Earnings call transcript: T1 Energy cuts 2025 guidance amid strategic shifts

T1 Energy’s Q1 2025 earnings call revealed significant downward revisions in its financial guidance for the year, reflecting strategic shifts and operational challenges. The company reduced its 2025 EBITDA guidance to $30-$50 million from a previous range of $75-$125 million, a notable shift for the $241.7 million market cap company that recorded -$48.31 million in EBITDA over the last twelve months. Despite these adjustments, T1 Energy is focusing on strategic partnerships and domestic production enhancements to navigate a complex market environment. InvestingPro analysis reveals the company maintains a weak Financial Health Score of 1.3, suggesting careful monitoring of its strategic initiatives is warranted.

Key Takeaways

• T1 Energy lowered its 2025 EBITDA forecast significantly, citing strategic realignments.
• The company plans to enhance its U.S. production capabilities with new facility developments.
• T1 Energy aims to maintain over $100 million in liquidity by year-end.
• The company is winding down its European operations to focus on U.S. market opportunities.

Company Performance

T1 Energy’s performance in Q1 2025 was marked by a revenue of $64.4 million. The company is recalibrating its operations to focus on the U.S. market, as evidenced by its decision to phase out European activities. With a strong emphasis on domestic production, T1 Energy is positioning itself to capitalize on emerging trends in solar and battery storage, which are becoming increasingly vital in the U.S. energy sector.

Financial Highlights

• Revenue: $64.4 million for Q1 2025.
• EBITDA Guidance: Revised to $30-$50 million for 2025.
• Projected Production: Reduced to 2.6-3.0 gigawatts from 3.4 gigawatts.
• Contracted Sales: 1.7 gigawatts.
• Projected Cash/Liquidity: Over $100 million by year-end.

Outlook & Guidance

T1 Energy’s forward guidance reflects a cautious approach amid market uncertainties. The company is targeting an EBITDA run rate of $650-$700 million annually after the integration of its G1 and G2 facilities. The start of production at the G2 Austin facility is anticipated for Q4 2026. T1 Energy is also exploring strategic partnerships, including potential minority investments, to bolster its market position.

Executive Commentary

CEO Dan Barcelo stated, "We are positioning T1 to thrive in this dynamic policy and industry environment." Rob Gibbons, EVP of Strategic Partnerships, emphasized the importance of localized supply chains, saying, "Clients want localized traceable supply chains that reduce project risks." CFO Evan Calio highlighted the company’s cautious approach to tariff risks, noting, "We won’t bear uncertain tariff risks or lock in low price inventory clearing."

Risks and Challenges

• Supply Chain Issues: Potential disruptions could impact production and delivery schedules.
• Market Saturation: Increasing competition in the solar energy sector may pressure margins.
• Trade Policy Uncertainty: Fluctuating tariffs and regulations could affect cost structures.
• Inflation Reduction Act Provisions: Uncertainties around these provisions may impact financial planning.
• European Operations Wind-Down: The transition could lead to short-term financial strain.

Q&A

During the Q&A session, analysts inquired about the new 253 MW sales agreement, which was confirmed to be with a new customer, indicating potential market expansion. Concerns regarding sales uncertainty due to tariff complexities were also addressed, with management emphasizing flexibility in production capabilities. Additionally, the potential for incremental asset sales was discussed as a means to enhance liquidity.

T1 Energy’s strategic focus on the U.S. market and domestic manufacturing capabilities underscores its commitment to adapting to the evolving energy landscape. The company’s guidance revisions and operational shifts highlight both the challenges and opportunities it faces in a rapidly changing industry.

Full transcript - TECO Energy Inc (TE) Q1 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the T1 Energy’s First Quarter twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.

I would now like to turn the conference over to your host today, Jeff Spittel, Executive Vice President of Investor Relations and Corporate Development. Please go ahead.

Jeff Spittel, Executive Vice President of Investor Relations and Corporate Development, T1 Energy: Good morning, and welcome to T1 Energy’s first quarter twenty twenty five earnings conference call. With me today on the call are Dan Barcelo, our Chief Executive Officer and Chairman of the Board Evan Calio, our Chief Financial Officer Jaime Gwale, our Executive Vice President of Corporate Development Rob Gibbons, our EVP of Strategic Partnerships Andy Monroe, our Chief Legal and Policy Officer and Borges Selstad, our SVP of Operations. During today’s call, management may make forward looking statements about our business. These forward looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expectations. Most of these factors are outside P1’s control and are difficult to predict.

Additional information about risk factors that could materially affect our business are available in our annual report on Form 10 k filed with the Securities and Exchange Commission and our other filings made with the SEC, all of which are available on the Investor Relations section of our website. With that, I’ll turn the call over to Dan.

Dan Barcelo, Chief Executive Officer and Chairman of the Board, T1 Energy: Thanks, Jess, and welcome everyone to our earnings call to review our first full quarter at T1 Energy. The two recurring themes for today’s call are progress and policy. The progress refers T1’s ongoing rapid corporate transformation to realize our mission of building a domestic solar and battery supply chain to invigorate America with scalable, reliable, and low cost energy while we establish pathways to maximize domestic content. Of course, that progress isn’t taking place in a vacuum and the lingering uncertainties around trade policy and the future state of the inflation reduction act are creating some near term complexity. So let’s start on slide four with an overview of the policy environment and the key considerations for t one.

As you are most likely aware, the house ways and means committee has advanced changes to key IRA energy tax provisions. Our preliminary assessment of the bill is that there are provisions that validate t one strategy of investing in advanced manufacturing in The United States, including retention of the 45 x advanced manufacturing production tax credit and the domestic content bonus. However, we believe there are proposed elements of the bill that will stifle competition, growth, technology onshoring and choices for t one’s developer customers. Given our commercial partnership with Trina, the stringent foreign entity of concern language passed by the Ways and Means Committee has our attention. But we have been neither surprised nor unprepared to consider modifying elements of our business plan if necessary to ensure compliance and preserve access to IRA incentives that are enabling t one to build an integrated US supply chain and to advance our domestic content strategy.

We also have ongoing and productive dialogues with local state and federal lawmakers to promote t one’s interest and investments in The US solar production industry. We believe that incentives under section 45 x, 48 e, and 45 y are fundamental to The US, building a vibrant, competitive, and localized solar value chain. And we will continue to tell that story on Capitol Hill and in Texas along with our domestic partners. In the interim, I’ll remind our investors that this is the first step in a long legislative process that will very likely see the language change as it advances through Congress. We are hopeful the practical modifications to minimize commercial disruption and to support domestic solar energy will be included in subsequent and final versions of the reconciliation bill.

T one expects to have a strong and influential voice in the discussion of US solar industrial policy given the meaningful investments we have made in domestic manufacturing, American jobs, and the initial phases of establishing a US solar value chain. Spearheading this effort will be our new chief legal and policy officer, mister Andy Monroe. Andy brings more than thirty years of legal expertise and has spent the last decade in The US solar sector. While he was at Q Cells North America, he was instrumental in shaping the framework of what eventually became section 45 x of the inflation reduction act. Andy, we’re delighted to have you on board and welcome to the team.

Turning to slide five and US trade policy. As we indicated publicly during Q1, T1 is supportive of tariffs that level the competitive playing field for The US solar industry, including antidumping and countervailing duties. These initiatives are intended to reward tier one producers who invest in domestic supply chains like T1. As we have disclosed previously, we are already sourcing the majority of our polysilicon from here in The US, and we are executing our plan to build an integrated domestic solar manufacturing footprint. Although we generally support tariffs for the solar industry, like many of our peers, we are contending with some near term headwinds due to tariff uncertainty.

T1 and our developer customers require visibility into bill of materials costs to accurately bid off take in PPA contracts. In the absence of that visibility to accurately risk assess our pricing, we cannot justify bidding into the current merchant sales market. Accordingly, as Evan will detail shortly, we’re revising our 2025 sales production and EBITDA guidance to assume limited merchant sales for 2025 as we wait for market clarity. With 1.7 gigawatts of committed offtake volumes already in our portfolio for 2025, revenues and operating cash flow will continue to ramp into the second half under these new guidance assumptions, and we anticipate exiting 2025 with a robust cash and liquidity position. Near term uncertainties aside, the fundamentals of The US solar industry remain healthy and supportive of T1 strategy.

Solar and battery storage have emerged as the fastest and most cost effective technologies to add to US generating capacity. With the emergence of energy intensive technologies such as AI, the electrification of society, and the potential for a US advanced manufacturing renaissance, solar plus storage will remain critical to the all of the above approach that is necessary to satisfy growing US energy demand. I’ll conclude our commentary on policy by underscoring that t one strategy dovetails with several of president Trump’s key priorities. We are focused on the strategic development of critical US energy supply chains. We are at the forefront of bringing advanced manufacturing back to American shores, and we are building an American job creation engine.

We are resolute in our mission, and we are determined to promote our shareholders’ interest, and we are making rapid progress to build T1 into U. S. Energy powerhouse. With that, let’s turn to Slide six for an overview of our key messages. Our rapid global corporate transformation gained momentum in the first quarter and in the weeks that have followed.

We have continued to make progress on several fronts. This morning, we announced that we have signed our first new corporate customer sales agreement as T1 Energy with an emerging developer for two fifty three megawatts of 2025 module volumes out of G1 Dallas. We’ll hear more about this contract and our commercial development from Rob later in the call. As I indicated previously, we have reduced our 2025 financial and operating guidance lower to account for some of the near term uncertainties in the market and the elective conversion of three G1 production lines to TOPCON technology. Despite the revisions to guidance, T1 has a strong liquidity outlook and position.

At the low end of the updated 2025 EBITDA guidance range, T1 is projected to have cash and liquidity of more than $100,000,000 at year end. Evan will walk you through the moving parts shortly. From an operational perspective, the ramp up at g one Dallas continues to progress smoothly. On April 30, we indicated that t one had successfully converted the g one Dallas construction loan to a 235,000,000 term loan following third party verification that construction, installation and commissioning activities were completed. The plant is fully operational and module deliveries to offtake customers have begun to ramp up.

G1 Dallas is a world class asset and we look forward to showcasing it to investors, customers and other key partners. For those of you who can’t visit G1 in person, be on the lookout for the launch of our expanded website to give you a feel for our operations virtually. Following site selection of Sandow Lake Ranch in Milam County, Texas in March, We are progressing through the initial stages of project development for g two Austin, our planned US solar cell facility. There is meaningful interest in this project, and we’re engaged in productive capital formation discussions with several potential partners. This morning, we announced the heads of agreement with a third party partner aligned with The Kingdom Of Saudi Arabia to explore potential investment into the G2 project.

To be clear, this is a nonbinding agreement, and we’re still in the early stages of raising capital for G2. But so far we are pleased with the receptivity to investing in T1’s planned U. S. Solar cell production manufacturing facility. With sales and deliveries beginning to ramp under our 1.7 gigawatt combined twenty twenty five customer offtake contracts and sales agreements at G1 Dallas, T1’s cash and liquidity outlook for 2025 remains healthy despite the near term merchant sales uncertainties.

G1 operating cash flows combined with the wind down of our legacy European organization and reduction of associated costs into 2026 should support our significant liquidity position. As we indicated in our previous call in March, T1 and Trina filed a joint voluntary notice with the committee on foreign investment in the United States and the CFIUS process is ongoing. And finally, we continue to make progress with our European wind down and portfolio optimization initiatives. As European personnel related costs roll off of our P and L, the cost savings from the wind down should accelerate later this year. In conjunction with the wind down, our Board of Directors is also overseeing the process of potentially harvesting value from our legacy portfolio, including Giga Arctic, the CQP and the Giga Vassa project.

Securing access to additional power for these assets is a key value driver. And as the process develops, we will continue to provide updates to our investors. Moving to Slide seven, we’ll turn our attention to G1 Dallas, which has provided a launchpad for T1’s operations and commercial development as a solar equipment manufacturer. Following the handovers to operations in late April, G1 is fully operational and sales are poised to continue ramping with deliveries under our 1.7 gigawatt of twenty twenty five customer offtake contracts and sales agreements. Deliveries under the Trina US offtake started in Q1 and with Q2 underway, we have begun delivering modules to RWE under the 500 megawatt per year sales agreement.

We expect to begin shipping modules under the twenty twenty five developer sales agreement that we announced this morning in Q3. To match production with the temporary lull in busy activities we are experiencing, we are modifying the 2020 production plan to 2.6 to three gigawatts. This change in plans also relates to our decision to convert three production lines from PERC to TOPCON technology demonstrating T1’s responsiveness to customers and operational flexibility. Turning to Slide eight, I’m pleased to report that we are moving forward with initial development of G2 Austin, our planned U. S.

Solar cell manufacturing facility in Milam County, Texas. As we have documented previously, we believe that G2 Austin is a game changer for T1 competitively and financially. The plant addresses unmet customer demand for US solar cells and modules using TOPCON technology. It represents a major step forward in our domestic content and vertical integration strategies and is expected to be a cash flow engine for T1. With initial project engineering underway, we have decided to pursue a two phase development in equivalent capacity tranches of 2.4 gigawatts each.

This development plan should provide T1 with commercial, financial, and operational flexibility as we advance our growth strategy. Our project development team led by our chief development officer, Einar Kilde, is executing against this plan and recently launched the tender process with production line equipment vendors. And in parallel, Evan Kaleo and the finance organization are advancing several capital formation initiatives on parallel tracks. There are no changes to our plan to achieve the start of production at G2 Austin in Q4 twenty twenty six. And with that, I’ll turn the call over to Evan for a review of T1’s financials.

Evan Calio, Chief Financial Officer, T1 Energy: Great. Thanks, Dan. Moving to Slide nine, I’ll start with revisions to our financial and operating guidance. On production, we’re lowering and introducing a production range for G1 Dallas of 2.6 to three gigawatts versus our prior 3.4 gigawatt guidance. The lower guidance is entirely based upon lower sales due to market uncertainty around tariffs and the integration of Trina’s sales team.

The facility is and has been technically capable of running at five gigawatts since our April 30 loan conversion. The 2.6 gigawatt production downside reflects our 1.7 gigawatts of contracted sales at a cost plus basis, plus an expected 800 megawatt inventory financing facility that we’re finalizing with Trina for modules that will be produced in 2025 and likely sold in 2026. This provides potential sales upside for 2026. The three gigawatt production upside includes an additional 500 megawatts of merchant sales that could be driven by market clarity and conditions prior to year end. On EBITDA, we’re reducing our twenty twenty five full year EBITDA guidance to $30,000,000 to $50,000,000 from prior range of $75,000,000 to $125,000,000 as we match our lower sales outlook, this lower sales outlook of 1.7 gigawatts to 2.3 gigawatts.

The range is largely driven by the production level, product mix, and our sales initiatives. Since this is significant revision to EBITDA guidance, I’ll provide four important points pertaining to our outlook. First, our cash and liquidity position is strong, and we expect it will improve as 2025 progresses. For instance, under the low end scenario of our EBITDA guidance range, we project cash liquidity of more than 100,000,000 at year end 2025, and this includes a payment of $71,000,000 related to our debt and debt services by year end. Second, we have significant operating leverage.

Under the low end of our 2025 EBITDA range, g one will be producing at only 30% of capacity, 51% lower than our initial guide. At this rate, we generate $25,000,000 of EBITDA covering our G and A, which includes costs associated with the wind down of Europe that roll off in 2026 and allow us to fully service our debt. As we ramp production sales to full plant capacity, we expect meaningful expansion of t one’s corporate profitability. Third, this is a prudent decision for t one and our shareholders. We want to avoid locking merchant sales in uncertain material and subcomponent cost environment.

We won’t bear uncertain tariff risks or lock in low price inventory clearing. Fourth, the prize for t one, our customers, our shareholders, our management team are beyond 2025 with the execution of our US vertical integration strategy and domestic content road map. Based upon recent policy proposals just this week and many conversations that we’re having with utility scale developers, demand for domestic content is only increasing. Our ambitions are centered on integrating production from g one Dallas and g two Austin as well as other domestic content initiatives. We continue to move forward, as Dan mentioned, on initial developments for g two Austin supported by capital formation discussions that we’re having with a variety of potential partners.

Importantly, there are no changes to our target of bringing g two online by 04/1926 nor our annual EBITDA run rate guidance for integrated g one g two production of 650 to $700,000,000. Turn to slide 10. Let’s review t one financial position. In our first full quarter as t one energy, we generated revenue of 64,400,000.0 related to initial deliveries under the Trina cost plus offtake contract. As we’ve reported previously, we also successfully converted the g one Dallas construction loan in late April, which was punctuated by handover of all production lines to the operations teams.

With production ramping during the quarter, we also continued to build finished goods inventory of solar modules in advance of initial deliveries under the RWE contract, which have started in 2Q. Q1 has 500 megawatts of module sales in 2025 associated with the cost plus RWE contract remaining in 2025. They will take two fifty megawatts in the current or second quarter. As you’ll notice, the balance sheet summary table, T1 drew down cash in Q1 twenty twenty five, which is a trend that we do not expect to persist for the remainder of 2025 as production and sales ramp from t one to double t one’s operating cash flow, which is supported by 1.5 gigawatt of high margin off take long term contracts plus the Cardinal sale that Rob will discuss in a minute. We also expect to begin monetizing section 45 x PTCs in either two or three q.

And consequently, we have positive liquidity outlook despite reductions of our EBITDA guidance that I cover in the prior slide.

Greg Lewis, Analyst, BTIG: And now I’d like

Evan Calio, Chief Financial Officer, T1 Energy: to introduce Rob Gibbons, our EVP of Strategic Partnerships, to deliver an update on our commercial

Dan Barcelo, Chief Executive Officer and Chairman of the Board, T1 Energy: progress. Rob?

Rob Gibbons, EVP of Strategic Partnerships, T1 Energy: Thanks, Evan. Let’s turn to slide 11. The foundation of building a powerful commercial enterprise is in place at T1. The RWE contract structure and client relationship represents the focus of our commercial strategy. We are in advanced discussions with other utilities, IPPs, and leading utility scale developers regarding similar contracts.

The priorities for these strategic partners include securing TOPCON modules manufactured in The US with US components from a reputable supplier with a traceable supply chain. These are key requirements for our clients to achieve domestic content bonus tax credits. Our announcement of G2 has helped to accelerate existing negotiations and generate additional interest for similar contracts. As progress on G2 continues and clarity emerges on trade policy, supply chains, and the future state of the IRA, we expect to execute additional multiyear take or pay module purchase commitments with key US customers. In terms of merchant sales, we announced that T1 has signed a two fifty three megawatt module sales agreement for 2025 with a utility scale developer for a project in Texas.

Deliveries under this contract are expected to begin in Q3 twenty twenty five, and this contract supports the conversion of three of our PERC manufacturing lines to TOPCON to better align with market demand. With 1.7 gigawatt of 2025 module sales in hand for G1 Dallas, T1 will continue to pursue merchant sales opportunities that deliver attractive margins. Moving to slide 12, let me provide you with some additional detail about our domestic content roadmap. T1’s plan is to establish a vertically integrated US solar supply chain built on domestic content. We will continue to have access to current imported components to maintain flexibility in our supply chain given the evolving policy landscape.

Our plan is to produce US modules with more than 70% domestic content by 2027. This strategy is bookended by our US polysilicon supply contract and our module production facility at G1 Dallas. But we intend to establish a domestic supply chain that includes polysilicon, ingots, wafers, and cells, as well as other filler material components. There are several strategic and commercial benefits to pursuing this strategy. Not only does it align with the most stringent potential modifications to the IRA, but it also positions our developer clients to be eligible for the 48E domestic content stacking bonuses.

Clients want localized traceable supply chains that reduce project risks associated with duties, tariffs, and detentions. We continue to be focused on delivering modules with industry leading LCOE and high domestic content in order to enhance our clients’ project returns. And with that, I’ll turn the call back over to Dan for concluding remarks.

Dan Barcelo, Chief Executive Officer and Chairman of the Board, T1 Energy: Thanks, Rob. Let’s turn now to slide 13 before we take your questions. We are positioning T1 to thrive in this dynamic policy and industry environment. Our key priorities are clear. We want to advance commercially, expand our U.

S. Supply chain and establish T1 as a cash flow powerhouse. The path to success begins with G1 Dallas, where we will continue to ramp production and deliveries to customers. During this temporary period of market uncertainty, we will pursue merchant sales as warranted and only when we are comfortable that we generate the appropriate risk adjusted margins. As we build our commercial enterprise, we will continue to build on our leading position as a US manufacturer of TOPCON modules, which offer superior performance characteristics.

As Rob just detailed, building T1’s US solar supply chain and advancing our domestic content plan are foundational to our strategy. The next major step on this path is to advance our development of the G2 Austin US solar cell project. In the interim, we’ll also evaluate and pursue the best strategic options to efficiently augment our domestic content. The third major priority for t one is to build a cash flow powerhouse. Now that we are generating revenue from our world class asset at g one, we are focused on maximizing our long term cost plus contract portfolio for integrated g one, g two production footprint.

While we build this cash flow wedge from our commercial activities, our finance team will continue to progress the capital formation initiatives to fund G2 Austin, T1’s future cash flow engine on parallel path. Before we take your questions, I wish to commend the growing T ONE employee family from our Austin headquarters to operations in Dallas for their collective dedication to our mission of building a domestic solar and battery supply chain to invigorate America with scalable, reliable, and low cost energy. On behalf of T1’s Board of Directors and leadership team, thank you to our investors, customers, partners and employees for your support of this American advanced manufacturing mission. And with that, I’ll turn it back to Jeff to coordinate the Q and A.

Jeff Spittel, Executive Vice President of Investor Relations and Corporate Development, T1 Energy: Thanks, Sam. Operator, we’re ready to open up the line for questions.

Conference Operator: Thank you. Our first question comes from the line of Greg Lewis with BTIG. Your line is now open.

Greg Lewis, Analyst, BTIG: Yes, thank you and good morning and thanks for taking my questions. I wanted to talk first, it was good to see that new two fifty megawatt sales agreement. Couple of questions around that and I’m going to try to tie it in the guidance. I guess the first question around the new the order was that a customer that was already had placed orders that are in the backlog? Is that a new incremental customer?

Dan Barcelo, Chief Executive Officer and Chairman of the Board, T1 Energy: Yes. Rob, why don’t you take that and go through a little bit of the customer outlook?

Rob Gibbons, EVP of Strategic Partnerships, T1 Energy: Sure. Thanks for the question. That was a new client that was developed with the help of the Trina sales team. That was not in our previous backlog. As we continue to get the word out into the market in terms of what T1 is and we represent in terms of our G1 asset and the strength of the technology and modules that we’re building, we’re getting a lot of inbound interest.

So we’re seeing continued development of merchant sales opportunities, which this February megawatt sale represents.

Greg Lewis, Analyst, BTIG: Yes. And just thinking about that, I appreciate those comments. Just thinking about the uncertainty that’s out there and the issues, I mean, the earth is definitely moving under everybody’s feet. As we think about the revised down guidance, as we think about the production targets, I guess at the high and the low end, any kind of sense for the timing of that ramp? Mean, like as we look at orders, incoming orders, as we look at that, are we thinking Q4 should we expect this clearly is going to be back end weighted.

Any kind of sense for the ramp in the production over the next couple quarters?

Dan Barcelo, Chief Executive Officer and Chairman of the Board, T1 Energy: Yeah. Thank you for that. The entire management team, with the with the with the Trina Salesforce legacy support, you know, we’re active meeting with all the large developers. I’d say a recurring theme is uncertainty, whether it’s reciprocal tariff uncertainty, whether it’s Texas legislative session, uncertainty into Texas, all of those elements have led to uncertainty. What we have what we are committed to doing is making sure we’re doing margin sales that are attractive to us.

You can imagine that given the uncertainty around tariffs, some customers are asking for T1 Energy to take full tariff risk. That is not something we would do. In terms of the ramp on the uptake, we’re committed to announcing large and meaningful contracts as they occur in real time. We would expect to have those continue through the back half of the year starting from as early as, you know, without giving guidance there, just starting as soon as possible. But we’re committed to giving those numbers.

I want to underscore one other thing. Production, these assets are producing by design. Term loan conversion happened to confirm that. We’re able to produce at design at five gigawatts, and this is really about a sales issue. We had the prior guidance of 3.4 in order to not overproduce and hold that inventory into 2026.

We made this tough decision, to reduce down. So on the production side, we’re good. On the sales side, we’re committed to announcing those announcements as they come. And I think as we see clearer indications, particularly around tariff uncertainty seems to be the large one. I think there was positive news in terms of 45X and 48E that looks like a a muting at the tail end of it, but those domestic content headers related to 48E were very important, and obviously for us, 45X critical.

So from that standpoint, positive on the outlook, longer term, this near term uncertainty is what drove the guidance down.

Greg Lewis, Analyst, BTIG: Yes, no doubt. And then, Evan, appreciate your comments around the low end of guidance and your liquidity outlook. As we think about that kind of $100,000,000 you flagged, does that include any potential asset sales or sales from some of the legacy assets at, I guess, what was fair?

Evan Calio, Chief Financial Officer, T1 Energy: Greg, it’s a great question. It does not, right? Any asset sale proceeds would be incremental, right? I mean, what you’re getting is you are getting some of the 2026 sales in 2025, right? The payment terms under the contracts provide for 50% of the contract payment in aggregate up to thirty days prior to the quarter.

So you’re getting some of ’26 sale price in ’25 and you’re going get 45x monetization on the modules you’re producing and putting in inventory. Right. So it’ll be above 100 and it’s supported by a lot Mean it’s inversely correlated unfortunately. The lower you produce, particularly on the base or on top of the 1.5 gig contracts, which you can see in the first quarter show you north of 40% gross margin that you have a higher cash position at a lower production rates.

Greg Lewis, Analyst, BTIG: Okay. And then just one for me realizing it’s recent and the heads up agreement has been signed. But any kind of thoughts or color around that structure could look like? I mean, I’m assuming it’s a joint venture, know, at least how you’re thinking about it in terms of majority ownership and payment term. Any any any things you can share about that?

Dan Barcelo, Chief Executive Officer and Chairman of the Board, T1 Energy: I I I think it’s it’s too early to have the final structure on it, but we’re looking at a minority investment into g two slash g one. That would be working with our Saudi aligned partner to to close something or look for something with the Kingdom Of Saudi Arabia with the Ministry of Finance there. That would be the core aspect of it, a minority investment into the g one g two assets. I’d note that, as we’ve previously mentioned, we’re looking at other forms as well in terms of other types of private equity or private investments into that, which we think derisks the project bringing in adding to the equity capital stack in particular. I think the strategic nature of the Kingdom Of Saudi Arabia wanting to invest in The United States adds another element to it, which we’re very excited to have been part of the trade representatives going over there as well.

Greg Lewis, Analyst, BTIG: All right. Super helpful. Thank you very much.

Jeff Spittel, Executive Vice President of Investor Relations and Corporate Development, T1 Energy: Thanks, Greg.

Conference Operator: Thank you. And I’m showing no further questions at this time. I’d like to turn the call back over to Jeff Spittel for closing remarks.

Jeff Spittel, Executive Vice President of Investor Relations and Corporate Development, T1 Energy: Thank you, Shannon. Thank you everybody for dialing in and participating today. We look forward to engaging with you on the road next week and throughout the quarter. Feel free to follow-up with any questions via email or phone and we’ll talk to you all soon. This will conclude the call.

Conference Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.