our organization. Our teams are seamlessly integrating, and we are already unlocking meaningful value and expanding our share of wallet with customers.

At APA, continuous innovation extends beyond engineered foundations to fixed tilt racking, where the business holds a market-leading position. The team has some exciting new fixed-tilt offerings slated to come out this year, and we look forward to sharing more details in the coming quarters.

Complementing the progress made on our balance of system strategy, we continue to elevate the organization by investing in both our leadership team and our product portfolio, while at the same time, optimizing our capital structure.

We strengthened our leadership bench by bringing in seasoned executives with deep industry knowledge and relationships, fresh perspectives and a proven execution capability, enhancing our ability to operate with discipline while accelerating growth. In parallel, driven by deep customer engagement, we broadened and upgraded our product portfolio to more effectively address the industry's most pressing challenges and better meet the evolving needs of our customers.

Finally, by refinancing higher cost debt and proactively managing our debt maturity profile, we improved our financial flexibility to support our next phase of strategic growth.

I'm now on Slide 6. Our results in 2025 demonstrate that the foundation we've built is working, anchored by a talented team, a stronger product portfolio, a more resilient supply chain and meaningful expansion through APA. Now our focus shifts to how we build on that momentum, capture emerging opportunities across the industry and create lasting impact. This brings us to our 2026 strategic imperatives.

This year, we're sharpening execution around 3 imperatives that operate as an integrated framework: innovate our future, elevate our international business and advance our customer-first culture.

Against the backdrop of organizational and portfolio advancement, our first strategic imperative for 2026 centers around innovation. At this stage in our company's evolution, innovation remains paramount. It is the core engine driving growth and bolstering our competitive positioning.

We will continue to invest both organically and inorganically in differentiated technologies and solutions that enhance customer value and reinforce our role as a trusted technology partner. This does not just mean new product development, but also continually updating and improving our internal tools and processes.

To this end, we've created a robust AI road map with plans to apply transformational technology in all areas of our business. I'm excited to share updates in the coming quarters of the enhancements we're making.

Innovation is how we win, not only in product performance, but in customer experience, financial strength and with the deliberate and targeted market expansion. It's the unifying catalyst that connects every element of our strategy, which is why it stands first among our 2026 strategic imperatives.

As we anchor our strategy in innovation, we are equally focused on our second imperative, elevating our international business. While recent macro conditions in key markets such as Brazil and Spain have presented challenges, the broader international landscape presents compelling opportunities for growth.

Key international markets are maturing and demanding more feature-rich capabilities. This also brings further opportunity to refine and adjust our global supply chain for enhanced scale and efficiency and streamline research and development around a common leading platform.

Our focus remains on disciplined execution, positioning the right products in the markets where our differentiation and value proposition resonates with our customers and where they are willing to pay for it.

As we position our international business for enhanced performance, our third strategic imperative further strengthens our customer-first culture across the organization. At the end of the day, our growth depends on how we effectively satisfy our customers' needs. And to do this, we need to listen to, support, and partner with them.

In 2025, we saw very clearly that when we focus on our customers' outcomes, strong business performance follows. We will continue to grow our order book and pipeline by engaging and thrilling our customers with our diverse offerings, quality level of service and our differentiated value proposition that delivers measurable impact to our customers' economics.

Together, our 3 strategic imperatives for 2026 form a unified strategy that drives our market-leading performance, expands our opportunities and supports durable long-term value creation.

With that, I'll now turn it over to Neil to provide a deeper look at our strategic imperatives and how we will evaluate our success. Neil?

Thank you, Kevin. Let's turn to Slide 7. Our first strategic imperative, innovate our future is about ensuring Array stays ahead of where the solar industry is going. The demands on solar installations are rising, tougher terrain, more extreme weather, higher energy generation expectations and tighter cost structures, our innovation pipeline is designed to meet those realities head on.

We start by continuing to strengthen our core tracker technology. DuraTrack is a renowned platform in the industry, and we're continuing to expand its capabilities while broadening its reach to become our standard offering globally. This year, we'll incorporate improvements like our next-generation industry-leading terrain following capabilities for OmniTrack and launch a new U.S. tracker version to further address unique market needs. These are tangible upgrades that will improve energy yield, reduce operational risk and simplify installation for our customers.

Second, we're executing on our balance of system strategy. With the APA integration well underway, we're on track to launch our optimized tracker plus foundation integrated solution in the second half of 2026. This offering reduces engineering and installation complexity, simplifies customer procurement and reinforces Array as a broader solution partner. We continue to assess other balance of system market leaders as potential additions to the Array portfolio.

The last component of this initiative is further commercializing software and services, areas where customers want more support, more insight and more automation. We're continuing to invest in our SmartTrack platform and beyond new deployments, we see a meaningful opportunity to retrofit SmartTrack across our extensive installed base. SmartTrack adoption is growing rapidly and with more opportunity in our order book than cumulatively deployed to date.

We've proven the value of our technology and now our transition to a subscription-based model reflects our customers' desire for greater flexibility, continuous innovation and scalable deployment as we drive real project return on investment, all while generating recurring revenue for Array. Our innovation agenda powers all facets of our strategy. Executing on these investments today reinforces Array's strategic advantage for the years ahead.

Turning to Slide 8. As innovation continues to drive our competitive advantage, our next imperative focuses on enhancing our presence and performance throughout global markets. One of the most important steps we're taking to elevate our international business is the introduction of our DuraTrack technology globally. This is driven by direct customer feedback. They need higher energy production, simpler installation and stronger resilience in some of the toughest terrain and weather conditions found across EMEA and Latin America.

DuraTrack has delivered exactly that for years in the United States, faster installation time, consistently maximizing power density with far fewer parts in the field, no scheduled O&M and delivering among the lowest LCOE in the industry. And its patented wind-stow technology provides up to a 4% increase in energy yield compared to active snow systems in high wind environments. Bringing these capabilities to our international customers gives them a proven, feature-rich platform that protects our investment and enhances project economics.

At the same time, phasing out older non-SmartTrack compatible configurations of the H250 tracker allows us to ultimately align around one global platform, consolidate our supply chain and focus our R&D and operations on the products that drive the greatest value for customers. We took a onetime inventory valuation charge in Q4 as part of this transition, and now we're moving forward with a more differentiated and scalable product platform.

With this broader expansion, we plan to launch a new international offering later this year, featuring the strongest of H250's capabilities with DuraTrack's patented technologies, combining the best of the Array portfolio on a single global tracker platform.

Our international expansion remains selective, prioritizing markets where our differentiated technology and value resonates. We've made focused investments to bring our technical sales approach internationally and are already seeing clear signs of traction across key regions with increasing engagement and commercial momentum in select markets throughout EMEA and Latin America. This early success reinforces our confidence in the long-term opportunity and validates our disciplined returns-focused approach to international expansion.

Our growing international pipeline reinforces the strength of our partnerships, our technical performance and our relevance in global utility scale markets. Core multinational customers are pulling us to new markets and opportunities, and we stand ready to serve them.

Elevating our international business isn't just about expanding into new geographies. It's about bringing the full strength of Array's technology, reliability and customer partnerships to the fastest-growing global markets that value it. By doing so, we diversify our revenue base, strengthen our competitive position and capture a critical path for continued growth.

Turning to Slide 9. Advancing a customer-first culture means we are elevating how we show up for and with our customers commercially, technically and operationally. We've already made solid progress strengthening customer engagement as evidenced by our record order book and critical commercial wins in 2025. We closed the year with our highest quarterly new bookings since 2023 and a book-to-bill ratio of over 2x.

This level of commercial momentum is driven by our global commercial efforts, reflects our targeted investments in the front end of our business and our deeper engagement with developers, IPPs and utilities and a growing level of trust and the reliability and performance of our products. The APA success story is only getting started. Now with the bankability of Array behind APA, they've seen a significant increase in utility scale project interest. APA's 2x book-to-bill ratio in the quarter is a result of their expanded pipeline and accelerating bookings.

The strong momentum has continued into the new year. In 2025, our domestic Array business experienced greater than 20% growth in early-stage domestic project bids, providing further evidence of robust customer pipelines and a clear move towards engaging Array early on as a strategic partner. As we continue to prioritize engaging with high-quality customers, we are securing more multi-project awards while increasing our average project size, which we expect to grow at a significant double-digit rate from 2025 to 2026.

Our strengthened commercial organization with high-impact industry veterans, coupled with formalized technical sales function articulating our differentiated value validated by third-party engineering studies is driving a tighter alignment between what the market needs and what our product road map is delivering. It shortens feedback loops and ensures we're solving the right problems at the right time.

Advancing a customer-first culture informs how we sell, how we serve, how we innovate and ultimately, how we win. As we move through 2026, this imperative ensures that every part of our organization is aligned around delivering exceptional customer outcomes, and that alignment will continue to translate into strong commercial momentum and order book growth.

With that, I'll now turn it over to Keith to provide more details on our results. Keith?

Thank you, Neil. Good evening, everyone. I will begin on Slide 11. In 2025, we took deliberate steps to align our capital structure with our operating strategy. After a very busy year in the capital markets, we are pleased with the resulting leverage, liquidity, debt maturity profile and the cash cost of our debt as we continue to execute.

We ended the year with over $380 million of available liquidity and net debt leverage of 2.3x trailing 12-month adjusted EBITDA. On February 18, we upsized and extended our revolving credit facility to $370 million from $166 million, bringing our pro forma total available liquidity to nearly $600 million.

This upsize not only rightsized our total available liquidity, but also strengthened and expanded our bank group with 3 new banking partners to help support our strategic imperatives and global commercial operations. With this stronger capital structure, we are well positioned to continue pursuing organic and inorganic opportunities in support of driving long-term shareholder value.

Moving to Slide 12 and 13 for financial highlights for the full year 2025. We delivered strong financial results, exceeding the high end of our revenue guidance. Revenue in the fourth quarter was $226 million, including $33 million of revenue from APA. For the full year 2025, revenue was $1.3 billion, representing an impressive 40% growth over 2024. Of this, APA contributed $50 million.

Sequentially and year-over-year, ASPs were higher in both our legacy Array and STI segments, aligned with the forecasted effect of rising commodity prices experienced throughout 2025. Our impressive revenue growth was supported by tracker volume increasing 35%, underscoring our market share gains throughout the year.

For full year 2025, adjusted gross profit increased 11% year-over-year to $347 million, representing an adjusted gross margin of 27%. When compared to the prior year, adjusted gross margins declined primarily due to the falloff of prior year 45X amortization benefit recognized in 2024 that contributed approximately 550 basis points and tariff impacts combined with ASP pressure added an incremental drag of approximately 80 basis points on the year.

As expected, APA had a slight dilutive impact on overall adjusted gross margin in 2025 and delivered an adjusted EBITDA margin a few hundred basis points ahead of the core business.

Reflecting the significant front-end investments we made throughout the year, adjusted SG&A was $163 million, 12.7% of revenue, an improvement from 15.4% of revenue a year ago and moving toward our near-term target of 10% of revenue.

Adjusted EBITDA was $188 million with an adjusted EBITDA margin of 15%. This represents 8% earnings growth when compared to adjusted EBITDA of $174 million and adjusted EBITDA margin of 19% in 2024. As with adjusted gross margin, the adjusted EBITDA margin change was driven by the incremental prior year 45X amortization recognized in 2024.

GAAP net loss attributable to common shareholders was $112 million, driven primarily by $103 million non-cash goodwill impairment charge and a onetime inventory valuation charge of $30 million, both associated with the 2022 STI acquisition. This compared to a net loss of $296 million in 2024, which included a $236 million non-cash goodwill impairment charge and a $92 million non-cash long-lived intangible asset write-down also associated with the STI acquisition.

Diluted loss per share was $0.73 compared to the diluted loss per share of $1.95 in the prior year. Adjusted net income was $103 million, 13% growth above the $91 million in 2024. Adjusted diluted net income per share was $0.67, growing 12% when compared to $0.60 in the prior year.

For the full year, free cash flow was $80 million, which was lower than 2024, primarily due to timing of working capital and 45X rebates.

Turning to Slide 14 for our full year 2026 guidance. We entered 2026 in a position of strength, supported by greater order book visibility, a broader product portfolio to support our customers, accelerated contracting momentum, improved capital access and flexibility. We expect revenue within the range of $1.4 billion to $1.5 billion with adjusted gross margin between 26% and 27%.

Excluding the impact of prior year 45X amortization falloff, margins are roughly flat at the midpoint year-over-year, reinforcing our commitment to disciplined execution and cost management in an inflationary environment.

Given the impact on contract signings from the regulatory uncertainty in 2025, revenue activity is trending toward an approximate 40-60 split between the first and second half of the year. Adjusted G&A is expected to continue to gain leverage at approximately 12% of revenue. This brings our expected adjusted EBITDA to a range of $200 million to $230 million with an adjusted diluted earnings per share between $0.65 and $0.75.

Free cash flow conversion as a percentage of adjusted EBITDA is anticipated to be similar to 2025. In the first quarter of 2026, we expect revenue of approximately $200 million and as a result, adjusted EBITDA to be down slightly from Q4 2025.

Looking ahead, we see multiple drivers of momentum across our global markets. Hardware, software, and services are all poised to grow. We will continue to opportunistically refine our capital structure to bolster liquidity, enhance strategic flexibility and fuel disciplined investments. Backed by our record $2.2 billion order book and powerful new capabilities, we are ready to capitalize on future opportunities, deliver industry-leading market growth and sustainable value creation for our shareholders.

Thank you for your time today. Now back to Kevin for closing remarks.

Thank you, Keith. Looking ahead to 2026, our focus is clear: continue innovating, deepen our global reach and elevate the customer experience across every touch point. The foundation we are building positions us to capture the opportunities ahead and deliver durable long-term value for our customers, employees and shareholders.

Thank you all for your ongoing support and confidence in Array. With that, we'll open the line for questions. Operator?

[Operator Instructions] Our first question comes from Mark Strouse with JPMorgan.

Keith, thanks for all the color on the gross margin puts and takes. Just curious, when you're looking beyond 2026 in your backlog or how you're thinking about underwriting new [ business ], can you just talk about kind of how we should think about gross margins over the medium term?

And then just quickly on APA. I think you guys were saying with that deal that it was kind of immediately accretive to EBITDA, but dilutive on the gross margin line. Can you talk about the impact of APA in your 2026 guide? Does that turn accretive at some point this year? And then I have a quick follow-up.

Thank you, Mark. Good questions. So first, let's talk about our outlook for gross margins across the horizon. A few things to bear in mind. As we entered 2026, our core margins remain intact. Any volatility that we've shown over 2025 and 2026 have all been driven by primarily accounting and onetime charges. And also the amortization of 45X for prior year performances played some part in that volatility. So if you look at 2026 and you remove the prior year 45X amortization, we're down roughly 50 bps, which is -- which takes us to the midpoint of our guide.

When you look across the medium term and outlook, we expect our gross margins to maintain at these core levels. So we are in a fairly competitive environment price-wise. We are in an environment of rising commodity costs. We are in an environment of changing dynamics as we try to expand into certain strategic markets internationally that have lower price points. So we are confident that our gross margins across the horizon can hold.

When moving to your second question on APA. APA when we closed was, yes, in 2025, slightly dilutive on the gross margin level, but accretive immediately on the EBITDA level because of their low commercial costs or I should say, very, very streamlined commercial costs.

When we look at 2026, we expect APA to be in line or slightly better than our core gross margins because we've now been able to file for 45X. 45X in the APA context when you're modeling, we need to remember that it only applies to the structural fasteners, so the A-Frame that is used in utility scale only.

And so I recognize that some of the models out there have 45X across the entire APA platform, it does not apply that way. When we think about overall 2026, APA is now also more accretive at the EBITDA level because they continue to be streamlined in their operating costs

Okay. And then a quick follow-up for Kevin. The past 2 or 3 quarters, you've talked about kind of the mix of your backlog that's coming from Tier 1 customers increasing. At least directionally, if you can't give us an exact number, can you just give us an update on that? Does that continue to trend higher? Is it flatlining? Any color would be great.

Yes, it does. So first of all, let me just begin saying we're really comfortable with the quality of our order book at this point, record order book of $2.2 billion and the real positive book-to-bill on both Array and APA both being at 2x book-to-bill. So very, very significant for us and that acceleration.

A couple of tidbits I'd give you relative to the order book. For me, one of the more interesting tidbits would be, for example, in 2025, we received 4 gigawatts of orders from customers that historically were not customers of Array, meaning they were customers of our competitors, or new customers in the space. So clear market share gain from just those 4 gigawatts already.

I think relative to our order book the one other comment is, on our last call there was some confusion of whether our increasing order book even in that quarter was due to a changing definition. I want to take this opportunity with everyone on the call to reiterate that we have not made any changes to our order book and how we define that order book. And I'll reiterate that every chance I get that: one, we have to have a confirmation of a named project awarded to Array; Number two, we have to have a target start date; And number three, we look for there to be an existing PPA in place prior to putting that into our order book.

Now what we have talked about with some of our international orders that have been awarded to Array, so meaning we have a named project, we have a target start date, we've been notified that we've won the project. We're still holding some on the sideline until we're more confident in international markets that they will proceed as planned. And we're doing that as we've talked historically to reduce any debookings and associated volatility. As we noted in our presentation now, 95% of the order book with that new methodology is now domestic, so much higher quality.

In terms of -- we've also made in my prepared remarks that over 50% of our order book is now direct to what we call those Tier 1 customers. And to be clear, when I say direct, meaning that's the one directing the purchase, even if we get a purchase order from an EPC, we're saying that over 50% of the order book is being now directed by those Tier 1s. And that could be a Tier 1 developer who is -- who has given the award to Array, but we're executing that award through their chosen EPC, but over 50% of our order book is now direct to those Tier 1s. So between the high percentage of domestic order book, the new market share takeaway, the 2x book-to-bill, the over 50% direct to what we call Tier 1, we're really pleased with the shape of the order book as we move forward here.

The next question comes from Julien Dumoulin-Smith with Jefferies.

Julien, you may be on mute. We don't hear you yet.

Sorry, you are right. I was double muted. I apologize about that. Look, let me kick this off here. First and foremost, you talked about nice momentum on backlog. Can you give us a little bit of a sense of market share momentum with key clients? Could we potentially see some multi-gigawatt orders here? How much of that is already reflected in what you all are disclosing here?

And then separately and adjacently, how do you think about the commercial strategy abroad, right? You've got this reinvigorated effort internationally. How should we expect to see this and realize this in as much as disclosures in the coming quarter? And again, I get that you've offered some caveats about some of the legacy geographies. What would you expect in terms of formal disclosures or announcements with key partners? I'll leave it there.

Yes. So let me take the first part. So a few additional hints on our order book. So we are now engaging in more multi-project deals, not all of those obviously reflected in the order book to date, but we are now looking at kind of multipacks of deals, 3, 4 and 5 deals at a time with a lot of our core partners as we move forward. So that's working really well for us.

The second thing is the average size of a project is getting larger as well. So we expect both the size and quantity of deals to go up significantly this year, and that's what we're really seeing in our order book.

I'll let Neil talk about the international and what we're specifically driving there in this regard.

Sure. So just to jump in. So we're optimistic overall internationally, but it's also really important to note that we're being intentionally selective. And so we look at that from the prism that the U.S. is the dominant profit center for solar tracking globally. So when we look at where we diversify in international markets, we're looking from that lens. So where we have the ability to differentiate based on train capability for weather and extreme weather events, along with installation and overall performance, we're being really targeted in countries where customers are willing to pay for that capability and not just get into a bake-off on price.

So as we diversify, as the Spain and Brazil markets reset themselves, we're making some really good progress in Eastern Europe and also in Latin America based on the investments that we've made in, sales resources over the last several quarters. We've had some key wins with repeat customers, so customers from our legacy home markets that have brought us into new countries, and we have awarded projects and contracts now that we're executing against.

So you're going to continue to see that, Julien, over the next quarters as we continue to talk about that and see that. And our early-stage pipeline outside of Spain and Brazil is also increasing quite well as well. So I think that you'll see this continue to flow through, and we're pleased with the progress so far, and we'll continue to see that in the coming quarters.

The next question comes from the line of Joseph Osha with Guggenheim Securities.

One of the things that has been turning up, and I heard this a lot at in the solar is that, yes, this year looks like it's going to be okay building legacy 45 and 48 projects. But there is some uncertainty out there in terms of the ability to secure financing, in particular, tax equity financing surrounding some of the remaining uncertainty on FEOC. So I'm wondering if you can comment on that at all and whether that's materializing in your conversations with your customers.

Yes. So look, the Treasury guidance released last week, I mean, it clarifies a major source of the uncertainty, which was really the level at which we have to focus our supply chain and certify for material assistance. And that's really a product component supply, so not every nut and bolt. And that's one helpful. But there's still some uncertainties for the industry around ownership structure the Treasury needs to address in the forthcoming year. So we don't have full clarity to say that.

So what's happening for us, the second part of your question relative to FEOC is, customers are proactively hedging and focusing on predominant U.S. supply or in some cases, we're seeing customers add some language to their contracts that allow them to shift late in the game to 100% U.S. content at predetermined price points. And that's how they're hedging and giving themselves great flexibility to avoid the FEOC.

The fact that our customer base is getting larger and larger and more capitalized, so some of the larger developers, IPPs and utilities that are best capitalized, we are not yet seeing issues with financing projects for those customers. At least it's not coming up to my level that we're facing that. We review that on pipeline calls every other week, and we're still not seeing that show up as an issue in our business. So we'll continue to monitor it and report if we do. But as of now, we're not having that issue with our Tier 1 customers.

The next question comes from Brian Lee with Goldman Sachs.

Maybe just on the seasonality here. You experienced some into year-end. And then also here, given some indication that Q1 seasonality. Maybe can you speak to what's driving some of that? And then how much visibility you have on the implied pickup into 2Q in the second half? Maybe how much backlog of the $2.2 billion is expected to ship here over the next few months? And is there a book-and-bill business here implied in the guide? Or is everything covered by backlog?

And then maybe I'll just squeeze in a second question around just big picture thoughts around M&A going forward as part of the capital allocation strategy. I think there's been more news of some of your peers in the tracker space diversifying into other parts of the stack. So wondering where you fit in terms of looking at those opportunities and maybe providing more holistic solutions.

Yes. So I think let me address the seasonality. I think it's consistent with what you're seeing from our peer companies that have already reported in terms of a deceleration in Q4 and Q1. You have 2 things that drive us that are -- for those businesses that are largely North American. And the first issue is that you do have a historical seasonality, the build season for North American-focused businesses is really Q2 and Q3. That's the construction business that then gets finished in Q4.

Now for the last couple of years, when our STI business was running and gunning in Brazil, in particular. If you remember, we did well over $200 million annually in Brazil. You have the countercyclicality that we benefited from. So their construction season was Q4 and Q1, obviously, on the other side of the equator. And that was very helpful in mitigating Array's historical seasonality that we had from the North America construction. So without that, that has a dampening effect and creates that seasonality in Q4 and Q1.

The second and likely the larger contributing factor this year was the holdback that we saw last year leading into the OBBB. So as you recall, the industry paused waiting for that to get figured out, which means they paused contracting, they paused orders. And then once that was figured out, as you all see in our results and our peer companies', you saw an acceleration of orders but then they have to go through the engineering, planning, development, construction process. And that's why you see the shape of the year. And it's consistent between us and our peers that have already reported.

You'll see an acceleration in Q2, then a further acceleration in Q3 and a further acceleration in Q4. So that's really the nature of the cyclicality. There's nothing unique to Array in that cyclicality. Yes, that's really what you're seeing and experience playing out with that delay and pause in the market that we all experienced last year.

Relative to M&A, look, we're going to continue our focus on building out our balance of system strategy, and we're going to do that in a way that we think definitely benefits our customers. I guess, if I could describe kind of our approach to it is, when we think of this building out of the balance of system strategy, there's kind of 2 approaches you can take. And one would be a pure commercial integration, and I kind of liken that to say, do you want fries with that shake? And that for us is weak over time. It gets disintermediated. Maybe you want the shake today and not the fries, but you're not -- you still want it at the bundled price.

And it kind of flies in the face of a lot of our customers that are EPCs with the fact that the P in EPC stands for procurement. These are organizations that understand how to buy large-scale construction projects. As such, I don't think EPCs really care if they're buying from 3 vendors or 6 vendors. That's not meaningful. Our approach on M&A is going to be a little bit different in that we're really focused around technical integration in which we can bring products in, increase the value proposition through interoperable engineering with Array that makes compelling value proposition for our customers.

So we're just approaching it a little bit differently than others and ensuring that anything we're looking at in our balance of system has to have a technical interoperability opportunity. And what you're seeing that play out is APA. So the APA integration of the foundation with tracker will be a phenomenal new product for us this year. So it not only does it eliminate a number of components, but allows us to have an engineered foundation at incredibly close to a standard foundation price point. And we think that will help accelerate adoption of engineered foundations in our portfolio. So that's a great example of how we're thinking about M&A in our business.

So hopefully, I'm answering your question. If not, we'll take a follow-up if we're missing something.

Our next question comes from Philip Shen with ROTH Capital.

Great job with the bookings. You gave a good sense of the quarterly revenue cadence. Can you help us with the quarterly gross margin cadence? Should we expect lower margins on the lower revenues in Q1? And then should we expect that to ramp sequentially as we get through the year?

Phil, good evening. This is Keith. Yes, I think it is safe to say that the Q1 margins will look much like Q4 because of the level of the revenues that should scale up. So we're guiding to a 26% to 27% on the full year -- that's the full year average. We think that, that is where we are currently operating. And hopefully, that answers the question.

Okay. And then as it relates to bookings and backlog, Kevin gave a lot of great color there. You're doing well with a lot of Tier 1 customers. I was wondering if you can talk through the bookings in Q1 and Q2. What strength are you seeing now? And do you expect the strong kind of 2 to 1 kind of book-to-bill to continue. You can't keep that forever, but how much longer can we see that continue as we get through these quarters?

I don't think we want to get into forecasting bookings. We've not done that historically, Phil, but I appreciate the question. I could say that we feel good about our underlying momentum in terms of the size of our pipeline increasing, the number of opportunities we're getting, the timing of those opportunities. So we're getting brought into bigger deals earlier than we have been historically so that we're kind of getting in and getting specified and doing some of the engineering work earlier that helps us with the win rate. So all those things, I think, are positive trends. But I'm not yet going to go out on a limb and predict bookings in Q1 and Q2.

Let's just say that the momentum that we've seen in the last couple of quarters so far has been continuing for us. We're hopeful that, that continues. over the next couple of quarters and through the rest of the year, frankly.

And I should say that momentum comment is valid for not only the legacy Array, but the momentum we're getting on APA is quite significant.

The next question comes from Corinne Blanchard with Deutsche Bank. It looks like Corinne has dropped out of the queue.

The next question is from Maheep Mandloi with Mizuho.

Just in terms of like the large customers you have, could you just talk about like their average sizes and how to think about this move from small to large developers? How does that benefit your order book going forward?

Yes. Maheep, one of the things we did, as you recall, almost -- well, it's almost 2 years ago now, but back in 2024 was that we looked and kind of did the survey of what we call quality of customer. And I personally went out and interviewed some of our customers that we weren't doing as much business with that actually didn't tend to push out, didn't delay.

And what we found was that there was this group of developers and certainly even a group of EPCs that were stronger than others because of their -- they were well capitalized. They had plenty of equipment, meaning that they weren't delayed for lack of transformers, those kind of things that we ran into a lot over the last switchgear, transformers. So what we did was we kind of identified that quality of customers, and we put that quality of customer into our bid strategy, meaning we wanted to win more orders with higher-quality customers that demonstrated they didn't have pushouts and delays. They had the equipment. They stayed on track. They had good PPAs in place. And that was kind of how we transformed.

So when we call that Tier 1 customers, that's a lot of what makes up our definition, if you will, of Tier 1 customers, which meant we wanted to do more direct to utilities that control their own destiny, control their own interconnect. We wanted to do more with those Tier 1 developers that were the best capitalized developers out there. And that's what you're seeing in kind of when we talk about the quality of our order book continually improving, you saw a great amount of market share takeaway in orders in 2024 of that kind of targeted group and then again in '25. So our -- what we called at the time, our low share of wallet Tier 1 customers that we wanted to win more of, that's really coming through in our order book at this point. So we're pretty pleased with it.

The next question comes from Colin Rusch with Oppenheimer.

The opportunity to accelerate deployment times in the field, either from footings perspective or from a module attachment perspective, it seems like there's -- that's maybe the 2 areas where there may be some competitive opportunities for you guys?

Yes. We haven't seen -- so look, the challenge with us is the amount of labor required to accelerate and pull projects in artificially. We often are talking to customers about pulling into maybe a quarter. But in terms of pulling stuff that would be 3 and 4 quarters out earlier, we don't typically see this because, again, the size of our projects and the amount of labor you'd have to reschedule and get local to that new site tends to be pretty difficult.

And frankly, the largest EPCs and the ones we're focused on are pretty well booked out because those are the same group of EPCs that those top-tier developers are utilizing. So I don't see a whole lot of what I would call artificial demand acceleration or pull forward into the year at this point. I think this year is fairly well baked. There may be spots in small projects and maybe more opportunity on the APA side in the DG channel and C&I channel. Sure. There's a lot of opportunity, I think there, but not so much on the utility scale.

Yes. I'll take it offline. I think my question was more about actually shortening the time frames in the field once you're deploying -- not pulling projects forward.

Are you saying construction time frame?

Exactly.

Yes. We've got a lot of products that we've been -- yes, we've been focusing on a lot of products that do that very quickly. And we can certainly offline give you a bunch of sense of what we've been doing to reduce installation time for our customers. We feel pretty well satisfied with the work we've been doing there.

The next question comes from the line of Dylan Nassano with Wolfe Research.

I appreciate the earlier color on gross margins, and I just wanted to focus in on the EBITDA level a little bit. I mean it looks like historically, you've kind of trended closer to the high teens kind of EBITDA margin and mid-teens kind of suggested here in the guide. So just any more color on kind of a possible path back to those historical levels and hitting that as a run rate if you were to kind of stay at these gross margins that you're guiding to?

Dylan, this is Keith. Great question. First, I think as I said earlier, I think we're in a very competitive environment. So I think our gross margins are probably going to be in the level where we are now. To your question of how does that drop through to improve our EBITDA margins, I think it's going to come from 2 places. One, scale as we continue to grow, then we're going to get some SG&A leverage. Right now, you can see us coming down over the time horizon from 2024, I think where we were closer to 15% to last year, we were closer to 13%. This year, we are forecasting to be at 12%, and we have a near-term target to leverage up to somewhere around 10%.

The other component that we have to remember is that APA is a strong acquisition for us. It improves the opportunity for us to speak to our customers about a broad array of how we work and develop and bundle things. As those commercial synergies come online in 2027 going forward, we should see more EBITDA margin expansion as that business grows. And so right now, we're still forecasting to be at the 15%, but we think that there with leverage and scale that we should get back to the high mid-teens.

Corinne Blanchard has rejoined the line with Deutsche Bank for a question.

Sorry about that. I don't know what happened. I was there. I was talking. I mean most of my questions have been taken now, but maybe 2 parts and sorry if I missed it. But the first one, can you talk about the OpEx margin maybe throughout '26 and maybe expectation for the medium term, '27 and '28?

And then the second question would be like your view on the U.S. versus international mix and how we should think about it for the rest of the year?

So great question, much like the earlier question. We are not slowing our commercial investments in our SG&A. We have seen the benefits of that in terms of how it has improved the customer mix, quality, the size of orders that we're winning, the engagement with customers as we integrate APA and increase our ability to converse about the relevant development of sites and what's under the panel.

And so what we have been focusing on is the leverage that, that brings, right? So if you look 2 years ago at our OpEx, it was running at a rate of about 15% of revenues. We have increased our spend, but we've also grown and leveraged ourselves now where that is approaching 12% of revenues. We have a near-term target to operate this business at about 10% of revenues, and we think that's in sight with scale and leverage and growth. And so we continue to expand the front end and change our application engineering team and also how we engage with the higher-quality customers.

We think there's a fair bit of EBITDA margin expansion to be had when the commercial synergies from APA starts to kick in, in 2027. Right now, what we're seeing with APA is the gross margin synergies between 45X and procurement synergies. And so we are fairly confident that we are on the right path to back to high mid-teens EBITDA margins.

I think to answer a little bit more on the international side as well. Look, we've proven the formula works. When we invest in the front end of our business, when we add new sales resources that bring in industry knowledge, relationships, we -- and in particular, when we add that technical capability in with that sales organization, we're seeing really a lot more traction and success than we had historically. So we've taken that same approach.

And what Neil and the team have been doing internationally was taking that same pattern that has worked. And over the last 12 months, we've added a handful of resources in other countries in Latin America. We've added -- and also new sales leadership of the entire region. We've added new sales leadership in Europe, again, industry experts in both cases with relationships and then building out the team. We've added technical selling resources in each region as well as additional country -- direct country managers in those regions that we think we have an opportunity to win and where customers are willing to value our differentiation and frankly, pay for it. So we're not just bidding on price.

So I would say the international is probably -- the international rate of recovery is about a year behind the domestic. You're seeing the results of that domestic recovery already in 2025. I think we'll begin seeing much more of that acceleration in 2026 for our international businesses.

The next question comes from Ameet Thakkar with BMO Capital.

Just one quick one for me. If we look back at your historical kind of free cash flow to EBITDA conversion ratios in 2023 and 2024, they were, I think, kind of between 70% and 80% and obviously a lot lower in 2025, same kind of levels expected in 2026. And can you just kind of walk us through kind of like is it kind of shifting more of your manufacturing to the U.S., selling more in the U.S. and changed some of your kind of payment terms or working capital needs relative to what it was before or any other kind of drivers for that?

Thank you, Ameet. Great question. If you go back to 2025 and 2024, some of the things that we were experiencing were the quick collections of 45X. As in prior year, 45X was impacting the conversion ratio. And also, as you get into 2025, what we were going through is growth. When you grow your revenues by 40%, you're also going to grow your account receivables by that much as well. We also saw an expansion of our CapEx as we built a state-of-the-art facility in Albuquerque to bring the factory of the future into our setup and capture more of the 45X in-house. So those are the 2 things.

I think that if you think about our business, and we converted roughly 43% of our EBITDA to free cash flow in 2025. We are forecasting to hold the same ratio. So if we are forecasting roughly 15% EBITDA expansion, then we should be growing free cash flow by just about the same percentage. So we're fairly confident that we'll be generating -- continue to generate free cash flow to add to our flexibility and our choices of deleveraging or continuing to invest diligently.

The next question comes from the line of Chris Dendrinos with RBC Capital.

I wanted to dive back into the international strategy here. And I mean, maybe can you expand a little bit more on the supply chain strategy there? And are you positioned to go after, I guess, a broader set of markets here? Does there ultimately need to be some incremental investment to, I guess, call it, optimize the supply chain to be cost competitive?

Yes, Chris, it's Neil. I'll take that one. So on the international side, there's a couple of things in play that we've done and some things that you'll see in the coming quarters and into next year. So over the last, I would say, 8 quarters, we've built out a center of excellence in Asia to consolidate supply chain and purchasing for both our U.S. and for international footprints so that we can consolidate spend between Spain and Brazil and for areas that are domestic content required partially for the U.S. So that's in place. That's up and running and performing quite nicely.

The other thing that you saw with our release today is that we're also moving to consolidate our international and introduce the DuraTrack platform into both the EMEA and Latin America regions. So that's going to give us scale and additional ability to drive efficiencies on a global basis on a global platform as we move forward. So at that point, then, you're also going to see a new product introduced later this year, which brings the best capabilities of both the H250 and DuraTrack platform together, which will then again bring supply chain and build material efficiencies on a global basis. So we're really looking forward to that.

I mean I'll -- I know Neil is being a bit modest on the amount of work that the team has done. And I'll say, when I think about a couple of countries, Australia is a great example. Our ability to domesticate a supply chain and win orders in Australia, specifically because of our quick ability to fully domesticate supply chain in Australia has led to an outsized win rate in that region. So we feel really good about that.

We've been able to replicate that in multiple other countries that as we began getting into, the countries came and said we want a higher proportion of domestic content. And we've kind of have the formula down of how we engage, what the project team looks like to do that. And in every case I could think of in my head, we've been able to hit our time lines to increase domestic content in these other regions, which has then allowed us to have a higher win rate as they put these new controls or limits on awards of orders in some of these emerging markets.

So I think we've got a really good formula for that at this point, and the team has been executing really well. I can think of 3 particular regions in the last 18 months that we've been able to form teams and win specifically as a result of our ability to domesticate componentry, so really good work.

The next question comes from Ben Kallo with Baird.

I want to go back to the market share gains. Could you talk more about where you're seeing those gains come from? You don't have to name companies specifically, but -- and why you think that you guys are gaining share?

And then I know there was a reference to customers that haven't used you before. Is this something where it's a customer that's also growing volume and so they're adding another partner or same volume and you're taking actual share from them, not just increasing your share overall, if that makes sense.

Yes. So let me just start. If you just peel up the domestic business and start there, and you look at our volume growth last year of 35%, there's nobody that says this industry grew 35% last year. And anyone who does, is confused. So when you just look at the domestic ATI volume growth, we've taken back market share. We see that. We see that in our internal win rate. And our internal forward-looking win rate, that means the wins and losses that we see internally on bids continues to be better than what we're seeing when you're looking at the rearview mirror of revenues, right? So we continue to see strong traction and momentum in a positive forward basis.

Relative to that 4 gigawatts we talked about, in some cases, that was market share takeaway where they were currently doing business with others, and we've been able to go in and win a fair share of that business from a technical selling basis. And in other cases, it was companies that were migrating up into utility scale who already had familiarity with Array at DG level, for example, but have not done utility scale and are going with Array on their larger program.

So there's a blend of both. But suffice to say, if you just look at our volume growth, just look at our orders growth and trajectory, you'll see that we are once again significantly rebounding in market share.

Our last question comes from Vikram Bagri with Citibank.

It's [ Ted ] on for [ Vik ]. I wanted to ask about wallet share. You mentioned further the share of the wallet. Where does the integrated tracker and foundation solution get you to in terms of wallet share, either on a percentage or dollar per watt basis? And then do you have a goal in mind for where you want that wallet share to ultimately be once you factor in the organic and inorganic growth?

We can't give you the latter answer without you figuring out what pieces of inorganic that we have most interest in to be clear. So we're going to shy away from that. I would say, look, we've talked about the APA throughout the acquisition. And what you're doing is solving for foundations. So if you think about the $1 a watt or $1.08 a watt, whatever number you want to use, and the tracker being roughly $0.10 of that, the foundations range somewhere on the low end of $0.025, but typically up to almost $0.04 a watt. So that's what we pick up with APA.

And as we do that integrated offering with APA, we pick that up at really nice margins. So that's our first focus was to be able to integrate a foundation with a tracker to increase that share of wallet. We are keenly focused at other areas of that, that we think provide the best opportunity for interoperability. Again, that's our laser focus on our platform expansion, the balance of system strategy we're deploying is ensuring that those items we buy, there is true technical integration capability that will not only save our customers' money as we technically integrate but allow outsized margin opportunity for Array. That's our focus.

Ladies and gentlemen, this now concludes our question-and-answer session and does conclude today's conference as well. Please disconnect your lines, and have a wonderful day.

Greetings. Welcome to Array Technologies Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sarah Sheppard, Investor Relations at Array. Please go ahead.

Thank you. I would like to welcome everyone to Array Technologies Third Quarter 2025 Earnings Conference Call. I'm joined on this call by Kevin Hostetler, our CEO; Keith Jennings, our CFO; and Neil Manning, our President and COO. Today's call is being webcast via our Investor Relations site at ir.arraytechinc.com, where the related presentation and press release are also available. In addition, the press release and the presentation detailing our quarterly results have been posted on the website. Today's discussion of financial results includes non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures can be found in the related presentation on our website.

We encourage you to visit our website at arraytechinc.com for the most current information on our company. As a reminder, the matters we are discussing today include forward-looking statements regarding market demand and supply, our expected results and other matters. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made on this call. We refer you to the documents we file with the SEC, including our most recent Form 10-K for a discussion of risks that may affect our future results. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

We are under no duty to update any of the forward-looking statements to conform these statements to actual results, except as required by law. I'll now turn the call over to Kevin.

Thank you, Sarah. Good afternoon, everyone, and thank you for joining us. I'll begin with some highlights on the quarter and updates on our APA acquisition and our commercial momentum. Then Neil Manning, our President and Chief Operating Officer, will provide some supply chain and operational updates for the quarter. Keith Jennings, our Chief Financial Officer, will then provide detailed commentary on our third quarter 2025 financial performance and updates on our full year 2025 financial guidance. Then we'll open the line up for your questions.

I'll begin on Slide 5. We are thrilled to announce another exceptional quarter of commercial, operational and financial performance. Our revenue reached $393 million, marking an impressive 70% year-over-year revenue growth, driven by a 56% increase in volume in the quarter. The completion of the APA acquisition midway through the quarter contributed approximately $17 million in revenues to our results. When we assess our performance from a year-to-date standpoint, we have already generated over $1 billion of revenue, surpassing our total annual revenue from 2024, and we have grown volume an impressive 74% year-over-year. This outcome highlights our team's steadfast dedication and resilience, effectively navigating the uncertain regulatory environment and fluctuating market conditions.

We saw sequential adjusted gross margin improvement quarter-over-quarter, driven by outperformance in our ATI business. Our bottom line performance remains outstanding with significant net income improvement year-over-year and an adjusted EBITDA result of $72 million. This achievement driven by strong execution and substantial volume growth marks our second highest quarter of adjusted EBITDA on record. Finally, our commercial momentum continued this quarter as we posted sequential order book growth and a book-to-bill ratio of greater than 1. Our diverse portfolio of products, services and software offerings continues to win, and our robust bookings are a testament to the time and effort invested in our relationships with critical Tier 1 customers. We are particularly pleased with the market's adoption of our latest new product offerings, OmniTrack, Skylink and Hail XP. And we note that these 3 recently launched products already account for nearly 40% of our order book.

It's important to note that this quarter's order book result of $1.9 billion does not yet include APA's backlog. As we continue to align and harmonize our commercial policies, we expect to add their customer orders to our metric by year-end. Further, we should note that as we've taken a more conservative approach to the addition of international orders to our order book, our quarter ending order book represents over 95% domestic business. Turning to Slide 6. I want to briefly touch on our integration of APA and provide some exciting product and commercial updates. Although we are in the early stages of our APA integration, we are very pleased with their recent commercial progress and pipeline growth. Although only a couple of months in, we remain on schedule with our internal objectives and are seeing strong collaboration across our teams. Our priority is to maintain seamless business operations as we align processes and systematically realize synergies.

As you would expect, we have taken meaningful steps to achieve our targeted procurement efficiencies by utilizing Array's scale and established supplier partnerships to drive these future benefits. We also recently introduced a unified sales strategy for customer engagement and quoting, empowering both the Array and APA teams to seamlessly offer the full Array and APA product portfolios. This collaboration will deliver greater optionality and value to our customers and unlock significant growth in our share of wallet and total addressable market. APA is already benefiting from Array support with notable momentum in larger utility-scale project opportunities across both engineered foundations and fixed tilt systems. Array's strong market credibility and bankability are unlocking new growth channels for APA, and we are actively pursuing those prospects.

We are also laser-focused on enhancing our competitive advantage and accelerating our strategic product road map. Our co-development of a suite of integrated tracker and foundation solutions is well underway, and we expect these innovative solutions for customers to be available in the second half of 2026. Finally, APA's innovation pipeline in engineered foundations and fixed tilt mounting systems remains robust and continues to position APA for sustained growth across its product categories. We look forward to sharing more color about APA's exciting strategic initiatives when we provide our 2026 guidance.

Turning to Slide 7. I'll focus a bit more on our recent commercial momentum and how that is translating to our expected future growth. Although some regulatory uncertainty persists this year, we continue to observe strong fundamental demand as we stay in close contact with our customers and assess their project pipelines. One indication of that underlying demand, our early-stage project pipeline has impressively achieved double-digit expansion year-to-date. We remain committed to providing flexibility, helping our customers adapt to changing market conditions by offering a wide range of sourcing options and a broad product portfolio catered to customer feedback. We view this expansion of our funnel as a good indication of our momentum as we close out the year and head into 2026. Our ongoing commitment to customer engagement continues to enhance both the quality and mix of our order book.

This year, we have connected with over 300 customers and industry partners through Array days and insurance forms, and we continue to receive outstanding feedback on our enhanced customer engagement. As we strengthen our partnerships with major Tier 1 customers, we're increasingly engaging in conversations around larger volume commitment agreements, fueling our optimism for 2026 and beyond. A recent proof point is our Q4 award of a multiyear multi-gigawatt portfolio with an independent power producer, underscoring the momentum behind our growth strategy. By clearly communicating the value proposition of our product portfolio, we have deepened customer understanding of the advantages that our unique and patented technology delivers, particularly in reducing LCOE and mitigating severe weather risks. The strong demand for our latest products is evident with these offerings now representing 40% of our total order book this quarter, as previously noted.

Alongside this rapid new product adoption, our SmarTrack software deployments have accelerated significantly. In fact, the number of active installations for hail alert response and backtracking and diffuse underway now exceeds our entire historical installed base, and we expect this traction to continue. Looking ahead to 2026 and beyond, we remain highly optimistic about the demand environment. For next year, we anticipate delivering both organic growth within our core Array business and inorganic growth with the integration of APA. This outlook is underpinned by a robust order book and our improving book-to-bill momentum. While it is still early in the fourth quarter, we expect to finish the year with strong bookings and further order book expansion.

Notably, our current order book is predominantly comprised of domestic projects, reflecting verbal awards and contracts with high-quality customers. Internationally, we are making steady commercial progress in our selected targeted regions. Importantly, as noted earlier, we have taken a cautious approach regarding the inclusion of international verbal awards in our order book to mitigate any potential risk of de-bookings. We look forward to providing updates on these pivotal projects when we give a more fulsome update on our 2026 guidance. Overall, the progress achieved this year reinforces our confidence as our commercial engine is operating at full strength, our new products, which originated from direct customer engagement are delivering, and our supply chain organization is providing the ultimate flexibility for our customers in a time of uncertainty.

These factors are producing strong year-over-year growth in revenues and volumes. I'll now turn it over to Neil to discuss some important supply chain updates.

Thank you, Kevin. Let's turn to Slide 8. I'd like to provide an update on our supply chain performance and how we're navigating the evolving tariff landscape to deliver strong results for our customers and shareholders. Our team has proactively executed a flexible supply chain strategy that's focused on optimizing costs and maintaining high service levels for our customers. As you know, the global tariff environment remains highly uncertain and dynamic with new regulations and rate changes emerging across multiple regions on almost a weekly basis. Our approach centers on resiliency and adaptability. We source from over 50 domestic and 100 international suppliers, giving us the agility to optimize our bill of materials between domestic and imported components to meet the specific needs of our customers. This flexibility allows us to offer our 100% domestic content tracker for treasury guidance, leveraging over 40 gigawatts of U.S. supplier capacity.

This also allows us to optimize incentives and routings to drive the lowest landed cost and best outcome for our customers. For example, when customers don't require domestic content, in some cases, it remains optimal to import a particular component and pay the tariff to attain the lowest landed cost for a project. With the opening of our new and expanded Albuquerque facility and the addition of APA's Ohio manufacturing, which we also intend to expand, our domestic capabilities continue to strengthen. We're exploring optionality for enhanced manufacturing geographies to offer greater flexibility to our customers between our domestic locations. A key factor shaping our supply chain strategy this year has been the Section 232 tariffs on steel and aluminum. These tariffs have significantly increased costs for imported steel and aluminum products, sometimes doubling the tariff rate on certain goods.

Further, the imported steel and aluminum tariffs created headroom for domestic steel and aluminum suppliers to raise their pricing numerous times throughout 2025. For example, steel peaked at more than 35% higher since January 20, inauguration day and now sits roughly 17% higher. Our team has responded by negotiating tariff relief with the suppliers, leveraging domestic sourcing and utilizing USMCA derivative rules to minimize exposure. As part of our long-standing U.S.-centric supply chain strategy, we've historically supplied the majority of our torque tubes domestically with some exceptions for West Coast projects. However now, just about all of our torque tubes and stampings have transitioned to U.S. suppliers, and we're on track to onshore dampers by the end of the year. These actions have resulted in cost avoidance, risk mitigation and further limited our exposure to tariff impacts.

Additionally, many onshore components qualify for 45X IRA credits that further enables our domestic manufacturing and supply chain. When it comes to tariffs overall, our strategy is both active and forward-looking. We maximize our scale to drive cost and lead time optimization, and we negotiated tariff pass-through agreements with certain suppliers to streamline recovery processes. Tariffs are now incorporated into our upfront quotes, ensuring transparency and predictability for our customers. Through these efforts, we've continuously reduced our tariff exposure, now expecting by the end of the year, less than 14% of the typical bill of materials exposed to tariff impacts. For example, our onshoring initiatives are expected to reduce our exposure to India by roughly 50% by year-end. Additionally, we have achieved significant cost avoidance through supplier negotiations in Mexico and Thailand, allowing us to continue to flex between U.S. and international sources to ensure the lowest landed cost for our customers.

Our supply chain team has demonstrated exceptional agility responding to tariff changes, negotiating relief and capturing value for Array. Proactive supply chain strategies and robust tariff management have enabled us to navigate a complex market environment, limit the impact of tariffs and deliver on our commitments to customers. With that, I'll now turn it over to Keith to provide more details on our third quarter results. Keith?

Thank you, Neil. Good afternoon. I will begin on Slide 10. We had an exceptional third quarter. Revenue was $393 million, representing growth of 70% above the prior year quarter and 9% sequentially. Our recently closed acquisition of APA contributed $17 million, and we had approximately $30 million of pull-ins from the fourth quarter into this quarter. As Kevin noted, our 2025 year-to-date revenue of over $1 billion has surpassed the full year 2024 revenues of $916 million, staying on track to post an outstanding year. Our continued sustainable growth will be supported by the ability to drive volume, optimize geographic focus and our business mix along with the contributions from the acquisition of APA. Sequentially, ASPs were higher in both our ATI and STI segments, aligned with the forecasted effect of rising commodity prices experienced earlier in the year. Delivered volume measured in megawatts of generation capacity for the quarter increased by 56% over the prior year quarter, continuing our strong momentum with year-to-date volume up an impressive 74% over the prior year. In the third quarter, adjusted gross profit increased 35% year-over-year to $111 million, representing an adjusted gross margin of 28.1%.

The net effect of the revenue pull-in from the fourth quarter was about $9 million of adjusted gross profit and $0.04 EPS pulled forward. When compared to the prior year, gross margins declined primarily due to the falloff of the prior year 45x amortization benefit, commodities inflation relative to ASP increases and approximately 110 basis points of tariff drag in the quarter. Sequentially, adjusted gross margin improved by 30 basis points, primarily due to a higher mix of domestic projects and ASP improvements to product mix with an offset from lower international shipments primarily in Brazil. APA also had a slight dilutive impact on overall adjusted gross margin in the quarter of about 20 basis points. Anticipated 45X benefits and the outcomes of our supply chain synergy initiatives are expected to provide ample opportunity to transition this to an accretive impact in the near future.

Adjusted SG&A was $39 million, just under 10% of revenues. This rate compares favorably to the adjusted SG&A of $36 million in the third quarter of 2024, which was 15.5% of revenue. We continue to achieve operating leverage from top line growth through our relentless focus on operational efficiency and process improvement while making meaningful investments in the customer-facing touch points. Adjusted EBITDA was $72 million with an adjusted EBITDA margin of 18.3%. This represents 55% earnings growth when compared to adjusted EBITDA of $47 million and adjusted EBITDA margin of 20% in the third quarter of 2024. Sequentially, adjusted EBITDA earnings grew 14%, with adjusted EBITDA margin improving 80 basis points driven by the mix shift towards higher ASP domestic sales. GAAP net income attributable to common stockholders in the third quarter was $18 million compared to a net loss of $155 million in the prior year.

Sequentially, net income declined $10 million from the second quarter of 2025, which included the additional gain from repurchasing a portion of our 2028 convertible notes at a discount last quarter. Diluted income per share was $0.12 compared to the diluted loss per share of $1.02 in the prior year, which was primarily driven by the goodwill impairment taken in the quarter. Adjusted net income was $46 million, 73% growth above the $26 million in the third quarter of 2024. Adjusted diluted net income per share was $0.30 compared to $0.17 in the prior year and $0.25 in the second quarter. During the quarter, net cash generated by operating activities was $27 million. Net cash used for investing activities in the quarter was $170 million, primarily driven by the acquisition of APA and the ongoing investment in our new Albuquerque manufacturing facility. Free cash flow for the period was $22 million, bringing the year-to-date total to $44 million and generally in line with our seasonal expectations.

Slide 12 provides an update on our leverage and liquidity position. Following the completion of the APA Solar acquisition in the quarter. We ended the quarter with $222 million in total cash on hand and total liquidity of over $365 million, including availability under our undrawn revolver. We ended the quarter with a net debt leverage ratio of 2.1x trailing 12 months adjusted EBITDA. Our exceptional agility and strong balance sheet position us well to capitalize on emerging opportunities and drive sustained growth, giving us greater confidence in our future performance. Finally, on Slide 13, we have updated our full year 2025 guidance. Given our strong performance and the inclusion of APA, we are raising our full year revenue guidance and updating midpoints on several key indicators. We expect full year 2025 revenue within the range of $1.25 billion to $1.28 billion, increasing the midpoint of our range by over $60 million, inclusive of approximately $50 million of revenue from APA.

We expect adjusted gross margin within the range of 27% to 28%. This includes the negative impact of accounting for tariff pass-through, the gross margin dilution from APA, delayed international project commissioning pushing our high-margin software revenues and inflationary pressures impacting both inventory and logistics costs. Adjusted G&A is expected to range between $160 million to $165 million, primarily due to the inclusion of the APA business and our incremental investments ahead of the anticipated growth in 2026. Adjusted EBITDA is expected to range between $185 million and $195 million, with adjusted diluted earnings per share forecasted to be in the range of $0.64 to $0.70. Free cash flow is expected to come in at approximately $100 million for 2025, slightly lower than previously expected, primarily due to acquisition-related expenses and timing of some 45X collections and customer deposits shifting into 2026.

Capital expenditures are now expected to be approximately $20 million and primarily driven by project timing at our new Albuquerque facility. Looking ahead, we are exceptionally well positioned with approximately $1.9 billion of backlog, added capabilities to seize new opportunities, deliver industry-leading growth and create lasting value for our shareholders. Thank you for your time today. Now back to Kevin for closing remarks.

Thank you, Keith. To sum up, this quarter's results reflect our team's disciplined execution and our ability to adapt and lead in a dynamic market. With our strong financial position, robust and increasing order book and ongoing innovation, we remain confident in our strategy and our capacity to deliver sustained value going forward. Thank you for your continued support. And with that, I'll now open the call for your questions. Operator?

[Operator Instructions] The first question that we have today comes from Mark Strouse of JPMorgan Chase and Co.

The first one, Kevin, just with -- I appreciate your comments about continued growth in 2026. But just with another couple of months under your belt since RE+, just curious if you can kind of paint a picture for us how you're thinking about the next several years now with Safe Harbor out of the way.

Yes. I think, Mark, we're returning to a period of more normalized flow of business at this point. As I made many comments RE+ about me not expecting this big windfall of safe harbor. We really didn't expect that. As our order book has changed over the last couple of years to have many, many more Tier 1 customers, we made the comment last quarter that over 50% of the order book is what we would call Tier 1. And at that point, these Tier 1 customers have already safe harbored through '29 and '30. So we didn't expect this influx of safe harbor. So the orders we're receiving now are much more normalized demand for the next couple of years. And we feel that's a much better position to be in. We feel that's back to kind of a historical norm rather than have any artificial pull in or pull forward driven by regulatory issues. So we feel really good about what we're seeing. We feel really good about our win rate.

The commentary I made about the multi-gigawatt multiyear piece and there's a great example that -- to be clear, that's not in the backlog or order book at this point. For the numbers we reflected that $1.9 billion was as of the end of Q3. And while we endeavor to have that land in Q3, we certainly didn't want to push the customer too hard. We're able to get that landed here in Q4. So we feel really good about that type of momentum and the fact that we're winning larger orders and more bundles of orders at this point.

Okay. I might follow up on that one offline. Keith, the implied 4Q guide for EBITDA margins is a bit lower than history. You talked about some of the factors that are influencing that. I'm just I'm curious, I know you're not going to give formal 2026 guidance yet, but kind of looking a bit further beyond 4Q of 2025, how should we think about the cadence of EBITDA margin?

Mark, thank you for the questions. 4Q is, I would call it, a trough quarter. It is affected primarily by lower revenue volumes than anything else. And so with that, we are losing a bit of P&L leverage in the quarter. I would, at this point, say that we are very happy with how the year is shaping up and how the full year guidance is holding from where we've guided it in Q3 and earlier and then added APA. In terms of how we are looking forward, I would say that aligned with Kevin's comments about our confidence in the order book, when I look at it, I looked at it this morning, I was surprised -- not surprised, but it was a confirmatory view that greater than 50% of the order book is now not EPCs, so which means that our expansion into different customer base, IPPs, utilities and developers are taking hold. And so I think that when I think about the margin profile going into 2026, I think where we will close this year will be something that we will try to find good opportunities to hold. So we have guided towards 27% to 28% on the full year. I can't think of any reason other than massive inflation and tariffs that could pull us off that trajectory right now.

I think, Mark, one of the things I'll add to that, just to explain the cyclicality. If you go back historically, Array, when you have a disproportionate focus on North America, you have your build season is Q2 and Q3 when we're shipping. Those are typically the highest quarters and then you slow down going into winter. What is different in the last couple of years is we had STI Brazil, which was our second largest operating segment. And when you think about that, their construction is countercyclical to North America, right? So that always added to our Q4 and Q1. As Brazil is not operating on full cylinders due to all the issues we've talked about on previous calls, you don't have that additional layer to [ burry up ] Q4 and Q1. So then you're really focusing on disproportionate North American business in Q4 and Q1, which has that cyclicality before the build -- the big build in Q2 and Q3, which again, you've known our business for several years, that's much more akin to the historical flow of the business and to the North American construction season.

The next question we have comes from Joseph Osha of Guggenheim Securities.

Congratulations on the solid quarter. Two questions. First, am I doing my math right in understanding that essentially adjusting for APA, you've added about $10 million in non-APA revenue to your guide for the year. Am I getting that right?

Joe, this is Keith. Yes, you're getting that right.

Okay. And did I also hear that you had about $30 million in tracker revenue come from what you'd expected from Q4 into Q3?

Yes. So that kind of puts more pressure on Q4 in terms of margin.

Just get my puts and takes right. Other question, I don't imagine you want to give a number, but doing some math and thinking about this multi-gigawatt award that you just talked about, can we fairly say that we can perhaps expect this $1.9 billion visibility number to be up again as we enter 2026?

That is our expectations internally thus far. Yes.

Well, now it's external, too.

And Joe, you should also adjust for the fact that we don't have APA in the $1.9 billion at this time. So as we conform policies, that should also add to the backlog by the end of the year. Let me just make -- let me just -- while we have the questions on order book, I just want to make a couple of points perfectly clear. So as Keith talked about, the quality of our order book has really improved so that, that 1.9 is not the same as a 1.9 a year ago for a few factors. The first is the higher percentage of Tier 1 customers, as Keith alluded to. We won't give the exact percentage, but it's continuing at greater than 50% now. And those customers already have strong safe harbor strategies. So the likelihood of pushouts and delays or interconnect issues goes down the more we're going direct to utilities, direct to IPPs, et cetera.

The second thing is we've noted it, and I want to make sure we recognize it, is the higher concentration of domestic content. We experienced in Q1 and Q2 this year, some of those -- we had to introduce a term of net bookings because of de-bookings as projects got delayed and we held to our rules of what would go into the order book, in particular, in Brazil. So we took the approach of keeping those orders on the sideline and treating them much more like book and turn business. What I mean by that is as we really see that, that is about to ship and go, we'll treat it as book and turn. And as such, it's a higher quality order book because the likelihood of de-bookings is very much diminished at that point. We just talked about the fact that APA is not yet included but will be in Q4.

And again, Joe, we've given you that strong signal that we do expect additional backlog to build in Q4. So all in all, we feel very pleased with our order book results here in the quarter and what we expect between now and year-end.

The next question we have comes from Julien Dumoulin-Smith of Jefferies.

Excellent. Look, I just wanted to follow up a little bit. Let's start with a little bit macro and then we'll do micro. Look, your peer is talking about doing some diversification. Your peer in EBOS is talking about expanding the scope of their business. How do you think about your venture or journey into expanding the scope of your business? Obviously, you guys did this APA. You're talking about foundation here. But any venture to kind of expand the scope here? Or for the time being, let's get this core product right and sell it even more appropriately?

Yes. I think when we -- let me address that let's get this core product right. I think we've done that over the last couple of years with our new product. And look, to give you the signal and show you the chart of how much our new products are hitting the sweet spot of the market is pretty significant. If you would have told me when we launched them 2 years ago that within 2 years, we'd be at over 40% of our backlog be those new products. that would be deemed an incredible success. So we're really pleased with that. We will continue to look at how we increase the share of our customers' wallet, in particular, focusing under the panel. And what I mean by that is not the panel. But there's a larger ecosystem there that we can do -- that we can work with, both in terms of partnering, venturing together as well as either acquiring or internally developing other components that would be utilized under the panel to increase the share of wallet. That's been a consistent strategy here for 2 years. We're going to continue to execute on that.

Excellent. And can I really go back to the question about this integrated foundation solution? I mean, can you talk a little bit about early client interest and potential bookings? But more importantly, can you talk about what it costs to get there and the margins potential on this product, right? If you can elaborate again, I know it might be a little sensitive, but to the extent possible, the CapEx or dollars required to get there as well as kind of the margin profile as best you could [ delineate it? ]

So minimal in terms of additional investment to get there. And to be clear, how we got to the APA from an acquisition standpoint was that we were engaged in co-development of this product prior to completing the acquisition. So this is something we started well over a year ago. I think it's fair to say the designs are done. We're in tooling at this point to be able to put soft launch in the first half of next year and hard launch in the second half. So we're fairly far along. And to be clear on what we're doing is when you have the A frame right now, you have a very large heavy chunk of steel, which is an interface required to interface with ours, every one of our competitors' tracker systems requires an interface as well. And what we're doing is adapting the A frame so that the top of that A frame instead of requiring a very large heavy expensive steel interface just becomes the base for our tracker [indiscernible]. I think it's -- it's a very strong play. It creates an incredible set of economics for our customers, and then it begins to bring the engineered foundations from a cost point down to be incredibly competitive with standard piles at that point.

So you're able to then be able to achieve an engineered foundation solution for non-engineered foundation pricing, if you will. It will have a degree of interoperability that I think is superior, take weight out of the product, take steel costs, all of the above. So we're really excited about it. I think it's fair to say we're fairly far along in that journey, and we expect to be able to put some of that into the ground in the first half of the year. We have some test sites identified, and then we'll go forward from there and open it up for sale in the second half.

And then just a couple of comments on the traction. Look, one of the biggest things we need to add in SG&A in Q4 is additional -- good news is additional sales resources within the APA business. We currently have 7 open recs for sales, design, engineers just to handle the influx of inbound orders we're receiving now, inbound quotation requests for the combined solution between APA and Array. So it's getting quite exciting for us.

The next question we have comes from Jon Windham of UBS.

Congratulations on the quarter. I was wondering if we could just get some more thoughts and commentary around the international business and if there's any opportunity to manufacture domestically in the U.S. for export. Appreciate it.

Yes. I'll take international. So we're pleased with our year-to-date progress. If you look at Brazil, despite the challenges that Kevin referenced there.

[Operator Instructions] [Audio Gap] We have a question from Jon Windham of UBS.

All right. I was just asking for some color about the outlook for the international business and whether there's an opportunity, at least within North America to manufacture in the United States, capture tax credit to the export market.

Jon, it's Neil. Let me take the international question. I'm not sure where we cut out previously. So we're really pleased with how we performed year-to-date from an international perspective despite the Brazil challenges. So if you look at our STI segment on a year-over-year basis, we're up over 10% despite what's going on in Brazil. And then on top of that, we look at Australia as a separate entity, and we're up nicely year-over-year there as well. So we're pleased year-to-date how the international business has progressed. That's really a testament to our diversification strategy that we've been deploying. So both Europe and Latin America, it's been primarily an H250 platform that we've been selling under the old STI business. And we've introduced DuraTrack and OmniTrack in both of those regions, and we're really seeing a nice progression in the pipeline and interest [ and traction ] for that product line in those markets that appreciate what DuraTrack brings from an applicability in higher wind and difficult soil conditions. It's really a differentiating product for us in those additional markets and brings with it enhanced margin opportunity for that differentiating feature as well.

So we feel good about the progress on that front. Separate to that, when it comes to export from the U.S., one of the things we look at is what is the most appropriate supply chain for a particular project based on its locality. In the U.S., primarily, it's a domestic production for domestic consumption. On the international business, we look at an international supply chain that's targeted at the most beneficial and lowest landed cost for a particular project. And so for Europe and South America and elsewhere, we'll do an analysis on a per project basis, what components come from what supplier at the right mix with the right logistics cost to get you to that lowest landed cost. And obviously, where it makes sense to import from different countries, including the U.S., we obviously take a look at that and analyze that and do that on a project-specific basis.

The next question we have comes from Brian Lee of Goldman Sachs.

[indiscernible] on here for Brian Lee. Just trying to think across, again, there seems to be a decent bit of moving parts here heading into next year and not looking for guidance or anything, but increase in steel prices, Omnitrack, Skylink, Hail XP becoming a larger portion of the backlog, accretion from APA, potential 45X from APA and reduction of tariff exposed bill of material. Could you just help us frame us or frame for us what could be accretive to gross margins, accretive to gross margin dollars and just some of the puts and takes heading into next year?

Nick, this is Keith. 2026 for us right now is still on the drawing board. I know we've given some earlier comments both that we expect growth in terms of revenues, given the strength of the order book, the addition of APA and the outlook for the innovative products that we have been adding. We also are committing that we're going to strive to maintain our gross margins in the range that we're currently operating. But beyond that, I think it will be too soon to say much more about '26.

Okay. No worries. And just, I guess, one more. That $9 million of acquisition-related expenses realized this Q, are there any more cleanups expected or I guess, any more expenses that could be a headwind to EBITDA over the coming quarters? Or is it just onetime?

Most of the acquisition-related expenses were adjusted out. So. Other than being an impact on the GAAP P&L, I think we shouldn't expect any impact from the M&A other than just accretive EBITDA margins.

The next question we have comes from Ben Kallo of Baird.

My first question was just on if you're seeing any kind of flight to quality just between you and Nextracker from other trackers or racking companies in the U.S. So maybe the easy way is of market share gains, if you could talk about that. And then on the independent power producer in the multi-gigawatt deal, could you just talk maybe about what their solution was, if this is diversification, if they're moving away from someone else or a completely new business? If any color you can give on that would be helpful.

Yes. I think the answer is actually common for both questions. So look, we do think there's a flight to quality, but a lot of that is really being driven by our strength in the front end of the business. A few things that we've done year-to-date, not only have we revamped our sales team and our sales team leadership, but we've also added an entire group of individuals that we call our technical sales team -- these are engineers selling to engineers and ensuring that we revamp our value propositions and get very clear on our value propositions to each individual channel we sell to. And the reality is our ability to generate more energy with our passive stow system to have an improved ground coverage ratio relative to some of the peer companies.

It's really helpful when we're doing a very highly technical sale to the engineers who then instruct purchasing that this is because of the improved LCOE, this is the tracker of choice. That's what's really happening for us out there and that to be absolutely clear, we were not the lowest priced tracker presented in this multi-gigawatt. We were the best value selected by the customer. Not at all the lowest price, but we were able to generate value for that price for the customer, utilizing some of the very technical subsets of issues we just talked about, the passive stow, hail mitigation, severe weather and ground coverage ratio were all critical elements that this customer valued and put into their return matrix that all yielded that order in our direction despite being higher priced.

If I could just quickly follow on with electricity prices increasing in the LCOE proposition, are you getting better pricing as electricity prices increase? Or does it not work like that?

It doesn't work that way. Our pricing typically flows more relative to commodities. And then your win rate goes up with your improved LCOE. But it doesn't -- look, there's narrow ranges of the above. But what you saw and it should not go unnoticed, but our ASPs increased for the first time in 6 quarters as we predicted earlier in the year that as the steel prices rose, over time, that would be reflected in ASPs, and we did see that this quarter. So you had an increase in ASPs this quarter, but ASPs for us is more a function of the commodity inputs and then win rate is more of a function of our ability to communicate our strong value proposition to the market.

The next question we have comes from Philip Shen of ROTH Capital Partners.

Congrats on the strong bookings in the quarter. I wanted to check in with you on the international side of the business. Would love to understand if there's any potential upside from Brazil or LatAm in the Q4 guide. And given the removal from the backlog, perhaps there can be some business there near term that might be an upside surprise.

So Phil, it's Neil. So let me explain it this way. So certainly, the Brazil business and macroeconomic climate has been a challenge over the last quarters that we've talked about quite often, and we've been diversifying in that market.

And one of the interesting things that we've seen, and Kevin articulated earlier about our order book rules around having a defined project with a start date with a PPA in place. And those rules apply really well for the domestic market here in the U.S. that what we've seen elsewhere in other markets, those sometimes get a little bit out of sequence. So we may see an awarded order that then our customer takes the contract with us that then they take into their PPA finalization.

So what that really means is that we have awarded business that is not shown in the order book that will convert in future periods. And we're seeing that more and more, particularly in South America. So I guess to get to your point that in that $1.9 billion order book, there is business that we do expect to see on top of that, that will turn over the next couple of quarters.

Got it. Okay. And then shifting to APA again. Is it fair to conclude that the APA revenue in '25 will be roughly flat year-over-year? And then what kind of growth should we expect from APA in '26? I know you haven't given guidance yet, but -- and so far as you can give a little bit of color, that would be fantastic.

And then if you can, and I know a lot of people are asking about this at RE+ when you announced the acquisition, but what is the APA revenue mix by tracker, if you can give a rough sense, assuming a baseline of about $130 million of revenue? Like how much of it historically or is now with your tracker versus one of your peers like a GameChange or Nextracker. And so just trying to get a feel for what kind of exposure you might have, to other trackers?

And then how quickly you might need to make up for some of that lost revenue if one of those trackers steps away from wanting to use APA?

Phil, this is Keith Jennings. Let me start with just the math. So yes, APA 2025, based on our guide, we will have slight growth, I think, just over 1% given what we had to disclose in terms of pro formas in our 10-Q. I think that was an understandable performance given the distraction in the market with 1BB and particularly even the outcome of 1BB, which I think hit mostly the residential and community solar market more than the utility scale markets.

And so as they've come in-house, we feel fairly strongly about the outlook for APA with Array as a partnership, particularly as we introduce them to more utility scale customers and clients that find them more attractive now that they have a bankable partner. And so our outlook for them is really strong, and we're still very excited about the acquisition that we just executed.

In terms of the breakout between the various partners that they have been supporting, we're not prepared to disclose that. And I think that we remain committed to the customers of APA, regardless of which tracker company they choose to go with. We believe that APA and its engineered foundation is the best technical solution in the market. All customers should be able to benefit from that. With that, Kevin, anything to add?

Yes. Look, so to be clear, Phil, there's not been any of APA's customers that have said, "Hey, we're going to pull business away." There's only one meaningful competitor that has any backlog with APA. The they have backlog with APA because their existing solution doesn't solve what APA solves, right? They have their own foundation solution. And if they could solve it with their own, I promise you they would. That's the case.

So what we focus on is allowing APA to continue to serve their customers, continue to work on new product development with peer tracker companies. We're going to continue to allow that level of support. I have personally engaged in senior management discussions with each of those competing tracker companies and given them my personal assurance that we will continue to behave accordingly.

We have created separate firewalls in the company to allow them to conduct that business with our competitors such that Array cannot see their engineering, their pricing, any of the above. So we've taken a very high road approach to ensure that we allow them to maintain those relationships and, in fact, continue to do aggressive new product development with those customers that on a tracker may be a competitor of ours. So I think we're taking a very good approach there.

We feel really good about that as we move forward. I would say the influx of opportunities on the utility scale segment, when you think about moving from C&I to utility scale, it only takes a handful of utility scale projects in a given year for APA to win to totally and very dramatically change the scale of that business. I am very pleased with the amount of traction we're getting in that at this point and the amount of quote opportunities we are now getting in the business on utility scale foundation solutions. So we're quite excited about the trajectory of that business.

The next question we have comes from Tom Curran of Seaport Research Partners.

Kevin or Keith, does Array currently have any contracts with BP in the order book via Lightsource or any other BP affiliates? And if so, could you give us an indication of what that total BP exposure represents as a portion of the backlog?

We don't give specific backlog or business numbers with any customer, but BP has historically been a good customer of Array, but we don't put that out publicly, sorry.

Understood. Maybe I'll just try a different angle. Have you been given any reasons to believe or seeing any signals that there could be any issues with upcoming expected deliveries to BP affiliated projects?

We've not been made aware of any that I can think of.

The next question we have comes from Dimple Gosai of Bank of America.

With domestic steel pricing moving around and tariffs tightening, can you maybe help us quantify the degree of cost pass-through you're achieving today? How much price discipline is holding in bids as the market normalizes around domestic content?

So I think -- Dimple, this is Keith. A few things. we tend to be able to price our products in line with expected delivery dates and steel prices at the time of contracting. And so -- and that achieves some level of locking on most of our materials.

We do have some materials that may float. But for the most part, we're able to hold our margins. If you think about where spot market for steel is today at around USD 847 a metric ton, that was roughly 13% lower in 2024. And when we spoke earlier in the year and we saw these forward prices then, we talked about expecting ASPs to go up, and you've seen that now.

Sitting here today, when I look forward to 2025 and look at the forward curve, I see an average for 2025 at 849 (sic) [ USD 849 per metric ton ], which is in line with where we are. I see 2026 at 874 [ USD 874 per metric ton], which is marginally up. So we are -- I'm sure our customers are seeing all these things. So when we have conversations, we are all having all having informed conversations about where pricing should be so that we can all have healthy margins and continue to do business.

Let me just add on to that as far as passing through both from a steel pricing from a tariff standpoint. With steel up 22% year-to-date, we also saw, as Kevin mentioned earlier, a sequential increase in ASPs. It's demonstrating that steel pricing is flowing through into ASPs, which as we've talked about previously, flows through from a gross profit dollar perspective, which is helpful from obviously a P&L standpoint.

Something to add on tariffs, as we've also communicated previously, 70%, 75% of our contracts allow us to pass through those tariffs directly to customers. There are times where we'll negotiate with customers on a commercial basis for the best overall outcome of their project for us to go forward. So we may negotiate on a project basis that pass-through. But ultimately, as tariffs normalize, we then bake it into ASPs.

So overall, we feel quite good that steel pricing is certainly flowing through. And obviously, the vast majority of tariffs are as well.

Don't forget that the tariffs create a drag on the margin rate because we don't get a lot of markup on tariffs even when they flow through prices. I would say just more -- sorry, operator. Just one more clarifying point on the other side of that equation would be pricing, and we continue to see rational pricing behaviors in the market. I want to make sure that's clear.

The final question we have comes from Colin Rusch of Oppenheimer.

Given the concern around time line for a lot of these projects, can you talk a little bit about your opportunity for driving incremental labor efficiency within the existing designs? And if you're working on any updated designs that could drive incremental or shorter time frames out in the field?

Yes. This is Neil. I'll take that one, Colin. So yes, so when you look at our innovations we brought to market over the last couple of years, we've talked that has really manifested itself really well into the pipeline at this point with OmniTrack and SkyLink and others. One of the key factors there is around ease of installation and making things easier for our customers. So you look at SkyLink, for example, with wireless connectivity, minimizing the need to trench on a site, that certainly brings with it installation efficiencies that our customers certainly appreciate on certain parcels where they're deploying where they have difficult soil conditions where trenching is problematic.

Separate to that, when you look at DuraTrack and OmniTrack, from a sheer number of parts perspective, we're several fold smaller or fewer quantity in components than competitors, which also bring with it an installation efficiency that our EPC customers, in particular, appreciate. So they're oftentimes put in a factor that gives us a credit for the overall cost of our solution because of the ease of installation.

And we continue to hear that time and time again from EPCs as recently as I had when I was down in Australia last week in a number of meetings. So when you think about what our innovations going forward look like, they're on a couple of fronts, right? It's to continue to drive effectiveness and ease of installation for our customers, along with protecting their assets.

When you look at extreme weather with Hail Alert Response, Hail XP and other factors, those are the things that we're driving towards ease of customer, more value for installation and more value for the long-term asset over the lifetime of the installation.

Thank you. Ladies and gentlemen, we have reached the end of our question-and-answer session and the end of our conference. Thank you for joining us. You may now disconnect your lines.