Array Technologies, Inc.ARRY
Array Technologies, Inc. Segments Disclosure
Segment and Geographic Information
ASC Topic 280 Segment Reporting establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The CODM is the Chief Executive Officer of the Company.
The Company works with engineering, procurement, and construction firms, to design a solar array to achieve the projects desired power output. The Company provides the solar tracking system components, which include standard and nonstandard parts. The Company delivers the fully functioning tracker systems for the project sites and provides commissioning services. Although the solar array may use different components and technology depending on the geography and type of system, the Company conducts its operations in the United States and internationally, primarily in Spain and Brazil and is expanding into other international markets through STI Operations.
The Company has two separate operating segments, Array Legacy Operations and STI Operations, which are also reportable segments. Array Legacy Operations consists primarily of amounts earned from the design and delivery of solar arrays in the United States, and STI Operations consists primarily of amounts earned from the design and delivery of solar arrays outside of the United States. APA is a component of the Array Legacy Operations reportable segment.
The Company’s CODM assesses the performance of each operating segment by using gross profit. This measure is also predominantly used in the annual budget and forecasting process. The CODM primarily uses the annual operating plan and the monthly financial results for Array Legacy Operations and STI Operations when making decisions about the allocation of operating and capital resources to each segment.
The following tables summarize the financial results by segment during the periods presented (in thousands):
| Year ended December 31, 2025 | |||||||||||||||||
Array Legacy Operations | STI Operations | Consolidated | |||||||||||||||
Segment revenue | $ | 1,070,478 | $ | 213,663 | $ | 1,284,141 | |||||||||||
Less: | |||||||||||||||||
Product cost(1) | 704,429 | 177,833 | 882,262 | ||||||||||||||
| Inventory valuation charge | — | 29,516 | 29,516 | ||||||||||||||
Amortization of developed technology and backlog | 17,520 | — | 17,520 | ||||||||||||||
Depreciation | 3,569 | — | 3,569 | ||||||||||||||
Other costs(2) | 44,968 | 7,753 | 52,721 | ||||||||||||||
Gross profit | $ | 299,992 | $ | (1,439) | $ | 298,553 | |||||||||||
Total operating expenses | — | — | (327,548) | ||||||||||||||
Total other expense, net | — | — | (222) | ||||||||||||||
Loss before income taxes | $ | (29,217) | |||||||||||||||
Segment assets | 1,235,937 | 215,855 | 1,451,792 | ||||||||||||||
Capital expenditures | 21,077 | 895 | 21,972 | ||||||||||||||
Depreciation and amortization | 35,846 | 11,442 | 47,288 | ||||||||||||||
Interest income | 10,912 | 940 | 11,852 | ||||||||||||||
Interest expense | 24,996 | 2,335 | 27,331 | ||||||||||||||
| Year ended December 31, 2024 | |||||||||||||||||
Array Legacy Operations | STI Operations | Consolidated | |||||||||||||||
Segment revenue | $ | 661,629 | $ | 254,178 | $ | 915,807 | |||||||||||
Less: | |||||||||||||||||
Product cost(1) | 353,034 | 225,517 | 578,551 | ||||||||||||||
Amortization of developed technology and backlog | 14,558 | — | 14,558 | ||||||||||||||
Depreciation | 2,045 | 90 | 2,135 | ||||||||||||||
Other costs(2) | 21,961 | 925 | 22,886 | ||||||||||||||
Gross profit | $ | 270,031 | $ | 27,646 | $ | 297,677 | |||||||||||
Total operating expenses | — | — | (524,682) | ||||||||||||||
Total other expense, net | — | — | (23,571) | ||||||||||||||
Loss before income taxes | $ | (250,576) | |||||||||||||||
Segment assets | 1,018,487 | 407,512 | 1,425,999 | ||||||||||||||
Capital expenditures | 6,423 | 882 | 7,305 | ||||||||||||||
Depreciation and amortization | 27,303 | 25,476 | 52,779 | ||||||||||||||
Interest income | 12,767 | 4,010 | 16,777 | ||||||||||||||
Interest expense | 32,516 | 2,309 | 34,825 | ||||||||||||||
| Year ended December 31, 2023 | |||||||||||||||||
Array Legacy Operations | STI Operations | Consolidated | |||||||||||||||
Segment revenue | $ | 1,172,827 | $ | 403,724 | $ | 1,576,551 | |||||||||||
Less: | |||||||||||||||||
Product cost(1) | 805,174 | 305,778 | 1,110,952 | ||||||||||||||
Amortization of developed technology and backlog | 14,558 | — | 14,558 | ||||||||||||||
Depreciation(3) | 1,348 | — | 1,348 | ||||||||||||||
Other costs(2)(3) | 34,142 | — | 34,142 | ||||||||||||||
Gross profit | $ | 317,605 | $ | 97,946 | $ | 415,551 | |||||||||||
Total operating expenses | — | — | (201,427) | ||||||||||||||
Total other expense, net | — | — | (36,967) | ||||||||||||||
Income before income taxes | $ | 177,157 | |||||||||||||||
Segment assets | 868,697 | 838,044 | 1,706,741 | ||||||||||||||
Capital expenditures | 15,748 | 1,241 | 16,989 | ||||||||||||||
Depreciation and amortization | 26,840 | 27,986 | 54,826 | ||||||||||||||
Interest income | 3,985 | 4,345 | 8,330 | ||||||||||||||
Interest expense | 40,982 | 3,247 | 44,229 | ||||||||||||||
(1) Includes 45X benefits realized in the amount of $173.6 million, $137.8 million, and $9.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
(2) Other is primarily comprised of outbound freight and certain overhead costs. Outbound freight for the years ended December 31, 2025, 2024 and 2023 for Array Legacy Operations was $43.8 million, $21.6 million, and $33.5 million, respectively.
(3) Depreciation and Other for STI Operations for the year ended December 31, 2023 is immaterial and included within Product cost.
The following table presents revenues by geographic region, based on the customers project location (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. | $ | 1,041,372 | $ | 643,481 | $ | 1,166,160 | |||||||||||
| Spain | 141,047 | 83,742 | 99,160 | ||||||||||||||
| Brazil | 60,716 | 135,102 | 257,872 | ||||||||||||||
| Australia | 23,779 | 8,708 | 20,842 | ||||||||||||||
| Remainder | 17,227 | 44,774 | 32,517 | ||||||||||||||
| Total revenue | $ | 1,284,141 | $ | 915,807 | $ | 1,576,551 | |||||||||||
The following table presents property, plant and equipment, net by geographic region at the end of the period (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| U.S. | $ | 51,452 | $ | 20,058 | |||||||
| Spain | 3,129 | 2,967 | |||||||||
| Brazil | 156 | 13 | |||||||||
| Australia | 384 | 471 | |||||||||
| Remainder | 3,104 | 2,713 | |||||||||
| Total property, plant and equipment, net | $ | 58,225 | $ | 26,222 | |||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 22, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.