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Arctech Solar, a leading manufacturer of photovoltaic trackers, reported a significant financial reversal in 2025, according to a report from PV Tech. The company’s preliminary earnings forecast showed total operating revenue declined on a year-on-year basis, moving from a net profit to a net loss.
Persistent price fluctuations for upstream photovoltaic modules during the year disrupted calculations and planning for downstream power plant developers, leading to delays in project starts and construction. These delays subsequently affected the company’s product delivery, acceptance, and the timing of its revenue recognition. The conversion of backlog orders into revenue, particularly for overseas tracker orders, did not meet expectations.
While new order intake in 2025 maintained growth, especially for overseas tracker orders, and the gross margin for tracking products remained largely stable, other factors pressured profits. The company, which conducts a high share of business overseas and settles transactions in foreign currencies like the US dollar, faced significant negative impacts from foreign exchange market volatility and a declining exchange rate, which eroded overall profits.
Domestically, the photovoltaic industry is in a period of capacity adjustment, leading to intensified market competition. This resulted in a year-on-year decline in the gross margin for the company’s domestic fixed structure products. A contraction in overall revenue and a rising sales proportion of these lower-margin products contributed to a decline in the company’s overall gross margin.
In response to global trade environment changes and localized supply chain requirements in major markets, Arctech Solar increased investment in 2025 for overseas market development and capacity building in several regions. This significant spending drove up operating expenditure for the reporting period, weighing on profits.
In a recent global ranking of photovoltaic tracker enterprises, Arctech Solar placed eighth. Its key markets include the Middle East and Europe. However, the competitive landscape in the Middle East has intensified as other major tracker companies have expanded steadily, each securing orders at a gigawatt scale, which has eroded Arctech Solar’s previous advantages in that region.
One competitor announced it would supply trackers for a large photovoltaic power plant in Saudi Arabia and highlighted its expanded annual capacity within the country. Another global tracker leader finalized the establishment of a joint venture in Saudi Arabia in January 2026, which is constructing a manufacturing base scheduled to begin production later in the year. That company is accelerating a transformation from a pure tracker manufacturer to a broader solution provider, expanding into other segments of the value chain.
Similarly, Arctech Solar has taken steps to expand its business. The company adjusted its fundraising projects, shifting focus from certain research and development areas to others, and modified its internal investment structure. It has also entered into a strategic cooperation agreement with a Chinese energy storage firm, with the cooperation encompassing specific capacities for large-scale energy storage batteries and systems.
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