US solar tracking bracket supplier FTC Solar recently has released a report disclosing a deterioration in its financial situation. The company’s net loss for Q2 of 2024 has reached $12.2 million, an increase of 17.3% from the net loss of $10.4 million in the same period of 2023.
The expansion of net losses is mainly due to a sharp decline in revenue and an increase in operating costs. According to statistics, FTC Solar’s revenue in Q2 was only $11.4 million, a decrease of 73% compared to the same period of 2023, which highlighting the severe challenges the company is facing.
The announcement pointed out that the delay in project execution and unfavorable market environment have had an impact on sales performance, leading to a significant decrease in revenue.
This quarter, FTC Solar’s adjusted EBITDA was negative $8.7 million, an increase of 12.9% compared to negative $7.7 million in the same period of last year. Yet, the company’s outstanding contract amount remains at $505 million.
Shaker Sadasivam, Chairman of the Board of Directors of FTC Solar, stated that the company will continue to drive key initiations to improve profit. With the excellent products in 1P and 2P configurations and lower break-even income levels, the company is confident to achieve significant improvements in profit margins while achieving revenue growth.
FTC Solar also revealed that the company will improve operational efficiency and make strategic investments in sales resources to achieve better market performance in the future.
It is worth mentioning that in Q1 of 2024, FTC Solar’s net loss has decreased to $8.8 million from $11.8 million in the same period of 2023, showing a certain improvement. After the announcement of first quarter’s performance, the company stated that its product portfolio is constantly expanding and focusing on optimizing customer project portfolios. Especially the improvement of the 2P tracking bracket market has promoted continuous optimization of systems, processes, and pricing.
Due to reduced production and lower operating expenses, FTC Solar’s net loss dropped from $20.5 million to $11.2 million in Q4 of 2023. However, the company still faces significant financial and operational pressures.
