ARRY

ARRY is a classic damaged-but-recovering cyclical. FY2025 revenue rebounded 40.2% to $1.28B (after the 2024 collapse from $1.58B to $916M), led by Array Legacy Operations up 62% (inclusive of the APA acquisition). Crucially, the business still throws off cash: operating cash flow was $102M against a $1.11B market cap (~11x P/OCF), and the net loss narrowed sharply to -$52.2M from -$240M. At a P/S of 0.9 the stock is priced for distress, not for a top-line growth story — which is the bull case for a hold rather than a sell.

The quality, however, is genuinely poor. Stockholders' equity is NEGATIVE -$206M against -$423M of accumulated deficit, so there is no book-value cushion and the liabilities/equity ratio is meaningless (-5.77x). Profitability is the core problem: consolidated gross margin compressed from 33% to 23%, and per the MD&A this was structural, not one-off — a 22% rise in cost-per-watt driven by 13% higher tariffs, 6% from reduced 45X amortization, and 3% inflation. The STI segment is now loss-making at the gross line (-1% margin, hit by a $29.5M inventory valuation charge), and the company has taken goodwill impairments two years running ($102.6M in 2025 after $236M in 2024), a tell that prior acquisitions were overpaid.