AUSTIN - FTC Solar, Inc. (NASDAQ:FTCI), a prominent solar tracker systems provider, in collaboration with Sandhills Energy, has announced it will supply 1 gigawatt of its 1P Pioneer trackers for three upcoming solar projects in Nebraska. The initiative includes a 448-megawatt project in Burt County, a 320-megawatt project in Cass County, and a 225-megawatt project previously revealed for Butler County.
Eric Johnson, President of Sandhills Energy, praised the selection of FTC Solar's technology for its high-density design and support in achieving their renewable goals. These installations are anticipated to be among the largest in Nebraska, contributing to the state's renewable energy expansion. Yann Brandt, FTC Solar’s CEO, expressed enthusiasm for the partnership and the market interest in their Pioneer 1P tracker, citing its efficiency and cost-effective installation.
Tracker deliveries are scheduled to start in the third quarter of 2025 and extend into the fourth quarter of 2026. The financial details of these projects were accounted for in FTC Solar’s contracted backlog, as disclosed on August 8, 2024.
FTC Solar, established in 2017, is recognized for its innovative solar tracker designs that optimize energy production and offer a competitive installation cost-per-watt. Sandhills Energy has been expanding its renewable energy development portfolio across the Midwest since 2012.
The information in this article is based on a press release statement and does not include any speculative content about the broader industry impacts or trends.
In other recent news, FTC Solar has announced a significant supply agreement with Strata Clean Energy, a significant leadership transition, and its second-quarter financial performance. FTC Solar will supply approximately 500 megawatts of its Voyager 2P solar tracker technology to Strata, potentially extending to over a gigawatt of volume. FTC Solar also 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 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. FTC Solar also announced the resignation of board member Isidoro Quiroga Cortes. 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 announcement of a 1 gigawatt supply deal with Sandhills Energy comes at a crucial time for the company, as reflected in the latest financial data and analyst insights from InvestingPro.
According to InvestingPro data, FTC Solar's revenue for the last twelve months as of Q2 2024 stood at $77.77 million, with a concerning revenue decline of 32.99% over the same period. This context makes the new Nebraska projects particularly significant for the company's future growth prospects.
InvestingPro Tips highlight that FTC Solar is "quickly burning through cash" and "suffers from weak gross profit margins." These factors underscore the importance of securing large contracts like the one with Sandhills Energy to improve the company's financial health.
On a positive note, FTC Solar has shown strong market performance recently, with InvestingPro data reporting a 55.15% price total return over the last three months. This aligns with the InvestingPro Tip indicating a "significant return over the last week," suggesting growing investor confidence in the company's prospects.
The company's market capitalization stands at $80.85 million, reflecting its current position in the solar industry. While FTC Solar faces challenges, including not being profitable over the last twelve months, the new gigawatt-scale projects in Nebraska could be pivotal in turning the tide.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for FTC Solar, providing a deeper understanding of the company's financial position and market potential.
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