Array Technologies, Inc. Common Stock Investor update

Good morning everyone, and welcome. Thank you for joining us for Array Technologies APA Investor Technology Showcase. Whether you've joined us here in person or you're attending virtually, we appreciate you spending your day with us. We're excited to bring together leaders from the Array and APA teams to provide a deeper look at our business, our technology, and our next phase of growth. This afternoon, we'll also have the opportunity to visit APA's manufacturing and engineering facilities, where you'll see many of these technologies in action and meet the teams behind them. We hope today's program gives you a deeper understanding of how Array and APA are working together to deliver value for our customers and our shareholders. Before we begin, I'd like to remind everyone that today's presentation includes forward-looking statements and certain non-GAAP financial statements and measures.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to this slide, as well as our SEC filings for additional information regarding these statements and the associated risks. Let's take a quick look at today's agenda. We'll begin with remarks from our CEO, Kevin Hostetler, who will discuss how the utility scale solar market is evolving and detail the strategy behind Array's expansion into a broader Balance-as-a-System platform. Kevin will then be joined by members of our leadership team, including APA founders and leaders, Josh and Joe Von Deylen, who will provide an overview of the APA business, its product portfolio, engineering expertise, and growth opportunities. Following a short break, you'll hear from Nick Strevel and Darin Green as they discuss Array's innovation roadmap, new product development, and technical sales strategy.

Kevin will then return to close the morning presentations before we open the floor for a Q&A with members of our executive leadership team. After lunch, we'll head to APA's facilities for a manufacturing tour, engineering demonstrations, and product showcases that bring much of today's presentation to life. To get us started, I'd like to share a short video highlighting the innovation and engineering that are at the core of what we're building together.

Good morning, everyone. Can I make sure we're on the right slide? I'm sorry. Got it. Okay. Good morning, everyone. It's great to have you here with me today, and I can't tell you how excited I am to talk about the future of Array and what we have ahead of us. The backdrop for our business remains incredibly strong and incredibly compelling. Demand for energy continues to grow, driven by electrification, data centers, transportation, and growth in some of the leading industries in the world. At the same time, we recognize our customer needs are changing. Utility scale solar projects are becoming larger and more complex. Those dynamics are creating new opportunities for Array to build on our leadership and trackers, and to deliver more value to our customers across these projects.

Today, we will show you how our Balance-as-a-System strategy, or BaaS, is coming to life, and why we believe the thesis around APA is both compelling and excelling, and what it means for the opportunity ahead. I want to start with the most important message for today. Array is evolving from a pure play tracker company into a technically integrated energy infrastructure platform. This expands our project share through interoperable solutions. While tracking will always remain one of the core elements of Array and a critical source of our differentiation, we see an opportunity that extends well beyond the tracker itself to capitalize on this growing demand for energy. We are building a broader interoperable platform that brings together services, hardware, software, and complementary technologies to improve the economics and execution of our customers' projects.

Over time, that creates an opportunity to extend our capabilities into some of the rapidly growing energy adjacent areas, including battery energy storage and the build-out of AI data centers. Importantly, we are building on what has always made Array successful. That is our strengths in engineering innovation and customer partnerships. We are applying these strengths across a greater portion of our customer projects. The result is more value for our customers, greater participation in project spend, and more opportunities for us to drive profitable growth. As we move through today's presentation, there are five key ideas I will encourage you to keep in mind. First, APA is a highly differentiated strategic asset with proven synergy potential. Second, customer demand is shifting toward more integrated utility scale solar solutions that simplify our customers' execution and improve their project economics.

Third, our Balance-as-a-System strategy is expanding our addressable market and increasing the opportunity for us to capture a greater share of customers' wallet. Fourth, APA and AWM demonstrate the discipline and repeatable M&A framework that we are executing. We are focused on strong businesses with complementary capabilities, meaningful synergy potential, and experienced management teams and cultures that we know will succeed as part of Array. Finally, these pieces come together to create what we believe is a sustainable customer value, more technically integrated platform that deepens our customer relationships and supports their long-term value creation. Before we go deeper, I want to take a minute to highlight a few numbers that demonstrate who Array is and the momentum that we currently have across our business today.

As many of you in the audience know, we ended the second quarter with our third consecutive record order book of $2.5 billion, up an impressive 37% year-over-year, and with a 1.5 times trailing 12-month book to bill. Clearly, you see that our growth is outpacing that of the industry. Importantly, the quality of our order book continues to improve. 50% of the order book is now with tier 1 utilities, IPPs, and developers. This speaks to both the quality of the backlog and the strength of our customer relationships behind that backlog. Our very purposeful innovation is accelerating, and you will note that we have already launched five major new products this year. The moat around our technology is also strengthening at an incredible pace. We have 259 active patents protecting the technology in Array.

What you may not realize is that we have another 230 patents pending, with more patents filed in the last four and a half years than in the entire 30 years of Array's history prior to that combined. What I want you to take away from this slide is one word, and that's momentum. We have momentum in our order book, we have momentum with our customers, and momentum across our innovation pipeline. We believe the strategy we're discussing today gives us an opportunity to further build upon that momentum. These are the strategic priorities that we laid out at the start of the year. We've made meaningful progress across each of these. We've accelerated new product development, we've expanded in key international markets, and we continue to put customer needs at the center of our innovation and our investment decisions.

You can see that momentum in our numbers as new products now account for roughly 50% of that record order book. As we disclosed in our recent earning materials, the new products also will represent 50% of our 2026 revenues as well. Importantly, the strategy we're discussing today builds directly on these priorities and the progress we've already made. A few words about the market backdrop that we're participating in. We're operating in a significant market, and it gives us room to execute our strategy. The overall utility scale tracker market domestically represents about $4.3 billion of addressable market. As we add the foundations in fixed tilt by bringing on APA, we add another approximately $1.7 billion opportunity. AWM adds another $150 million in wire management opportunity in the U.S., and up to an additional $250 million market opportunity globally.

At the same time, underlying demand remains strong, with utility scale solar deployments expected to range between 36 and 39 gigawatts per year through 2030. Utility scale and battery storage now represent 79% of the planned U.S. electricity capacity additions this year in 2026. We're not simply participating in an attractive market, we're expanding the number of ways that Array can participate in that market and the amount we can deliver in terms of value on each project. While this slide focuses on the U.S. domestic opportunity, over time, we also see opportunities to extend APA and AWM and other parts of our existing platform faster internationally. Longer term, our ambition extends into adjacent energy infrastructure markets, where our capabilities and our customer relationships can create additional value. The reason we believe our strategy is working starts with our customers.

The size of each and every project we deliver is growing. The site environments are more diverse and much more difficult. Soil conditions are much more complex. All of this creates greater execution complexity and risk for our development partners. As a result, our customers and EPC partners are increasingly valuing solutions that reduce the number of interfaces, simplify installation and coordination, and lower their execution risk while improving their total cost of ownership. This is also an important part of differentiation for Array. Our goal is to continue to support our EPC partners, not to put a portfolio together that begins to compete with those EPC partners. We want to engineer solutions that make their jobs easier. Fewer interfaces, simpler installation, better reliability, and greater confidence in delivering their projects on schedule. This is what is meant by an integrated solution.

We're integrating our technology so customers and EPC partners can execute with more certainty and more efficiency. To be very clear, it's our customers' needs that is ultimately driving the evolution of our platform. What you see here is how we've responded to those changing customer needs over time. We've continued to innovate around our core tracker platform while deliberately expanding into complementary capabilities through both organic innovation and M&A. Late in 2024, we had a vision to create a world-class engineering and innovation center where we would relocate and co-locate engineering resources, product management, product marketing, and our technical selling resources. We also added an expanded customer experience and conference center dedicated to the rapid collection of direct voice of our customer.

Now, those of you that know Array may know that prior to this, our engineering resources and marketing resources, and frankly, we didn't have a whole lot of product management resources back then, prior to this launch, were spread throughout the U.S. We'd have pockets of engineers in Houston, in North Carolina, in Denver, in Austin, and it was really sub-optimized. We had the opportunity to bring them together into one location, increase our investment in innovation and new product development, increase the strength of those teams, and really focusing on acceleration of our new product development initiatives. It was a really simple thesis. Bring in high-performing teams, increase the investment in new product development, and drive customer-centered innovation. This is exactly what you're seeing today.