Solar tracker manufacturer FTC Solar in the US missed its Q2/2023 revenue guidance due to project delays on the part of developers that prefer to wait for clarity on the Inflation Reduction Act (IRA). Anticipated revenues are now pushed to future quarters.
The $32.35 million GAAP revenue in the reporting quarter dropped 20.9% sequentially, but increased 5.3% YoY, yet was lower than the company's guidance of $42.5 million to $52.5 million (see FTC Solar Added $235 Million To Project Backlog).
GAAP gross profit was $2.2 million or 6.8% of total revenue, while net loss narrowed to -$10.4 million from -$11.8 million in the previous quarter and -$25.7 million in Q2/2022.
The management has offered a subdued revenue guidance for Q3/2023, expecting to report between $24 million and $34 million. However, it anticipates an increase in Q4 which should continue to improve into 2024.
The reason for this confidence is its total backlog of executed contracts and awarded orders having grown to $1.6 billion with $259 million added since May 10, 2023. This includes recent wins for 1 GW tracker supply to Cat Creek Energy and another 300 MW award for utility– scale agrivoltaic projects in Spain and Italy. It has also won a 120 MW project in South Africa.
TD Cowen's Jeffrey Osborne notes that this diversification of its customer base should help FTC Solar reduce its customer concentration risk in the long run and blunt the impact of delays by a single customer, which its peers Nextracker and Array Technologies don't have.
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