FTC Solar on 'cusp of profitability' as revenue surpasses expectations, announces acquisition of HX Tracker

Mar 16, 2022 11:02 AM ET
  • US-headquartered solar tracker manufacturer FTC Solar said it was "on the cusp of profitability" after its revenue for Q4 2021 came in above the luxury of its recently downgraded support. It likewise revealed it had actually entered a contract to acquire Chinese tracker company HX Tracker.
FTC Solar on 'cusp of profitability' as revenue surpasses expectations, announces acquisition of HX Tracker
Image: FTC Solar

Its Q4 and also complete year financial results released today revealed FTC Solar generated US$ 101.7 million in Q4, up 92% on Q3 and also at the high-end of its support, although this was devalued in November in the middle of PV task pushbacks in the United States.

FTC Solar stated the higher end assistance was gone beyond because of increased manufacturing as well as product delivery, which pulled ahead revenue it had actually prepared for in Q1 this year.

Its CEO as well as head of state Sean Hunkler put the growth to enhanced customer penetration, the winning of international agreements, the launch of higher margin products and an enhanced steel efficiency of 20% as well as its initial public offering (IPO).

The company videotaped a net loss of US$ 23.9 million in Q4, with this rising to US$ 106.6 million for the year ending 31 December, the results revealed. This covered a hard year for FTC Solar which in August confirmed that it had actually made a non-GAAP loss of US$ 16.97 million in the 3 months finished 30 June 2021.

Hunkler claimed that 2021 was a "perfect storm" of expense pressures yet that the business had actually taken "significant actions" to control losses and also breakthrough margin renovation.

" Our company believe we get on the cusp of profitability with significant growth and also margin renovation in advance," he included.

At the same time, the Texas-based company introduced that it had become part of a contract to obtain Chinese tracker provider HX Tracker for US$ 4.3 million as well as 1.4 million shares. HX Tracker has approximately 20GW of pipe opportunities, according to FTC Solar.

The acquisition-- anticipated to enclose Q2-- will certainly help accelerate the FTC's international development via HX Tracker's international presence in China, the Middle East, Africa and also various other international markets, the business said.

Formed in 2019, HX Tracker supplies 1P tracker systems that have been developed with a reduced steel content as well as which are "optimised for low-labour price international markets", FTC Solar claimed.

" This is a solid complement to FTC Solar's 2P tracker that is designed to be absolutely differentiated based on its simplicity of building and reduced labour hrs, which is optimum in higher labour expense markets."

"In general, we approximate the purchase can produce US$ 4 numerous EBITDA increase in 2023, and also US$ 7 million in 2024," said FTC Solar.

FTC Solar's outlook stays unchanged for 2022 as it keeps its mid-point target of a 62% development in revenue, which the business claimed would certainly "surpass the total development of the marketplace".

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