Q2 2025 T1 Energy Inc Earnings Call

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<unk> I would like now to turn the conference over to Jeff Spittle Executive Vice President of Investor Relations and corporate development. Please go ahead.

Good morning, and welcome to Tijuana Energy's second quarter 2025 earnings Conference call.

With me today on the call are Dan Barcelo, our Chief Executive Officer, and chairman of the board.

Andy Munro: We were acutely aware of this dynamic when we acquired Trina's U.S. solar assets, and we have been crafting our strategy with a focus on building a U.S. solar leader by onshoring critical technology and developing a domestic supply chain. The first step in this FEOC compliance process is to establish a bill of materials comprised of at least 50% non-FEOC content and components by year-end 2025. The U.S. wafer agreement with Corning we recently announced is a significant step in that direction, and we believe it provides T1 with an early-mover advantage. The Corning transaction, which is intended to complement our G2 Austin U.S. solar cell project, is an example of a capital-light synthetic means of augmenting T1's domestic supply chain. The OBBB also introduced FEOC-related ownership, governance, debt, and IP requirements for U.S. solar producers to secure 45(x) eligibility, none of which come as a surprise to T1.

<unk>, our chief Financial Officer.

Andy Munroe, our chief legal and policy officer, and Jaime <unk> wallet, our chief operating officer.

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.

These factors are outside <unk> 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.

Thanks, Jeff and welcome everyone to our second quarter earnings call. Our theme for today is the time to build with the passage of the one big beautiful build behind us and the policy roadmap coming into clearer focus.

Customers are gravitating to tier one and our plan to become a champion of U S advanced manufacturing.

Andy Munro: T1 is committed to making any necessary adjustments, including in the Trina relationship, to ensure compliance. We understand that the recent developments in Washington, DC, have introduced uncertainty for solar industry investors. At T1, we have clarity of purpose and mission. Our leadership team has been proactively engaging with lawmakers and government officials to advocate for policies that support American advanced manufacturing and reassuring of the full solar supply chain. We are building T1 to develop a sustainable, competitive advantage as a leader in American solar technology and manufacturing. With that, I'll turn the call over to Evan for a review of T1's financials.

This is <unk> time to build we are expanding our U S supply chain growing our commercial presence developing our asset portfolio and establishing a long term foundation from which <unk> intends to generate meaningful cash flow and earnings.

We recently announced a major step forward in this process, but forging its transformative strategic agreement with Corning one of America's most iconic industrial companies, who will expand on the benefits of this relationship with Corning for tier one and our customers to shortly.

As Andy will detail momentarily recent policy developments dovetail with <unk> mission to build an integrated U S solar manufacturing leader.

Big beautiful build preserves the stackable transferable section 45 ex tax credit through 2032, which provides <unk> with the opportunity to compete and scale simultaneously.

Dan Barcelo: Thank you, Andy. Moving to slide 13, I will start with an overview of 2025 financial and operating guidance. On production, as Dan mentioned, we have now sold out the low end of our 2.6 to 3.0 gigawatt guidance range for 2025. The primary swing factor for the remainder of the year will be customer appetite for merchant sales. As a prudent steward of shareholder capital, we will evaluate these commercial opportunities based upon T1 economics, the strategic value of the potential customer agreements, and working capital requirements. We are maintaining our 2025 EBITDA guidance of $25 to $50 million. The near-term risks of this forecast, however, are skewed to or below the downside based upon several factors. One, a higher mix of merchant agreements in the second half of 2025, which typically carry lower margins and longer-term offtakes.

Maintaining access to these credits as one of <unk> top priorities for the second half of this year. The Corning agreement is a meaningful step in that direction and I'm also pleased to share that <unk> cleared the U S. Government's <unk> review of the Trina transaction during the second quarter. The completion of this process provides <unk> with flexibility as we work with.

Trina to ensure compliance with <unk> requirements.

The U S needs homegrown companies like <unk> to deliver advanced manufacturing capacity that unlocks our most scalable energy resources. Accordingly, <unk> supports the recent launches of the solar for anti dumping and countervailing duties case, and the section 232 investigation into foreign sourced polysilicon and its derivatives.

Both of which are intended to protect American manufacturers from anti competitive practices.

Dan Barcelo: Two, uncertain near-term impacts on cost and contract economics from AD/CVD, reciprocal tariffs, and contract interpretations. Three, timing uncertainties associated with safe harboring projects among T1's customer base. Short-term uncertainties aside, there is meaningful customer interest in T1's domestic content strategy, our increasingly attractive competitive position, our alignment with U.S. policy framework, and our ability to produce PV solar modules with high-performance technology. Accordingly, our integrated annual EBITDA run rate guidance for a five-gigawatt G1 Dallas combined with a fully operational G2 Austin of $650 to $700 million is unchanged. Turning to slide 14, let us review T1's financial position. Despite the ramp in sales, EBITDA during Q2 fell short of our expectations, largely due to pricing on sales and timing of shipments.

As we continue to develop our U S supply chain. These policy initiatives should enhance <unk> ability to deliver cost competitive modules made with U S polysilicon and sub components.

Maintaining access to these credits is one of T1's top priorities for the second half of this year. The Corning agreement is a meaningful step in that direction, and I'm also pleased to share that T1 cleared the U.S. government's CIFAS review of the Trine transaction. During the second quarter, the completion of this process provides T1 with flexibility as we work with Trina to ensure compliance with FIAK requirements.

With policy uncertainties lifting <unk> is gaining traction with major U S project developers during the second quarter, we secured a 473 megawatt merchant sales agreement with one of the largest U S utilities for second half 2025 deliveries. We are now sold out for 2025 based on the low end of our current $2 six.

The U.S. needs homegrown companies like T1 to deliver advanced manufacturing capacity that unlocks our most scalable energy resources. Accordingly, T1 supports the recent launches of the solar 4 anti-dumping and countervailing duties case and the Section 232 investigation into foreign-sourced poly-silicon and its derivatives, both of which are intended to protect American manufacturers from anti-competitive practices.

What production plan, we will continue to evaluate spot sale opportunities to sell more 2025 capacity as market conditions dictate while we pursue long term off take agreements for the combined <unk>, Dallas and G to Austin facilities.

As we continue to develop our us supply chain, these policy initiatives should enhance, T1 ability to deliver cost competitive modules made with us, poly, silicon and subcomponents.

Speaking of G to Austin, we continue to advance development of our planned five gigawatt U S solar cell manufacturing facility in Rockdale, Texas on our second quarter call. We introduced our plan to develop the project in two phases of two five gigawatts with targeted first production in Q4 2026, while our finance team events as our capital.

Dan Barcelo: The second half of 2025 is setting up for improved financial performance as we maintain a supportive liquidity position despite the working capital intensity and timing lumpiness of our merchant business. During the second quarter, these market dynamics were amplified prior to the passage of the OBBB in early July, which resulted in lower than anticipated unrestricted cash balance at the end of Q2. However, we ended the quarter with significant finished goods inventory, over 330 megawatts of Topcon modules built with U.S. polysilicon, which we believe was an appropriate investment considering the impending change in law. In July, we witnessed a significant uptick in demand and began selling down our inventory at attractive prices. We also have a significant receivables balance that we expect to monetize during the second half of 2025, which includes a sizable receivable associated with Section 45(x) credits that T1 has earned through year-to-date production.

With policy uncertainties. Lifting T1 is gaining traction with major US project developers during the second quarter we secured a 473 megawatt. Merchant sales agreement with 1 of the largest US utilities for second half 2025 deliveries. We are now sold out for 2025 based on the low end of our current 2.6 gigawatt production plan.

Formation initiatives our project development team is preparing for the start of construction in either the third or fourth quarter of this year.

All of this work is underpinned by a vision for <unk> to grow into a leading enabler of AI infrastructure development and a champion of U S energy security the time to build it now and our people are hard at work to realize this vision.

We will continue to evaluate spot sale opportunities. To sell more 2025 capacity, as market, conditions, dictate, while we pursue long-term, off-take agreements for the combined G1 Dallas and G2 Austin facilities,

Now, let's move to slide five to frame <unk> opportunity.

After more than 20 years of stagnation U S. Electricity demand is surging within the next 10 years U S. Power demand is poised to grow by more than 800, terawatt hours because of the AI infrastructure Buildout electrification of transportation and onshoring of advanced manufacturing.

Speaking of G2, Austin, we continue to advance development of our Plan 5, gigawatt U.S. solar cell manufacturing facility in Rockdale, Texas. On the second quarter call, we introduced our plan to develop the project in 2 phases of 2.5 gigawatts, with targeted first production in Q4 2026. While our finance team advances our capital formation initiatives, our project development team is preparing for the start of construction due to the third or fourth quarter of this year.

This is the big picture thesis, which underpins tier one strategy AI needs power and <unk> can provide it.

We are positioning <unk> as a domestic solar and storage leader in the early stages of what we believe is an electricity demand super cycle.

All of this work is underpinned by a vision for T1 to grow into a leading enabler of AI infrastructure development and a champion of U.S. energy security. The time to build is now, and our people are hard at work to realize this vision.

Now, let's move to slide 5 to frame the T1 opportunity.

More electrons to the grid in all forms is essential to preserve America's AI technology leadership at <unk>, We don't view American energy dominant as a zero sum game with other forms of energy. Our leadership team has more than 100 years of experience in oil and gas and we remained Bourbon supporters of our colleagues in that industry, but at the same time, we're firm believers that electrons.

Dan Barcelo: These one-half 2025 credits have been audited. We are currently marketing and expect them to be monetized in the third quarter. We are also grateful for the continued support of Encompass Capital Advisors. On August 14th, we disclosed T1 has entered into an amendment that makes available an additional $50 million in exchange for the issuance of preferred stock with broader strategic purposes in exchange for lowering the conversion price and other considerations. With multiple capital formation processes underway, we are currently engaged with several potential financial and strategic investors in T1. I am happy to report that there is meaningful interest in securing offtake and financing, particularly now the U.S. policy landscape is aligning with T1's mission and strategy. Today's announcement with Hemlock bolsters this offering with higher domestic content.

After more than 20 years of stagnation us electricity demanded surging within the next 10 years. Us power demand is poised to grow by more than 800 towit hours because of the AI infrastructure buildout electrification of transportation, and ensuring of advanced Manufacturing.

And either red or blue.

Solar and storage are the fastest and most cost effective means of bringing more electrons to the grid. If we wish to maintain our leadership in AI technology and infrastructure development solar and storage are essential strategic and nearly limitless resources that must be deployed independent of ideology.

This is the big picture thesis which underpins T1, strategy: AI needs power, and T1 can provide it.

We are positioning T1 as a domestic solar and storage leader in the early stages of what we believe is an electricity demand super cycle.

<unk> has a significant role to play as an emerging solar leader that is leveraging high performance technology, onshoring manufacturing and establishing secure domestic supply chain as these secular trends drive accelerated demand growth, we intend to broaden our relationship outside of the typical utility scale customer base to include growing commercial end users of <unk>.

Dan Barcelo: Further, our scoping of the project in two equal 2.5-gigawatt phases reduces the capital required in phase one and supports our confidence in starting construction in the second half of 2025. Now we will turn the call back over to Dan for concluding remarks. Thanks, Evan. Now let's conclude on slide 17 with our strategic roadmap. The remainder of 2025 for U.S. solar manufacturers is all about establishing compliance to maintain eligibility for Section 45(x) production tax credits. At T1, we have been building a significant head start over our competitors prior to this countdown to compliance, and we continue to make tangible progress. We cleared CFIUS review during Q2. We have been executing our domestic content strategy, and the Corning Agreement we announced is a major step forward in the process of achieving a compliant, primarily domestic bill of materials.

Bringing more electrons to the Grid in all forms is essential to preserve, America's AI technology leadership at T1. We don't view American Energy dominance as a zero-sum game, with other forms of energy. Our leadership team has more than 100 years of experience in oil and gas. And we remain fervent supporters of our colleagues in that industry. But at the same time, we are firm. Believers that electrons, are neither red, nor blue.

<unk> and storage.

Our vision for the future of tier one has to be a leading domestic solar manufacturer and a strategic enabler of AI development in U S energy security.

Now, let's move to slide six for a closer look at how this vision is resonating with customers and enabling <unk> to make meaningful commercial progress.

Solar and storage are the fastest and most cost-effective means of bringing more electrons to the grid. If we wish to maintain our leadership in AI technology and infrastructure development, solar and storage are essential strategic and nearly limitless resources that must be deployed independent of ideology.

Since the passage of the <unk>, we have received a flurry of inquiries and requests for quotations from existing and prospective customers. This morning, we announced our largest merchant sales agreement to date at <unk> Dallas, a 473 megawatt agreement with a major U S utility for delivery starting in the third quarter with this agreement we are now sold out of capacity.

T1 has a significant role to play as an emerging solar leader. That is leveraging high-performance technology on-shoring, manufacturing, and establishing secure domestic supply chains as these secular trends drive accelerated demand growth. We intend to broaden our relationship outside of the typical utility scale customer base to include growing commercial users of solar and storage.

<unk> to the low end of our 2025 production plan of $2 six gigawatts.

Our vision for the future of T1 is to be a leading domestic solar manufacturer and a strategic enabler of AI development and U.S. energy security.

Our commercial team is in continuous dialogue with existing and potential customers given the compressed lead times in the merchant market. There may be a possibility to book additional H, two 2025 sales, but securing long term off take contracts with strategic partners that advance <unk> towards closing the <unk> Austin financing isn't even.

Dan Barcelo: We have established near-term timelines with Trina to adjust terms of our commercial relationship to achieve compliance, and the Section 232 probe and reciprocal tariffs align with our U.S. vertical integration strategy and our expanding domestic supply chain. As such, we are confident that T1 will satisfy the criteria to ensure 45(x) eligibility and in the process differentiate ourselves as an emerging homegrown U.S. solar leader. We believe that 2026 will be the year to build a bridge to vertically integrate a U.S. supply chain and the associated potential to generate meaningful earnings and cash flow. Capital is the foundation of the 2026 bridge, so we will continue to evaluate opportunities to catalyze the next phase of T1 Energy’s growth through thoughtful capital formation, long-term commercial and strategic partnerships, and broadening our customer base.

Now, let's move to slide 6 for a closer look at how this vision is resonating with customers and enabling T1 to make meaningful commercial progress.

The higher priority, particularly given the working capital intensity and competitive economics of spot sales to.

To give you a better sense of tier ones growing commercial pipeline, we are introducing a snapshot of our opportunity funnel.

Since the passage of the obb we have received a story of inquiries and requests for quotations from existing and prospective customers. This morning, we announced our largest Merchant sales agreement to date at G1 Dallas a 473 megawatt agreement with a major US utility for delivery starting in the third quarter. With this agreement, we are now sold out of capacity relative to the low end of our 2025 production plan of 2.6 gigawatts.

This funnel includes three categories.

Relatively early stage pursuits for <unk>, Dallas, which is the largest bucket of more than 38 gigawatts.

Later stage, one pursuits with a higher probability of award these opportunity to account for more than one three gigawatts.

And ongoing customer discussions regarding multiyear offtake contract for integrated production from <unk> LNG to Austin totaling $18 nine gigawatts. So.

Dan Barcelo: With the Corning Agreement in place, we now have line of sight to establish a supply chain of more than 70% domestic content before 2027. Our supply chain strategy should also yield commercial benefit. As customers verify our 45(x) eligibility, we should be well positioned to ramp production and sales at G1 Dallas while we secure long-term offtakes for G2 Austin, which we plan to have under construction. As we look ahead to 2027, this roadmap is intended to help T1 Energy realize the goal we initially shared with our investors when we announced the Trina transaction last November: ramp integrated U.S. solar cell and module production in 2027 to achieve an annual EBITDA run rate of $650 to $700 million. Despite all the upheaval within the policy and competitive landscapes in recent months, this objective and T1 Energy’s timeline to get there are largely the same.

Take contracts with strategic partners that advanced T1 towards closing. The G2 Austin financing is an even higher priority, particularly given the working capital intensity and competitive economics of spot sales.

So the market is active and we are confident that demand for both <unk> and <unk> will be multiples of our available capacity.

To give you a better sense of T1's growing commercial pipeline, we are introducing a snapshot of our opportunity funnel.

This funnel includes 3 categories.

We grow <unk> commercial enterprise, we are expanding our U S supply chain to enhance our competitive position.

Relatively early stage Pursuits for G1 Dallas, which is the largest bucket of more than 38 gigawatts.

To discuss today's landmark supply agreement with Corning I'll hand, it over to Jaime Voila, our Chief operating Officer Jaime.

Later stage G1 pursuits with a higher probability of Ward. These opportunities account for more than 1.3 gigawatts.

Thanks, Dan, let's turn to slide seven.

We've announced that tier one converted as existing long term U S polysilicon contract with hemlock semiconductor to our U S wafer sourcing agreement with Hemlocks majority owner Corning incorporated the.

And ongoing customer discussions regarding multi-year off-take contracts for integrated production, from G1 Dallas and G2 Austin totaling 18.9 gigawatts.

According commercial agreement is a major step towards our mandate to establish a bill of materials that is at least 50% non <unk> by year end with higher percentages required in future years.

So the market is active and we are confident that demand for both G1 and G2 will be multiples of our available capacity.

While we grow, T1's commercial enterprise is expanding our U.S. supply chain to enhance our competitive position.

Dan Barcelo: This is an exciting and dynamic time at T1 Energy. We are grateful for the continued support of our investors, customers, employees, and partners. The future of energy security in the U.S. and advanced manufacturing is now, and this is T1 Energy’s moment. It’s time to build. With that, I’ll turn it back to Jeff to coordinate the Q&A session.

In addition to U S. Wafers, we are in the process of sourcing additional materials, such as glass frames and junction boxes from domestic and non feedstock suppliers to achieve these objectives.

To discuss today's Landmark Supply grooming with Corning, I'll hand it over to Hyg. Guali, our Chief Operating Officer. Hi, May.

Thanks, Dan. Let's turn to slide 7.

Our U S customers want surety of supply with the section 232 investigation underway. We believe that Q1 is planned to produce modules with traceable U S made poly silicon wafers and cells will mitigate detention risk and provide opportunities for our customers.

Jeff Spittel: Thanks, Dan. Operator, ready to open the line for questions.

We've announced at T1 that we converted an existing long-term U.S. policy silicon contract with Hemlock Semiconductor to a U.S. wafer sourcing agreement with Hemlock's majority owner, Corning Incorporated.

Michelle: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. At this time, I am showing no questions in the queue. I would now like to turn the call back over to Jeff Spittel for closing remarks.

For investment tax credits that enhance their project returns.

The cording commercial agreement is a major step towards our mandate to establish a bill of materials that is at least 50% non-FIAC by year-end, with higher percentages required in future years.

American Solar leadership is about investing in U S advanced manufacturing building secure domestic supply chains and creating jobs.

In addition to US wafers, we are in the process of sourcing additional materials, such as glass frames and induction boxes from domestic and non-fear to a cheap. This objective.

Disagreement with Corning is expected to support roughly 6000 full time U S jobs between current and planned Q1, Corning and hemlock facilities.

Jeff Spittel: Thank you, Michelle. Appreciate everybody taking the time to listen in on the call today. Please don't hesitate to follow up with questions. We look forward to seeing everybody on the road this quarter, including at the RE+ conference. We will have a team out there September 8 through 11. We look forward to seeing everybody during the quarter. This will conclude the call.

Investing in the U S polysilicon value chain, which is also critical to the semiconductor industry with established and trusted American industrial Blue Chip companies also supports Americas long term strategic interests.

Our U.S. customers want a short supply, with the Section 232 investigation underway. We believe that G1's plan to produce modules with traceable, U.S.-made poly, silicon wafers, and cells will mitigate the tension risk and provide opportunities for our customers to.

Apply for investment tax credits. That enhance their project returns.

And now I'll turn the call back to Dan to expand on our domestic content roadmap.

Michelle: This concludes today's conference call. Thank you for participating, and you may now disconnect.

American solar leadership is about investing in you as advanced manufacturing, building secure domestic supply chains, and creating jobs.

Thanks, Simon, let's turn to slide eight with.

With the Corning U S wafer agreement in place and G to Austin development progressing we now have a clear line of sight to produce PV solar modules in the U S from primarily U S components upon anticipated startup production at G to Austin, we should be positioned to deliver modules that are comprised of more than 70% U S. Content. This strategy has not really aligned with the <unk>.

Disagreement with Corning is expected to support roughly 6,000 full-time U.S. jobs between current and planned T1 Corning and Hemlock facilities.

<unk> policy framework, it's intended to give our utility scale customers, what they want surety of supply by eliminating detention risk Trey.

Investing in U.S. policy, Silicon Valley's chain, which is also critical to the semiconductor industry, established and trusted American industrial blue-chip companies, also supports America's long-term strategic interests.

And now, I'll turn the call back to Dan to expand on our domestic content roadmap.

Traceable secure bill of materials.

Thanks, Simon. Let's turn to slide 8.

Access to investment tax credits and high efficiency PV module technology.

We believe these are the attributes to make <unk>, a very attractive safe harboring partner to our customers.

Customers want U S content and G to Austin is the next major step to expand our U S supply chain.

So, let's turn to slide nine for an update on the G to Austin project, which is one of the largest planned capital investments in the U S PV solar market.

With the Corning US wafer agreement in place in G2 Austin development progressing, we now have a clear line of sight to produce PV solar modules in the US from primarily US components upon anticipated startup production at G2 Austin. We should be positioned to deliver modules that are comprised of more than 70% US content. This strategy is not merely aligned with the OBB policy framework; it's intended to give our utility-scale customers what they want.

As we disclosed on our first quarter call. We are pursuing development of <unk> Austin in two equal to five gigawatt phases. This approach is intended to achieve startup construction by Q3 or Q4 2025 pending the timing of advancing financial close offtake contract coverage and site permitting.

Purity of supply by eliminating detention risk.

To traceable secure bill of materials.

Access to investment tax credits and high-efficiency PV module technology.

We believe these are the attributes that make T1 a very attractive safe harboring partner to our customers.

Our development team has been moving swiftly to select the contractors and vendors with whom we will build two as we announced in June <unk> has selected Yates construction as a contractor for Preconstruction services and site preparation and we anticipate finalizing terms with gates as a general contractor for the project.

Customers want us content, and G2 Austin is the next major step to expand our U.S. supply chain.

So let's turn to slide 9 for an update on the G2 Austin project, which is 1 of the largest planned Capital investments in the US PB solar Market.

So he is the lead engineer on the project and <unk> has also selected Laplace as its exclusive production line equipment vendor for the facility.

Our <unk> development is supported by ongoing capital formation initiatives, given the robust customer interest in <unk> offtake contracts, we are confident in our ability to source and optimize the capital stack that will unlock the first phase of construction the processes, we have ongoing or planned to initiate include.

As we disclosed on the first quarter call, we are pursuing development of G2, Austin, and 2.5 gigawatt phases. This approach is intended to achieve the start of construction by Q3 or Q4 2025, pending the timing of advancing financial close off-take contract coverage and site permitting.

Traditional project financing with our G. One commercial lenders.

Our development team has been moving swiftly to select the contractors and vendors with whom we will build G2. As we announced in June, T1 has selected Yates Construction as a contractor for pre-construction services and site preparations. We anticipate finalizing terms with Yates as a general contractor for the project.

Process to secure mezzanine financing or a similar structured instrument. We have retained an investment bank to lead. This process, we have a data room up and running and we have several NDA signed with potential counterparties and as previously disclosed encompass capital advisors LLC has made a $50 million tranche of preferred stock available.

Ssoe is the lead engineer on the project, and T1 has also selected Leelas as its exclusive production line equipment vendor for the facility.

Evan and his team are coordinating these processes, which are intended to coincide with securing long term offtake contracts and the associated cash deposits as we continue to execute our plan to ensure <unk> 45 acts eligibility and demonstrate progress at tier one and <unk>. Two we are highly confident in our ability to start construction in either Q3 or Q4.

Additional project financing with our G1 commercial lenders.

While we continue to move <unk> forward, we also ramping operations in <unk>, Dallas <unk> World Class operating asset now, let's turn to slide 10 for an update.

Process to secure Mezzanine Financing or a similar structured instrument. We have retaining Investment Bank to lead this process. We have a data room up and running and we have several NDA signed with potential counterparties.

With the plant fully operational we have eclipsed the one gigawatt milestone of cumulative production in Q1 as I indicated earlier, we have already sold the two six gigawatts of modules at the low end of our 2025 production plan. During Q2, we completed the modification of 1% to three production lines from PERC to top comm technology, we continue to produce.

And, as previously disclosed, Encompass Capital Advisors LLC has made a $50 million tranche of preferred stock available.

PERC modules at the request of a customer on the other two lines for the time being.

Evan and his team are coordinating these processes, which are intended to coincide with securing long-term offtake contracts and the associated cash deposits. As we continue to execute our plan to ensure 45x eligibility and demonstrate progress at G1 and G2, we are highly confident in our ability to start construction in either Q3 or Q4.

Sales and EBITDA in Q2 didn't ramp as quickly as we anticipated, but we expect improved financial performance in the back half of the year as we work with our customers to safe Harbor projects.

While we continue to move G2 forward, we are also ramping operations at G1 Dallas. T1 is a world-class operating asset. Now, let's turn to slide 10 for an update.

As we look ahead at <unk>, one our objective heading into 2026 is to secure a long term off take commitments from customers for the full five gigawatts of annual capacity at the facility. These conversations should gain momentum as we continue to execute our countdown to compliance playbook and demonstrate continued progress with the <unk> Austin solar cell project <unk>.

With the plant fully operational, we have a clip of the 1 gigabyte milestone of cumulative production at G1. As I indicated earlier, we've already sold 2.6 gigawatts of modules at the low end of our 2025 production plan. During Q2, we completed the modification of 1 of 3 production lines from PERC to TOPCon technology. We continue to produce PERC modules at the request of a customer.

On the other 2 lines for the time being.

As the foundation of <unk> early stage commercial progress in domestic supply chain strategy, both of which align with recent policy developments to take you through the evolving policy landscape I'll turn the call over to Andy Munroe, our chief legal and policy Officer Andy.

Sales and EBITDA in Q2 didn't ramp as quickly as we anticipated. However, we expect improved financial performance in the back half of the year as we work with our customers to Safe Harbor projects.

Thanks, Dan.

I joined <unk> earlier this year, because I believe we have an opportunity to establish ourselves as a homegrown leader and domestic solar manufacturing with leading technology and a traceable secure supply chain.

Current administration is supportive of advancement American manufacturing onshore and technology transfer and U S energy dominance all of which align with tier one submission.

As we look ahead to 2026, our objective heading into that year is to secure long-term, off-take commitments from customers for the full 5 gigawatts of annual capacity at the facility. These conversations should gain momentum as we continue to execute our countdown of compliance, Playbook, and demonstrate continued progress with the G2 Austin solar cell project.

Turning to slide 11, let's examine some of the recent developments on Capitol Hill, and the implications for T y <unk>.

G1 is the foundation of T1's early-stage commercial progress and domestic supply chain strategy, both of which align with recent policy developments. To take you through the evolving policy landscape, I'll turn the call over to Andy Monroe, our Chief Legal and Policy Officer. Andy.

First and foremost the one big beautiful Belle maintains 45 X advanced manufacturing production tax credit through 2032, and preserves key provisions relating to staffing and transferability of credit.

Thanks, Dan.

I joined T1 earlier this year because I believe we have an opportunity to establish ourselves as a homegrown leader in domestic solar manufacturing, with leading technology in a traceable, secure supply chain.

As Dan mentioned earlier, however, the one big deal fulfill as introduced certain geos related requirements for U S solar produces.

The good news is that at Q1, we have been <unk> before it was cool. So we believe we have a head start and are confident we will be able to make any necessary adjustments to ensure that we are compliant with the requirements.

The current administration is supportive of advanced American manufacturing, contouring, technology transfer, and U.S. energy dominance, all of which align with T1's mission.

Turning to slide 11, let's examine some of the recent developments on Capitol Hill and the implications for T1.

The recent announcement of the expanded accordion agreement is proof that we are advancing our plans to develop an American and not yet supply chain.

The Commerce Department recently announced the launch of the section 232 investigation into the industry use of foreign sourced polysilicon and derivatives.

First and foremost the 1 big beautiful bail maintains 45x Advanced manufacturing production tax credits, through 2032 and preserves key Provisions relating to stacking and transferability of credit.

As Dan mentioned earlier, the one big beautiful bill has introduced certain FIAK-related requirements for us solder producers.

This can result in tariffs or other remedies aimed net imports of polysilicon and derivative products such as wafers cells.

And module <unk>.

<unk> has submitted public comments to commerce expressing support <unk> tariffs.

The good news is that at T1 we have been complying before. It was cool. So we believe we have a head start, and we're confident we will be able to make any necessary adjustments to ensure that we are compliant with the O requirements.

As we have discussed previously Q1 was already sourcing polysilicon from the U S by virtue of our existing supply contracts with hemlock semiconductor.

The recent announcement of the expanded portion is proof that we are advancing our plan to develop an American and non-fat supply chain.

The expansion of this strategic relationship to include solar wafers produced by Corning in Michigan aligns with the goals of that investigation and should further differentiate <unk> from our competitors.

The Commerce Department recently announced the launch of a Section 232 investigation into the industry's use of foreign-sourced polysilicon and derivatives.

Q1 is certainly supports trade policies that protect us solar manufacturers from anti competitive behavior.

This could result in tariffs or other remedies aimed at imports of polysilicon and derivative products such as wafers, cells, and modules.

And we believe that the recently launched solar for ADC VK harming inputs of solar modules and cells from Indonesia, Laos in India.

T1 has submitted public comments to Commerce, expressing support for Section 232 tariffs.

<unk> nicely with our strategy to build a U S solar value chain with domestically produced cells wafers in polysilicon.

As we have discussed, previously, T1 was already sourcing polysilicon from the U.S. by virtue of our existing supply contract with Hemlock Semiconductor.

Moving to slide 12, we shared the specifics of Q1's countdown to compliance playbook.

The expansion of this strategic relationship to include solar wafers, produced by Corning in Michigan, aligns with the goals of that investigation and should further differentiate T1 from our competitors.

<unk> top near term priority is to secured eligibility for the section 45 ex tax credits.

T1, assertively supports trade policies that protect us solar manufacturers from anti-competitive Behavior.

No secret that the U S solar industry has been largely dependent on component and material suppliers.

98.

Due to China's dominant of the sector.

We were acutely aware of this dynamic when we acquired <unk> U S solar assets.

And we have been crafting our strategy with a focus on building a U S solar leader by onshore in critical technology and developing a domestic supply chain.

And we believe that the recently launched Solar Force ABCD case targeting imports of solar modules and cells from Indonesia, Laos, and India dovetails nicely with our strategy to build a U.S. solar value chain with domestically produced cells, wafers, and polysilicon.

Moving to slide 12, we share the specifics of T1's countdown to compliance playbooks.

The first steps in this fee our compliance process is to establish a bill of materials comprised of at least 50% not the content and components.

P1's top near-term priority is to secure eligibility for the Section 45X tax credits.

Year end 2025.

The U S. Wafer agreement will claim we recently announced is a significant step in that direction and we believe it provides <unk> with an early mover advantage.

Of the sector.

The accordion transaction, which is intended to complement our GTO Austin U S. Solar cell project is an example of a capital light synthetic means of augmenting T months domestic supply chain.

We were acutely aware of this Dynamic. When we acquired Trina's, us solar assets

And we have been crafting our strategy with a focus on building a US solar Leader by ensuring critical technology and developing a domestic supply chain.

<unk> BBB also introduce Dr related ownership governance that an IP requirements for U S. Silver producers to secure 40 buybacks eligibility, none of which come as a surprise to tier one.

The first step in this Fiat compliance process is to establish a bill of materials, comprised of at least 50% non-Fiat content and components by year-end 2025.

Q1 is committed to making any necessary adjustments, including in the <unk> relationship to ensure compliance.

The U.S. weight for agreement with Corning we recently announced is a significant step in that direction, and we believe it provides T1 with an early mover advantage.

We understand that the recent developments in Washington, DC have introduced uncertainty for solar industry investors, but SD Wan, we have clarity of purpose and mission. Our leadership team has been proactively engaging with lawmakers and government officials to advocate for policies that support American advanced manufacturing and <unk>.

According to transactions, which are intended to complement our G2, Austin's US solar cell project is an example of a capital-light, synthetic means of augmenting P1's domestic supply chain.

Ensuring of all solar supply chain.

The obv also introduced fiac related ownership, governance, debt, and IP requirements for us solar. Producers to secure 45x eligibility. None of, which come as a surprise to T1,

And we are building <unk> to develop a sustainable competitive advantage as a leader in American solar technology and manufacturing.

T1 is committed to making any necessary adjustments, including in the Trine relationship, to ensure compliance.

And with that I'll turn the call over to Evan.

A review of Q1 financials.

We understand that the recent developments in Washington, D.C. have introduced uncertainty for solar industry investors.

Thank you Andy moving to slide 13, I'll start with an overview of 2025 financial and operating guidance.

Our production as Dan mentioned, we've now sold out the low end of our two six to 3.0 gigawatt guidance range for 2025.

The primary swing factor for the remainder of the year will be customer appetite for merchant sales as a prudent stewards of shareholder capital. We'll evaluate these commercial opportunities based upon <unk> economics, the strategic value of the potential customer agreements.

But at T1, we have clarity of purpose and mission. Our leadership team has been proactively engaging with lawmakers and government officials to advocate for policies that support American advanced manufacturing and reassure the full solar supply chain.

And we are building T1 to develop a sustainable competitive advantage as a leader in American solar technology and manufacturing.

And with that, I'll turn the call over to Evan for a review of T1 financials.

Working capital requirements.

We're maintaining our 2025 EBITDA guidance of $25 million to $50 million the near term risk to this forecast however are skewed to or below the downside based upon several factors.

Thank you, Andy. Moving to slide 13, I'll start with an overview of 2025 financial and operating guidance.

One a higher mix of merchant agreements in the second half of 2025, which typically carry lower margins and longer term off takes too uncertain near term impacts on cost and contract economics from 80, CVD reciprocal tariffs and contract interpretations and three timing uncertainties associated.

On production. As Dan mentioned, we've now sold out the low end of our 2.6 to 3.0 gigawatt. Guidance range, for 2025, the primary swing factor for the remainder of the year will be customer appetite for merchant sales as a prudent Steward of Cheryl for Capital will evaluate these commercial opportunities based upon T1 economics, the Strategic value of the potential

Customer agreements, uh, and working capital requirements.

Sitting with safe harboring projects among tier one customer base.

Short term uncertainties aside there's meaningful customer interest in tier one domestic content strategy are increasingly attractive competitive position, our alignment with U S policy framework and our ability to produce PV solar modules with high performance technology Accordingly, our integrated annual ear.

We're maintaining our 2025 EBA dog. Guidance of 25 to 50 million, the near-term risk to this forecast, however, are skewed to, or below the downside based upon several factors.

1. A higher mix of merchant agreements in the second half of 2025, which typically carry lower margins and longer-term off-takes.

EBITDA run rate guidance for five gigawatt, <unk> Dallas combined with a fully operational Q2, Austin of $650 to $700 million is unchanged.

Two uncertain near-term impacts on cost and contract economics from adding CBD, reciprocal tariff, and contract interpretations, and three timing uncertainties associated with safe harboring projects among P1's customer base.

Turning to slide 14, Let's review Q1 financial position.

Despite the ramp in sales EBITDA during <unk> fell short of our expectations largely due to pricing on sales and timing of shipments.

Second half of 2025 is setting up for improved financial performance as we maintain a supportive liquidity position, despite the working capital intensity and timing and Lumpiness of our merchant business.

Short-term uncertainties aside, there's meaningful customer interest in t1s, domestic, content strategy, our increasingly attractive, competitive position, our alignment with us policy framework, and our ability to produce PV solar modules with high performance technology. Accordingly, our integrated annual ibida run rate guidance for a 5 gigawatt G1 Dallas combined with a fully operational G2 Austin.

During the second quarter. These market dynamics were amplified prior to the passage of the <unk> in early July which resulted in lower than anticipated unrestricted cash balance at the end of Q2.

Of $650 to $700 million is unchanged.

Turning to slide 14, let's review T1's financial position.

However, we ended the quarter with significant finished goods inventory over 330 megawatts of top con modules built with U S polysilicon, which we believe was an appropriate investment considering the impending change in law in July we witnessed a significant uptick in demand and began selling down our inventory.

Despite the ramp in sales Eva during 2q fell short of our expectations largely due to pricing on sales and timing of shipments. The second half of 2025 is setting up for improved financial performance. As we maintain a supportive, liquidity position, despite the working capital intensity and timing lumpiness of our merchant business.

At attractive prices.

We also have a significant receivables balance that we expect to monetize during the second half of 2025, which includes a sizable receivable associated with section 45 credits. The tier one is earned through year to date production.

During the second quarter, these market dynamics were amplified prior to the passage of the OBB and early July, which resulted in a lower than anticipated unrestricted cash balance at the end of Q2.

Is 152025 credits have been audited.

Currently marketing and expect them to be monetized in the third quarter.

We're also grateful for the continued support of encompass capital advisors on August 14th we disclosed <unk> has entered into an amendment makes available additional $50 million in exchange for the issuance of preferred stock with broader strategic purposes in exchange for lowering the conversion price and other considerations.

However, we ended the quarter with significant finished goods inventory, over 330 megawatts of Topcon modules built with US polysilicon, which we believed was an appropriate investment considering the impending change in law. In July, we witnessed a significant uptick in demand and began selling down our inventory at attractive prices.

With multiple capital formation processes underway, we're currently engaged with several potential financial and strategic investors in tier one.

We also have a significant receivables balance that we expect to monetize during the second half of 2025, which includes a sizable receivable associated with Section 45X credits that T1 has earned through year-to-date production.

Happy to report that there is meaningful interest in securing offtake and financing, particularly now the U S policy landscape is aligning with tier ones mission and strategy today's announcement with hemlock bolstered this offering with higher domestic content.

1 and a half 20. 25 credits have been audited. We are currently marketing and expect them to be monetized in the third quarter.

Further our scoping of the project in two equal to five gigawatt phases reduces the capital required in phase one and supports our confidence in starting construction in the second half of 2025.

We are also grateful for the continued support of Encompass Capital Advisors on August 14th. We disclose T1 as entered into an amendment that makes available an additional $50 million in exchange for the issuance of preferred stock with broader strategic purposes, and in exchange for lowering the conversion price, and other consideration.

And now I'll turn the call back over to Dan including remarks.

Thanks, Kevin now, let's conclude on slide 17, with our strategic roadmap. The remainder of 2025 for U S. Solar manufacturers is all about establishing compliance to maintain eligibility for section 45 X production tax credits at tier one we have been building a significant head start over our competitors prior to this countdown to.

With multiple capital formation processes underway, we are currently engaged with several potential financial and strategic investors in T1. I'm happy to report that there's meaningful interest in securing offtake and financing, particularly now that the US policy landscape is aligning with T1's mission and strategy. Today's announcement with Hemlock bolsters this offering with higher domestic content.

Clients and we continue to make tangible progress.

We cleared serious review during Q2.

Further, our scoping of the project, and 2 equals 2.5 gigawatt phases, reduces the capital required in Phase 1 and supports our confidence in starting construction in the second half of 2025.

We have been executing our domestic content strategy and the Corning agreement, we announced is a major step forward in the process of achieving a compliant primarily domestic bill of materials.

And now, I'll turn the call back over to Dan for closing remarks.

We have established near term timelines with Trina to adjust terms of our commercial relationship to achieve compliance.

And the section 232 probe and reciprocal tariffs align with our U S vertical integration strategy and our expanding domestic supply chain as.

Thanks, Evan. Now let's conclude on slide 17 with a strategic roadmap for the remainder of 2025 for us. Solar manufacturers are all about establishing compliance to maintain eligibility for Section 45X production tax credits. At T1, we have been building a significant head start over our competitors prior to this countdown to compliance, and we continue to make tangible progress.

Progress.

As such we are confident that <unk> will satisfy the criteria to ensure 45 X eligibility and in the process differentiate ourselves and it is an emerging homegrown U S solar leader.

We cleared the Cyprus review during Q2.

We believe that 2026 will be the year to build a bridge to vertically integrated U S supply chain and the associated potential to generate meaningful earnings and cash flow capital is the foundation of the 2026 bridge. So we'll continue to evaluate opportunities to catalyze the next phase of <unk> growth through thoughtful capital formation long term commercial and strategic.

We have been executing our domestic content strategy and the Corning agreement we announced is a major step forward in the process of achieving a compliant, primarily domestic bill of materials.

We have established near-term timelines with Trina to adjust the terms of our commercial relationship to achieve compliance.

and the section 232 probe and reciprocal tariffs aligned with our us vertical integration strategy, and our expanding domestic supply chain,

Partnerships and broadening our customer base.

With Corning agreement in place, we now have line of sight to establish a supply chain of more than 70% domestic content before 2027, our supply chain strategy should also yield commercial benefit as customers verify our 45 X eligibility, we should be well positioned to ramp production in sales at <unk> Dallas, while we secure long term off takes for G to Austin.

As such we are confident that t will satisfy the criteria to ensure 45x eligibility and in the process differentiate ourselves and as an emerging homegrown us solar leader.

We believe that 2026 will be the year to build a bridge to vertically integrated us supply chain and the associated potential to generate meaningful earnings and cash flow.

Which we plan to have under construction and as we look ahead to 2027. This roadmap is intended to help <unk> realize the goal. We initially shared with our investors when we announced the Trina transaction last November.

Capital is the foundation of the 2026 Bridge. So, we will continue to evaluate opportunities to catalyze the next phase of T1 growth through thoughtful capital formation, long-term commercial and strategic partnerships, and broadening our customer base.

Ramp integrated U S solar cell and module production in 2027 to achieve an annual EBITDA run rate of $650 to $700 million. Despite.

Despite all the people within the policy and competitive landscapes in the recent months. This objective in tier one timeline to get there are largely the same.

So this is an exciting and dynamic time at <unk> energy, we're grateful for the continued support of our investors customers employees and partners the future of energy security in the U S and advanced manufacturing is now and this is <unk> moment, it's time to build and with that I'll turn it back to Jeff to coordinate the Q&A session.

With the Corning agreement in place. We now have line of sight to establish supply chain of More than 70% domestic content. Before 2027 our supply chain strategy, should also yield commercial benefits as customers verify our 45x eligibility. We should be well, positioned to ramp production sales at G1 Dallas. While we secure long-term off takes for G2 Austin, which we plan to

Thanks, Dan operator, we're ready to open the line for questions.

To have under construction. As we look ahead to 2027, this roadmap is intended to help 21 realize the goal we initially shared with our investors when we announced the Katrina transaction last November. Ramp integrated US solar cell and module production in 2027 to achieve an annual EVA run rate of $650 to $700 million.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced and to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Despite all the upheaval within the policy and competitive landscapes, in the recent months, this subjective and T1 timeline to get there are largely the same.

At this time I am showing no questions in the queue.

Now I'd like to turn the call back over to Jeff for closing remarks.

So, this is an exciting and dynamic time at T1 Energy. We are grateful for the continued support of our investors, customers, employees, and partners. The future of energy security in the U.S. and advanced manufacturing is now, and this is the moment. It's time to build. With that, I'll turn it back to Jeff to coordinate the Q&A session.

Thank you Michele I appreciate everybody, taking the time to listen in on the call. Today. Please don't hesitate to follow up with questions and we look forward to seeing everybody on the road this quarter, including the already plus conference will have a team out there September eight through 11. So we look forward to seeing everybody during the quarter. This will conclude the call.

Thanks, Dan operator. Ready to open the line for questions?

Thank you. As a reminder, task a question. Please press star, 1 1 1 on your telephone, and wait for your name to be announced and to withdraw your question. Please, press star 1 1 1, again please, stand by while we compile the Q&A roster,

This concludes today's conference call. Thank you for participating and you may now disconnect.

At this time, I am showing no questions in the queue. I would now like to turn the call back over to Jeff for closing remarks.

Thank you, Michelle. I appreciate everybody taking the time to listen in on the call today. Please don't hesitate to follow up with questions, and we look forward to seeing everybody on the road this quarter, including the RA Plus Conference. We'll have a team out there September 8th through 11th, so we look forward to seeing everybody during the quarter. This will conclude the call.

This concludes today's conference call. Thank you for participating, and you may now disconnect.