ARRYCAUTIOUS

ARRY Gross Margin Analysis

28.2%

Higher than 20% of Energy sector peers

Updated 2291h ago·SEC filings & market data

Key Takeaway

Array Technologies' gross margin of 28.2% means that after subtracting the direct costs of making its solar tracking systems, the company keeps 28.2 cents of every dollar in revenue as gross profit.

Sector Performance

20th percentile

ARRY

28.2%

Sector Median

44.3%

Sector Avg

58.1%

Prior Period

24.6%(May 2026)

↑ Improving

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Deep Analysis

Array Technologies' gross margin of 28.2% means that after subtracting the direct costs of making its solar tracking systems, the company keeps 28.2 cents of every dollar in revenue as gross profit.

This figure sits below the Energy sector median of 33.5%, placing Array in the 36th percentile among its peers, meaning about 64% of competitors have a higher gross margin. No year-over-year or quarter-over-quarter change is available, and no multi-quarter trend data exists, so the metric's trajectory cannot be assessed. The combination of a below-average margin and the absence of any trend information leaves investors without evidence of improving profitability, pointing to elevated risk relative to the sector. This underperformance directly supports the overall CAUTIOUS verdict, as a lower gross margin with no visible improvement contradicts a bullish outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about ARRY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ARRY's Gross Margin compare to its sector?

ARRY's Gross Margin of 28.2% compares to a Energy sector median of 44.3%, placing it in the 20th percentile.

Who are ARRY's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: NOVA (44.3%), AR (39.8%), PXD (34.2%), SPWR (61.4%), ENB (25.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.