Array Technologies, Inc. (NASDAQ:ARRY) Q4 2022 Earnings Call Transcript

Vikram Bagri: Understood. And then as a follow-up, what is causing or driving the cautious outlook in Europe, permitting clearly stuff and it seems like EU is taking steps to address that. Is it entirely related to difficult permitting that you’re expecting to be addressed? Or is it something else related to Critical Materials Act or Net-Zero Act, which is causing somewhat uncertainty in the market? I was trying to understand what’s causing the cautious outlook in Europe?

Kevin Hostetler: Yes. Well, it’s all relative first of all.

Nipul Patel: Yes, go ahead Kevin.

Kevin Hostetler: No. That was the only — go ahead, Nipul. The only point I wanted to make is it’s cautious on a relative basis to the hyper growth we’ll expect in the US in the near-term, right?

Nipul Patel: That’s right. And what I would say is in talking to our businesses, it’s primarily delays related to permitting that’s causing our — that cautiousness in Europe for us.

Vikram Bagri: Thank you. That’s all I had.

Operator: Our next question comes from Jordan Levy with Truist Securities. Please state your question.

Jordan Levy: Afternoon all. Can you hear me okay?

Kevin Hostetler: Yes.

Nipul Patel: Got you. Yes.

Jordan Levy: 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 there as a key differentiator, certainly key international markets. So, just wanted to get your thoughts on how you’re continuing to think about Australia and your mix and the opportunity presented through being able to get that in country content?

Kevin Hostetler: Yes, I mean — so clearly what you’re seeing is a little bit of protectionism crop up all over the world in some of it in response to the US IRA, right? But certainly that increasing domestic content requirements are cropping up in other countries around the world as well. 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. They have a lot of rapid testing of their materials, evaluation of the financial strength of each of those partners when we choose. And then we feel we’ve locked up kind of the best of each of the players into a 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 we’ll win as directly related to our ability to supply that domestic content.

Jordan Levy: Great. Thanks so much for squeezing me in.

Kevin Hostetler: Absolutely.