Q4 2023 Array Technologies Inc Earnings Call

March 21, 2023

To ask a question press star one on your telephone keypad, a question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Cody Mueller Mueller Investor Relations at array. Please go ahead.

Good evening and thank you for joining us on today's conference call to discuss our Ray technologies fourth quarter and full year 2022 results.

Slides for today's presentation are available on the Investor Relations section of our website a rate ticking dot com.

During this conference call management will make forward looking statements based on our current expectations and assumptions, which are subject to risks and uncertainties.

Actual results could differ materially from our forward looking statements if any of our key assumptions are incorrect.

We identify the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission.

Which can also be found on our Investor Relations website.

We do not undertake a duty to update any forward looking statements.

Today's presentation also includes references to non-GAAP financial measures.

You should refer to the information contained in the Companys fourth quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures.

With that let me turn the call over to Kevin Hostettler array technologies, Chief Executive Officer.

Thanks, Cody and welcome everyone.

In addition to Coty I'm also joined by Nipple Patel, our Chief Financial Officer, and Eric <unk>, Our Chief commercial officer.

Let's begin on slide four while I will provide some highlights of our fourth quarter and full year results.

We closed out 2022 with continued strong performance as revenue adjusted EBITDA and adjusted EPS were all above the midpoint of our previously issued full year guidance.

Despite the continued module availability challenges and a number of site closures due to weather late in the year we.

We were still able to deliver revenue in the quarter of $402 million.

This represents an increase of 83% from prior year's fourth quarter of which 22% was organic growth within our legacy array segments.

This puts our full year revenue at $1 billion $638 million.

Which exceeds the high end of our guidance range for the year and represents organic growth of nearly 50% and total growth of 92% from 2021.

It is important to take a minute and put that growth in context.

2022 was a year marked with consistent module availability challenges from W. Rowe and the beginning of the year to CBD in the spring and summer and finally, the <unk> in the second half of the year.

The design of our tracker system, where we do not require pre drilling into the torque tube allowed our customers to make more flexible approach to the design of their sites in close conjunction with our applications engineering team.

In instances, where module availability was unknown during the design process.

<unk> was able to support customers by designing a site with multiple module options.

This ensured that as soon as modules became available time to install was greatly reduced.

This is a testament to not only the unique design of our products, but also to our in house engineering expertise.

As I move down to gross margin I am happy to report that the fourth quarter. Our total company gross margin was 20%, which represents over a 1500 basis point increase from the fourth quarter of last year and as well within the high teens to low twenties benchmark, we established as an exit point.

For 2022.

This brings full year gross margins to 13, 9%, which is a 420 basis point increase from the prior year gross margin of nine 7%.

Almost two years ago, when our company felt the impact of the rapid rise in commodity prices, we move quickly to change the way that our business operates to minimize the potential future impact of rapidly escalating commodities.

We also outlined our path to get back to our historical gross margin profile.

This quarter marks an important closeout to that journey as we are finally back into the range that we would expect as a baseline gross margin for the business.

As we move into 2023 and beyond I'll be happy to no longer address the impacts of those legacy priced contracts to our gross margin.

On the back of the volume growth and improved profitability adjusted EBITDA for the quarter grew to $52 million up from half a million in the prior year.

And for the full year grew to $129 million.

Hep from $43 million in 2021.

This means our adjusted EBITDA in the fourth quarter of this year was higher than the full year in 2021.

This is an indication of just how far our company has come in a short period of time.

Finally, we delivered $131 million of free cash flow in 2022 anchored by $86 million in the fourth quarter alone.

The results here are indicative of our intense focus on both improving our profitability and our working capital efficiency.

As we wrap up 2022 and move into 2023, we do so with a lot of momentum.

Our growth is undeniable.

We have the largest market share in the U S, which will have significant volume gains in the coming years.

Our margins are the best in the industry and we have solidified our balance sheet and liquidity to position us for future growth.

Now, let's move to slide five to talk a little bit more about future growth and the state of the industry. Both here in the U S and in the rest of the world.

Starting first the more near term outlook here in the U S.

Our volume outlook for 2023 still supports a healthy level of growth. Despite ongoing uncertainty in a couple of areas first the <unk> has shown some recent positive signs of improvement, but the fact remains that module availability is still a concern to our customers until we get to a more final.

<unk>.

We will continue to approach forecasting the impact to us in a similar fashion as before.

Assuming a slightly slower conversion of projects as we work to offer flexible solutions to our customers.

And second the timing of demand acceleration from the implementation of the IRA domestic content provision.

Projects are still moving forward and what we would say is a status quo manner.

Meaning we have not yet seen an acceleration of new projects, but are still seeing a steady level of order activity as demonstrated by the roughly $500 million in.

Orders received in Q4.

While there are some other dynamics at play here like permitting labor availability et cetera. The main feedback we get is that there needs to be clarification from the department of Treasury on what qualifies as domestic content under the IRR.

For developers that have some flexibility in their project timing it is worth waiting to ensure they maximize the returns from this provision.

Once we do have resolution in this provision we would expect to see order activity increase.

On the manufacturing credit side, we remain consistent with our belief that there is a roughly 15% of the overall tracker price worth of value in these credits.

This estimate does not include our clamping solution, which is included in the final guidelines would be an incremental benefit.

However, we still do not know the timing of when the credits can be applied for and what the ultimate transferability will be.

Because these credits are retroactive applicable to January 1st of this year, we certainly expect some benefit from these credits, but we cannot yet estimate what the value will be or where it will show up in our financial statements.

Due to the uncertainty in these two areas. We have made the determination not to include any potential direct benefits from the IRA to our profitability and our 2023 guidance range.

When we do receive more clarification, we will provide as much transparency as we can into the financial impact to array.

As we look past 2023, there are a couple of observations that I believe are important to point out.

As has been true for a while now the long term demand health in the industry remains incredibly strong.

We expect that solar energy will become a 50 state solution and then it will lead to an increase in the geographic diversity of the sites that will be built.

This means more challenging to rain and weather conditions will become the norm not the exception.

For tracker companies it will be increasingly important to offer a diverse set of products in order to maximize the site's energy output.

And the next slide I will outline how exactly we are going to do that at array.

Finally, with the level of transparency and sharing of benefits that will occur in the industry due to the IRA.

It will be difficult for industry participants to maximize their returns with transactional relationships.

Long term partnerships across the supply chain will be key and we are confident that the strategic relationships. We have built over years and years will enable us to maximize our benefits under the spill.

If we shift towards our non U S business. There was also a lot to be excited about.

In Brazil, we expect to see a strong 2023 as many large utility scale projects move forward post election.

This will augment our already strong distributed portfolio in that region to help deliver healthy growth.

Another bright spot for us is in Australia.

We just announced our VR to.

To win on the Glen <unk> Wind project, which was predicated on being able to provide locally sourced products.

It is important to note that we were the first tracker company to establish this local content footprint, which we expect will allow us to take advantage of the growth in this region over the coming years.

Western Europe continues to see steady installations, but we have yet to see a true catalysts for growth like the IRA here in the U S.

With the energy dynamics in the region. It is hard to imagine that accelerating growth in the utility scale solar is not coming but until it does we expect relatively tempered growth in the near term.

And finally, we are constantly evaluating new geographies.

But we will continue to do so in a methodical and disciplined way.

During that any market, we get into is one where we have a strong value proposition and that we can maintain the strength of our margin profile.

Being successful in this expansion both in the U S and outside of it will be highly dependent on products and services, we can offer to our customers.

If we turn to slide six I'd like to provide some additional color into our portfolio of offerings.

With our announcement late last year to additional product offerings omni track and the <unk> availability for the U S market, we offer our customer a broad set of trackers.

With our flagship <unk> product, we are still the only track a provider who can offer up to 32 linked rose thanks to our patented driveline.

This remains a key competitive differentiator as it allows for far fewer parts than other independent Ro systems, which means lower operating costs over the life of the project.

Based on the Dura attract architecture, we also launched our terrain following tracker omni track late last year.

We are currently quoting for deliveries late in 2023.

Omni track allows for up to 1% North south slope change in the torque tube, which is best in the industry.

What that means practically is that we can greatly minimized or even eliminate the need to do site preparation work.

This benefit is becoming increasingly important to our customers as sites move to regions of the U S were flat land is not commonplace.

As an added benefit it also reduces permitting costs and is more environmentally friendly as the natural landscape does not have to be disrupted.

And finally with the introduction of the 8% to 50 into the U S market. We now offer a tracker, which can be optimized for smaller or more irregular shapes, where a customer may not get the full benefit of darrow tracks linked Roe architecture.

This allows us to target projects that may not have previously fit our criteria for profitability effectively increasing our available market here in the U S. While still being able to maintain our target gross margin.

Cutting across the tracker portfolio is our smart track software suite.

We have already deployed our backtracking in diffuse light versions of this software to multiple gigawatts of projects.

But as we move into 2023 I'm happy to announce that we will expand the capabilities of this software to provide even further benefit to our customers.

Here in the next few months, we will introduce smart tracks whether response.

This upgrade will allow the tracker to connect directly to our local weather provider in order to anticipate and adjust to upcoming severe weather events, namely hail and snow.

For hailstone, it will put the tracker and the best defensive position to minimize any damage to the modules.

For snow Stowe, It will put the modules at a maximum tilt to minimize the amount of snow load that accumulates on the tracker at any given time.

But as we move into 2023 I'm happy to announce that we will expand the capabilities of this software to provide even further benefit to our customers.

This will allow a site to be designed with fewer foundations and lowers the strength required in a module mounting interface.

Here in the next few months, we will introduce smart tracks whether response.

These updates further strengthen our software offering and our value proposition to our customers.

This upgrade will allow the tracker to connect directly to our local weather provider in order to anticipate and adjust to upcoming severe weather events, namely hail and snow.

With that I will turn the call over to nipple.

Thanks, Kevin.

Please turn to slide eight.

Revenues for the fourth quarter increased 83% to $402 1 million compared to $219 9 million for the prior year period, driven by higher Asps on our <unk> product and the acquisition of STI.

For hailstone, it will put the tracker in the best defensive position to minimize any damage to the modules.

For snow Stowe.

It will put the modules at a maximum tilt to minimize the amount of snow load that accumulates on the tracker at any given time.

The $402 million in revenue reflects $269 million from the legacy of Res segment and $133 million from the STI segment.

This will allow.

To be designed with fewer foundations and lowers the strength required in a module mounting interface.

Gross profit increased to $80 5 million from $10 3 million in the prior year period, driven primarily by an increase in volume from the acquisition of Sci as well as ASP growth in our legacy <unk> segment.

These updates further strengthen our software offering and our value proposition to our customers.

With that I will turn the call over to <unk>.

Thanks, Kevin.

Please turn to slide eight.

Gross margin increased to 20% from four 7% as the legacy array segment had minimal impact from our legacy priced contracts. In addition to strong margin performance in our STI segment.

Revenues for the fourth quarter increased 83% to $402 1 million compared to $219 9 million for the prior year period, driven by higher Asps on our <unk> product and the acquisition of STI.

Gross margin for the legacy array business was 18, 2% and the SDI business had gross margin of 23, 8% in the quarter.

The $402 million in revenue reflects $269 million from the legacy array segment and $133 million from the STI segment.

Operating expenses increased to $64 2 million.

<unk> to $30 3 million during the same period in the prior year.

The higher expense is primarily related to a $24 7 million increase in amortization expense related to the Sci acquisition.

Gross margin increased to 20% from four 7% as the legacy array segment had minimal impact from our legacy priced contracts. In addition to strong margin performance in our STI segment.

The remaining increase represents the additional operating expenses from the <unk> business as well as higher head count related costs to support the company's growth and innovation.

Net loss attributable to common shareholders was $17 3 million compared to a net loss of $32 1 million. During the same period in the prior year and basic and diluted loss per share was <unk> 11, compared to basic and diluted loss per share of 24 during the same period in the prior year.

Gross margin for the legacy array business was 18, 2% and the SDI business had gross margin of 23, 8% in the quarter.

Operating expenses increased to $64 2 million compared to $30 3 million during the same period in the prior year.

<unk>.

Adjusted EBITDA increased to $51 7 million compared to 453000 for the prior year period.

The higher expense is primarily related to a $24 7 million increase in amortization expense related to the Sci acquisition.

Adjusted net income increased to $15 million compared to adjusted net loss of $7 8 million during the same period in the prior year and adjusted basic and diluted net income per share was <unk> <unk>.

The remaining increase represents the additional operating expenses from the SDI business as well as higher head count related costs to support the company's growth and innovation.

Compared to adjusted diluted net loss per share of <unk> during the same period in the prior year.

Finally, our free cash flow for the period was $85 7 million versus a use of cash of $98 5 million for the same period in the prior year.

Now turning to our full year results on slide nine.

Year.

Adjusted EBITDA increased to $51 7 million compared to 453000 for the prior year period.

Revenue for the year increased 92% to $1 64 billion compared to $853 3 million for the prior year driven by an organic increase of $414 6 million or <unk>, 49% attributable to both an increase in the total number of megawatts shipped and an increase in ASP.

Adjusted net income increased to $15 million compared to adjusted net loss of $7 8 million during the same period in the prior year and adjusted basic and diluted net income per share was <unk> 10.

Yes.

Revenue growth was also driven by the acquisition of STI, Norland, which contributed revenue of $369 7 million.

Compared to adjusted diluted net loss per share of <unk> during the same period in the prior year.

Finally, our free cash flow for the period was $85 7 million versus a use of cash of $98 5 million for the same period in the prior year.

In 2021, we shipped nine six gigawatts at an average selling price of $8 eight per watt.

In 2022, we shipped 14, four gigawatts at an average selling price of $11 three per watt.

Now turning to our full year results on slide nine.

Gross profit increased to $227 3 million.

$82 9 million in the prior year driven by the increase in volume both from the acquisition of Sci as well as our organic growth.

Gross margin increased to 13, 9% from nine 7% driven by a larger portion of higher price contracts and the addition of STI.

Okay.

Revenue growth was also driven by the acquisition of STI, Norland, which contributed revenue of $369 7 million.

Operating expenses increased to $245 4 million compared to $107 6 million in the prior year.

In 2021, we shipped nine six gigawatts at an average selling price of $8 eight per watt.

In 2022, we shipped 14, four gigawatts at an average selling price of $11 three per watt.

Higher expenses, primarily related to a $74 $7 million increase in amortization expense related to the SGI acquisition.

Gross profit increased to $227 3 million from $82 9 million in the prior year driven by the increase in volumes both from the acquisition of STI as well as our organic growth.

The remaining increase represents the additional operating expenses from the SDI business as well as higher head count related costs to support the company's growth and innovation as well as higher professional fees related to the acquisition of STI and increase in legal and audit fees.

Gross margin increased to 13, 9% from nine 7% driven by a larger portion of higher price contracts and the addition of STI.

Net loss attributable to common shareholders was $43 6 million compared to net loss of $66 1 million during the prior year and basic and diluted loss per share was 29.

Operating expenses increased to $245 4 million compared to $107 6 million in the prior year.

Compared to basic and diluted loss per share of 51.

During the same period in the prior year.

Higher expenses, primarily related to a $74 $7 million increase in amortization expense related to the STI acquisition.

Adjusted EBITDA increased to $128 7 million compared to $43 2 million for the prior year due to higher gross margins.

Adjusted net income increased to $57 3 million compared to $8 7 million during the prior year and adjusted basic and diluted net income per share was <unk> 38 compared to income per share of <unk>. During the same period in the prior year.

Net loss attributable to common shareholders was $43 6 million compared to net loss of $66 1 million during the prior year and basic and diluted loss per share was 29.

Finally, our free cash flow for the year was $131 million versus negative $267 million for the prior year.

The increase was driven by both improved profitability, but also an improvement in our cash conversion cycle up 35 days from.

Compared to basic and diluted loss per share of 51.

During the same period in the prior year.

Adjusted EBITDA increased to $128 7 million compared to $43 2 million for the prior year due to higher gross margins.

From 110 days in the fourth quarter of 2021% to 75 days in the fourth quarter of this year.

Now I'd like to go to slide 10, where I will discuss our outlook for 2023.

For the full year 2023, we expect revenue to be in the range of $1 8 billion to $1 95 billion.

We anticipate that the growth we will see will come from an increase in the number of megawatts shipped as we are forecasting flat asps for the full year 2023, when compared to the full year 2022.

Finally, our free cash flow for the year was $131 million versus negative $267 million for the prior year.

We expect adjusted EBITDA to be in the range of $240 million to $265 million.

The increase was driven by both improved profitability, but also an improvement in our cash conversion cycle up 35 days from.

We expect adjusted EPS to be in the range of 75 to 85 per common share.

From 110 days in the fourth quarter of 2021% to 75 days in the fourth quarter of this year.

Next I'll break down some further elements of our forecast.

Now I'd like to go to slide 10, where I will discuss our outlook for 2023.

From a quarterly perspective, we continue to expect the first quarter to be our lowest of the upcoming year due to normal seasonality project pull in to 2022 and module availability challenges.

For the full year 2023, we expect revenue to be in the range of $1 8 billion to $1 95 billion.

Accordingly, we expect revenues in the first quarter to be down approximately 20% sequentially from the fourth quarter.

We anticipate that the growth we will see will come from an increase in the number of megawatts shipped as we are forecasting flat asps for the full year 2023, when compared to the full year 2022.

After the first quarter, we expect our normal seasonal linearity with our biggest volumes coming in the second and third quarters before a slightly lower fourth quarter due to seasonality.

We expect adjusted EBITDA to be in the range of $240 million to $265 million.

From a gross margin standpoint, we expect both segments to achieve low <unk> for the full year, although we could see single quarters in the high teens based on project mix and absorption of fixed costs.

We expect adjusted EPS to be in the range of 75 to 85 per common share.

Next I'll break down some further elements of our forecast.

From a quarterly perspective, we continue to expect the first quarter to be our lowest of the upcoming year due to normal seasonality project pull in to 2022 and module availability challenges.

For adjusted SG&A, we expect between $30 million to $33 million per quarter.

This spend level does represent an increase from the prior year in dollars as we continued to invest in innovation and building the right business process to efficiently grow in the future.

Accordingly, we expect revenues in the first quarter to be down approximately 20% sequentially from the fourth quarter.

I will note, though that even as we continue to invest as a percent of revenue spend is relatively flat year over year.

After the first quarter, we expect our normal seasonal linearity with our biggest volumes coming in the second and third quarters before a slightly lower fourth quarter due to seasonality.

Our interest we expect between 10 and $11 million per quarter and for preferred dividends, we expect between 13% to $14 million per quarter.

From a gross margin standpoint, we expect both segments to achieve low twenties for the full year, although we could see single quarters in the high teens based on project mix and absorption of fixed costs.

Both of these ranges are inclusive of the noncash portion.

We expect our GAAP effective tax rate to be between 24 and 26%.

For adjusted SG&A, we expect between $30 million to $33 million per quarter.

And finally, we expect that we will again deliver over $100 million and free cash flow.

This spend level does represent an increase from the prior year in dollars as we continued to invest in innovation and building the right business process to efficiently grow in the future.

As we think about our planning parameters as Kevin mentioned, while we believe the IRA will positively impact our business and financial performance, we do not have enough information about the timing or magnitude of those impacts to include them in our 2023 guidance.

I will note, though that even as we continue to invest as a percent of revenue spend is relatively flat year over year.

Once we receive additional information we are committed to providing an update to any potential benefits.

For interest, we expect between 10 and $11 million per quarter and for preferred dividends, we expect between 13% to $14 million per quarter.

Also we have not assumed any negative impact from the recent bank failures.

Both of these ranges are inclusive of the noncash portion.

A couple of points on our assessment here.

First we do not have any direct exposure to any of the banks, who have recently failed and do not currently have any deposits or investments and any regional banks.

We expect our GAAP effective tax rate to be between 24 and 26%.

And finally, we expect that we will again deliver over $100 million and free cash flow.

As far as indirect exposure on the immediate cash flow side, we have not yet identified any customers, who indicated that they have been impacted or that they will not be able to pay in a timely manner.

And the longer term project financing side, while we obviously cannot and will not tried to predict any potential impacts of a protracted credit tightening we will note that the vast majority of our business is large utility scale projects backed by well capitalized large developers who would be better suited to win.

Once we receive additional information we are committed to providing an update to any potential benefits.

Also we have not assumed any negative impact from the recent bank failures.

A couple of points on our assessment here.

Standard this type of events should it occur.

First we do not have any direct exposure to any of the banks, who have recently failed and do not currently have any deposits or investments and any regional banks.

Now I'll turn it back over to Kevin for some closing remarks.

Thank you April .

It has been almost one year since I started as the CEO of array and I am incredibly proud of what the team has accomplished during that time.

No doubt there have been some challenges, but I firmly believe those challenges have made us a better company.

On a longer term project financing side, while we obviously cannot and will not tried to predict any potential impacts of a protracted credit tightening we will note that the vast majority of our business is large utility scale projects backed by well capitalized large developers who would be better suited to win.

So I want to thank the entire global array team for all of their hard work over the last year and I look forward to all we will accomplish in the future together.

With that operator, please open the line for questions.

Thank you and at this time, we will conduct a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Stan this type of event should it occur.

Now I'll turn it back over to Kevin for some closing remarks.

Confirmation tone will indicate that your line is in the question queue.

Thank you in April .

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It has been almost one year since I started as the CEO of array and I am incredibly proud of what the team has accomplished during that time.

No doubt there have been some challenges, but I firmly believe those challenges have made us a better company.

Our first question comes from Brian Lee with Goldman Sachs. Please state your question.

So I want to thank the entire global array team for all of their hard work over the last year and I look forward to all we will accomplish in the future together.

Hey, guys. Good afternoon. Thanks, Thanks for all the color here I.

I guess one question April just starting off on the guidance I appreciate the volume versus price commentary you provided here as to what Youre embedding.

With that operator, please open the line for questions.

Thank you and at this time, we will conduct a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

In the outlook, but can you also give us a little bit of color as to.

Her.

Geography sort of your view on volume versus price trends baked into your 'twenty three outlook and then also.

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I'm, a little surprised to hear that pricings flat versus 2002, I would've thought maybe pricing is a little bit more tailwind into 'twenty. Three so are you being conservative there could we see some potential.

Our first question comes from Brian Lee with Goldman Sachs. Please state your question.

Upside emerge on the pricing side of things, whether IRR driven or not in the back half of the year just trying to.

Hey, guys. Good afternoon. Thanks, Thanks for all the color here I.

Get a sense of where your head's at around pricing.

I guess one question April just starting off on the guidance I appreciate the volume versus price commentary you provided here as to what Youre embedding.

Sure Hey, Brian .

From a pricing perspective, we look at it by geography overall were relatively flat as we stated, but I would say, we're a little bit higher on the STI style.

And in the outlook, but can.

Can you also give us a little bit of color as to.

Per.

Geography sort of your view on volume versus price trends baked into your 'twenty three outlook and then also.

And as.

As far as.

Pricing stayed flat overall.

We think that there's probably a little bit about upside in that but at this point, we can't see that so therefore, we call it as flat for the year.

I'm, a little surprised to hear that pricing is flat versus 2002, I would have thought maybe pricing is a little bit more tailwind into 'twenty. Three so are you being conservative there could we see some potential.

Okay Fair enough and then.

I know, it's still sort of.

Upside emerge on the pricing side of things, whether IRR driven or not in the back half of the year just trying to.

Too early to make a call on the IR a potential impact although youre optimistic can you again level set us as to.

Get a sense of where your head's at around pricing.

One where lead times are today.

Sure Hey, Brian .

From a pricing perspective, we look at it by geography overall were relatively flat as we stated, but I would say, we're a little bit higher on the STI side.

Your U S shipments and then to sort of what the timeframe.

You would expect or need a bit more clarity for some of your ongoing discussions with your supply chain and customers to materialize into some of that upside that.

And as far as.

Pricing staying flat overall.

Essentially out there.

We think that there's probably a little bit about upside in there, but at this point, we can't see that so therefore, we can call it as flat for the year.

Yes, sure. So from a lead time perspective, we're still at around 14 weeks lead time for U S projects and we are having.

Okay Fair enough and then.

<unk> discussions with our customers and I think that.

I know, it's still sort of.

As the.

Too early to make a call on the IR a potential impact although youre optimistic can you again level set us as to.

The language is clarified we feel like.

We will be able to come back to the market with with any potential upside that comes from that but today. Our lead times have stayed about the same around 14 weeks.

One where lead times are today.

For your U S shipments and then to sort of what the timeframe.

Alright fair enough I'll take the rest offline thanks guys.

You would expect or need a bit more clarity for some of your ongoing discussions with your supply chain and customers to materialize into some of that upside that.

Thank you. Our next question comes from Philip Shen with Roth.

Please state your question.

Country out there.

Hey, guys. Thanks for taking my questions.

Yes, sure. So from a lead time perspective, we're still at around 14 weeks lead time for U S projects and we are having.

First one is on bookings.

Dave.

Was wondering if you might be able to give a little more color on that I know.

Discussions with our customers and I think that you know.

You haven't seen the full acceleration yet from the IRS given the.

As the.

The language is clarified we feel like.

Timing of the guidance from Treasury.

We will be able to come back to the market with with any potential upside that comes from that but our lead times have stayed about the same around 14 weeks.

Said was.

Could you share.

Where things stand.

Thus far.

First quarter is almost over here. Thanks.

Yeah, Hey, Bill up people so.

Alright fair enough I'll take the rest offline thanks guys.

We continue to add solid bookings for the quarter and yet.

We're essentially done with the first quarter here.

Thank you. Our next question comes from Philip Shen with Roth.

We still see strong momentum here in the first quarter of the year. So we feel good about.

I'm pleased state your question.

Hey, guys. Thanks for taking my questions.

Heading into 2023.

First one is on bookings year to date.

Great. Thanks, Nicole shifting over to.

Was wondering if you might be able to give a little more color on that I know.

The backlog you guys talked about.

You haven't seen the full acceleration yet from the IRS given the.

The backlog, having high teens to low twenties margin.

Timing of the guidance from Treasury.

And your guide for 'twenty three is low.

It said was.

Could you share.

Two <unk> greater than 20%.

Where things stand and.

Does that suggest that.

Thus far.

First quarters almost.

The.

Over here.

Lower margin.

Yeah, so people so.

Backlog could hit more in 2024 and beyond.

We continue to have solid bookings for the quarter and.

Or do you think.

We're essentially done with the first quarter here.

Help us square that up.

Yes, that's fair.

We still see strong momentum here in the first quarter of the year. So we feel good about.

Really a project by project basis, with a low teens high twenty's in any order book.

Heading into 2023.

Mentioned in the prepared remarks, Phil there'll be certain quarters based on absorption.

Great question.

Shifting over to.

Fixed costs were the margins maybe in the high teens versus the low twenty's, but overall as we look at our guide for both segments, we see that.

The backlog you guys talked about.

The backlog, having high teens to low twenties margin.

And your guide for 'twenty three is low.

Throughout the year, we're going to have.

As we look at the full year, we will have low twenty's margins for both segments.

One is greater than 20%.

Does that suggest that.

Great really appreciate the color.

The.

Lower margin.

As background, one last one here in terms of free cash flow.

Backlog could hit.

More than 2024 and beyond.

You guys had $130 million last year, and Youre guiding to more than 100 million. This year free cash flow are you planning to delever and not draw down on the preferreds specifically.

Or do you think.

Can you help us square that up.

Yes, that's really a project by project basis, when we say low teens and high Twenty's in any order book and as mentioned in the prepared remarks, Phil there'll be certain quarters based on absorption.

Why is the preferred dividend this year higher.

1% to $14 million, a quarter versus $48 million total last year.

Fixed costs, where were the margins maybe.

Are you thinking of drawing down more on the preferred series a.

The high teens versus the low twenty's, but overall as we look at our guide for both segments, we see that.

How much dilution might that imply thanks.

Great no that doesn't have to do with dilution, we're not we're not planning to draw on the preferred at this point what that really means there. If you recall we had.

Throughout the year, we're going to have as we look at the full year, we will have low twenty's margins for both segments.

We had drawn on.

Great really appreciate the color.

It is a preferred at the beginning of the year. So you've got a full year impact of that in there and then we will make an assessment each quarter on kind of what the lowest cost of capital is will need to sign to accrue the dividends and pay down the term loan instead based on the variable rate we have on our term loan. So that's that's really the reason why you see a little bit higher.

As background, one last one here in terms of free cash flow.

You guys had $130 million last year youre guiding to more than 100 million. This year free cash flow are you planning to delever and not draw down on the preferreds specifically.

Why is the preferred dividend this year higher <unk>.

In the preferred for 2020.

$13 million to $14 million, a quarter versus $48 million total last year.

For 2023.

Okay. Thanks, very much enabled I'll pass it on unless Theres something else you guys want it sure.

Are you thinking of drawing down more on the preferred series a.

How much dilution might that imply thanks.

Thank you.

Great no that doesn't have to do with dilution, we're not we're not planning to draw on their preferred at this point what that really means there. If you recall we had.

Thank you. Our next question comes from Mark Strouse with Jpmorgan. Please state your question.

Hi, Good afternoon, it's drew on for Mark Thanks for taking my questions.

We had drawn a bit.

The preferred at the beginning of the year. So you've got a full year impact of that in there and then we will make an assessment each quarter and I'm kind of what the lowest cost of capital is when we decided to accrue the dividends and pay down the term loan instead based on the variable rate we have on our term loan. So that's that's really the reason why you see a little bit higher.

Just wanted to touch on the new products quickly.

Can you just talk a little bit about what the H 250.

Im tracker seating you feel from a market receptivity standpoint, and how thats translating into orders and then what's kind of the timing outlook for future shipments.

Okay.

In the preferred for 2020.

Oh.

For 2023.

Hi, This is Eric I'm happy to speak to it.

Okay. Thanks, very much I'll pass it on unless there's something else you guys wondering sure.

From a product perspective, what we're trying to address our customers are.

Each of their individual needs project by project. So we wanted to take a consultative approach, meaning depending on their site.

Thank you.

Thank you. Our next question comes from Mark Strouse with Jpmorgan. Please state your question.

Topography wind speeds, we have a product that addresses those needs. So <unk> has been our flagship product for several years and with that we have the related omni track, which is the terrain. Following so that it will.

Hi, Good afternoon, it's drew on for Mark Thanks for taking my questions.

Just wanted to touch on the new products quickly.

Can you just talk a little bit about the.

Page 250.

Tracker senior fell from a market receptivity standpoint, and how thats translating into orders and then what's kind of the timing outlook for future shipments.

Things up a lot or a land possibilities than ever before without touching the actual trade and it also takes into account.

Factors, because youre not having to move any dirt.

And when we talk about age $2 50, that's allowing us to have more flexibility. If you have I mean, even boundaries in your land and sometimes the 32 rows works and sometimes the two rows assignments toll road decide what they choose it is a much better fit for customers itself.

Okay.

Hi, This is Eric I'm happy to speak to it and so from a product perspective, what we're trying to address our customers.

Our each of their individual needs project by project. So we wanted to take a consultative approach, meaning depending on their site.

We're doing is opening up the addressable market that we.

In the way that we partner with our customers.

Okay, great. Thank you and I'll, just say I'll, just say from a customer point of view.

For them the demand is very great and when you talked about not having too.

When you can shorten lead times by not moving land.

Also takes into account.

General factors, because youre not having to move any dirt.

Bridging our omnichannel product.

And when we talk about age $2 50, that's allowing us to have more flexibility. If you have I mean, even boundaries in your land and sometimes the 32 rows works and sometimes the two roads assignments toll roads aside what they ship it is a much better fit for customers itself.

We are hearing from customers that they can't get it soon enough. So we're excited to be able to have three products at our disposal and just one other thing that I might mentioned with all of those products. Our intent is to ensure that smart track our software runs across all of our chapter lines. So that our customers can have that consistency.

We are doing is opening up the addressable market that we are in the way that we partner with our customers.

And the software delivery and productivity of their site.

Okay and then just.

Kind of a follow up on that any.

Okay great.

Any thoughts on.

I'll, just say I'll, just say from a customer point of view.

Shipments might be starting and then also is that having any impact on why pricing might be somewhat flat and not.

For them if the demand is very great and when you talked about not having too.

When you can shorten lead times by not moving land.

Increasing in 'twenty three.

Bridging our omni chart product I.

Okay.

Let me, let me address the pricing thing here.

We are hearing from customers that they can't get it soon enough. So we're excited to be able to have three products at our disposal and just one other thing that I might mentioned with all of those products are intended to ensure that smart track our software runs across all of our tracker lines. So that our customers can have that consistency.

So first of all as as many of you.

Understood steel had been coming down.

Quite a bit up until about the last three weeks we were on this deflationary pathway, we were having the opposite conversations with.

With analyst pay do you have to reduce price because steel is.

Demonstrably lower than it was last year and I'll steal spend reversing for the last three to four weeks, it's creeping back up and we're taking a kind of a conservative approach at that because it's changing so quickly so in.

And the software delivery and productivity of their site.

Okay and then just.

I have a follow up on that.

Any thoughts on.

Shipments might be starting and then also is that having any impact on why pricing might be somewhat flat and not.

Again, we're protected the way we do our business, we're protected from a margin perspective on steel, but it certainly does have an impact in the overall price.

Increasing in 'twenty three.

And so what we see is this as we've modeled out fairly flat you've got a combination of things you've got a combination of steel and aluminum being at lower rates than they were at this time of last year offset with the more difficult type of sites.

Yeah.

Let me, let me address the pricing thing here.

So first of all as many of you.

Understood still had been coming down quite a bit up until about the last three weeks. We were on this deflationary pathway and we're having the opposite conversations with.

That require additional engineering and additional content to be able to make those sites work effectively so thats really whats driving that our current view of flat what we haven't baked in is nipple said.

With analyst pay do you have to reduce price because steel is <unk>.

Demonstrably lower than it was last year now steel's been reversing for the last three to four weeks, it's creeping back up and we're taking a kind of a conservative approach at that because it's changing so quickly so in.

Not only haven't baked in any impact of the IRI in terms of.

The overall manufacturing credits, but we also haven't baked in any potential impact from our.

Again, we're protected the way we do our business, we're protected from a margin perspective on steel, but it certainly does have an impact in the overall price.

What we believe is the best in class domestic supply chain right.

You would expect to go forward and depending upon the <unk>.

Final nature of the domestic content clarification, we could see some additional pricing power yet in the back half of the year just due to that strength, we havent domestic content to customers, who will have to pay a premium for a higher percentage of domestic content, if they want to get that extra 10% kicker.

That require additional engineering and additional content to be able to make those sites work effectively so that's really what's driving our current view reflect what we haven't baked in is nipple said.

So what we've done is just taken again as usual what <unk> seen with our team as a conservative view of that pricing at this point and as we get additional information as we understand further where commodities are going both steel and aluminum in particular will come back to the market and update you on what we think our asps.

Not only haven't baked in any impact of the IRI in terms of.

The the.

Overall manufacturing credits, but we also haven't baked in any potential impact from our.

Can do in the back half of the year.

What we believe is the best in class domestic supply chain right.

Okay.

As you would expect to go forward and depending upon the final nature of the domestic content clarification, we could see some additional pricing power yet in the back half of the year just due to that strength, we havent domestic content to customers, who will have to pay a premium for a higher percentage of domestic content, if they want to get that X.

That is very helpful. Thank you Kevin.

Yes.

Our next question comes from.

Julien Dumoulin Smith with Bank of America. Please state your question.

Oh, Hey, guys. Thanks for the time, congratulations here, Hey, just coming back to the domestic content I just wanted to really square. This way I mean, just what exactly do you need I mean, obviously youre doing a lot already here just in terms of clarity specifics and guidelines again and I know you guys are probably in the mix in <unk>.

Or 10% kicker.

So what we've done is just taken again as usual what you've seen with our team as a conservative view of that pricing at this point and as we get additional information as we understand further where commodities are going both steel and aluminum in particular will come back to the market update you on what we think our asps.

Discussing these items here, but specifically as we see preliminary and final and also are you expecting kind of a little bit of an air pocket on backlog as you think about that being kind of pent up demand realized after finalized.

Can do in the back half of the year.

Guidelines here is that the commentary as we think about that.

Okay.

That is very helpful. Thank you Kevin.

Julian I think I think the demand we've seen so far is really non IRA related so we haven't yet seen that big.

Yeah.

Our next question comes from.

Julien Dumoulin Smith with Bank of America. Please state your question.

Pick up so we don't really consider that we have an air pocket in our current backlog that current backlog is all the steady demand that we've seen the steady increases setting aside any expected increases we will see from IRI and then to answer the first part of your question specifically as we're looking at the definition. There is two critical aspects we can.

Oh, Hey, guys. Thanks for the time congratulations for everything he just coming back to the domestic market I just wanted to really square Thats. The way I mean, just what exactly do you need I mean, obviously youre doing a lot already here just in terms of clarity specifics and guidelines again and I know you guys are probably in the mix and and discussing these items here, but specifically as we see preliminary.

Continue to weight on the first is the definition of what will be considered domestic content again theres multiple definitions floating around with treasury that they have to decide upon finally give the industry and <unk>.

And final and also are you expecting kind of a little bit of an air pocket of backlog as you think about that being kind of pent up demand realized after finalized.

Bonds here is that the commentary as we think about that.

One would include being able to import steel from China for example, roll it in the U S and call. It domestic the other says that still must be for melt to coke in the U S right.

Julian I think I think the demand we've seen so far is really non IRA related so we haven't yet seen that big.

Pick up so we don't really consider that we have an air pocket in our current backlog that current backlog is all the steady demand that we've seen the steady increases setting aside any expected increases we'll see from IRI and then to answer the first part of your question specifically as we're looking at the definition, there's two critical asps.

And those are too radically different positions.

In the position that it would have to be pure U S. Steel we have.

Decidedly strong competitive advantage because we have worked on that U S.

Supply chain for many many years and we have deep relationships some of which we've talked publicly about in the past.

Next we continue to wait on the first is the definition of what will be considered domestic content again.

Versus others in the industry, who continue to bring steel in from offshore and have two growing mills in the U S and are calling that made in USA right.

Multiple definitions floating around with treasury that they have to decide upon finally give the industry and one would include being able to import steel from China. For example, roll it in the U S and call. It domestic the other says it still must be for milk to coke in the U S right.

So depending upon that definition, we will either be at worst case on par at best case, we'll have a decided competitive advantage in the market. So so we're waiting on that and again that has implications in terms of market share in terms of pricing power all of the above and that's why we're trying to be very very cautious until we have more clarity around that.

And those are too radically different positions.

In in the position that it would have to be pure U S. Steel we have.

And then the second element, we continue to wait for.

Decidedly strong competitive advantage because we have worked on that U S.

Because really further clarification around the torque tube and structural fastener final definitions. We know what the definition is that's pretty well defined and we already communicated that's between.

Supply chain for many many years and we have deep relationships some of which we've talked publicly about in the past.

Versus others in the industry, who continue to bring steel in from offshore.

One five and $1 seven.

And have to growing mills in the U S and are calling that made in USA right.

So call it 15% of the tracker cost is the benefit there and we've talked openly about that being shared.

At some point between our our suppliers ourselves and to a degree to our customers as well we feel really good about that and it really comes down to the definition of what all gets included into structural fasteners and as that definition becomes more clear there are some really if for example, the clamps in clamping systems are covered.

And then the second element, we continue to wait for.

Under that definition that would be very very meaningful to us as an organization because we manufacture a large proportion of those in our own factory in Albuquerque, New Mexico.

Because really further clarification around the torque tube and structural fastener final definitions. We know what the definition is that's pretty well defined and we've already communicated that's between.

So.

The small nuances of words can have huge swings in terms of the overall ability to get at those credits and the quantum of those credits and we just don't have enough clarity to go to the market today and say, what we think theyre going to be.

One five and $1 seven.

So call it 15% of the tracker cost is the benefit there and we've talked openly about that being shared at some point between our our suppliers ourselves and to a degree to our customers as well we feel really good about that and it really comes down to the definition of what all gets included into structural fasteners and.

Got it excellent on the international side.

Trajectory here, you mentioned, Brazil, it seems nice where kind of the deal it seems like you've got a little bit more flattish.

In Brazil, specifically and how you think about that outlook and the compounding first prospects there.

As that definition becomes more clear there are some really if for example, the clamps in clamping systems are covered under that definition that would be very very meaningful to us as an organization because we manufacture a large proportion of those in our own factory in Albuquerque, New Mexico.

The various geographies just to quantify your.

Perhaps qualitative comments on the call a bit more.

Yes, so in Brazil over the last year, what shifting for us in Brazil is less of the larger utility scale programs and much more of a distributed generation programs.

So.

And that had to do with two things obviously, we had a great competitor come into Brazil, and worked really well that's one part and the second part was the funding from the National banks in Brazil, who really support a lot of the green initiatives kind of pulled back waiting for this presidential election, almost immediately after the presidential election, we started to see a lot of those Utah.

Got it excellent and this is on the international side.

Trajectory here, you mentioned, Brazil, it seems nice where kind of the deal it seems like you've got a little bit more flattish.

<unk>.

In Brazil, specifically and how you think about that outlook and the compounding first prospects there.

Gail programs go forward.

And I'm quite pleased that our outlook in Brazil was very strong for this year and it's a it's a very good mix of both utility scale and distributed generation products, but were very bullish on the growth that we see coming in Brazil. This year.

Ross the various geographies just to quantify your.

Perhaps.

Comments from the call a bit more.

Yes, so in Brazil over the last year, what shifting for us in Brazil is less of the larger utility scale programs and much more of a distributed generation programs.

Awesome guys Congrats again season.

Thanks.

Thank you. Our next question comes from Mohit <unk> with Credit Suisse. Please state your question.

Hey, good evening, Thanks for taking my questions and congrats on the quarter here.

Two questions first on the Opex.

Look at the high end of the range somewhat implies 7% Opex plus reserve revenues Im just trying to see like to get to that high teens, EBITDA margin, which you kind of talked about it in the past.

<unk>.

Scale programs go forward.

And I'm quite pleased that our outlook in Brazil was very strong for this year and it's it's a it's a very good mix of both utility scale and distributed generation products, but were very bullish on the growth that we see coming in Brazil. This year.

Could we expect to hit that.

25%.

Gross margin in 2024.

Just trying to understand like on the Opex and.

Awesome guys, Congrats again and see you soon.

I would think about leverage going forward here.

Thanks.

Thank you. Our next question comes from Mohit <unk> with Credit Suisse. Please state your question.

Okay.

Also.

As discussed in the prepared remarks.

Hey, good evening, Thanks for taking my questions and congrats again on the quarter here.

There is investments that we need to make here in 2023 and <unk>.

Two questions first on the Opex.

As margins continue to.

Steady.

I look at the high end of the range somewhat implied zone, seven plus Opex plus reserve revenues Im just trying to see like to get to that high teens EBITDA margin. Once you kind of talked about it in the past.

The baseline low twenty's and potentially increase from there as we get more clarity on.

Yes, sorry.

In 2020 quarter, we feel like we'll get.

The operating expense leverage.

We expect to hit that.

<unk>.

Absolutely right.

25.

Under so that's why we think that we.

Question on gross margin in 2024.

Ill get back into the higher EBITDA ranges in 2024 and beyond.

Just trying to understand like on the Opex and.

I would think about leverage going forward here.

Got it.

Second question on the U F here.

Okay.

Also.

As discussed in the prepared remarks.

How should we think about any upside to.

There is investments that we need to make here in 2023 and <unk>.

Revenues.

So youre footwear reservation fasting.

As margins continue to.

Any any color you can give on how much time for <unk>.

Steady.

The baseline low twenty's and potentially increase from there as we get more clarity on.

Delivered attractive once you have a purchase order in place.

Yes, sorry.

Got it.

Thanks.

In 2020 quarter, we feel like we'll get we'll get the operating expense leverage this business.

Yeah, so as far as <unk> concerned, where we would see that is as our order book converting faster. So if <unk> gets cleared quicker as modules get cleared quicker we would see a faster conversion of our order book, So we could potentially see that.

Absolutely operate under so that's where we think that.

We will get back into the higher EBITDA ranges in 2024 and beyond.

Got it and just a second.

<unk> been converting as we add to add potential some upside related to that.

Second question on the U F here.

Anybody can kind of help us quantify how much of that order book.

How should we think about any upside to that.

We delivered 23 years of maintenance.

Revenues.

Okay.

Your football reservation fasting.

Yes, when you look at our order book.

Any any color you can give on how much time to fix to this.

Look 12 months ahead.

One one times the order book is what our midpoint guide is so that conversion could happen a little bit quicker at the <unk>.

The truck of once you have a purchase order in place.

Got it.

Thanks.

Yeah, Hey, Amy so as far as <unk> concerned, where we would see that is as our order book converting faster. So if <unk> gets cleared quicker.

If <unk> gets cleared quicker.

Alright, I will take the rest offline.

Modules get cleared quicker, we would see a faster conversion of our order book, So we could potentially see.

Our next question comes from Donovan Schafer with Northland Capital markets. Please state your question.

That orbec converting as we add to add potential some upside related to that.

Hey, guys. Thanks for taking the questions. So first question I want to ask is.

Anybody can kind of like help us quantify how much of that order book.

About nucor, specifically since that's a supplier you guys have had for gosh coming up on two years now.

We delivered 23 years of maintenance.

Yes, when you look at our order book.

And if you can.

Look 12 months ahead, it's about a one one times the order book is what our mid point guidance, so that conversion could happen a little bit quicker at the <unk>.

If you can provide any commentary on kind of the length of that contract is for Susan explorations, there with a fixed volume of ounce.

If <unk> gets cleared quicker.

How much of kind of your run rate capacity or backlog.

Alright, I will take the rest offline.

Does that cover I was just trying to get a sense.

Lying idea here is if there's a greater shift to needing to source domestically.

Our next question comes from Donovan Schafer with Northland Capital markets. Please state your question.

Hey, guys. Thanks for taking the questions. The first question I want to ask is.

In the U S are you in a position to kind of have some of that locked in in box out other people or other competitors or does that become a negotiation and there's some scrambling, they're trying to get at that higher level that broader idea, but if you can forgive any specifics on new quarter that'd be great.

About nucor's, specifically since that's supplier you guys have had for gosh coming up on two years now.

And if you can.

If you can provide any commentary on kind of the length of that contract is for if there's an exploration there with a fixed volume amounts.

Yes, I mean, let me start go ahead. So so let me start in April with just saying that our specific contract terms with Nucor are confidential and we're going to we're going to honor that company in reality in the contract. So I won't really talk more specifically about that in the terms of the contract. All I will tell you is that Nucor is one of <unk>.

How much of kind of your run rate capacity or backlog.

Does that cover I was just trying to get a sense.

Lying idea here is if there's a greater shift to needing to source domestically.

<unk> strong steel suppliers and partnerships that we've put in place over the last few years that are very important part of our business. They're a great partner, we work very closely with them in terms of.

In the U S are you in a position to kind of have some of that locked in in box out other people or other competitors or does that become a negotiation and there's some scrambling, they're trying to get at that higher that broader idea, but if you can forgive any specifics on new quarter that'd be great.

Understanding where our future demand is going to be and ensuring that there.

Geographic footprint is aligned with what our future geographic footprint is.

To reduce transportation costs and things so we feel that.

Yes, I mean, let me start go ahead. So so let me start in April with just saying that our specific contractual terms with nucor are confidential and we're going to we're going to honor that company and to reality in the contract. So I won't really talk more specifically about that in terms of the contract. All I will tell you is that nucor is one of <unk>.

Our working relationship is incredibly strong third incredibly strong partner of ours and again, that's part of how we feel they're one of the steel suppliers that add to our capacity.

Leave us feeling that we have a very well developed north American.

Capacity and supply chain.

And we think we have the best in the market. That's all I can really comment on that.

Yes.

Don I just wanted to add that we've talked about it before by the end of Q1 that we have 40 gigawatts of global capacity.

Understanding where our future demand is going to be and ensuring that there.

<unk> 32 of that in the U S. So nucorp course, as part of that overall capacity planning.

Geographic footprint is aligned with what our future geographic footprint is.

And we're increasingly Donovan every every single quarter, we are increasing that and so you imagine and exploded billow materials Donovan and what we have is the the overall capacity and then the percentage of the capacity that can today be turned on to qualify under domestic content.

To reduce transportation costs and things so we feel that.

Our working relationship is incredibly strong third incredibly strong partner of ours and again Thats part of how we feel they're one of the steel suppliers that add to our capacity.

Leave us feeling that we have a very well developed north American.

As we understand it so that's what we're focused on so how do we get from when we've talked openly on our last call about our standard billing material today, having between 70 and 75% domestic content and also having the ability.

Possibly in supply chain.

And we think we have the best in the market. That's all I can really comment on that.

Yes.

Don but I just wanted to add that.

A small premium to get up to that 90% to 95% domestic content and the bill of material.

Talked about it before by the end of Q1 that we would have 40 gigawatts of global capacity of about 32 of that in the U S. So new course as part of that overall capacity planning.

And that's what we're really focused on is the percentage of about 32 gigawatt that we can get up to that 95% domestic content.

And we're increasingly relevant every every single quarter, we are increasing that and so you imagine and exploded billow materials Donovan and what we have is the.

Place.

Okay, and then kind of related to this I was actually fascinated in the opening remarks prepared remarks, you made a comment about you.

The overall capacity than the percentage of that capacity that can today be turned on to qualify under the domestic content as.

Now, having a puncture the towards two two.

Clamp on modules and that giving your flexibility I'd never connected but thought I'd always just.

As we understand it so that's what we're focused on so how do we get from them.

<unk> talked openly on our last call about our standard billing material today, having between 70, and 75% domestic content and us having the ability.

Assuming it was just the <unk> the ones that go perpendicular to talk to that was the last piece and you had to figure out where youre going to punch a hole there, but realizing you can also slide on the north south dimensions, along the torque tube.

With a small premium to get up to that 90% to 95% domestic content and the bill of material.

And that's what we're really focused on is the percentage of about 32 gigawatt that we can get up to that say, 95% about the content place.

As I understand it that is enabled by having your unique octagonal cross section and that's something that you couldn't do with the circle you can maybe do it with a square, but you couldnt do with the circle.

Okay, and then kind of related to this I was actually fascinated in the opening remarks prepared remarks, you made a comment about.

Our circular cause section so haven't made that connection and then.

<unk> re plus this year PV hardware as tracker is actually doing an octagonal towards <unk> now.

You know I'm.

Now, having a puncture of the torque tube to clear.

<unk> on modules and that giving your flexibility I'd never connected but thought I'd always just.

Yes.

We've kind of followed your lead there and the FTC.

As soon it was just the perlin the ones that go perpendicular to talk to that was the last piece and you had to figure out where youre going to punch a hole there, but realizing you can also slide there on the north south dimensions, along the torque tube that as I understand it that is enabled by having your unique octagonal cross section.

Hi, FTC solar their <unk> design is.

<unk> for the same idea youre coming up with some kind of a geometry. That's non circular gives you some of the benefits of circularity with some more maybe been newness to it versus a square.

But by giving you that ability to have a puncture lists fixing to towards new.

And that's something that you couldn't do with the circle you can maybe do it with a square, but he couldn't do with the circle.

I guess are you seeing a trend with other competitors switching to that kind of a unique let's think of it as like a non standard torque tube Cross section and then back to the same question.

Our circular cause section so haven't made that connection and then I saw re plus this year PV hardware as tracker is actually doing that octagonal towards two now and.

<unk> same idea of what I just asked.

Yes.

Any issues from a capacity standpoint in the U S and can any roll forming operation roll form for an octagonal cross section or does that get at all more or more complicated or limited.

They've kind of followed your lead there.

After you see solar there one P designers.

Hexagonal the same idea youre coming up with some kind of a geometry. That's non circular gives you some of the benefits of circularity with some more maybe been newness to it versus a square.

I think on the first part.

Yes, we have taken note of several of the recent launches in the industry.

But by giving you that ability to have a puncture lists fixing.

Turning to <unk>.

So I guess are you seeing a trend with other competitors switching to that kind of a unique let's think of it as like a non standard.

An interesting observation Donovan and something that we're keenly observing and watching and talking about internally on a regular basis.

<unk> tube Cross section and then back to the same question.

Backpacks same idea of what I would just ask are there any issues from a capacity standpoint in the U S. I mean.

Relative to weather any two mill I mean, I think if you get the correct dies in place you could you could roll it whether it be octagonal hertzog at all.

Any roll forming operation roll form for an octagonal cross section or does that at all more or more complicated or limited.

Any of the above so I don't think Thats really the.

Big barrier at this point, it's more in our proprietary clamping system. Our rapid claim system that allows you to build the infrastructure irrespective of knowing which panels youre going to get.

I think on the first part.

Yes, we have taken note of several of the recent launches in the industry.

Look a lot closer to an array than maybe they do someone else's right. So that's something we're keeping a watchful eye on it and certainly beyond the torque tube other elements of their design are starting to look a lot more like array. So it's an interesting it's an interesting observation Donovan and something that we're keenly observing and watching and talking about internally on a regular basis.

We can design it for multiple panel options and then we're near allowed to get in those panels at the end of the day.

Able to provide a different clamp for that now now it is not only in the panel availability. It extends beyond that in terms of being able to have sites with mixed panels right. So if you imagine that as is.

Relative to weather any two mill.

Companies are going to be scrambling to get to their percentage of domestic content that they need on these sites and they may have a limited availability over the next couple of years have made in U S panels.

If you get the correct dies in place you could you could roll it whether it be octagonal hexagonal.

Any of the above so I don't think Thats really the.

The big barrier at this point, it's more in our proprietary.

Ramping system, our rapid claim system that allows you to build the infrastructure irrespective of knowing which panels youre going to get.

In a scenario where customers are going to save.

I am going to start this fight.

And the majority of panels in the site maybe first solar.

We can design it for multiple panel options and then we're near allowed to get in those panels at the end of the day.

Because I have a certain level of availability of those panels. However, once I get to my 40% domestic content using more of those at this particular site, maybe diminishing return versus saving those for another site and then I can mixed panels on that site. Our infrastructure will allow you to do that differently than some others I think that.

We're able to provide a different clamp for that now now it is not only in the panel availability. It extends beyond that in terms of being able to have sites with mixed panels right. So if you imagine that as.

Something that we're seeing in the market that are of interest.

Companies are going to be scrambling to get to their percentage of domestic content that they need on these sites.

Thank you.

Our next question comes from Colin Rusch with Oppenheimer. Please state your question.

And they may have a limited availability over the next couple of years have made in U S panels.

Thanks, So much guys could you talk about how many of your customers are fully qualified with the omni track solution. At this point are you is it the.

Imagine a scenario where customers are going to say.

Im going to start this fight and the majority of panels in the site may be first solar.

The full complement of customers or is it a sub segment of it at this point.

We're rolling Omni track out this year.

And select areas to make sure that it's properly installed by our partners and obviously looking at the ICL to.

Topography, and which to install it.

Any of our customers would be welcome to use it with the correct.

Something that we're seeing in the market that's of interest.

<unk> requirements.

Thank you.

Our next question comes from Colin Rusch with Oppenheimer. Please state your question.

Okay, and then secondly, as you guys look at having <unk>.

Thanks, So much guys could you talk about how many of your customers are fully qualified with the omni track solution. At this point are you is it the.

Increasing customer intimacy with some of these new designs are there other opportunities for incremental engineering improvements that on around footings are other areas, where you can reduce labor out in the field and have.

The full complement of customers or is it a sub segment of it at this point.

Have it more in the factories studying in the next couple of years.

We're rolling Omni track out this year.

Yes, Colin I think part of what Youre seeing in that Opex spend next year is kind of when I came in I made a commitment to.

And select areas to make sure that it's properly installed by our partners and obviously looking at the ICL to.

So our engineering organization, and our CTO and effectively he said look one of the best uses of my capital.

Topography, and which to install it.

Any of our customers would be welcome to use it with the correct.

In new product development, and I looked at Eric as product management team in Terry's engineering team and made a commitment that if they bring forward really robust new product development initiatives I will fund them right and Thats really what you see in that Opex increase so we've increased our engineering spend this year certainly over.

<unk> requirements.

Okay, and then secondly, as you guys look at having <unk>.

<unk>, 35% and Thats part of where you're seeing the Opex line and that's really all about theres a large number of products that we think we can bring to bear to the market that are really.

Yes, Colin I think.

Part of what Youre seeing in that Opex spend next year is kind of when I came in I made a commitment to.

Focused on a few areas, obviously, you've seen us disclose a lot more of what we're doing on the software side of things and there is more to come beyond this.

So our engineering organization and our CTO and effectively he said look one of the best uses of my capital is in new product development when I looked at Eric because product management team in Terry's engineering team and made a commitment that if they bring forward really robust new product development initiatives I will fund them right and that's really what you're.

A lot more areas, where we can ease installation and reduce installation costs. So I think this is this is a year of.

What I would say a rapid succession of product launches.

A lot of what I would say, maybe small to mid sized new product development initiatives, but I think we're going to be really welcomed by our customers as we go forward throughout the year.

See in that Opex increase so we've increased our engineering spend this year certainly over 35% and that's part of where you're seeing the Opex line and that's really all about theres a large number of products that we think we can bring to bear to the market that are really.

That's super helpful. Thanks, guys.

Got it.

Our next question comes from Jeff Osborne with TD Cowen. Please state your question.

Yes. Thank you I just had two quick ones. One is on Spain business I was curious what you're seeing there and I think couple.

Focused on a few areas, obviously, you've seen us disclose a lot more of what we're doing on the software side of things and there's more to come beyond this.

A couple of quarters ago, you had some challenges on the EPC side of the business. There I was curious what initiatives you put in place to improve the profitability on that front.

A lot more areas, where we can ease installation and reduce installation costs. So I think this is a this is a year of what I would say a rapid succession of product launches.

Yes, so Jeff one of the simple things was that the.

<unk> <unk>.

The challenge that our end because remember that the challenge in the Spain business really came out as they attempted to do some construction projects in the U S. Following some other Spanish customers. The two global installations to the U S. At the request that come.

A lot of what I would say, maybe small to mid sized new product development initiatives, but I think we're gonna be really welcomed by our customers as we go forward throughout the year.

That's super helpful. Thanks, guys.

You got it.

Our next question comes from Jeff Osborne with TD Cowen. Please state your question.

Customer in particular.

And they just didn't have the experience to how to operate in the U S. Right. So so a few things we've done so first we have to our partnership with now array STI working together, we've assigned several array team members to support.

Yes. Thank you I just had two quick ones. One is on I understand business I was curious what you're seeing there and I think.

Quarters ago, you had some challenges on the EPC side of the business. There I was curious what initiatives you put in place to improve the profitability on that front.

Yes, so Jeff one of the simple things was that the.

I'd say the bigger benefit came as a result of that.

And customers not being able to have a steady supply of panels.

Our contract that that lack of steady supply of panels that created a time break in the program.

Contracture allowed us to go and renegotiate some of those labor terms or what have you that the team originally signed up for but we're not the best right. So that's part of what Youre seeing here as we go to complete those projects they'll just be under a better set of terms now.

Customer in particular.

And they just didn't have the experience to her.

How to operate in the U S. Right. So so a few things we've done so first we have to our partnership with now array STI working together, we've assigned several array team members to support.

Now that we had a great.

Much greater understanding of the complexity of the projects and what's needed to bring them to fruition.

Those projects into service project managers in region to help with hiring of labor management about labor negotiating with the unions that we would need on some of these projects and all of that so that's part of it I would say the bigger benefit came as a result of that the end customer not being able to have a steady supply of panels and in our contract that that lack of steady.

Got it that's very helpful. My follow up.

On a completely different topic, but on the background backlog.

Developments that you had in Q4 and Q1 are you are you actually having conversations around 24 deliveries yet.

Or folks developers waiting for the IRA clarity to be announced to.

Supply of panels that created a time break in the program.

To have that visibility in place.

Contractual allowed us to go and renegotiate some of those labor terms or what have you that the team.

Yes, we're doing both obviously, we have with customers as we continue to discuss but are talking about.

Team originally signed up for but we're not the best right. So that's part of what Youre seeing here as we go to complete those projects they'll just be under a better set of terms now.

Larger programs of Gigawatts of business over the next several years. Those are conversations that are ongoing I think some of those programs are coming through and others are just waiting for that clarity and as they determine to what degree they need to put how many eggs in our res basket depending upon for example in domestic content purchases.

Now that we had a great.

Much greater understanding of the complexity of the projects and what's needed to bring them to fruition.

Got it that's very helpful. My follow up.

On a completely different topic, but on the background backlog.

Developments that you had in Q4 in Q1 or are you actually having conversations around 24 deliveries yet.

And are they putting deposits on those multiyear orders or no.

The deposits the deposits will stay in the same format as we have today, meaning that there will be some sort of minimum requirements annually. For example on these contracts.

Or folks developers waiting for the IRA clarity to be announced to.

To have that visibility in place.

Almost like a take or pay on a minimum basis and then the deposits come as we sign up those individual projects that pulled down from that overall volume commitment.

Yes, we're doing both obviously, we have with customers as we continue to discuss but are talking about.

Okay.

Yes.

Yes, just a little clarification too is that our order book is would only be Arlington.

In the system.

<unk> projects so right.

Kevin talking about are things that we're getting into but they're not in our order book at this point.

And are they putting deposits on those multiyear orders or no.

Yes, absolutely and Thats, a clear distinction we want to make sure that everyone. On this call understands that our order book when we say order book does not include volume commitments, but don't have very specific either awarded or contracted named projects.

The deposits the deposits will stay in the same format as we have today, meaning that there will be some sort of minimum requirements annually. For example on these contracts.

Almost like a take or pay on a minimum basis and then the deposits come as we sign up those individual projects that pulled down from that overall volume commitment.

But if I'm hearing you right you have MSA agreements with developers that might go out three or five years, but named.

Okay.

Named projects might only go out 18 to 24 months, that's the right way to think about it.

Yes.

Yes, just a little clarification too is that our order book is would only be inconsistent.

Well there are projects of the size of the projects right well depend how long they go out right but.

Getting system.

Named projects so right.

Talking about are things that we're getting into but they're not in our order book at this point.

Okay.

That is the way to think we wouldn't I guess.

I guess the clarity we want to make is that our backlog.

Yes, absolutely and Thats, a clear distinction we want to make sure that everyone. On this call understands that our order book when we say order book does not include volume commitments that don't have very specific either awarded or contracted named projects.

So when we compare our backlog to others in the industry that have recently discussed their backlog. They've included these long term megawatt commitments that they may have with a customer we have not included that in our backlog.

So our backlog is more easily.

Translated to a future revenue stream that is more predictable than maybe theres. If we were to include those we would have.

But if I'm hearing you right you have MSA agreements with developers that might go out three or five years, but named.

Named projects might only go out 18 to 24 months, that's the right way to think about it.

A much higher number that we'd be talking about but.

But we liked that clarity and line of sight of our backlog and conversion to a particular revenue within a particular set period of time.

Well there are projects of the size of the projects right well it depends how long they go out right but.

Got it. Thank you appreciate it.

Okay.

That is the way to think we wouldn't I guess.

Our next question comes from Joseph Osha with Guggenheim Partners. Please state your question.

I guess the clarity we want to make is that our backlog.

Alrighty I made it thank you and Hello, everyone.

Hi, Joseph.

Alright.

I wanted to return to some of the comments that you were making about domestic content and.

So our backlog is more easily.

How that reflects as pricing with your customers on I want to understand the logistics of this if you have an order.

Translated to a future revenue stream that is more predictable than maybe theres. If we were to include those we would have.

In hand.

And you are unclear yet about whether.

A much higher number that we'd be talking about but.

But we liked that clarity and line of sight of our backlog and conversion to a particular revenue within a particular set period of time.

Your customers are going to be able to claim the domestic content credit or not is there.

Something written into the contract that allows you to reopen the conversation depending on the outcome of IRS guidance or what I just want to make sure I understand exactly how this sort.

Got it. Thank you appreciate it.

Our next question comes from Joseph Osha with Guggenheim Partners. Please state your question.

So to be clear the orders that we have in our backlog and have no.

Alrighty I made it thank you and Hello, everyone.

I'd say largely have no specific domestic content requirement.

Hi, Joseph.

Alright.

I wanted to return to some of the comments that you were making about domestic content and how.

Right, which means we could satisfy them with our for lack of a better word standard bill of material today.

How that reflects as pricing with your customers.

70% to 75%.

Want to understand the logistics of this is if you have an order in.

Or we can add more domestic content what will come.

In hand.

And you are unclear yet about whether.

What I foresee us in the future as the domestic content requirements become clearer and those sites now can start doing the formulaic map of what they need to get to their 40% and then the increasing 45% up to the 55% and a few years.

Your customers are going to be able to claim the domestic content credit or not is there or is there something written into the contract that allows you to reopen the conversation depending on the outcome of IRS guidance or what I just want to make sure I understand exactly how this.

When they have that clear to be able to do their math, they will come back to us and say Hey Ray.

This 125 megawatt project, we need as much domestic content as you can give us what's the premium to go from that 75% up to that 95%.

So to be clear the orders that we have in our backlog and have no I would say largely have no specific domestic content requirement.

Right, which means we could satisfy them with our for lack of a better word standard bill of material today.

Right and again that would open order likely to contract but today.

We're not specifying any of that.

70% to 75%.

Enhanced domestic content put it that way.

Or we could add more domestic content what will come.

Okay. So alright, so again they are basically the way it's written now.

Leaves you the option basically to say Hey, this is a change order if somebody comes back and hits you with a specific request.

That's correct.

Okay.

Alright, I got it thanks very much that was my only question.

When they have that clear to be able to do their math they'll come back to us and say Hey Ray.

Youre welcome.

Our next question comes from Jordan Levy with true Securities. Please state your question.

This 125 megawatt project, we need as much domestic content as you can give us what's the premium to go from that 75% up to that 95%.

Jordan Levy your line is open. Please go ahead.

Right and again that would open order likely to contract, but today, we're not specifying any of that.

Okay.

Okay, we'll move onto the next question next.

Our next question comes from Vikram <unk> with Citi. Please state your question.

Enhanced domestic content put it that way.

Okay. So alright, so again they are basically the way it's written now.

Hey, guys I wanted to follow up on the uncertainty caused by the Iranian underway.

Leaves you the option basically to say Hey, this is a change order if somebody comes back and gets you with a specific request.

Unavailability of more deals you said a way to quantify what kind of impact it will have one on the backlog. It seems like there are there is there is there is that our orders on the sideline, which are not included in the backlog, which will quickly materialize into backlog wouldn't see clarity is provided one.

That's correct.

Okay.

Alright, I got it thanks very much that was my only question.

Youre welcome.

Our next question comes from Jordan Levy with true Securities. Please state your question.

And then two how much of the decline the sequential decline in one first quarter that you talked about 30% is caused by seasonality worse is lack of clarity on Iot versus module availability and have you seen any any slippage in timing of any of the projects because of lack of clarity on either front.

Jordan Levy your line is open. Please go ahead.

Okay.

Yeah.

Okay, we'll move onto the next question next.

Our next question comes from Vikram <unk> with Citi. Please state your question.

Hey, guys I wanted to follow up on the uncertainty caused by the Iranian underway.

Our module availability issues.

Hey, Vikram this enable I'll start so on your second question first.

Unavailability of modules, you sort of way to quantify what kind of impact it will have one on the backlog. It seems like there are there is there is that is that our orders on the sideline, which are not included in the backlog, which will quickly materialize into backlog wouldn't see clarity provided one.

The first quarter, 20% down sequentially.

As mentioned in the prepared remarks part of that is just.

That's just normal seasonality Q1, mostly have a north American business. So that's typically depending on weather conditions at sites.

Typically.

Lower delivery in that first quarter.

In addition, we've been stating all along the.

The last couple of quarters here that the <unk> and the.

A module availability has slowed down some on the conversion the order conversion and we expected that in Q1. So a combination of those two items is the reason why we're down sequentially, 20% as far as quantifying.

Our module availability issues.

Hey, Vikram this enable I'll start so on your second question first.

The impact of the IRA I just at this point, we don't we don't feel comfortable because there's a lot of unknowns right in that and once as Kevin stated earlier once we get that clarity we made the commitment to have that transparency to the market and how that impacts the bottom line is that it should be upside once.

The first quarter, 20% down sequentially.

You mentioned in the prepared remarks part of that is just.

That's just normal seasonality Q1, mostly have a north American business. So that's typically depending on weather conditions at sites.

<unk>.

Once we get clarity, but we just don't have that at this point.

Lower deliveries in that first quarter.

In addition, we've been stating all along the.

Understood and then as a follow up what is causing our driving the cautious outlook in Europe , permitting clearly stuff and it seems like you is taking steps to address that is that is it entirely related to difficult permitting that you are expecting to be addressed or is it something else related to critical mass.

The last couple of quarters here that the LTA in the module availability has slowed down some of the conversion the order conversion and we expected that in Q1. So a combination of those two items is the reason why we're down sequentially, 20% as far as quantifying.

The impact of the irate I just at this point, we don't we don't feel comfortable because there's a lot of unknowns right and that was kind of stated earlier once we get that clarity. We made the commitment to have that transparency and come out to the market and how that impacts the bottom line is it it should be upside once.

<unk>, which is causing some uncertainty in the market.

I was just trying to understand what's causing the cautious outlook in Europe .

Yes, well it is.

Relative to our first of all Yeah go ahead Tim.

That was the only go ahead in April the only point to make is it's it's cautious on a relative basis to the hyper growth, we'll expect in the U S. In the near term right.

Once we get clarity, but we just don't have that at this point.

Understood and then as a follow up what is causing our driving the cautious outlook in Europe , permitting clearly stuff and it seems like you is taking steps to address that is it is it entirely related to difficult permitting that youre expecting to be addressed or is it something else related to crew.

That's right and what I would say is in talking to our business that is primarily delays related to permitting.

That's causing that.

<unk>.

That cautiousness in Europe for us.

Thank you that's all I have.

Okay.

Our next question comes from Jordan Levy with <unk> Securities. Please state your question.

Materials Act or <unk>, which is causing some uncertainty in the market.

Afternoon, all can you hear me okay.

I was just trying to understand what's causing the cautious outlook in Europe .

Yes, Catherine yes, great. Thanks, so much for all the detail just a quick one from me wanted to see if we could just get a little more of your thoughts on the Australia market you mentioned the in country content you were able to secure a there is a key differentiator certainly key international market. So just wanted to get your thoughts on how you are continuing to think about Australia in your mix.

Yes, well its all relative are first of all yeah go ahead.

Okay.

No that was the only go ahead in April they only point exited to make because it's it's cautious on a relative basis to the hyper growth, we'll expect in the U S. In the near term right.

That's right and what I would say is in talking to our business. It is primarily delays related to permitting.

When the opportunity presented through being able to get that in country content.

Yeah.

That's causing that.

Yes.

Uh huh.

So so clearly what youre seeing is a little bit of protectionism crop up all over the world.

Cautiousness in Europe for Us.

Thank you that's all I have.

Okay.

Some of it in response to to the U S IRR right.

Our next question comes from Jordan Levy with tourist Securities. Please state your question.

But certainly that increasing domestic content requirements are cropping up in other countries around the world as well.

Afternoon, all can you hear me okay.

Got you great. Thanks, so much for all the detail just a quick one for me I wanted to see if we could just get a little more of your thoughts on the Australia market you mentioned the in country content you were able to secure a there is a key differentiator certainly key international market. So just wanted to get your thoughts on how you are continuing to think about Australia in your mix.

In Australia. The team brought that forward worked very closely with our supply chain organization for a period of months as we quickly went out.

And looked at all the different component vendors, we can utilize.

Did a lot of rapid testing of their of their materials evaluation of the financial strength of each of those partners. When you choose and then we feel we have locked up kind of the best of each of the players into.

When the opportunity presented through being able to get that in country content.

Yeah.

Yes, I mean, so so clearly what youre seeing is a little bit of protectionism crop up all over the world.

Our program to work with array very closely right. So I think we feel that we've done our work in Australia, we're going to be in a great position as evidenced by the winning of the first award and I think there'll be several others that as we go throughout this year and next year that will win.

Some of it in response to to the U S Iras right.

But certainly that increasing domestic content requirements are cropping up in other countries around the world as well.

As directly related to our ability to supply that domestic content.

In Australia. The team brought that forward worked very closely with our supply chain organization for a period of months as we quickly went out.

Great. Thanks, so much for squeezing me in.

Absolutely.

That's actually I have a next question from Mohit <unk> with credit Suisse. Please go ahead.

And looked at all the different component vendors, we can utilize.

Hey.

Sorry, just one quick housekeeping for the 10-K I Havent seen it okay. I just wanted to just one thing on the timing for them. Thanks.

Yes, yes.

Yes, we are.

Working to get that filed here as quickly as possible.

We'd like to file the 10-K.

After our earnings call. So we should see it here.

Eric today or tomorrow.

Yeah.

And with the SEC.

Alright, I appreciate it thanks.

Directly related to our ability to supply that domestic content.

Thank you there are no further questions at this time I'll hand, it back to management for closing remarks.

Great. Thanks, so much for squeezing me in.

Absolutely.

That's actually I have a next question from Mohit <unk> with credit Suisse. Please go ahead.

Thank you Diego just in closing I, just once again, we'd like to thank the array of associates all around the world, who continue to demonstrate our passion for execution and our passion.

Hey.

Sorry, just one quick housekeeping for the 10-K I Havent seen it okay. I just wanted to just one thing on the timing front. Thanks.

For the mission that we're on for our environment. So thank you again and thank you all for attending.

Yes, yes.

Yes, we are.

Thank you. This concludes today's conference all parties may disconnect have a great day.

Working to get that filed here as quickly as possible.

We'd like to file the 10-K.

After our earnings call. So we should see it here.

Eric today or tomorrow.

And the SEC.

Alright, I appreciate it thanks.

Thank you there are no further questions at this time I'll hand, it back to management for closing remarks.

Thank you Diego just in closing I, just once again, we'd like to thank the array of associates all around the world, who continue to demonstrate a passion for execution and our passion.

For the mission that we're on for our environment. So thank you again and thank you all for attending.

Thank you. This concludes today's conference all parties may disconnect have a great day.

Q4 2023 Array Technologies Inc Earnings Call

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