FTC Solar turning to alternative shipping methods as losses forecast to mount in third quarter

Facebook
Twitter
LinkedIn
Reddit
Email
FTC Solar’s Voyager tracker series in action. Image: FTC Solar.

US tracker manufacturer FTC Solar is turning to alternative shipping methods and cost-cutting initiatives in a bid to return the business to profitability in Q4, with the company’s cost base continuing to surge.

Having issued a warning to the market in mid-June that it expected to make a significant loss in the second quarter, last week FTC confirmed that it had made a non-GAAP loss of US$16.97 million in the three months ended 30 June 2021, towards the top end of the range given two months ago.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

This loss came despite quarterly revenues – US$50.1 million – beating previous guidance of US$41 – 46 million and contributing towards a 39% year-on-year increase in half-year revenue.

Shipping and logistics costs were a significant hindrance on performance, coming in roughly US$10 million higher than expected. FTC Solar CEO Tony Entyre said the “challenging and tightening global logistics environment” had prompted “meaningful actions” from the company, including an ongoing dialogue with customers and the exploration of alternative logistics solutions to provide more certainty.

Speaking to analysts last week, Entyre said freight costs were continuing to spike into Q3 and had risen another 40% entering into July and August, with project developers now reevaluating any un-contracted pipelines. Entyre said industry estimates of 15% or more of solar projects being delayed was consistent with his company’s observations in the market, with the majority of those delays being for one or two quarters.

Entyre further said that with the majority of tightness in logistics being in containerised shipping, FTC was now exploring breakbulk shipping methods. This, alongside a closer execution of contracts, has allowed the company to exercise greater control over logistics timeframes and costs.

Despite these alternative methods, FTC expects an impact of between US$12 – 15 million on Q3 earnings from higher logistics costs, with the company expecting a second consecutive heavy loss in the current quarter. Opex is expected to rise from US$8.3 million in Q2 to US$8.7 – 9.7 million in Q3, with a loss of between US$14.7 – 19.7 million during the quarter.

This comes despite sequential revenue growth over the rest of the year. Order book growth has seen executed contracts and awarded orders, excluding those incorporated into the company’s H1 2021 results, stand at US$478 million as of 1 August 2021, with those orders set to be realised over the remainder of 2021 and 2022.

Strong order volume will see FTC “transition towards profitability” into the final quarter of the year, with other cost-saving initiatives expected to help boost the company’s fortunes as the year progresses.

While no earnings forecast for H2 2021 was issued, FTC does expect full year revenues to stand at around the US$310 million, equating to a 65% year-on-year increase.

Conference call transcript from Seeking Alpha.

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.

Read Next

June 11, 2025
Origis Energy has secured a financing package from MUFG to support the development of a 350MW solar portfolio in the US.
June 10, 2025
A group of Republican Congress members penned an open letter on Friday urging the US Senate to moderate proposed changes to renewable energy manufacturing and deployment support.
Premium
June 10, 2025
PV Tech Premium spoke with Geoffrey Lehv of kWh Analytics about cybersecurity, AI and solar project underperformance.
June 6, 2025
Eternal Sun has acquired German solar simulator provider Wavelabs, which has resulted in the formation of a new subsidy, Wavelabs Eternal Sun.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 4, 2025
Tariffs on US imports will increase the cost of US solar PV and energy storage technologies and slow the rate of project development, according to analysis from Wood Mackenzie.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand