FTC Solar Misses Q2/2023 Revenue Guidance

Project Delay Challenges Slow Down US Tracker Maker’s Growth Even As Project Backlog Swells

FTC Solar Misses Q2/2023 Revenue Guidance

FTC Solar guided for Q2/2023 revenues between $42.5 million and $52.5 million, but ended up reporting $32.35 million due to project delays. (Photo Credit: FTC Solar, Inc.)

  • FTC Solar’s Q2/2023 revenues were negatively impacted by project delays  
  • Revenues pushed out to future quarters gives it growth visibility into 2024 
  • Project backlog increased to $1.6 billion as it diversifies into newer geographies

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.

About The Author

Anu Bhambhani

SENIOR NEWS EDITOR Anu is our solar news whirlwind. At TaiyangNews, she covers everything that is of importance in the world of solar power. In the past 9 years that she has been associated with TaiyangNews, she has covered over thousands of stories, and analysis pieces on markets, technology, financials, and more on a daily basis. She also hosts TaiyangNews Conferences and Webinars. Prior to joining TaiyangNews, Anu reported on sustainability, management, and education for leading print dailies in India. [email protected]

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