Array Technologies Inc. (ARRY) experienced a sharp 5% decline in its stock price after reporting its third quarter 2024 earnings results, which highlighted persistent challenges faced by the company despite some positive takeaways.

On a positive note, Array Technologies achieved revenue of $231.4 million, landing in the upper half of its guidance range. The company also reported improved adjusted gross margins of 35.4%, reflecting a 940 basis point improvement year-over-year. Additionally, Array Technologies delivered strong adjusted EBITDA of $46.7 million, representing 20.2% of revenue, and generated free cash flow of $43.9 million.

However, the company encountered several headwinds during the quarter. Revenue declined by 34% compared to the same period last year, largely due to project pushouts experienced this year. Array Technologies also recorded a significant $162 million non-cash goodwill impairment charge related to the 2022 STI acquisition, contributing to a net loss of $155.4 million compared to a net income of $10 million in the prior year period.