Should you sell your Array Technologies stock?

Roth Capital Markets analyst Philip Shen says Array Technologies’ (Array Technologies Stock Quote, Chart, News, Analysts, Financials NASDAQ:ARRY) acquisition of Affordable Wire Management adds a high-margin platform, but he remains cautious on the company’s ability to deliver consistent growth and margins.

In a July 17 update, Shen maintained his “Neutral” rating on Array and lowered his target to $6.00 from $9.00

Array announced July 16 that it will acquire Affordable Wire Management for about $203-million, or about nine times trailing EBITDA. Shen said he views the deal favourably because it adds a capital-light wire management and electrical balance-of-systems platform that increases Array’s utility-scale solar wallet share while creating opportunities in battery storage and data centres.

“Overall, we like this acquisition for ARRY,” Shen said.

Affordable Wire Management operates in a concentrated part of the utility-scale solar market. Shen said the segment is dominated by two companies, AWM and privately held CAB Solar, supporting strong margins. He estimates AWM’s trailing EBITDA margin is about 38%, compared with Array’s corporate margin of about 15%.

“The acquisition is expected to broaden ARRY’s eBOS portfolio and wallet share, establish new growth vectors in BESS and datacenters, and layer in a differentiated, high-30s EBITDA margin product line,” Shen said.

The deal includes a base purchase price of about $153-million, plus up to $50-million in additional consideration tied to continued employment and 2026 to 2028 EBITDA targets. It is expected to close in Q3 2026 and will be funded with cash on hand.

Management expects the acquisition to be high-single-digit accretive to adjusted EPS in the first year before synergies. Potential synergies include procurement, application engineering, cross-selling, international expansion and integrated product offerings.

Shen said the deal could expand Array’s global addressable market by $200-million to $250-million, including a U.S. cable management opportunity of about $150-million annually. AWM already has traction in battery storage and data centre applications, including its first data centre backlog order.

“Trading at about seven times consensus 2027 EBITDA, we maintain our Neutral rating until investors have confidence in ARRY’s ability to deliver both growth and higher/stable margins,” Shen said.

Shen expects Array to generate Adjusted EBITDA of $213.1-million on revenue of $1.45-billion in fiscal 2026, improving to Adjusted EBITDA of $228.4-million on revenue of $1.54-billion in fiscal 2027.

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