FTC Solar expecting significant loss in Q2 as tracker market headwinds acquire

Jun 15, 2021 09:23 AM ET
  • US-based solar tracker manufacturer FTC Solar is anticipating to record a loss of as much as US$ 17.3 million in Q2 2021 as several headwinds incorporate to put a significant drag out efficiency.
FTC Solar expecting significant loss in Q2 as tracker market headwinds acquire
Image: FTC Solar

Last week FTC claimed that in the months following its first purchase offering steel costs had increased another 19%, freight indexes had actually raised by 18% as well as solar component rates had increased by a similar amount, bring about slippages in project timelines and also at the very least one major consumer pushing back its order right into Q3.

Speaking with investors, FTC president Tony Etnyre said that FTC's experience from talking with programmers was that, where possible, some designers were choosing to hold certain jobs by a quarter if the scenarios permit to balance out any kind of temporary cost spike.

Having actually recorded revenue of US$ 65.7 million in Q1 2021, FTC anticipates revenue in the second quarter to fall to in between US$ 41-- 46 million, a performance which needs to see the business record an operating loss around US$ 10.4-- 17.3 million.

FTC Solar posted a GAAP net loss of US$ 8 million in the opening quarter, compared to a profit of US$ 2.9 million in Q1 2020.

The firm has actually reacted by enacting a number of steps to deal with existing market problems, including a price increase on all new contracts, expanded its supply chain and carried out alternate shipping methods to decrease logistics expense and make more progression on a cost decrease roadmap previously applied.

Furthermore, FTC said it saw a possibility to boost profits generation from its solar layout software SunPath, provided its ability to boost project earnings and also alleviate cost increases.

FTC does, nonetheless, have what it called a healthy and balanced cash money placement offered the internet earnings from its IPO, which stood at US$ 181 million-- much listed below the US$ 400 million+ it initially meant to increase. A substantial portion of this has actually been alloted for improvements to its product range, and also overhead are set to rise to in between US$ 9.5-- 10.5 million in Q2, partially attributable to additional R&D spend on wind tunnel screening.

Etnyre stated recently that this added spend was to help the validation of its Voyager And also item array, which is made for large-format components and has nodes at 105, 120 as well as 135 miles per hour wind rates.

The cost of steel as well as various other headwinds have weighed heavy on tracker companies throughout the initial half of the year. Array Technologies was required to withdraw its assistance for the financial year, labelling the rise in steel expenses as "unprecedented", while various other tracker providers have actually witnessed comparable issues.

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