US solar tracker system provider, FTC Solar, has announced a narrowed adjusted EBITDA loss of US$7.2 million for Q1 2023. This represents a 24.5% improvement from Q4 2022, where the adjusted EBITDA loss was US$11 million. The company’s revenue for Q1 2023 was US$40.9 million, reflecting a 56% increase from Q4 2022. However, year-on-year, revenue decreased by 17.5%, which was primarily driven by lower logistics volume, partially offset by higher product average selling prices.
Despite the decrease in year-on-year revenue, FTC Solar attributed the revenue increase to product volume increases since Q3 2022. In addition, the company has been expanding its product offerings and available market opportunities. It added a thin-film solution to its 2P Voyager tracker, and last year introduced its new one module in portrait (1P) Solar Tracker Solution, requiring fewer foundations of up to 36% to boost energy yield.
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FTC Solar’s net loss for Q1 2023 was US$11.8 million or US$0.11 per share, compared to a loss of US$20.5 million or US$0.2 per share in Q4 2022. In the prior year’s quarter, the net loss was US$27.8 million or US$0.28 per share.
FTC Solar’s CEO, Sean Hunkler, noted that the company’s improved cost structure enabled it to post its first positive gross margin since its IPO. He added that the company’s overall pipeline had reached a new record high at 134GW, and the company’s backlog had grown to US$1.4 billion, with another US$235 million added since 1 March.
Looking ahead, FTC Solar is targeting an adjusted EBITDA loss in Q2 in the range of US$7 million to US$3.5 million, with revenue expected to increase to up to US$52.5 million in Q2 2023 from US$40.9 million in Q1 2023. The company has also formed a domestic joint venture with Thailand-headquartered steel fabricator Taihua New Energy to produce steel components for solar projects.
