FTC Solar said its Q2 2024 revenues suffered the brunt of lower product and logistics volumes
Management pointed at interconnection or financing as the reasons for projects being pushed out
It has been cautious in the guidance for Q3 2024 when it continued to expect gross loss
Citing lower product and logistics volumes, US-based solar tracker systems manufacturer FTC Solar said its $11.4 million revenues in Q2 2024 revenues declined 9.2% sequentially and 64.7% compared to last year.
GAAP gross loss was -$2.3 million or 20.5% of revenue, compared to 16.7% of the revenue in the previous quarter. It also suffered a net loss of -$12.2 million compared to a loss of -$8.8 million in Q1 2024, and -$10.4 million in Q2 2023 (see FTC Solar Misses Q2/2023 Revenue Guidance).
Chairman of the Board of FTC Solar, Shaker Sadasivam said that the results were in line with its targets. He shared, “While we still expect a better second-half relative to the first half, our 2H results will be lower than our prior expectations as customer projects have seen delays, primarily related to interconnection or financing.”
Philip Shen of Roth MKM agreed with the management saying that these issues are plaguing the industry and FTC’s lower volumes make it difficult to sidestep, and that the pushout of 3 large projects of FTC were not driven by SEA AD/CVD.
For FTC, he added, “For 2025, we cut our revenue by ~43% to $103mn as we see the numerous US utility scale bottlenecks continue to delay and push projects to the right. Roth believes the numerous US utility scale bottlenecks are likely to continue to delay and push project.”
FTC exited Q2 2024 with its contracted portion of the backlog at $505 million.
For Q3 2024, FTC guides for revenues to be approximately flat to slightly down relative to the 2nd quarter, followed by a more than doubling of revenue in the 4th quarter relative to the 3rd. It expects to achieve adjusted EBITDA on a quarterly basis in 2025.
The Q3 2024 revenues are forecast between $9.0 million to $11.0 million. Non-GAAP gross loss will be -$4.3 million to -$1.5 million.
Recently, the company announced the appointment of Yann Brandt as the CEO and a member of the Board of Directors (see FTC Solar Announces Longtime Solar Industry Executive As New CEO).
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