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ARRAY TECHNOLOGIES Array Technologies , Inc. Reports Financial Results for the First Quarter 2021 May 11 , 2021 First Quarter 2021 Financial Highlights • Revenue of $ 245.9 million • Net Income of $ 2.9 million • Basic and Diluted Earnings per share of $ 0.02 • Adjusted EBITDA of $ 34.5 million ( 1 ) Adjusted Basic and Diluted Net Income per share of $ 0.19 ( 1 ) ( 1 ) A reconciliation of the GAAP to the most comparable Non - GAAP results is included below . ALBUQUERQUE , N.M. , May 11 , 2021 ( GLOBE NEWSWIRE ) -- Array Technologies , Inc. ( Nasdaq : ARRY ) , one of the world's largest manufacturers of ground - mounted systems used in solar energy projects , today announced financial results for its first quarter ended March 31 , 2021 . " Revenues for the first quarter of 2021 were in line with our expectations and Adjusted EBITDA was slightly below our expectations as a result of higher than expected logistics costs . Results were lower compared to last year because of the unseasonably high volume of shipments we had in the first quarter of 2020 to customers that were ' safe harboring ' tracker systems in connection with the ITC step - down , " said Jim Fusaro , Chief Executive Officer of Array Technologies . Mr. Fusaro continued , " Demand for our products remains strong with quoting activity at the highest levels we have seen in our history . We believe the superior value that our tracker system delivers is being recognized by a growing number of EPCs , developers and asset owners and is underscored by the up to 4 GW award that we recently received from Primoris , one the largest solar EPCs in the U.S. " At the same time as we are seeing record demand for solar , our industry is contending with increases in steel and shipping costs that are unprecedented both in their magnitude and rate of change . From Q1 2020 to Q1 2021 , spot prices of hot rolled coil steel , the primary raw material used in our products , more than doubled and have continued to increase in the second quarter with spot prices up over 10 % since April 1st . Steel represents almost half of our cost of goods sold and we do not hold large amounts of steel inventory , so a significant increase in the price of steel over a short period of time can negatively impact our results . " The continuing increases in both steel and freight costs will impact our margins in the second quarter and potentially in subsequent quarters if prices do not normalize . We are taking several actions to mitigate the impact on the balance of the year , including passing through higher commodity and shipping costs to our customers , fixing commodity prices with our suppliers , entering into long - term contracts with freight providers , further diversifying our supply base , and increasing order lead - times to give us more time to procure raw material . " Importantly , we believe our competitors are being impacted by the same cost increases that we are experiencing and , in certain cases , much more significantly because their smaller size gives them less buying power with suppliers . We believe the near - term pressure that is being created by the current environment may enable us to accelerate our market share gains because some of our competitors may not be able to deliver on customer commitments given their inability to procure raw materials at a competitive price or at all . " Mr. Fusaro concluded , " We believe that what we are seeing in steel prices and shipping costs is temporary and does not suggest to us a permanent change in our cost structure , margins or market opportunity . The outlook for solar is extraordinarily favorable - businesses and consumers are accelerating their efforts to decarbonize , the regulatory environment is extremely constructive and solar with trackers has demonstrated it is the lowest cost and most environmentally friendly form of new generation . We believe steel prices and shipping costs will normalize once the ' restart ' of the global economy is complete following the pandemic shutdowns . As inventory is rebuilt and supply chains refill , we are confident will see mo e rational pricing . In the meantime , we will aggressively work our mitigation efforts and look for opportunities to use the current environment to play offense by leveraging our size and scale . " First Quarter 2021 Financial Results Revenues decreased 44 % to $ 245.9 million compared to $ 437.7 million for the prior - year period , primarily driven by a reduction in the amount of ITC safe harbor related shipments . Gross profit decreased 63 % to $ 43.9 million compared to $ 118.4 million in the prior year period , driven primarily by lower volume in the quarter . Gross margin decreased from 27 % to 18 % , driven by less revenue to absorb fixed costs , higher margins on the 2020 safe harbor shipments , higher input costs due to a rapid increase in commodity prices and greater freight costs resulting in part from disruptions caused by the winter storm in Texas as well as port closures and congestion . Operating expenses increased to $ 30.8 million compared to $ 17.1 million during the same period in the prior year , primarily as a result of a $ 6.2 million increase in equity - based compensation due to the transition to being a public company , $ 2.4 million of one - time costs related to our common stock