FTC Solar (NASDAQ:FTCI) reported third-quarter revenue growth and improved margins as the solar-tracker supplier expanded project awards across North America, Europe, Australia and India. Management said it expects revenue growth to accelerate in the fourth quarter and forecast adjusted EBITDA profitability in the first quarter of 2027.
Third-quarter revenue was $32.8 million, up 25.4% sequentially and 26.1% from the year-earlier quarter. The result came in slightly above the midpoint of the company’s target range, according to Chief Financial Officer Cathy Behnen.
GAAP gross profit totaled $1.9 million, representing 5.8% of revenue, compared with a gross loss of $2.2 million in the preceding quarter. Non-GAAP gross profit was $2.8 million, or 8.4% of revenue, versus a non-GAAP gross loss of $1.3 million in the second quarter.
The company reported GAAP net income of $6.7 million, or a loss of $0.54 per diluted share, which Behnen said reflected, among other items, a non-cash quarterly adjustment to the fair value of warrant liabilities. Adjusted EBITDA was a loss of $5.2 million, improving from a loss of $9.8 million in the prior quarter and coming in better than FTC Solar’s target range.
Fourth-Quarter Outlook Calls for Accelerating Growth
FTC Solar expects fourth-quarter revenue of $44 million to $52 million. At the midpoint, the forecast implies 46% sequential growth and would represent the company’s highest quarterly revenue level in nearly five years, President and CEO Anthony Carroll said.
- Non-GAAP gross profit is expected to range from $5 million to $8.3 million, or 11.4% to 15.9% of revenue.
- Non-GAAP operating expenses are expected to be between $8.2 million and $8.8 million.
- Adjusted EBITDA is projected to range from a loss of $3.9 million to break-even.
While Behnen said full-year revenue growth would fall short of the company’s prior 40% target, FTC Solar expects approximately 25% growth for the year. The company did not provide specific full-year 2027 guidance, but said it expects significant revenue growth and profitability for the year, including adjusted EBITDA profitability in the first quarter.
Carroll said the expected 2027 growth would be supported by continued business from existing U.S. customers, new customer wins, Australian projects and expansion into markets including the United Kingdom, India and Mexico.
New Awards and International Expansion
Management said FTC Solar received more than $100 million in new awards since the prior quarterly call, with nearly all of those awards coming from tier-one customers.
In North America, Carroll said the company recently received a 750-megawatt project award from a developer for a project expected to start in 2027, as well as a separate 175-megawatt project from a U.S. customer. One of the top 10 U.S. engineering, procurement and construction firms has also confirmed that five additional projects in its 2027 and 2028 pipeline are designed using FTC Solar’s solution, Carroll said.
The company also cited its strategic collaboration framework with Linxon and Hitachi Energy to jointly pursue utility-scale solar projects in North America and other markets. Carroll said FTC Solar is working on multiple large-scale U.S. projects through that relationship, as well as a portfolio of at least 700 megawatts with Energy Transition Capital in Puerto Rico.
In Europe, FTC Solar announced a multiyear master supply agreement with U.K. developer AGR covering 500 megawatts of projects. The company has received an initial 30-megawatt contract under the agreement.
In Australia, management said the company continues to execute on 400 megawatts of previously disclosed projects and has added multiple gigawatts to its project pipeline. FTC Solar also signed a memorandum of understanding with six Australian material suppliers to support local-content requirements for certain projects.
In India, the company secured a 118-megawatt project with Tata Power Solar, with initial production already underway, and a 121-megawatt project with renewable developer Evren, which is backed by Brookfield. Initial production on the Evren project is expected to begin in the first quarter of 2027.
Focus on Margins, Construction Efficiency and Automation
Carroll said the company is working to protect margins through improved supplier terms, contract structures, integrated supply-chain efforts and software-supported bidding processes. He said FTC Solar has increased revenue without increasing operating expenses, while using software and artificial intelligence to improve workflow automation, cost tracking and project design.
The CEO also highlighted third-party validation from DNV regarding installation performance for FTC Solar’s 1P Pioneer tracker. According to Carroll, DNV found installation time of just over five hours per tracker, or approximately 81 labor hours per megawatt. He said this represented 30% to 50% less installation labor than reported in competing product trials.
Carroll attributed the performance to product features focused on constructability, including bolt-free rail attachments, module-placement processes, color-coded components, packaging and sequencing, and optional preassembly. He said the company’s terrain-following solutions and engineering capabilities are particularly relevant as developers pursue projects on more difficult sites.
FTC Solar is also investing in robotics and automation. Carroll said the company has run hundreds of tests and signed multiple agreements involving automated module installation, robotic pile installation and automated installation of its Cinch Clip. The company has connected robotics providers with EPC customers that are using FTC Solar’s platform to validate the technologies, he said.
Liquidity Plans Tied to Contract Terms and Project Cash Flow
During the question-and-answer session, Carroll said the company plans to improve liquidity while expanding volume. He cited potential financing options, but emphasized improved payment terms with customers and suppliers, stronger project cash flow and higher project margins as key drivers of liquidity improvement.
“With this growth, we’re going to be able to not just improve payment terms with customers, but also with vendors, improve the cash flow of projects,” Carroll said.
About FTC Solar (NASDAQ:FTCI)
FTC Solar, Inc (NASDAQ: FTCI) provides solar tracker systems, software, and engineering services for utility-scale photovoltaic projects. Its technology is designed to help solar panels follow the sun throughout the day, increasing energy production and supporting more efficient project development and operation.
The company’s offerings include single-axis tracker systems, proprietary tracker-control and optimization software, and related engineering, technical, and installation support.
