FTC Solar, Inc.

Good day, and thank you for standing by. Welcome to the FTC Solar Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Bill McCarrick, VP of Investor Relations. Please go ahead.

Thank you, and welcome everyone to FTC Solar's Second Quarter 2025 Earnings Conference Call. Before today's call, you may have reviewed our earnings release and supplemental financial information, which were posted earlier today. If you've not reviewed these documents, they're available on the Investor Relations section of our website at fccsolar.com. I'm joined today by Jan Brandt, the company's president and chief executive officer, Kathy Bainan, the company's chief financial officer, and Patrick Cook, the company's head of capital markets and VD. Before we begin, I remind everyone that today's discussion contains forward-looking statements based on our assumptions and beliefs in the current environment and speaks only as of the current date. As such, these forward-looking statements include risks and uncertainties and actual results and events could differ materially from our current expectations. Please refer to our press release and other SEC filings for more information on the specific risk factors. We assume no obligation to update such information except as required by law. As you would expect, we will discuss both GAAP and non-GAAP financial measures today. Please note that the earnings release issued this morning includes a full reconciliation of each non-GAAP financial measure to the nearest applicable GAAP measure. With that, I'll turn the call over to Jan.

Thanks, Bill, and good morning, everyone. It's great to be with you again and give you an update on the continued progress that FTC Solar is making to position the company as one of the leading single-access tracker providers in the market. As I approach my one-year anniversary with FTC Solar, I can tell you that this has been one of the most dynamic and incredible of my nearly 20 years in the solar industry. My optimism about the company and its future is that in this moment of needing to build solar faster and more efficiently, we believe our tracker installs in less time with less people than any of our peers, and we don't think it's even close. The constructability is in our DNA. Fewer parts and better features enable a reimagined solar tracker installation experience. I urge you to view the videos of our installations that we've posted to see how tasks that may require six or seven people and special tools with competing products are replaced with two people and no specialty tools or drills. Our clients are finding that new installation crews can be trained and operating full speed within minutes of the start of the day. It's just that simple to install. This constructability is protected by IP and inherent in the design that is the latest innovation to the tracker market. While it takes time to educate and advance the conversation with EPCs that have been doing it one way for years, this is exactly the progress we're making every single day. FTC is on more approved vendor list today than ever in our history, and we're just getting started. FTC continues to grow the sales team with EPC experts to help drive understanding of our constructability with our customers. These installation benefits can enable EPCs to offer lower capex prices to customers when using FTC, rather than with competitor options. Our message to the market is clear. We believe that FTC's tracker installs significantly faster than any other tracker in the market, and that message continues to be our focus every day. Now, let me say a few things on the market and our positioning, and then I'll turn it over to Kathy to provide an update on our second quarter results. At a high level, the second quarter came in as expected from a financial perspective, with results within our ranges and tight objects allowing adjusted ETA data to come in at the high end, even with some of the most volatile macro environment I have seen during my solar career. The exciting news since our last call was the $75 million financing facility we entered into in July, and is already opening doors to new business for us. Having the appropriate balance sheet is key to growing through an inflection point, and this capital supports our growth and an expected acceleration of backlog. We've made excellent progress enhancing our product offering, checking all of the boxes, and leading on creating new innovations that are receiving positive feedback from customers. We remain the fastest installed tracker in the market and continue to push speed while also making it easier. Overall market clarity is one area where we're hopeful for some incremental positive development, so let me start there. When we spoke a quarter ago, I mentioned that there was a fair amount of dynamic motion in the marketplace as it relates to things like tariffs, trade deals, and legislation around the one big beautiful bill. Amid that backdrop, while projects continue to progress through stages of pipeline, there was a slow decision making as customers looked to ensure that they fully understood the market rules that would impact their project, and it fully incorporated all costs and other variables into their project models. At the same time, the earlier phase out of the ITC from the budget bill has spurred multiple gigawatts of new inquiries from customers about potential safe harboring of equipment as part of a plan to secure the full ITC. So whether we see a rush to build solar as we move into 2026 or something more modest, we won't know until the rules on safe harbor come out from treasury. The good news is that the end of the 45-day review period is scheduled to be coming to an end, so we hope to have additional clarity soon. While the legislation was not ideal for the solar market, the solar industry has showed its abilities to educate and advocate for important aspects of the law that allow to path forward. With some additional clarity, I expect full speed ahead on project decisions and continued deployment of solar as the cheapest, cleanest, and fastest generation to connect to the grid. On recent calls, I've shared with you all the great progress we've made expanding our product offering. We have the world's most easily constructed tracker. We leverage that platform to add features every quarter that allow for the tracker to fit the site and increase the value proposition that we enable for EPC and IPT clients. This has included adding solutions for high wind zones up to 150 miles per hour, compatibility across module types, and with innovative Python clips and universal torque tubes, the ability to make module changes late into the design cycle. Incidentally, the last two factors make FTC an ideal tracker solution for those looking to safe harbor for purposes of the IPT, which we outlined in the white paper that we released last week. A key advancement in our 1P lineup includes introducing the widest range of stow in the industry. We are releasing the most advanced hail solution in the market, capable of an 80 degree stow angle. Hail can be a key driver of insurance premium, so having a steeper stow capability can give owners and operators additional flexibility in meeting the unique requirements of their project. This high stow angle is combined with the SunOps performance platform, which has integrated weather forecast services and allows the user to fully customize their site and set thresholds on hail probability, size, and the radius of how close an event may be to the site. Most importantly and unique to FTC, our hail stow capability performs in both directions, ensuring that the tracker goes to the nearest hail stow angle available, saving valuable time. Everything is automated, and if you want to adjust the configuration or trigger immediate stow across the site, just click a button from wherever you are and the software will take care of it. One other innovation I'm announcing today is an extra long tracker built specifically for 2000 volt systems. The industry is currently at 1500 volts, but is expected to begin to transition to 2000 in the next couple of years. You're already seeing this shift in the inverter market. At 2000 volts, a system can have fewer but longer tracker string length, which can reduce EBOS and O&M costs while increasing power capacity by 33%. When customers are ready to make that transition, we are ready to support them from a leadership rather than a follower position. I've alluded to multiple terrain following features we've added to reduce or eliminate the need for land grading. This can be an important factor in enabling permits, lowering project costs, or significantly speeding a construction timeline. FTC Solar has multiple options to support customers to reduce and avoid civil construction work, including articulation at the SLU Drive to allow for the change in the north-south slope at the drive pile. Articulation at the lineposts to allow for variance in the lineposts of elevation. And variable pile or reveal height capability to accommodate variation in slope, which if used in combination could eliminate cut and fill altogether with all of these options available now. We continue to make advances across our entire software platform adding options and capabilities to make things easier and more efficient for our customers. SunOps is a key part of that. I haven't talked much in this venue about SunPath, which is our tracker optimization software for backtracking and diffuse light, but I believe it will become an increasingly important offering as we move forward. I actually posted a picture on my LinkedIn yesterday, which a team member sent me. It shows an example of -to-row shading on the site caused by natural undulation of the ground. The picture makes it super easy to see the production loss from shading, but that's the kind of thing that SunPath can easily fix when using FTC trackers where each row operates and can be customized individually. I often hear people talk about how truly flat solar sites are gone. Our team recently analyzed the last 250 sites that we have bid on, and it turns out that 90% of them contain slopes of three degrees or greater. This is important because at an average slope of five degrees, for example, SunPath on an FTC tracker would give you an additional 2% energy production gain every year over a linked row system. That's like adding extra months of production to your deployment. As I said at the start, we have a very wide 1P product offering that is fast, safe, and easy to install, underpinned by our highly constructible design. The more customers and prospects that see how easy our 1P is to build, the more they will like it, particularly the estimators. The significant amount of labor costs on a site relate to mechanical installation of tracker and modules. So when you see each module on an FTC tracker simply glide into place and be secured in seconds, you can start to estimate how much faster you can build each row and site, and how that compounds the material labor savings. This can result in significant savings for EPCs in any environment, but if there's a rush to build solar even faster, the speed with which you can train workers and install faster is critical to maximizing the available labor force in a tightening market. In addition to improving our position on the product side, as I mentioned, we added significant strength to our balance sheet with the $75 million financing commitment announced last month. In addition to giving us ample runway to achieve profitability, it gives incremental comfort to customers that will be supporting them long into the future. It was perhaps not the most conducive market environment to raise capital, so I think it says a lot that Cleanhill reached out to us, was getting great feedback from the market, and wanted to make it clear with a large commitment that they are big believers in our prospects. The feedback from customers has been overwhelmingly positive, and the announcement has already opened doors to new business for us. So I believe we're increasingly well positioned in the marketplace with a robust and rather comprehensive product line that offers significant benefits to projects across developer and EPC portfolios. And our engineering and R&D teams have a full portfolio of incremental initiatives in progress to provide additional customer benefits. We're adding multiple gigawatts of new business to our pipeline, which should only be enhanced by the strengthening of our balance sheet. Overall, we remain increasingly well positioned to support our customers and their growth. With that, I'll turn it over to Cathy.