United States-based solar tracker systems provider FTC Solar posted a net loss of $20.5 million in the fourth quarter (Q4) of 2022, a year-on-year (YoY) improvement of 14.15% compared to a loss of $23.88 million during the corresponding period in 2021.

The company recorded a revenue of $26.22 million, a drop of 74.2% YoY from $101.72 million in Q4 2021.

FTC Solar attributed the drop in revenue to the lower demand environment in the U.S., as customers struggle to navigate the regulatory environment and get a line of sight to solar modules.

The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $10.98 million, a YoY improvement of 32.8 % compared to a loss of $16.36 million.

Sean Hunkler, FTC Solar President and Chief Executive Officer, said the U.S. market continues to be impacted by the Uyghur Forced Labor Prevention Act (UFLPA)-related module shortage.

However, the company registered a 58% quarterly revenue growth.

The company’s contracted and awarded orders, as of February 28, 2023, were worth $1.2 billion, with the pipeline growing to 110 GW.

Since November 9, 2022, the company has added $240 million of backlog. In aggregate, its backlog includes approximately $400 million of non-UFLPA-impacted projects.

Full Year 2022 

FTC Solar recorded a net loss of $99.6 million during FY 2022, a decrease of 6.47% YoY from a loss of $106.5 million.

The company recorded a revenue of $123 million, a drop of 54.5% from $270.5 million.

The EBITDA stood at a loss of $66.42 million, up 19% YoY.

The company said the results for the full year were impacted by historically high logistics and steel costs, followed by a challenging regulatory environment in the U.S.

FTC Solar’s Q3 net loss widened to $25.6 million compared to $22.9 YoY due to low demand induced by regulatory hurdles.

The company recorded a revenue of $30.7 million in Q2, a YoY drop of 39% from $50.1 million.