Array Technologies, Inc.

A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sarah Shepard, Investor Relations at Array. Please go ahead.

Thank you. I would like to welcome everyone to Array Technologies' third quarter 2025 earnings conference call. I am joined on this call by Kevin Hostetler, our CEO, Keith Jennings, our CFO, and Neil Manning, our president and COO. Today's call is being webcast via our investor relations site at ir.araytechinc.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. 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, the 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 documents we file with the SEC, including our most recent Form 10-K, 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. I'll begin with some highlights on the quarter and updates on our APA acquisition and our commercial momentum. Then Neil Manning, our President and Chief Operating Officer, will provide some supply chain and operational updates for the quarter. Keith Jennings, our Chief Financial Officer, will then provide detailed commentary on our third quarter 2025 financial performance and updates on our full year 2025 financial guidance. We'll open the lineup for your questions. I'll begin on slide five. We are thrilled to announce another exceptional quarter of commercial, operational, and financial performance. Our revenue reached $393 million, marking an impressive 70% year-over-year revenue growth, driven by a 56% increase in volume in the quarter. The completion of the APA acquisition midway through the quarter contributed approximately $17 million in revenues to our results. When we assess our performance from a year-to-date standpoint, we have already generated over $1 billion of revenue, surpassing our total annual revenue from 2024, and we have grown volume an impressive 74% year-over-year. This outcome highlights our team's steadfast dedication and resilience, effectively navigating the uncertain regulatory environment and fluctuating market conditions. We saw sequential adjusted gross margin improvement quarter over quarter, driven by outperformance in our ATI business. Our bottom line performance remains outstanding with significant net income improvement year over year, and an adjusted EBITDA result of $72 million. This achievement, driven by strong execution and substantial volume growth, marks our second highest quarter of adjusted EBITDA on record. Finally, our commercial momentum continued this quarter as we posted sequential order book growth and a book-to-bill ratio of greater than one. Our diverse portfolio of products, services, and software offerings continues to win, and our robust bookings are a testament to the time and effort invested in our relationships with critical Tier 1 customers. We are particularly pleased with the market's adoption of our latest new product offerings, Omnitrack, Skylink, and Hail XP. And we note that these three recently launched products already account for nearly 40 percent of our order book. It's important to note that this quarter's order book result of $1.9 billion does not yet include APA's backlog. As we continue to align and harmonize our commercial policies, we expect to add their customer orders to our metric by year end. Further, we should note that as we've taken a more conservative approach to the addition of international orders to our order book, Our quarter-ending order book represents over 95 percent domestic business. Turning to slide six, I want to briefly touch on our integration of APA and provide some exciting product and commercial updates. Although we are in the early stages of our APA integration, we are very pleased with their recent commercial progress and pipeline growth. Although only a couple of months in, we remain on schedule with our internal objectives and are seeing strong collaboration across our teams. Our priority is to maintain seamless business operations as we align processes and systematically realize synergies. As you would expect, we have taken meaningful steps to achieve our targeted procurement efficiencies by utilizing Array's scale and established supplier partnerships to drive these future benefits. We also recently introduced a unified sales strategy for customer engagement and quoting, empowering both the array and APA teams to seamlessly offer the full array and APA product portfolios. This collaboration will deliver greater optionality and value to our customers and unlock significant growth in our share of wallet and total addressable market. APA is already benefiting from array support with notable momentum in larger utility scale project opportunities across both engineered foundations and fixed tilt systems. Array's strong market credibility and bankability are unlocking new growth channels for APA, and we are actively pursuing those prospects. We are also laser focused on enhancing our competitive advantage and accelerating our strategic product roadmap. Our co-development of a suite of integrated tracker and foundation solutions is well underway, and we expect these innovative solutions for customers to be available in the second half of 2026. Finally, APA's innovation pipeline in engineered foundations and fixed tilt mounting systems remains robust and continues to position APA for sustained growth across its product categories. We look forward to sharing more color about APA's exciting strategic initiatives when we provide our 2026 guidance. Turning to slide seven, I'll focus a bit more on our recent commercial momentum and how that is translating to our expected future growth. Although some regulatory uncertainty persists this year, we continue to observe strong fundamental demand as we stay in close contact with our customers and assess their project pipelines. One indication of that underlying demand, our early stage project pipeline, has impressively achieved double digit expansion year to date. We remain committed to providing flexibility, helping our customers adapt to changing market conditions by offering a wide range of sourcing options and a broad product portfolio catered to customer feedback. We view this expansion of our funnel as a good indication of our momentum as we close out the year and head into 2026. Our ongoing commitment to customer engagement continues to enhance both the quality and mix of our order book. This year, we have connected with over 300 customers and industry partners through array days and insurance forms, and we continue to receive outstanding feedback on our enhanced customer engagement. As we strengthen our partnerships with major Tier 1 customers, we're increasingly engaging in conversations around larger volume commitment agreements, fueling our optimism for 2026 and beyond. A recent proof point is our Q4 award of a multi-year, multi-gigawatt portfolio with an independent power producer underscoring the momentum behind our growth strategy. By clearly communicating the value proposition of our product portfolio, We have deepened customer understanding of the advantages that our unique and patented technology delivers, particularly in reducing LCOE and mitigating severe weather risks. The strong demand for our latest products is evident, with these offerings now representing 40 percent of our total order book for this quarter, as previously noted. Alongside this rapid new product adoption, our SmartTrack software deployments have accelerated significantly. In fact, the number of active installations for hail alert response and backtracking and diffuse underway now exceeds our entire historical installed base, and we expect this traction to continue. Looking ahead to 2026 and beyond, we remain highly optimistic about the demand environment. For next year, we anticipate delivering both organic growth within our core array business and inorganic growth with the integration of APA. This outlook is underpinned by a robust order book and our improving book-to-bill momentum. While it is still early in the fourth quarter, we expect to finish the year with strong bookings and further order book expansion. Notably, our current order book is predominantly comprised of domestic projects, reflecting verbal awards and contracts with high-quality customers. Internationally, we are making steady commercial progress in our selected targeted regions. Importantly, as noted earlier, we have taken a cautious approach regarding the inclusion of international verbal awards in our order book to mitigate any potential risk of de-bookings. We look forward to providing updates on these pivotal projects when we give a more fulsome update on our 2026 guidance. Overall, the progress achieved this year reinforces our confidence as our commercial engine is operating at full strength, our new products which originated from direct customer engagement are delivering, and our supply chain organization is providing the ultimate flexibility for our customers in a time of uncertainty. These factors are producing strong year-over-year growth in revenues and volumes. I'll now turn it over to Neil to discuss some important supply chain updates.

Thank you, Kevin. Let's turn to slide eight. I'd like to provide an update on our supply chain performance and how we're navigating the evolving tariff landscape to deliver strong results for our customers and shareholders. Our team has proactively executed a flexible supply chain strategy that's focused on optimizing costs and maintaining high service levels for our customers. As you know, the global tariff environment remains highly uncertain and dynamic, with new regulations and rate changes emerging across multiple regions on almost a weekly basis. Our approach centers on resiliency and adaptability. We source from over 50 domestic and 100 international suppliers, giving us the agility to optimize our bill of materials between domestic and imported components to meet the specific needs of our customers. This flexibility allows us to offer our 100% domestic content tracker for treasury guidance, leveraging over 40 gigawatts of U.S. supplier capacity. This also allows us to optimize incentives and routings to drive the lowest landed cost and best outcome for our customers. For example, when customers don't require domestic content, in some cases, it remains optimal to import a particular component and pay the tariff to attain the lowest landed cost for a project. With the opening of our new and expanded Albuquerque facility and the addition of APA's Ohio manufacturing, which we also intend to expand, our domestic capabilities continue to strengthen. We're exploring optionality for enhanced manufacturing geographies to offer greater flexibility to our customers between our domestic locations. The key factor shaping our supply chain strategy this year has been the Section 232 tariffs on steel and aluminum. These tariffs have significantly increased costs for imported steel and aluminum products, sometimes doubling the tariff rate on certain goods. Further, the imported steel and aluminum tariffs created headroom for domestic steel and aluminum suppliers to raise their pricing numerous times throughout 2025. For example, steel peaked at more than 35% higher since January 20th, inauguration day, and now sits roughly 17% higher. Our team has responded by negotiating tariff relief for the suppliers, leveraging domestic sourcing, and utilizing USMCA derivative rules to minimize exposure. As part of our longstanding US-centric supply chain strategy, we've historically supplied the majority of our torque tubes domestically, with some exceptions for West Coast projects. However, now, just about all of our torque tubes and stampings have transitioned to U.S. suppliers, and we're on track to onshore dampers by the end of the year. These actions have resulted in cost avoidance, risk mitigation, and further limited our exposure to tariff impacts. Additionally, many onshore components qualify for 45X IRA credits that further enables our domestic manufacturing and supply chain. When it comes to tariffs overall, our strategy is both active and forward-looking. We maximize our scale to drive cost and lead time optimization, and we've negotiated tariff pass-through agreements with certain suppliers to streamline recovery processes. Tariffs are now incorporated into our upfront quotes, ensuring transparency and predictability for our customers. Through these efforts, we've continuously reduced our tariff exposure, now expecting by the end of the year, less than 14% of a typical bill of materials to expose to tariff impacts. For example, our onshoring initiatives are expected to reduce our exposure to India by roughly 50% by year end. Additionally, we have achieved significant cost avoidance through supplier negotiations in Mexico and Thailand, allowing us to continue to flex between U.S. and international sources to ensure the lowest landed cost for our customers. Our supply chain team has demonstrated exceptional agility responding to tariff changes, negotiating relief, and capturing value for array. Proactive supply chain strategies and robust tariff management have enabled us to navigate a complex market environment, limit the impact of tariffs, and deliver on our commitments to customers. With that, I'll now turn over to Keith to provide more details on our third quarter results. Keith?

Thank you, Neil. Good afternoon. I will begin on slide 10. We had an exceptional third quarter. Revenue was $393 million, representing growth of 70% above the prior year quarter and 9% sequentially. Our recently closed acquisition of APA contributed $17 million, and we had approximately $30 million of pull-ins from the fourth quarter into this quarter. As Kevin noted, our 2025 year-to-date revenue of over $1 billion has surpassed the full year 2024 revenues of $960 million, staying on track to post an outstanding year. Our continued sustainable growth will be supported by the ability to drive volume, optimize geographic focus, and our business mix, along with contributions from the acquisition of APA. Sequentially, ASPs were higher in both our ATI and SDI segments, aligned with the forecasted effect of rising commodity prices experienced earlier in the year. Delivered volume measured in megawatts of generation capacity for the quarter increased by 56% over the prior year quarter, continuing our strong momentum with year-to-date volume up an impressive 74% over the prior year. In the third quarter, adjusted gross profit increased 35% year-over-year to $111 million, representing an adjusted gross margin of 28.1%. The net effect of the revenue pull-in from the fourth quarter was about $9 million of adjusted gross profit and $0.04 of EPS pulled forward. When compared to the prior year, gross margins declined primarily due to the fall-off of the prior year 45x amortization benefit, commodities inflation relative to ASV increases, and approximately 110 basis points of tariff drag in the quarter. Sequentially, Adjusted gross margin improved by 30 basis points, primarily due to a higher mix of domestic projects and ASB improvements to product mix with an offset from lower international shipments primarily in Brazil. APA also had a slight diluted impact on overall adjusted gross margin in the quarter of about 20 basis points. Anticipated 45x benefits and the outcomes of our supply chain synergy initiatives are expected to provide ample opportunity to transition this to an accretive impact in the near future. Adjusted SG&A was $39 million, just under 10% of revenues. This rate compares favorably to the adjusted SG&A of $36 million in the third quarter of 2024, which was 15.5% of revenue. We continue to achieve operating leverage from top-line growth through our relentless focus on operational efficiency and process improvement while making meaningful investments in the customer-facing touchpoints. Adjusted EBITDA was $72 million, with an adjusted EBITDA margin of 18.3%. This represents 55% earnings growth when compared to adjusted EBITDA of $47 million and adjusted EBITDA margin of 20% in the third quarter of 2024. Sequentially, adjusted EBITDA earnings grew 14% with adjusted EBITDA margin improving 80 basis points driven by the mixed shift towards higher ASB domestic sales. Gap net income attributable to common stockholders in the third quarter was $18 million compared to a net loss of $155 million in the prior year. Sequentially, net income declined $10 million from the second quarter of 2025, which included the additional gain from repurchasing a portion of our 2028 convertible notes at a discount last quarter. Diluted income per share was $0.12 compared to the diluted loss per share of $1.02 in the prior year, which was primarily driven by the goodwill impairment taken in the quarter. Adjusted net income was $46 million, 73% growth above the $26 million in the third quarter of 2024. Adjusted diluted net income per share was $0.30 compared to $0.17 in the prior year and $0.25 in the second quarter. During the quarter, net cash generated by operating activities was $27 million. Net cash used for investing activities in the quarter was $170 million, primarily driven by the acquisition of APA and the ongoing investment in our new Albuquerque manufacturing facility. Free cash flow for the period was $22 million, bringing the year-to-date total to $44 million and generally in line with our seasonal expectations. Slide 12 provides an update on our leverage and liquidity position following the completion of the APA solar acquisition in the quarter. We ended the quarter with $222 million in total cash on hand and total liquidity of over $365 million, including availability under our undrawn revolver. We ended the quarter with a net debt leverage ratio of 2.1 times trailing 12 months adjusted EBITDA. Our exceptional agility and strong balance sheet position us well to capitalize on emerging opportunities and drive sustained growth, giving us greater confidence in our future performance. Finally, on slide 13, we have updated our full-year 2025 guidance. Given our strong performance and the inclusion of APA, we are raising our full-year revenue guidance and updating midpoints on several key indicators. full-year 2025 revenue within the range of $1.25 to $1.28 billion, increasing the midpoint of our range by over $60 million, inclusive of approximately $50 million of revenue from APA. We expect adjusted gross margin within the range of 27 to 28 percent. This includes the negative impact of accounting for tariff pass-through gross margin dilution from APA, delayed international project commissioning pushing on high margin software revenues, and inflationary pressures impacting both inventory and logistics costs. Adjusted G&A is expected to range between $160 to $165 million, primarily due to the inclusion of the APA business and our incremental investments ahead of the anticipated growth in 2026. Adjusted EBITDA is expected to range between $185 and $195 million, with adjusted diluted earnings per share forecasted to be in the range of $0.64 to $0.70. Free cash flow is expected to come in at approximately $100 million for 2025, slightly lower than previously expected, primarily due to acquisition-related expenses and timing of some 45X collections and customer deposits shifting into 2026. Capital expenditures are now expected to be approximately $20 million and primarily driven by project timing at our new Albuquerque facility. Looking ahead, we are exceptionally well positioned with approximately $1.9 billion of backlog, added capabilities to seize new opportunities, deliver industry-leading growth, and create lasting value for our shareholders. Thank you for your time today. Now back to Kevin for closing remarks.

Thank you, Keith. To sum up, this quarter's results reflect our team's disciplined execution and our ability to adapt and lead in a dynamic market. With our strong financial position, robust and increasing order book, and ongoing innovation, we remain confident in our strategy and our capacity to deliver sustained value going forward. Thank you for your continued support And with that, I'll now open the call for your questions.

Operator?

Thank you, sir. We will now be conducting a question and answer session.

If you would like to ask a question, please press star 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 note, participants are limited to one question at a time. The first question that we have today comes from Mark Strauss of JPMorgan Chase & Co. Please go ahead.

Yes, good afternoon. Thank you very much for taking our questions. The first one, Kevin, I appreciate your comments about continued growth in 2026. But just with another couple of months under your belt since RE Plus, I'm just curious if you can kind of paint a picture for us how you're thinking about the next several years now with Safe Harbor out of the way. Thank you.

Yeah, I think, Mark, we're returning to a period of more normalized flow of business at this point. As I made many comments at RE Plus about me not expecting this big windfall of Safe Harbor. We really didn't expect that. As our order book has changed over the last couple of years to have many, many more Tier 1 customers, we made the comment last quarter that over 50% of the order book is what we would call Tier 1. And at that point, these Tier 1 customers have already safe harbored through 29 and 30. So we didn't expect this influx of safe harbor. So the orders we're receiving now are much more normalized demand for the next couple of years. And we feel that's a much better position to be in. We feel that's back to kind of a historical norm rather than have any, um, you know, any artificial pull in or pull forward, uh, driven by regulatory issues. So we feel really good about what we're seeing. We feel really good about our win rate. Um, you know, the, the commentary I made about the multi gigawatt multi year piece, and there's a great example that to be clear, that's not in the backlog or order book, uh, at this point. for the numbers we've reflected, that $1.9 billion was as of the end of Q3. And while we endeavored to have that land in Q3, we certainly didn't want to push the customer too hard. We were able to get that landed here in Q4. So we feel really good about that type of momentum and the fact that we're winning larger orders and more bundles of orders at this point.

Okay. I might follow up on that one offline. Keith, the implied 4Q guide for EBITDA margins a bit lower than history. You talked about some of the factors that are influencing that. I'm just curious. I know you're not going to give formal 2026 guidance yet, but kind of looking a bit further beyond 4Q of 2025, how should we think about the cadence of EBITDA margin? Thank you.

Hey, Mark. Thank you for the questions. 4Q

is i would call it a drop quarter um it is affected primarily by lower revenue volumes than anything else um and so you know with that we are losing a bit of p l leverage uh in the quarter i would at this point um you know say that we are very happy with how the year is shaping up and how the full year guidance is um holding from where we've guided it in q3 and earlier and then added apa um in terms of how we are looking forward i would say that um aligned with kevin's comments about our confidence in the order book uh when i look at it uh i i i looked at it this morning and i was surprised not surprised but it was a confirmatory uh view that greater than 50 of the order book is now not EPCs, which means that our expansion into different customer base, IPPs, utilities, and developers are taking hold. And so I think that when I think about the margin profile going into 2026, I think where we will close this year is something that we will try to find good opportunities to hold. So we are guided towards

27 20 to 28 on the full year I I can't think of any reason other than you know massive inflation and tariffs that could um you know pull us off that trajectory right now I think Mark one of the things I'll add to that just to explain the cyclicality if you go back historically you know array when you have a disproportionate focus on North America you have your build season is Q2 and Q3 when we're shipping Those are typically the highest quarters, and then you slow down going into winter. What is different in the last couple of years is we had STI Brazil, which was our second largest operating segment. And when you think about that, their construction is counter-cyclical to North America, right? So that always added to our Q4 and Q1. As Brazil is not operating on full cylinders due to all the issues we've talked about on previous calls, right? you don't have that additional layer to buoy up Q4 and Q1. So then you're really focusing on disproportionate North American business in Q4 and Q1, which has that cyclicality before the big build in Q2 and Q3, which, again, you've known our business for several years. That's much more akin to the historical flow of the business and to the North American construction season.

Thank you. Thank you.

The next question we have comes from Joseph Osha of Guggenheim Securities. Please go ahead.

Thank you and congratulations on the solid quarter. Two questions. First, am I doing my math right in understanding that, you know, essentially adjusting for APA, you've added about $10 million in, you know, non-APA revenue to your guide for the year? Am I getting that right?

Hi, Joe. This is Keith. Yes, you're getting that right.

Okay. And did I also hear that you had about $30 million in tracker revenue come from what you'd expected from Q4 into Q3?

Yes.

Okay. Thank you.

So that kind of puts more pressure on Q4 in terms of margins.

Just getting my puts and takes right. Other question, I don't imagine you want to give a number, but doing some math, and thinking about this multi-gigawatt award that you just talked about, can we fairly say that we can perhaps expect this $1.9 billion visibility number to be up again as we enter 2026? Thank you.

That is our expectations internally thus far.

Yep. Okay. Well, now it's external, too. Thank you very much.

You're welcome. And Joe, you should also adjust for the fact that we don't have APA in the $1.9 billion at this time. So as we conform policies, that should also add to the backlog by the end of the year.

You know, let me just make... And let me just, while we have the questions on order book, I just want to make a couple of points perfectly clear. So... As Keith talked about, the quality of our order book has really improved so that that 1.9 is not the same as a 1.9 a year ago for a few factors. The first is the higher percentage of Tier 1 customers, as Keith alluded to. We won't give the exact percentage, but it's continuing at greater than 50% now. And those customers already have strong safe harbor strategies. So the likelihood of pushouts and delays or interconnect issues goes down, the more we're going direct to utilities, direct to IPPs, et cetera. The second thing is we've noted it, and I want to make sure we recognize it, is the higher concentration of domestic content. You know, we experienced in Q1 and Q2 this year some of those. We had to introduce a term of net bookings because of de-bookings as projects got delayed, and we held to our rules of what would go into the order book, in particular in Brazil. So we took the approach of keeping those orders on the sideline and treating them much more like book and turn business. What I mean by that is as we really see that that is about to ship and go, we'll treat it as book and turn. And as such, it's a higher quality order book because the likelihood of de-bookings is very much diminished at that point. We just talked about the fact that APA is not yet included, but will be in Q4. And again, Joe, we've giving you that strong signal that we do expect additional backlog to build in Q4. So all in all, we feel very pleased with our order book results here in the quarter and what we expect between now and year end.

Excellent. Thank you.

Thank you.

Ladies and gentlemen, just a reminder, if you would like to ask a question, please press star and then one now. Please note, participants are limited to one question at a time. The next question we have comes from Julian Dumoulin-Smith of Jefferies. Please go ahead.

Hey, team. How are you guys doing? We're doing good. Doing good, Julian.

Excellent. Thanks so much for the time. I appreciate it. Look, I just wanted to follow up a little bit. Let's start with a little bit of macro and then we'll do micro. Look, your peer is talking about doing some diversification Your peer and e-boss is talking about expanding the scope of their business. How do you think about your venture or journey into expanding the scope of your business? Obviously, you guys do this APA. You're talking about foundation here. But any venture to kind of expand the scope here or for the time being, let's get this core product right and sell it even more appropriately?

Yeah, I think what we... Let me address the let's get this core product right. I think we've done that over the last couple of years with our new product. And to give you the signal and show you the chart of how much our new products are hitting the sweet spot of the market is pretty significant. If you would have told me when we launched them two years ago that within two years we'd be at over 40% of our backlog be those new products, that would be deemed an incredible success. So we're really pleased with that. We will continue to look at how we increase the share of our customers' wallets. in particular focusing under the panel. And what I mean by that is not the panel. But there's a larger ecosystem there that we can work with, both in terms of partnering, venturing together, as well as either acquiring or internally developing other components that would be utilized under the panel to increase their share of wallet. That's been a consistent strategy here for two years.

We're going to continue to execute on that. Excellent.

And can I really go back to the question about this integrated foundation solution? I mean, can you talk a little bit about early client, um, interest and, and, and potential bookings, but more importantly, can you talk about what it costs to get there and the margins, um, potential on this product, right? If you can elaborate again, I know it might be a little sensitive, but to the extent possible, the CapEx or dollars required to get there as well as kind of the margin profile as best you can donate it.

So, um, minimal in terms of additional investment to get there. And to be clear, how we got to the APA from an acquisition standpoint was that we were engaged in co-development of this product prior to completing the acquisition. So this is something we started well over a year ago. I think it's fair to say the designs are done. We're in tooling at this point to be able to put soft launch in the first half of next year and hard launch in the second half. So we're fairly far along. And to be clear on what we're doing is when you have the A-frame right now, you have a very large, heavy chunk of steel, which is an interface required to interface with ours. Every one of our competitors' tracker systems requires an interface as well. And what we're doing is adapting the A-frame so that the top of that A-frame, instead of requiring a very large, heavy, expensive steel interface, just becomes the base interface. or our tracker torque to. I think it's a very strong play. It creates an incredible set of economics for our customers, and then it begins to bring the engineered foundations from a cost point down to be incredibly competitive with standard piles at that point. So you're able to then be able to achieve an engineered foundation solution for non-engineered foundation pricing, if you will. It will have a degree of interoperability that I think is superior, take weight out of the product, take steel costs, all of the above. So we're really excited about it. I think it's fair to say we're fairly far along in that journey, and we expect to be able to put some of that into the ground in the first half a year. We have some test sites identified, and then we'll go forward from there and open it up for sale in the second half.

And then just a couple of comments on the traction.

Look, one of the biggest things we need to add in SG&A in Q4 is additional, you know, good news is additional sales resources within the APA business. We currently have seven open recs for sales, design, engineers, just to handle the influx of inbound orders we're receiving now, inbound quotation requests. for the combined solution between APA and array.

So it's getting quite exciting for us. Thank you, guys. Appreciate it.

Thank you. The next question we have comes from John Windham of UBS.

Please go ahead.

Hey, Greg. Congratulations on the quarter. Thanks for taking the questions. I just wanted to just get some more thoughts or commentary around the international business. and if there's any opportunity to manufacture domestically in the U.S. for export. Thanks. Appreciate it.

Yes, I'll take international. So we're pleased with our year-to-date progress.

You look at Brazil, despite the challenges that Kevin referenced there.

Ladies and gentlemen, please remain on line. The speakers will rejoin us momentarily.

Ladies and gentlemen, please remain online. The speakers will rejoin us momentarily.