AUSTIN, Texas - FTC Solar Inc. (NASDAQ:FTCI), a prominent provider of solar tracker systems, has entered into an agreement with Dunlieh Energy to supply tracking technology for solar projects exceeding one gigawatt, starting in 2025. The initial venture under this partnership is the Situla Energy Project, a 500-megawatt solar and battery facility, situated in Banner (NASDAQ:BANR) County, Nebraska.
The Situla project aims to bolster the local economy by creating over 225 construction jobs and is projected to contribute more than $1.4 million annually in capacity taxes, benefiting local schools and county services. FTC Solar's delivery of trackers is slated to commence in the latter half of 2025.
Thaer Flieh, CEO of Dunlieh Energy, commended FTC Solar's tracker technology for its rapid, safe, and straightforward installation process, which he believes will add significant value to the Situla project and future developments. Yann Brandt, President and CEO of FTC Solar, expressed the company's readiness to support Dunlieh Energy with their product lineup and customer service to optimize each project site.
FTC Solar, established in 2017, specializes in solar tracker systems that enhance energy production by dynamically adjusting solar panel orientation. The company has recently expanded its partnerships, including agreements with Strata Clean Energy and Sandhills Energy.
Dunlieh Energy focuses on accelerating the transition to clean energy through sustainable energy projects such as solar PV, energy storage, and green hydrogen, with the aim of fostering a green future for upcoming generations.
This announcement is based on a press release statement and does not include any forward-looking statements or endorsements. The information provided is subject to verification and does not speculate on future events or broader industry impacts.
In other recent news, FTC Solar has experienced significant developments. The company reported Q2 earnings with revenues standing at $11.4 million, a gross loss of $2.3 million, and a net loss of $12.2 million. Despite these figures, FTC Solar has secured $500 million in signed purchase orders and maintains a contracted backlog of $505 million. The company has also announced a supply agreement with Strata Clean Energy, providing approximately 500 megawatts of its Voyager 2P solar tracker technology.
Additionally, FTC Solar has announced its collaboration with Sandhills Energy to supply 1 gigawatt of its 1P Pioneer trackers for three upcoming solar projects in Nebraska. The company has also seen changes in its leadership, with the appointment of a new CEO, Yann Brandt, and the addition of Pablo Barahona to its Board of Directors, following the resignation of board member Isidoro Quiroga Cortes.
Looking ahead, FTC Solar forecasts third-quarter revenue to be between $9 million and $11 million, and anticipates positive EBITDA by 2025 with quarterly revenues ranging between $50-60 million. However, analysts have noted a decrease in the company's revenue for Q2 compared to the previous quarter and year-over-year. These are recent developments that investors should consider in their evaluations of FTC Solar.
InvestingPro Insights
FTC Solar's recent agreement with Dunlieh Energy for large-scale solar projects comes at a crucial time for the company, as revealed by InvestingPro data. The company's market capitalization stands at $71.87 million, reflecting its position in the solar technology sector. However, FTC Solar faces significant challenges, as evidenced by its financial metrics.
InvestingPro data shows that FTC Solar's revenue for the last twelve months as of Q2 2024 was $77.77 million, with a concerning revenue growth decline of -32.99% over the same period. This decline is even more pronounced in the quarterly figures, with a -64.68% revenue drop in Q2 2024. These numbers underscore the importance of the new Dunlieh Energy deal in potentially reversing this trend.
Two relevant InvestingPro Tips highlight the company's current situation:
1. FTC Solar is quickly burning through cash, which makes the new large-scale project crucial for improving its financial health.
2. The company holds more cash than debt on its balance sheet, potentially providing some financial flexibility as it embarks on this significant project.
These insights are particularly relevant given the scale of the Situla Energy Project and the potential impact on FTC Solar's future revenue streams. The company's ability to execute on this project could be pivotal in addressing its financial challenges and capitalizing on the growing demand for solar energy solutions.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips that could provide deeper insights into FTC Solar's financial position and market performance.
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