Is Array Technologies Stock (ARRY) Halal? A Complete Analysis

The Short Answer

Array Technologies stock (ARRY) is generally considered halal on the qualitative business-activity screen by most Islamic scholars. Array designs and manufactures ground-mounted single-axis solar tracker systems for utility-scale solar power plants. Trackers rotate solar panels through the day to follow the sun and increase energy yield versus fixed-tilt systems.

Array sells to engineering-procurement-construction contractors and utility-scale solar developers globally. The clean-energy industrial business is unambiguously permissible at the activity level. The Sharia consideration is the financial screen — term-loan debt from prior acquisitions (notably STI Norland in 2022) has at times pushed the debt-to-market-cap ratio above the 33% Sharia threshold during cycle troughs.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)

Array Technologies' Business Activity

Array Technologies' product portfolio includes:

• DuraTrack: The flagship single-axis tracker platform for utility-scale solar
• OmniTrack: Single-axis tracker optimized for undulating terrain
• SkyLink: Wireless drive technology for tracker rows
• STI Norland trackers: Tracker platform for emerging markets (acquired 2022)
• Software: SmarTrack tracking algorithms and yield optimization

Tracker hardware is the operational backbone of utility-scale solar plants and is unambiguously permissible as clean-energy industrial equipment.

Concerns to Be Aware Of

1. Term-Loan Debt from STI Norland Acquisition

The 2022 STI Norland acquisition was financed in part with term-loan debt. The debt-to-market-cap ratio has at times sat above the 33% Sharia threshold during cycle troughs when the share price has been depressed. Verify the current ratio at your preferred screening platform.

2. Cyclical Exposure to Utility-Scale Solar Build Cycles

Revenue is cyclical with the utility-scale solar build-out cycle, interconnection-queue dynamics, and US trade-policy decisions on imported solar modules. This is a business-quality consideration rather than a Sharia screen concern.

3. End Customer Base

Customers include utility-scale solar developers, some of which are subsidiaries of conventional integrated utilities or oil-major renewables divisions. Array sells industrial hardware to these developers, not financial products. Most Sharia advisory boards do not classify industrial-equipment vendors with utility or oil-major renewable customers as failing the qualitative screen.

4. Minor Interest Income

Array earns modest interest income on cash reserves. The company does not currently pay a dividend, so practical purification is limited.

Financial Ratios (2025)

Based on Array Technologies' most recent financial statements:

• Total Debt / Market Cap: Varies with share price — verify current ratio ⚠️
• Interest Income / Revenue: Under 5% ✅
• Haram Revenue: Negligible ✅
• Business Activity Screen: Passes cleanly ✅

Verdict from Major Screening Agencies

Array Technologies stock screens as compliant or doubtful, depending on methodology and the current financial ratio:

• Zoya App — Often Compliant when ratios pass; verify ratio ⚠️
• MSCI Islamic criteria — Passes qualitative; financial screen depends on cycle ⚠️
• Strict Sharia advisory boards — May classify as doubtful when debt ratio sits above threshold ⚠️
• Permissive Sharia advisory boards — Approved as clean-energy industrial ✅

Bottom Line

Array Technologies (ARRY) is generally halal on the qualitative screen, with the financial screen the binding consideration depending on the current cycle. The clean-energy industrial business is unambiguously permissible, and Array is a leader in the utility-scale solar tracker category. Muslim investors should verify the current debt-to-market-cap ratio at their preferred screening platform before initiating a position.

For Muslim investors seeking exposure to utility-scale solar infrastructure, ARRY sits alongside Nextracker, Shoals, and other solar-balance-of-system vendors as a differentiated way to play the clean-power build-out without taking direct module-manufacturing or developer risk.