Solar Tracking Systems Company FTC Solar’s Loss Reduces to $25.62 Million in Q2 2022
The company attributed the revenue dip to a lower demand environment in the US
August 10, 2022
U.S.-based solar tracker systems provider FTC Solar recorded a revenue of $30.7 million in the second quarter (Q2) of 2022, a year-over-year (YoY) drop of 39% compared to $50.1 million in the same quarter last year.
FTC Solar’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter amounted to $17.74 million, a YoY surge of 6% from $16.75 million.
The company’s net loss declined to $25.62 million from $52.34 million in the same quarter last year.
In Q1, 2022, the company posted revenue of $49.5 million and incurred a net loss of $27.7 million.
The revenue level reflected the lower demand environment in the U.S. amid the regulatory environment and solar module availability constraints. It represented a decrease of 38% compared to the prior quarter and a decrease of 39% year-over-year, driven by lower volume and partially offset by a higher average selling price.
FTC Solar added $141 million to its contracted and awarded orders, bringing its total to $774 million during the second quarter.
“Second quarter results were generally in-line with our expectations and reflect what has been a challenging solar-module constrained U.S. market environment. Following the President’s executive order on clean energy in June, we have observed a significant uptick in customer project discussions. Developer and EPC customers are eagerly working to secure sufficient module supply for both delayed 2022 projects as well as a strong funnel of 2023 projects. Based on these and other discussions, we believe that successfully navigating UFLPA import restrictions on solar modules remains the last hurdle for the industry to overcome to ensure a very strong recovery in 2023,” said Sean Hunkler, FTC Solar President and Chief Executive Officer.
FTC Solar recently announced the acquisition of HX Tracker, a China-based supplier of 1P tracker systems. In July last year, FTC Solar received a net payout of approximately $22 million in connection with the sale of its minority investment position in Dimension Energy.
FTC Solar was awarded a solar project in Africa to use FTC Solar’s latest Voyager+ tracker solution. The 1 MW project has been developed by AAAS Energy in conjunction with BUAN, with the last mile development and EPC works undertaken by Soventix, South Africa. The project is expected to begin generating power in early 2022.