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Greetings, and welcome to Array Technologies' first quarter and FY 2026 earnings call, at this time all participant are in listen only mode, a brief question and answer session will followed after the presentation,if anyone should require operator assistance during the conference, please press star and then zero on you telephone keypad 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 Chief Executive Officer, Keith Jennings, our Chief Financial Officer, and Neil Manning, our President and Chief Operating Officer. 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, 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. 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 pass it to Neil and Keith for an update on our product and operational initiatives and a walkthrough of our financial performance. Let's begin on slide four 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 one-time 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 five 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 roadmap. Internationally, we executed contracts in three 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 sq ft 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 six, I'll revisit our strategic priorities for 2026 introduced on our last call. Q1 execution delivered tangible progress across all three 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 2 times 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 seven, 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. A third-party study by DNV confirmed that this exclusive to Array capability can boost power production by up to 4% by minimizing wind-related energy losses from unnecessary stowing. It's a very meaningful yield advantage for our customers, which dramatically enhances their economics.

We've incorporated OmniTrack terrain flexibility into the platform, giving it 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. The system includes optimal backtracking, diffuse, and hail and snow alert response through SmarTrack compatibility, ensuring intelligent row-to-row coordination that optimizes energy output across an entire solar array. Importantly, it's powered by an integrated PV panel with dependable battery backup. There's a resilient, self-sustaining power supply, reducing balance of system costs and improving reliability in remote installations. From concept to 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. The early feedback has been outstanding.

Our customer was eager to deploy D2S as soon as it was presented. The dual-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. Take our core technology strengths in passive wind stow, terrain adaptability, and smart controls, then 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 Europe in June. Turning to slide eight. 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 MW plus opportunities for APA, and 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 a 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 execute contracts in both Peru and Colombia, which reinforces our momentum in the Andean 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 where 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 three 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 lifecycle 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 roadmap and customer adoption. Importantly, about 80% of the backlog is expected to convert over the next six quarters, providing strong visibility and predictability as we move through the year and into 2027. This is not a one quarter outcome. Over the past four quarters, we've achieved a 1.3x book-to-bill ratio. The combination of standardized global platforms, titled 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 one-time items contributing a little over 300 basis points in the quarter.

These one-time items were primarily driven by a 2023 to 2024 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 the one-time $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 as is 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 years. 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%-27% for the year is unchanged. Excluding the one-time 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 SmarTrack. 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-$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 1st 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 GW of trackers deployed globally. We're incredibly proud of our accomplished track record of excellence, and we're excited for the next 100 GW. Thank you for your time today and for your continued interest in Array.

With that, we'll open the line for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove your question from the queue. Please may I ask if you could limit your questions to one question and one follow-up question. For participants using speaker equipment, it may be necessary for you to pick up your handset before pressing the star keys. One moment please while we call for questions. The first question comes from Julien Dumoulin-Smith from Jefferies. Please proceed with your questions, Julien.

Hey, Kevin and team. Nicely done. Gotta hand it to you guys in that market share commentary at the end there. really kudos on the recovery here. Maybe just to that end actually, though, 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've just been hedging the background, energy commodity, shipping, logistics, just, you know, 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 you probably have some legacy contracts here on 2026. I got a quick follow-up.

Thanks, Julien. Look, we're really proud of how the quarter shaped up. I can only say that two weeks ago, I celebrated my fourth year anniversary. Every year for the first four 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 a 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 one 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, that's products launched in the last two 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 year. We're quite excited about where we sit today.

Awesome. Then maybe if I can follow this up, on, you know, there's a lot of talk in the market about this tax equity issue, and, you know, it seems more of a residential issue than a utility scale issue. With that said, how are you seeing, if any, project push from 2027 FIDs ? Any shift in your timelines, anticipated project, in services, anything like that you're looking across your book of business? I'm just curious, even if on the horizon here, do you see anything on 2027, 2028?

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 six quarters. You know, 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 nearer term delivery windows versus being kinda long dated and opaque. We feel pretty good about that.

Kudos again. Talk soon.

Thanks.

Thank you. The next question comes from Philip Shen from Roth Capital Partners. Please proceed with your questions, Philip.

Hey, guys. Thanks for taking my questions. First one's on diversification. You know, we've heard a fair amount that a lot of customers out there, developers, IPPs, are looking to diversify their tracker sources, even some with, you know meaningful exposure to one of your peers. Was wondering. If you could kinda share some color on, you know, what you're seeing, how 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? Thanks.

Yeah. I think, you know, 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 two 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 could 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, you know, get into a price war down at an 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.

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

Look, I'll let Keith talk more proof points in the margin this year in the flow, but I'll just jump in and caution that we're not ready to guide 2027 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 gonna continue to execute on those, but we're not this early gonna guide. Look, in particular, we're still in a very dynamic marketplace, right? We're gonna be very cautious and not guide 2027 just yet.

Good. Thank you for your questions, Philip Shen. Look, when we think about Q1 gross margins, you have to separate it into two components. There's the one-timers of roughly 300 basis points that came from the tariff protests that we filed for 2023/2024 tax years, and also what can be best characterized as a prior year 45X adjustment. The second component is the core. The core margins of around 27%, you know, reflects, you know, 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, logistics costs, inflation pressures on transportation, freight, other things, whether driven by macro or otherwise, you know, we are forecasting that our productivity and cost out initiatives will balance that out. At the same time, as the international, you know, business comes back in the second half, that will play on the margin mix at a consolidated level.

Okay. Thank you both. I'll pass it on.

Thanks, Philip.

Thank you. The next question comes from Joseph Osha from Guggenheim Securities. Please proceed with your questions, Joseph.

Oh, hi. Thanks for taking my question. 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, and if so, what the, you know, what the story might be there. Thank you.

That's a great question, Joseph. 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, 'cause 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, Joseph, 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. In that respect, is the record order book still a conservative view of our order book? Yes, it is. We're 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 timeline we expect.

The reason being is that, look, we experienced this last year. Whenever you would have a de-booking 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 aside 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 gonna quantify that yet. We're gonna continue that practice of holding them on the sidelines until we're much surer of the actual project timing.

Can I ask-

Yeah.

Can I ask a follow-up?

Go ahead.

So-

Yes.

You kind of anticipated the question. I was gonna ask for a number, and you don't wanna 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'll begin in the second half of this year, Joseph. As we start getting surer 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 two quarters, right? We're pairing it with several quality indicators that improves our convertibility. Namely look we got a higher domestic mix you know, 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 six quarters, and we feel really good about the shape of our order book and the quality therein. We're getting there without changing the definition of what we consider in our order book, to be clear.

Thanks for the detailed answer.

You got it, Joseph. Thanks.

Thank you. The next question comes from Ben Kallo from Baird. Please proceed with your questions, Ben.

Hey, guys. Congrats on the quarter. I wanted to talk, stick on Joseph's topic of the international business, and just maybe match that with when you talk about share gains, are you talking about share gains of against trackers or against trackers and fixed-tilt, maybe it's one. When you talked 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, the internationals carry lower margin. Is that still the same with kind of this change in kind of thinking about the total value you create, or are you getting better pricing there, I guess, is the question. Thank you.

Sure. Let me start with just an explanation of the order book and the proportion of APA, right? First, the Look, the APA, as you recall, last quarter, we noted that APA was roughly about $100 million of our order book, and we actually saw a 50% increase this quarter. Directionally, there are about $150 million of the order book that we just talked about. I think it's important to provide some context here. You know, APA is a shorter cycle business than Array, and you 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.

You know, their traditional legacy portion that made up a disproportionate amount of their business. They're getting larger programs, so 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, and it supports this 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. Now 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.

Yeah. 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 costs competitors from different 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 terrain, 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 those are examples of difficult terrain 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'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 then a key part of why we brought D2S to market, because it's bringing a two-row configuration, then combined with the best features from DuraTrack that allow us to drive that different value proposition for customers.

Great. Thank you, guys.

Thank you. The next question comes from Brian Lee from Goldman Sachs. Please proceed with your question, Brian.

Hey, guys. This is Tyler Bisson for Brian Lee. Thanks for taking our questions.

Sure.

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 six quarters, how much of that is related to new products? Is that split pretty similar to the current 53% today, or is there a slightly heavier weighting to the 20% beyond that six quarter timeframe?

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

Helpful. I guess just from a capital allocation.

I guess one other, Sorry, Tyler. 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, and 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, so it's flipped now.

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

Hi. This is Keith Jennings. The way we think about it is, you know, right now we are running the business as best as we can, discipline, 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. You know, 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's interoperability between the parts and increase our relevance to our customer base.

All right. Thank you.

Thank you.

Hi there, this is Claudia. I am on the line now. Next question comes from Corinne Blanchard from Deutsche Bank. Please proceed with your question.

Claudia, do we have any other questions?

Hey, guys. Can you hear me?

Hey, team. This is Corinne from Deutsche Bank. Can you guys hear me?

Hi there, this is the operator. Just wanted to check if you can hear me. Do you have the Array team on the line?

Oh, okay. We do have Corinne on the line. Would you like to pose the question?

We cannot hear you on our end.

We can still hear you. If you could hear us, we'll go ahead and listen to you on a cell phone and then respond on the conference call.[audio distortion] Go ahead. Claudia, can you hear us?

Hi. Yes, I am on the line. I just want to check if you can hear me before we proceed.

Hi there. Claudia, can you hear us?

Guys, if you're still on the line and can hear us, just bear with us a few more minutes as we try to work out these technical difficulties. We'll be right back with you.

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. Thank you so much.

Can you guys hear me now?

Yes, we can.

All right. Awesome. Yeah. I just wanted to ask actually on the cost profile. I think one, two was slightly better maybe than expectation. If you can just walk us through expectation and actual view into 2Q in the second half of the year, that would be helpful.

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

Thank you. I appreciate. Maybe like one more question. Like, Middle East in 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 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 timelines 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.

Thank you.

Thank you so much. The next question comes from David Benjamin from Mizuho. Please proceed with your questions, David.

Hi. Thanks very much for taking our question. Of the remaining 2026 guidance, can you talk about how much of that is already booked versus is there any book-to-bill required to achieve that?

When it comes to the revenue guide, we do have some normal amount of go get less to close it. However, you know, we're working off a very, you know, 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.

Thanks. A follow-up. As you guys are increasingly selling to developers, are you able to leverage the safe harbor process where the customer developer customers have better visibility into their 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. 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.

David, does that conclude your questions? Okay, I think we're done from his side. The next question comes from Colin Rusch from Oppenheimer & Co. Please proceed with your questions, Colin.

Hey, thanks so much. 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 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?

Hey, Colin, it's Neil. I'll take that one. Hey, when we look at international, you know, 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 wanna go. You know, 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. Now obviously they were 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 terrain adaptability, SmarTrack software-enabled controls, passive Windstow, 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, where 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.

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 The DuraTrack platform that customers have appreciated here in North America for a long, long time, and then configure it in a two-row configuration that we've seen that international customers prefer based on parcel sizes being smaller and more varied from a terrain standpoint. You know, two-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 gonna 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.

Excellent. Can you talk a little bit about the cadence for, you know, deployment timelines? This is, you know, your R&D effort in terms of shortening in-field 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.

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 jam and ask us to. We can pull that in substantially. 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. Look, you got to see some of that in Q1.

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

All right. Thanks, guys.

You got it.

Thank you. The next question comes from Chris Dendrinos from RBC Capital Markets. Please proceed with your questions, Chris.

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

Sure. Great question. As you know, we are a project-based business with, you know, 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, you know, 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, you know, 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, for the short term, Greystar is driving productivity and cost out initiatives to manage this.

Yeah. I'll just kinda weigh in from there, Chris. You know, anytime 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, you know, we need to be ready for it. In this particular case, when it came to logistics and the conflict in the Middle East, you know, we had a really aggressive response. You know, we renegotiated carrier agreements. We looked at our routings by region for optimization, we also updated our contracted freight capacity, moving to more contract base versus spot. While we did that, we're then embedding it rapidly into new bids and new contracting. The key point for the projects that are in flight, obviously those flow through, and we have to deal with that.

For anything new in the pipeline, we're rapidly updating our cost modeling methodology and making sure we're protecting margins from that standpoint.

Got it. Great answer. Thank you very much.

You got it.

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