FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes
POWER & RENEWABLE ENERGY

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes

FTC Solar, a U.S.-based provider of solar tracker systems, reported a revenue of $10.14 million in the third quarter (Q3) of 2024, surpassing analyst expectations by $240,680. However, this figure marked a 66.8% year-over-year (YoY) decline compared to the same quarter in 2023, primarily attributed to reduced product volumes.

The decline in solar tracker revenue was mainly due to an 82% decrease in the amount of MW produced, which was negatively impacted by delays in customer projects. This was partially offset by an increase in the average selling price (ASP), which led to better pricing and changes in the project mix compared to Q3 2023.

FTC Solar also offers engineering and software solutions for project design. Revenue from these services fell 39.8% YoY, driven by a 29% decrease in ASP and lower engineering consulting revenues. This decline was partially mitigated by an 18% increase in MW delivered, attributed to the timing of project deliveries.

The company reported an earnings per share (EPS) of -$0.10, missing analyst expectations by $0.01. Despite this revenue shortfall, FTC Solar's net loss for Q3 was $15.4 million, an improvement over the $16.9 million loss recorded in Q3 2023. Adjusted EBITDA loss widened to $12.2 million from $9.7 million in the same period last year.

FTC Solar is focusing on improving direct margins by significantly reducing steel content (by more than 20%) and cutting manufacturing costs.

In a move to strengthen its balance sheet, FTC Solar secured a $15 million, five-year promissory note from an institutional investor. The note carries an interest rate of 11% if paid in cash or 13% if paid in kind. The agreement also includes warrants allowing the investor to purchase 17.5 million shares of FTC Solar stock at an exercise price of $0.01 per share, with a ten-year maturity period. As part of the deal, the investor has the right to nominate a board member.

Additionally, FTC Solar received a $4.7 million earn-out payment from its previous stake in Dimension Energy, a community solar developer. Since selling its investment, FTC Solar has collected over $9 million from this venture and remains eligible for up to $5 million in earn-out payments by the end of 2024.

FTC Solar, a U.S.-based provider of solar tracker systems, reported a revenue of $10.14 million in the third quarter (Q3) of 2024, surpassing analyst expectations by $240,680. However, this figure marked a 66.8% year-over-year (YoY) decline compared to the same quarter in 2023, primarily attributed to reduced product volumes. The decline in solar tracker revenue was mainly due to an 82% decrease in the amount of MW produced, which was negatively impacted by delays in customer projects. This was partially offset by an increase in the average selling price (ASP), which led to better pricing and changes in the project mix compared to Q3 2023. FTC Solar also offers engineering and software solutions for project design. Revenue from these services fell 39.8% YoY, driven by a 29% decrease in ASP and lower engineering consulting revenues. This decline was partially mitigated by an 18% increase in MW delivered, attributed to the timing of project deliveries. The company reported an earnings per share (EPS) of -$0.10, missing analyst expectations by $0.01. Despite this revenue shortfall, FTC Solar's net loss for Q3 was $15.4 million, an improvement over the $16.9 million loss recorded in Q3 2023. Adjusted EBITDA loss widened to $12.2 million from $9.7 million in the same period last year. FTC Solar is focusing on improving direct margins by significantly reducing steel content (by more than 20%) and cutting manufacturing costs. In a move to strengthen its balance sheet, FTC Solar secured a $15 million, five-year promissory note from an institutional investor. The note carries an interest rate of 11% if paid in cash or 13% if paid in kind. The agreement also includes warrants allowing the investor to purchase 17.5 million shares of FTC Solar stock at an exercise price of $0.01 per share, with a ten-year maturity period. As part of the deal, the investor has the right to nominate a board member. Additionally, FTC Solar received a $4.7 million earn-out payment from its previous stake in Dimension Energy, a community solar developer. Since selling its investment, FTC Solar has collected over $9 million from this venture and remains eligible for up to $5 million in earn-out payments by the end of 2024.

Next Story
Infrastructure Transport

Versova-Dahisar Coastal Road Project to Impact 1,200 Trees

The Versova-Dahisar Coastal Road Project in Mumbai will affect over 1,200 trees, according to the Brihanmumbai Municipal Corporation (BMC). Of these, 990 trees will be replanted, while the remaining will be cut down due to construction requirements. The project, which forms a key extension of the on-going Mumbai Coastal Road corridor, aims to ease traffic congestion in the western suburbs and enhance north-south connectivity along the city’s coastline. The BMC has assured that replantation efforts will be carried out in designated areas to maintain ecological balance and offset the environm..

Next Story
Infrastructure Transport

New Entry-Exit Planned on Vadodara–Mumbai Expressway near Ankleshwar

The Vadodara–Mumbai Expressway is set to get a new entry and exit point near Ankleshwar, aimed at improving regional connectivity and reducing travel time for commuters in south Gujarat. The new interchange, proposed by the National Highways Authority of India (NHAI), will offer smoother access to nearby industrial and residential areas. The project forms part of the Bharatmala Pariyojana initiative, designed to strengthen India’s expressway network and boost economic corridors. Once operational, the new interchange is expected to enhance logistics efficiency by offering improved freight..

Next Story
Infrastructure Transport

PMRDA Launches Rs 5,580 Mn Road Upgrade Plan to Ease Chakan Traffic

The Pune Metropolitan Region Development Authority (PMRDA) has launched Rs 5,580 million road infrastructure upgrade plan to address severe traffic congestion in the Chakan industrial region. The initiative aims to improve connectivity between Pune and major industrial hubs, including Talegaon, Moshi, and Alandi. Under the plan, PMRDA will widen existing roads, construct new link roads, and improve junctions across the Chakan–Talegaon and Moshi-Alandi corridors. These measures are expected to streamline the movement of goods and workers, benefiting the area are automotive and manufacturing ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?