FTC Solar, Inc.

Good day and thank you for standing by. Welcome to the FTC Solar 4th Quarter 2025 Earnings Conference Call. At this time, all participants are in 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 automated messages while your hand is raised. To withdraw your question, please press star one again. Please advise that today's conference be recorded. I'll now extend the conference over to your first speaker today, Bill Michalik, VP of Investment Relations. Please go ahead.

Thank you, and welcome, everyone, to FTC Solar's fourth 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 yet reviewed these documents, they're available on the investor relations section of our website at fdcsolar.com. I'm joined today by Jan Brandt, the company's president and chief executive officer, Kathy Beynon, the company's chief financial officer, and Patrick Cook, the company's head of capital markets and BD. Before we begin, I remind everyone that today's discussion contains forward-looking statements based Actual results and events could differ maturely 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'd expect, we'll 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 it all over to Jan.

Thanks, Bill, and good morning, everyone. I'm pleased to share that we have achieved another quarter of strong growth in Q4 and continue to position the company for long-term success. Our financial results came in at the high end of our targets as we work to strengthen our product operational performance and overall positioning, including enhancements to one of the most innovative 1P tracker platforms in solar. Every day, we're seeing excellent commercial momentum as we build a foundation for future growth. In terms of financial results, we achieved several key milestones in the fourth quarter. Our results came in at the high end of our target ranges on all metrics. Revenue grew by 26% sequentially, which follows the 30% sequential growth posted in the third quarter and came in at the highest quarterly level since the first quarter of 2023. Gross margin for the quarter was our best as a public company and one of the best in company history. And we posted our best adjusted EBITDA performance in six years, and our best since going public, coming in just shy of break-even for the quarter, missing our 2025 target of breaking even by the narrowest of margins, not bad considering the insane year that SOLA went through with tariffs and legislative disruptions. Our fourth quarter results were a fitting end to an incredible year of progress for FTC, a year I am proud to call my first at the company. For the year, we grew revenue by more than 110% versus the prior year, significantly improved margins, added multiple gigawatts of MSAs and secure purchase orders from tier one customers, added new cash to our balance sheet with strategic financing, saw new incredible talent join our team, especially in sales, and have positioned our product platform as the most innovative tracker portfolio in the market, by far the easiest and fastest to install. Turning to customers, our commercial momentum is starting to accelerate at every level, from approved vendor list additions to project bidding, bookings, and contract conversions. It takes time and won't impact revenue tomorrow, but our progress here is clear, accelerating, and to me means everything. It's the foundation of our future growth. It's what is making this company successful and has me excited about where FTC is going. So first, we're getting on approved vendor list. Just in Q4 alone, we were added to the AVLs of four of the top 10 EPCs, bringing the total to eight of the top 10. We are getting increased visibility in our bidding with more customers and larger project sizes, actively providing proposals on the pipelines of these new EPCs and of those of many new customers. FTC is winning projects and seeing previously announced MSAs convert into bookings, including with a top-tier customer base. In the fourth quarter, we received bookings from two leading EPCs, and we expect some MSAs to start expanding in volume from the original capacity in the near future. We have had improving net bookings for the past three quarters and had a significant increase in the fourth quarter, with a positive book-to-bill or positive net bookings in the period as we are starting to convert our MSAs into firm orders and book new projects. Since our last earnings call, we added $61 million to our contracted backlog. or roughly a $29 million addition net of Q4 revenue. We expect this progress to continue and to accelerate. In addition to the positive net bookings, we've had recent wins in the form of multi-year MSAs that aren't yet included in that backlog, with more expected to be announced in the near future. One notable addition we are announcing today is a new one gigawatt supply agreement with the leading developer and operator of wind and solar farms. This is a three-year agreement for one gigawatt of our 1P and 2P trackers at sites across the U.S. This agreement also includes our SunPath software to achieve additional energy yield at these sites. Another example we announced just last week is a multi-year MSA with Lubanzi in South Africa. That was for about 840 megawatts of trackers delivered across the country and is a great win on the international front. The first project under that agreement is expected to begin mid-year. So those are MSA wins on top of the net backlog additions we announced, which brings us to over 9 gigawatts of MSAs added in just one year. The leading indicators on the customer front are what will drive this business, and they are starting to look very good. They are improving, and we have a lot of momentum. From MSAs, AVLs, and strong bidding activity, These are clear signals that show us that FTC is a critical part of the tracker diversification trend that we are seeing every day. While we have very admirable competitors, a market without choice is no market at all. And every meeting I'm in, I hear about the need for diversification. Having met with most of the top 10 EPCs, I can tell you they're happy for FTC to be in the room, innovative, bankable, and competitive. Our team is a known counterparty with decades of relationships, and our product continues to show very well. FTC is now a valued 1P tracker provider, and we see a significant opportunity to gain share. Our goal remains to be a top three tracker provider before long, and we hope to have much more to share on the new MSAs and new contracted backlog in the weeks ahead as we work toward that. On the product front, independent row architecture is the gold standard for solar. It has the highest production for asset owners and has the best long-term effectiveness for solar farms. It is also ideally suited for automation and construction and O&M activities. I've shared that I believe we have what is unquestionably the fastest and easiest to install tracker in the marketplace, independent row or otherwise. A product that is superior on a total installed cost basis, one that can be built from piles to mounted modules with an unmatched efficiency of 0.053 labor hours per module, driven by our innovative Python clips, slide and glide rails, an open trunnion design, and power cinch clips. You can see from the customer comments, as we have announced some of the recent wins, that customers are already recognizing the benefits of this efficiency, and our team is focused on achieving another 20% in labor savings. This is crucial as labor shortages are increasingly a pinch point for the industry and expected to continue, and as labor continues to increase as a proportion of the total project cost. We have engaged with Tier 1 EPCs and developers, and due to our constructability savings, They tend to look at the total install cost of our tracker rather than just price. As more in the industry recognize our total cost of installation advantage, it should help further insulate us from pricing concerns or competition on projects. 2025 was a strong step forward in positioning for what's ahead as we doubled sales while expanding the balance sheet, built out the product set, expanded our pipeline, and continued building a foundation of new project wins and MSAs. We have definitely been on a steady upward trajectory during my time with FTC. Quarterly revenue levels for Q4 were three times higher than when I had started. Gross margin went from double-digit negative to double-digit positive and adjusted EBITDA loss improved to where we nearly reached a break-even milestone. Our enthusiasm doesn't stem from what happened in the past alone. It comes from what's ahead. While the solar industry endured a challenging 2025 from a regulatory uncertainty standpoint, will have some carryover effects into 2026 ftc's positioning is significantly improved and we are closer to achieving broad adoption from tier one players than we have ever been our financial progression won't always be linear but we have made great progress so far and are building a solid base of orders to enable strong long-term growth we have done a great deal to prepare the company and lay the groundwork for the strong growth ahead and aiming for a top market share position and I firmly believe that is possible. I remain incredibly optimistic about the prospects of the business, and I look forward to providing you with continued updates on our progress in the months ahead. With that, I'll turn it over to Kathy.