AUSTIN, Texas - FTC Solar, Inc. (NASDAQ:FTCI), a prominent solar tracker systems provider, has announced a significant supply agreement with Strata Clean Energy. Under the agreement, FTC Solar will provide approximately 500 megawatts of its Voyager 2P solar tracker technology to Strata for use across multiple U.S. project sites. The initial three-year term could extend to over a gigawatt of volume, positioning FTC Solar as Strata's preferred 2P solar tracker supplier.
Strata Clean Energy, a leader in solar development, engineering, procurement, construction (EPC), and operations and maintenance (O&M), plans to employ a combination of FTC Solar’s trackers and its SunPath software to optimize the output and performance of the solar sites. "FTC has one of the fastest and easiest trackers to install," said Markus Wilhelm, CEO of Strata, acknowledging the quality and adaptability of FTC Solar’s technology and customer service.
Yann Brandt, President and CEO of FTC Solar, expressed pride in being chosen by Strata and emphasized the company’s commitment to exceeding customer expectations through its trackers and services. The first project under this agreement is slated to commence in the fourth quarter of 2024.
Strata boasts a strong portfolio, with over 170 operational projects, more than 8 GW of solar and 31 GWh of storage in development, and 4.2 GW under national management. FTC Solar, founded in 2017, has quickly become a leading figure in the solar industry, known for its innovative tracker designs that enhance energy production efficiency.
This collaboration is expected to reinforce FTC Solar's market presence and contribute to the growth of renewable energy infrastructure in the United States. The information in this article is based on a press release statement from FTC Solar.
In other recent news, FTC Solar has seen significant changes within its organization and financial performance. The company has reported second-quarter earnings, with revenues standing at $11.4 million alongside 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.
In terms of leadership changes, FTC Solar has announced the appointment of a new CEO, Yann Brandt, and the resignation of board member Isidoro Quiroga Cortes. The company has also added Pablo Barahona to its Board of Directors, who brings over 30 years of international experience and a strong background in corporate governance and global market operations.
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
In light of FTC Solar's recent supply agreement, it's important to analyze the company's financial health and market performance to understand its potential trajectory. According to InvestingPro data, FTC Solar (NASDAQ:FTCI) currently holds a market capitalization of $28.67 million. The company's revenue for the last twelve months as of Q2 2024 stands at $77.77 million, but it's worth noting that this represents a significant decline of 32.99% compared to the previous period.
InvestingPro Tips suggest that FTC Solar is trading at a low revenue valuation multiple, which could be seen as a buying opportunity if the company's market position is expected to improve following the Strata deal. However, analysts are not optimistic about the company's profitability in the near term, as they do not anticipate FTC Solar will be profitable this year. This is further underscored by the company's gross profit margin, which is currently negative at -0.16%.
Despite the challenges, FTC Solar's liquidity seems to be a strong point, as the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. Nevertheless, the stock price has experienced significant volatility and has underperformed over various time frames, including a 87.09% decline over the last year.
Investors interested in FTC Solar's future prospects can find additional InvestingPro Tips, which provide deeper insights into the company's performance and valuation. As of now, there are 17 more tips available on InvestingPro's platform, which can be accessed for a comprehensive analysis to inform investment decisions.
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