Fluence Energy Q1 2026 Fluence Energy Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 Fluence Energy Inc Earnings Call
Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.
Speaker #1: You will then hear automated messages advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
Speaker #1: I'll now extend the conference over to your first speaker today, Chris Shelton, VP of Investor Relations. Please go ahead.
Speaker #2: Good morning, and welcome to Fluence Energy's first-quarter 2026 earnings call. Joining me on this morning's call are Julian Nebreda, our president and chief executive officer, and Ahmed Pasha, our chief financial officer.
Chris Shelton: Good morning, and welcome to Fluence Energy's Q1 2026 Earnings Call. Joining me on this morning's call are Julian Nebreda, our President and Chief Executive Officer, and Ahmed Pasha, our Chief Financial Officer. A copy of our earnings presentation, press release, and supplementary metrics sheet covering financial results, along with supporting statements and schedules, including reconciliations and disclosures regarding non-GAAP financial measures, are posted on the investor relations section of our website at fluenceenergy.com. During the course of this call, Fluence management may make certain forward-looking statements regarding various matters and related to our business.
Chris Shelton: Good morning, and welcome to Fluence Energy's Q1 2026 Earnings Call. Joining me on this morning's call are Julian Nebreda, our President and Chief Executive Officer, and Ahmed Pasha, our Chief Financial Officer. A copy of our earnings presentation, press release, and supplementary metrics sheet covering financial results, along with supporting statements and schedules, including reconciliations and disclosures regarding non-GAAP financial measures, are posted on the investor relations section of our website at fluenceenergy.com. During the course of this call, Fluence management may make certain forward-looking statements regarding various matters and related to our business.
Speaker #2: press release, and supplementary with supporting statements and metrics sheet covering financial results, along schedules, including reconciliations and disclosures regarding non-GAAP financial measures, are posted on the Investor Relations section of fluenceenergy.com.
Speaker #2: During the course of this call, Fluence Management may make certain forward-looking statements regarding various matters and related to our business. Including statements related to our future financial and operational performance, future market growth, and related opportunities, anticipated growth, and business strategy liquidity and access to capital, expectations relating to pipeline, order intake, and contracted backlog, future results of operations.
Chris Shelton: Including statements related to our future financial and operational performance, future market growth and related opportunities, anticipated growth and business strategy, liquidity and access to capital, expectations relating to pipeline, order intake, and contracted backlog, future results of operations, the impact of the One Big Beautiful Bill Act, projected costs, beliefs, assumptions, prospects, plans, and objectives of management, and the timing of any of the foregoing. Such statements are based upon current expectations and certain assumptions and are therefore subject to certain risks, uncertainties, and other important factors, which could cause actual results to differ materially. Please refer to our SEC filings for more information regarding these risks, uncertainties, and important factors. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today. Also, please note that the company undertakes no duty to update or revise forward-looking statements for new information.
Chris Shelton: Including statements related to our future financial and operational performance, future market growth and related opportunities, anticipated growth and business strategy, liquidity and access to capital, expectations relating to pipeline, order intake, and contracted backlog, future results of operations, the impact of the One Big Beautiful Bill Act, projected costs, beliefs, assumptions, prospects, plans, and objectives of management, and the timing of any of the foregoing. Such statements are based upon current expectations and certain assumptions and are therefore subject to certain risks, uncertainties, and other important factors, which could cause actual results to differ materially. Please refer to our SEC filings for more information regarding these risks, uncertainties, and important factors. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today. Also, please note that the company undertakes no duty to update or revise forward-looking statements for new information.
Speaker #2: The impact of the One Big, Beautiful Bill Act, projected costs, beliefs, assumptions, prospects, plans, and objectives of management, and the timing of any of the foregoing.
Speaker #2: Such statements are based upon current expectations and certain assumptions and are therefore subject to certain risks, uncertainties, and other important factors which could cause actual results to differ
Speaker #1: materially Efer . Please refer to filings for more information SEC Uncertainties important risks . factors . You and cautioned not to place undue on these reliance forward looking statements , only as of today .
Speaker #1: which speak which speak Statements only as of . Also , please undertakes no duty to update or the revise any statements for new information are also reference non-GAAP we view as important measures that and .
Chris Shelton: This call will also reference non-GAAP measures that we view as important in assessing the performance of our business, including Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Gross Margin. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is available in our earnings materials on the company's investor relations website. Following our prepared comments, we will conduct a question-and-answer session with our team. Thank you very much. I'll now turn the call over to Julian.
Chris Shelton: This call will also reference non-GAAP measures that we view as important in assessing the performance of our business, including Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Gross Margin. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is available in our earnings materials on the company's investor relations website. Following our prepared comments, we will conduct a question-and-answer session with our team. Thank you very much. I'll now turn the call over to Julian.
Speaker #1: business , including performance of our note that adjusted gross profit and gross adjusted profit margin . A reconciliation of these non-GAAP measures to the most comparable is measures available earnings , the GAAP in our company's Investor Relations materials on website .
Speaker #1: Following our comments , we will conduct a question prepared and answer with team . today Thank you very much . now I'll turn the call over Julian to
Julian Nebreda: Thank you, Chris, and welcome to our stakeholders joining our call today. Turning to slide 4. This morning, I'll highlight Q1 results and the momentum we're seeing in the US order intake as demand for energy storage continues to accelerate. I'll outline the rapid expansion of our pipeline, driven by new customers and emerging use cases, and share the tangible impact of our enhanced sales efforts. I will also update you on our domestic content strategy and the meaningful progress we made resolving early production challenges in the US. Ahmed will then cover our financial results and 2026 outlook in more detail. To summarize our financial performance: First, our backlog has reached a record of $5.5 billion, reflecting a clear step up in US contracting activity, driven by the One Big Beautiful Bill Act and rising demand forecast.
Julian Nebreda: Thank you, Chris, and welcome to our stakeholders joining our call today. Turning to slide 4. This morning, I'll highlight Q1 results and the momentum we're seeing in the US order intake as demand for energy storage continues to accelerate. I'll outline the rapid expansion of our pipeline, driven by new customers and emerging use cases, and share the tangible impact of our enhanced sales efforts. I will also update you on our domestic content strategy and the meaningful progress we made resolving early production challenges in the US. Ahmed will then cover our financial results and 2026 outlook in more detail. To summarize our financial performance: First, our backlog has reached a record of $5.5 billion, reflecting a clear step up in US contracting activity, driven by the One Big Beautiful Bill Act and rising demand forecast.
Speaker #2: Chris Thank you .
Speaker #2: , and session to our stakeholders . . our call today . Turning to slide four . Joining This morning , I'll highlight and first quarter the results momentum we're seeing in the US order demand for energy storage as accelerate .
Speaker #2: Our the outlined rapid expansion of our continues to pipeline driven by new customers and use cases share the tangible impact and emerging sales efforts .
Speaker #2: I will also update of our you on domestic our content strategy and the meaningful progress we made resolving early production challenges in the US .
Speaker #2: Ahmed will then cover our financial results and 26 outlook in more to detail summarize our performance . financial First , our has reached backlog a of $5.5 billion .
Speaker #2: Reflecting record step up in US contracting driven activity by one big the , beautiful , big act and rising demand forecasts . The midpoint of our revenue outlook is now fully covered by our .
Julian Nebreda: The midpoint of our revenue outlook is now fully covered by our backlog. Second, with Q1 now complete, we are reaffirming our fiscal 2026 guidance, supported by greater revenue visibility and line of sight on execution, which increase our confidence in delivering this outlook. And third, we ended the quarter with approximately $1.1 billion in total liquidity, which positions us well to support our growth. Please turn to slide 5 for details on our order intake. During the first quarter, we signed over $750 million of new orders globally. More than $500 million of these orders were in the US, which represented strong growth from prior quarters. Activity in the US market has been gaining momentum since the passage of legislation last July.
Julian Nebreda: The midpoint of our revenue outlook is now fully covered by our backlog. Second, with Q1 now complete, we are reaffirming our fiscal 2026 guidance, supported by greater revenue visibility and line of sight on execution, which increase our confidence in delivering this outlook. And third, we ended the quarter with approximately $1.1 billion in total liquidity, which positions us well to support our growth. Please turn to slide 5 for details on our order intake. During the first quarter, we signed over $750 million of new orders globally. More than $500 million of these orders were in the US, which represented strong growth from prior quarters. Activity in the US market has been gaining momentum since the passage of legislation last July.
Speaker #2: Second , with Q1 now complete , we are reaffirming our fiscal backlog 26 guidance supported by revenue greater visibility and line of sight on execution , which increases our confidence in outlook delivering this .
Speaker #2: And third , we ended the quarter with approximately 1.1 billion in total liquidity , which us to our support growth positions to slide .
Speaker #2: well five for details on our order intake . During the quarter , we first signed over $750 million of new orders globally , more than these $500 million of orders were US , which in the strong growth prior from quarters .
Speaker #2: Activity in the US has been market momentum gaining the since passage of legislation last July continue to . expect We growth in across all our core markets orders for this year , with the representing the about half total Consistent with our pattern .
Speaker #2: Activity in the US has been market momentum gaining the since passage of legislation last July continue to . expect We growth in across all our core markets orders for this year , with the representing the about half total Consistent with our pattern US previous , please years turn to six for an update on our slide pipeline .
Julian Nebreda: We continue to expect growth in orders across all our core markets for this year, with the US representing about half the total, consistent with our pattern from previous years. Please turn to slide 6 for an update on our pipeline. We are seeing growing demand from developers, IPPs, utilities, and rapidly expanding data center opportunities. During the quarter, we also ramp up our sales efforts in all our core markets, including expanding our sales channels and outreach to existing and potential new customers. We're already seeing initial benefits with an approximately $7 billion or 30% increase in our pipeline, with a majority of growth coming from the US. The task now is to convert our pipeline into signed orders, and this is where we are concentrating our efforts. Please turn to slide 7 for an update on expanding sources of growth.
Julian Nebreda: We continue to expect growth in orders across all our core markets for this year, with the US representing about half the total, consistent with our pattern from previous years. Please turn to slide 6 for an update on our pipeline. We are seeing growing demand from developers, IPPs, utilities, and rapidly expanding data center opportunities. During the quarter, we also ramp up our sales efforts in all our core markets, including expanding our sales channels and outreach to existing and potential new customers. We're already seeing initial benefits with an approximately $7 billion or 30% increase in our pipeline, with a majority of growth coming from the US. The task now is to convert our pipeline into signed orders, and this is where we are concentrating our efforts. Please turn to slide 7 for an update on expanding sources of growth.
Speaker #2: We are growing demand developers from , IPPs and rapidly expanding data center opportunities . During the quarter , , utilities up our sales efforts our core markets in all , including expanding our channels and outreach to and existing potential new sales customers .
Speaker #2: already We are seeing initial with an approximately $7 billion or benefits 30% increase in pipeline , with a majority of growth coming from the US .
Speaker #2: task The now is to convert our pipeline into signed orders , and this is are concentrating our efforts . Please where we slide seven for an update on sources expanding growth of .
Julian Nebreda: We are seeing growing interest in our product from new customer segments, as well as new use cases. In terms of new customer segments, our biggest opportunities is data centers. We are engaged in discussions covering 36 gigawatt hours of projects, including customers with large portfolios, such as hyperscalers. We are working through technical reviews with them and working closely to show how our technology fits their specific needs. I will note that many of the 36 gigawatt hours of data center projects are not yet included in our pipeline, which represents meaningful upside opportunity. Another area of growth is long-duration energy storage, where we are in early discussions with 34 gigawatt hours of projects, largely in Europe and the US. SmartStack leads in density positions as well to compete for these applications. Long-duration projects, by definition, require more volume and therefore provide an additional growth opportunity.
Julian Nebreda: We are seeing growing interest in our product from new customer segments, as well as new use cases. In terms of new customer segments, our biggest opportunities is data centers. We are engaged in discussions covering 36 gigawatt hours of projects, including customers with large portfolios, such as hyperscalers. We are working through technical reviews with them and working closely to show how our technology fits their specific needs. I will note that many of the 36 gigawatt hours of data center projects are not yet included in our pipeline, which represents meaningful upside opportunity. Another area of growth is long-duration energy storage, where we are in early discussions with 34 gigawatt hours of projects, largely in Europe and the US. SmartStack leads in density positions as well to compete for these applications. Long-duration projects, by definition, require more volume and therefore provide an additional growth opportunity.
Speaker #2: are We growing interest product from new customer in our As segments . as new use well . In terms of new customer segments .
Speaker #2: Our biggest opportunities is data centers . are engaged We discussions in covering 36 gigawatt hours of projects customers with large portfolios such as hyperscalers .
Speaker #2: , including through technical reviews with them and working to closely show our how technology fits their specific needs . I note that will many of the 36 gigawatt data center are hours projects yet of included in our , which pipeline meaningful upside opportunity .
Speaker #2: Another area of growth long duration storage energy , where we are in early discussions with 34 gigawatt hours of projects , largely and the in US Europe , Smartstart leading density positions as well to compete for these applications .
Speaker #2: Long duration projects by definition , require more volume and therefore provide an additional growth opportunity in addition to new customer segments . We are an evolution seeing the way customers use battery storage Our solutions have been used together strategically .
Julian Nebreda: In addition to new customer segments, we are seeing an evolution in the way our customers use battery storage. Historically, our solutions have been used together with renewable projects to firm up their power generation. Utilities have also used our product to store electricity that can be utilized during peak demand periods, also known as energy shifting, or in specific locations to support grid needs. Today, we're seeing new and developing uses for our battery solutions by large energy users such as data centers and C&I facilities. These include, first, speed to power. Storage can speed interconnection to the grid by adapting power demand to the grid capabilities and avoid the delay and expenses of grid upgrades. Second, quality of power. Storage can inject reactive power to resolve voltage disturbances, manage demand, including disconnection from the grid when needed, and provide smooth ramp rate control, among others.
Julian Nebreda: In addition to new customer segments, we are seeing an evolution in the way our customers use battery storage. Historically, our solutions have been used together with renewable projects to firm up their power generation. Utilities have also used our product to store electricity that can be utilized during peak demand periods, also known as energy shifting, or in specific locations to support grid needs. Today, we're seeing new and developing uses for our battery solutions by large energy users such as data centers and C&I facilities. These include, first, speed to power. Storage can speed interconnection to the grid by adapting power demand to the grid capabilities and avoid the delay and expenses of grid upgrades. Second, quality of power. Storage can inject reactive power to resolve voltage disturbances, manage demand, including disconnection from the grid when needed, and provide smooth ramp rate control, among others.
Speaker #2: with renewable projects to firm up their power generation . Utilities have also used our products to store electricity that be can utilized periods during peak demand .
Speaker #2: Also as known energy shifting or in specific locations support grid needs . Today , we new and are uses for our batteries solutions by large seeing energy users such data centers developing CNI facilities as .
Speaker #2: and includes speed to first power storage can speed interconnection to the grid by adapting power demand to the grid capabilities and avoid delayed the and expenses of grid upgrades .
Speaker #2: Second , quality of power storage inject reactive can power to resolve voltage disturbances , manage demand including disconnection grid from the needed , and when provide ramp rate control , among others .
Julian Nebreda: We believe that no other technology can offer these three capabilities combined at competitive terms. Third, backup power. Energy storage, lower cost, and longer duration enables replacement of higher cost and carbon-intensive thermal gen sets that have traditionally served this need. Fourth, support of on-site generation. For bring-your-own-generation applications, energy storage can match up behind-the-meter power with the customer's energy needs by adding flexibility and efficiency to dispatchable generation or firming up capacity for renewable sources. Please turn to slide 8 for an update on our domestic supply chain. Let me highlight three developments that are strengthening our competitive advantage and keeping us reliably on schedule. First, our Domestic Content supply chain is now performing at the levels necessary to meet our delivery schedule.
Julian Nebreda: We believe that no other technology can offer these three capabilities combined at competitive terms. Third, backup power. Energy storage, lower cost, and longer duration enables replacement of higher cost and carbon-intensive thermal gen sets that have traditionally served this need. Fourth, support of on-site generation. For bring-your-own-generation applications, energy storage can match up behind-the-meter power with the customer's energy needs by adding flexibility and efficiency to dispatchable generation or firming up capacity for renewable sources. Please turn to slide 8 for an update on our domestic supply chain. Let me highlight three developments that are strengthening our competitive advantage and keeping us reliably on schedule. First, our Domestic Content supply chain is now performing at the levels necessary to meet our delivery schedule.
Speaker #2: We believe that no other technology can these three capabilities offer combined competitive at terms . Third , backup power , energy storage , lower cost , and longer duration enables replacement higher of costs and carbon intensive thermal gensets that have traditionally served this need .
Speaker #2: support of on site generation for your bring Fourth , own generation applications . Energy can storage match up behind the meter power with the customer's energy needs by adding flexibility and efficiency to generation or dispatchable firming up capacity for renewable sources .
Speaker #2: turn to Please eight for an slide update on our domestic chain supply . highlight three developments are strengthening our that Let me advantage and competitive us reliably schedule on .
Speaker #2: First , our domestic content supply is now performing at chain the levels to our necessary delivery schedule , sale and module production . Continue to run the plan and our ahead of enclosure manufacturing facility in is Arizona track on to now meet our projected needs .
Julian Nebreda: Cell and module production continue to run ahead of the plan, and our enclosure manufacturing facility in Arizona is now on track to meet our projected needs. Additionally, we continue to expand and diversify our domestic supplier base to enhance our flexibility and cost competitiveness. Second, on battery cells, we continue to make progress with AESC in resolving the prohibited foreign entity, or PFE status, of its Tennessee facility. Our overall priority is to secure competitively priced PFE-compliant domestic sales. AESC is looking at various paths to addressing the ownership aspect of PFE compliance. We are confident that the outcome will be consistent with our stated objectives to secure competitively priced PFE compliance battery cells. Third, we are encouraged by the growing momentum of domestic manufacturing of components for BESS. Several facilities are shifting their EV battery lines into BESS production. This will enable valuable diversification to our supplier base.
Julian Nebreda: Cell and module production continue to run ahead of the plan, and our enclosure manufacturing facility in Arizona is now on track to meet our projected needs. Additionally, we continue to expand and diversify our domestic supplier base to enhance our flexibility and cost competitiveness. Second, on battery cells, we continue to make progress with AESC in resolving the prohibited foreign entity, or PFE status, of its Tennessee facility. Our overall priority is to secure competitively priced PFE-compliant domestic sales. AESC is looking at various paths to addressing the ownership aspect of PFE compliance. We are confident that the outcome will be consistent with our stated objectives to secure competitively priced PFE compliance battery cells. Third, we are encouraged by the growing momentum of domestic manufacturing of components for BESS. Several facilities are shifting their EV battery lines into BESS production. This will enable valuable diversification to our supplier base.
Speaker #2: Additionally, we continue to expand and diversify our domestic supplier base to enhance flexibility and cost competitiveness. Second, on cells, we continue to make progress with ASC batteries in resolving the prohibited foreign or PFC status of its Tennessee facility.
Speaker #2: Entity pending of two legal matters. First, there is one where land—most of the matter was for an immaterial amount by the company.
Julian Nebreda: We believe that building multiple domestic cell partnerships will optimize pricing, resiliency, and the supply we need to support our growth. Before turning the call to Ahmed to discuss our financial results, I am pleased to update you on the satisfactory resolution of two pending legal matters. The first is on Moss Landing, where the matter was settled for an immaterial amount by the company in conjunction with our insurers and subcontractors on confidential terms. The settlement includes a full relief of claims, with no admission of responsibility or liability for the 2021 overheating incident. The second is on the Diablo Canyon project, where Fluence has obtained a court dismissal of Diablo's $230 million disgorgement claim. With that, I will turn the call over to Ahmed.
Julian Nebreda: We believe that building multiple domestic cell partnerships will optimize pricing, resiliency, and the supply we need to support our growth. Before turning the call to Ahmed to discuss our financial results, I am pleased to update you on the satisfactory resolution of two pending legal matters. The first is on Moss Landing, where the matter was settled for an immaterial amount by the company in conjunction with our insurers and subcontractors on confidential terms. The settlement includes a full relief of claims, with no admission of responsibility or liability for the 2021 overheating incident. The second is on the Diablo Canyon project, where Fluence has obtained a court dismissal of Diablo's $230 million disgorgement claim. With that, I will turn the call over to Ahmed.
Speaker #2: settled conjunction with our subcontractors . On insurers and terms the settlement includes a full release of claims with admission of or liability for the no 2021 overheating The second the Canyon , where Fluence has obtained court a dismissal .
Speaker #2: of the 230 million disgorgement . will that , turn the With call over to Ahmed .
Speaker #2: claim
Ahmed Pasha: Thank you, Julian, and good morning, everyone. As Julian mentioned, in the first quarter, we generated strong momentum towards achieving our goals for the year. Across our global portfolio, we executed reliably for customers and capitalized on strong growth trends by increasing our backlog to a record level. We also maintained our strong liquidity position that is integral to our strategy and growth objectives. More specifically, starting with slide 10, we generated Q1 2026 revenue of $475 million, 14% of our full-year guidance, and nearly double the 18% of full-year 2025 revenue earned during Q1 2025. This performance was in line with our expectations and keeps us on track to meet our full-year 2026 revenue guidance.
Ahmed Pasha: Thank you, Julian, and good morning, everyone. As Julian mentioned, in the first quarter, we generated strong momentum towards achieving our goals for the year. Across our global portfolio, we executed reliably for customers and capitalized on strong growth trends by increasing our backlog to a record level. We also maintained our strong liquidity position that is integral to our strategy and growth objectives. More specifically, starting with slide 10, we generated Q1 2026 revenue of $475 million, 14% of our full-year guidance, and nearly double the 18% of full-year 2025 revenue earned during Q1 2025. This performance was in line with our expectations and keeps us on track to meet our full-year 2026 revenue guidance.
Speaker #3: good morning Thank you . Julian , and everyone . As
Speaker #3: First quarter, we had momentum achieving strong results across our goals for the global portfolio. We executed reliably and saw strong growth on increasing customer trends. Our backlog capitalized on a record level.
Speaker #3: We also our strong liquidity is integral to strategy and our objectives maintained . More specifically , growth starting position that we generated with slide ten , Q1 2026 revenue of $475 million , our full year 14% of nearly guidance , and double the 18% year 2025 revenue earned during Q1 2025 .
Speaker #3: This performance was in line with our expectations and keeps us on track to meet our full year 2026 revenue guidance . Our gross adjusted profit for the quarter was $27 million , adjusted margin gross of Well our full year below expectation of 11 to 13% .
Ahmed Pasha: Our Adjusted Gross Profit for the quarter was $27 million, representing an Adjusted Gross Margin of 5.6%, well below our full year expectation of 11% to 13%. The result reflects cost impacts in two discrete areas, most of which we expect to recover over the remainder of this fiscal year. The variance reflects two specific factors: First, we incurred approximately $20 million of additional costs, a majority of which were associated with two specific projects outside the US. We expect these costs will be largely recovered over the course of this year, consistent with our experience in resolving similar items in the past. Second, our gross margin reflects our typical Q1 margin dynamics, where revenue is more lightly weighted, while fixed overhead costs are spread relatively evenly across the year.
Ahmed Pasha: Our Adjusted Gross Profit for the quarter was $27 million, representing an Adjusted Gross Margin of 5.6%, well below our full year expectation of 11% to 13%. The result reflects cost impacts in two discrete areas, most of which we expect to recover over the remainder of this fiscal year. The variance reflects two specific factors: First, we incurred approximately $20 million of additional costs, a majority of which were associated with two specific projects outside the US. We expect these costs will be largely recovered over the course of this year, consistent with our experience in resolving similar items in the past. Second, our gross margin reflects our typical Q1 margin dynamics, where revenue is more lightly weighted, while fixed overhead costs are spread relatively evenly across the year.
Speaker #3: The result cost in impacts two discrete of which we expect to recover remainder of this over the fiscal year . The variance reflects two specific factors .
Speaker #3: First , we incurred approximately $20 million of additional costs , majority a of which were with associated two specific projects US . We expect these costs will be recovered over the course of this year largely outside the .
Speaker #3: Consistent with our experience in similar in the resolving items . Second , our gross margin reflects our typical first quarter margin dynamics , revenue is more likely weighted while fixed overhead where costs are spread relatively evenly across the year .
Ahmed Pasha: Historically, this creates 1 to 2 percentage quarterly margin swing that normalizes over the course of the fiscal year. The lower gross margin also drove Adjusted EBITDA to -$52 million for the quarter. In short, our first quarter gross margin reflects the lower revenue weighting and some discrete project-specific items, not systemic or structural issues. Turning to slide 11, for a broader perspective on our Adjusted Gross Margin and how disciplined project execution and revenue growth initiatives translate to the bottom line. As you can see, we have been steadily improving our gross margin, even with the softer result this quarter. Our rolling 12-month Adjusted Gross Margin is 12.3%, a solid double-digit result. This resilience reflects our disciplined execution and reinforces our confidence in our ability to deliver on our commitments to our stakeholders.
Ahmed Pasha: Historically, this creates 1 to 2 percentage quarterly margin swing that normalizes over the course of the fiscal year. The lower gross margin also drove Adjusted EBITDA to -$52 million for the quarter. In short, our first quarter gross margin reflects the lower revenue weighting and some discrete project-specific items, not systemic or structural issues. Turning to slide 11, for a broader perspective on our Adjusted Gross Margin and how disciplined project execution and revenue growth initiatives translate to the bottom line. As you can see, we have been steadily improving our gross margin, even with the softer result this quarter. Our rolling 12-month Adjusted Gross Margin is 12.3%, a solid double-digit result. This resilience reflects our disciplined execution and reinforces our confidence in our ability to deliver on our commitments to our stakeholders.
Speaker #3: Historically , this creates 1 to 2 percentage quarterly margin past over the course normalizes of the fiscal year . The gross also drove adjusted lower -$52 million for the quarter .
Speaker #3: Short, our margin in the first quarter gross reflects lower revenue weighting and some discrete project-specific items, not structural issues. Turning to slide 11, for a broader perspective on our adjusted gross, how margin and disciplined project execution and revenue growth initiatives translate to the bottom line.
Speaker #3: you can see , we have As been steadily improving our gross margin even with the softer results . This quarter . Our rolling 12 month adjusted gross margin is A 12.3% .
Speaker #3: solid double digit result . This resilience reflects our execution and reinforces our confidence in our ability to deliver on our commitments to our stakeholders year , we expect margin continued improvement driven by strong .
Ahmed Pasha: Beyond this year, we expect continued margin improvement, driven by strong execution, supply chain-enabled cost advantages, innovation, and scale, as energy storage demand continues to grow. Turning to slide 12 for an update on our liquidity. We ended the quarter with total liquidity of approximately $1.1 billion, reflecting the strength and flexibility of our balance sheet. This includes $477 million in ending cash and an additional $617 million available through our credit facilities. Our liquidity position underscores the discipline with which we are managing the business and provides us with the capacity to continue investing to drive future growth. Turning to slide 13 for our 2026 guidance. We are reaffirming the ranges we introduced last quarter, reflecting our strong visibility into the year and continued momentum we see across our business.
Ahmed Pasha: Beyond this year, we expect continued margin improvement, driven by strong execution, supply chain-enabled cost advantages, innovation, and scale, as energy storage demand continues to grow. Turning to slide 12 for an update on our liquidity. We ended the quarter with total liquidity of approximately $1.1 billion, reflecting the strength and flexibility of our balance sheet. This includes $477 million in ending cash and an additional $617 million available through our credit facilities. Our liquidity position underscores the discipline with which we are managing the business and provides us with the capacity to continue investing to drive future growth. Turning to slide 13 for our 2026 guidance. We are reaffirming the ranges we introduced last quarter, reflecting our strong visibility into the year and continued momentum we see across our business.
Speaker #3: enabled cost advantages , innovation and disciplined storage demand continues to grow energy . Turning to slide update on our liquidity 12 for an .
Speaker #3: We ended the quarter total liquidity of approximately $1.1 billion , reflecting the strength and with our balance sheet This . includes $477 million in ending cash and additional an through our credit facilities $617 million available .
Speaker #3: Our liquidity position underscores the with which we are managing discipline the business and provides us with the capacity to continue investing to drive future growth .
Speaker #3: Turning to slide 13 for our 2026 guidance , we are reaffirming the ranges we introduced last quarter , reflecting our visibility into the year and continued momentum .
Ahmed Pasha: This confidence is grounded in three factors: First, the midpoint of our full year 2026 revenue guidance is now fully covered by orders in our backlog. Second, we have ordered all equipment required to meet our commitments, minimizing supply chain and commodity price risks. And third, we have clear visibility into the operating cost structure needed to deliver margins in the 11% to 13% range. On that basis, we are reaffirming our full year outlook. We expect revenue in the range of $3.2 to 3.6 billion, with a midpoint of $3.4 billion. We expect annual recurring revenue to reach approximately $180 million by the end of fiscal 2026, and we continue to expect Adjusted EBITDA in the range of $40 to 60 million for the full year.
Ahmed Pasha: This confidence is grounded in three factors: First, the midpoint of our full year 2026 revenue guidance is now fully covered by orders in our backlog. Second, we have ordered all equipment required to meet our commitments, minimizing supply chain and commodity price risks. And third, we have clear visibility into the operating cost structure needed to deliver margins in the 11% to 13% range. On that basis, we are reaffirming our full year outlook. We expect revenue in the range of $3.2 to 3.6 billion, with a midpoint of $3.4 billion. We expect annual recurring revenue to reach approximately $180 million by the end of fiscal 2026, and we continue to expect Adjusted EBITDA in the range of $40 to 60 million for the full year.
Speaker #3: We see this confidence across our business. This confidence is grounded in three factors. First, the midpoint of our year 2026 revenue guidance is now fully covered by orders in our backlog.
Speaker #3: Second , we have ordered all equipment required to meet our commitments , minimizing supply chain price commodity risks . And we third , have clear and visibility into the operating cost structure needed to deliver margins in the 11 to 13% range .
Speaker #3: basis , we are reaffirming that On our full year outlook . We expect revenue in the range of 3.2 to $3.6 billion , with a midpoint of 3.4 billion .
Speaker #3: We expect annual recurring revenue to reach approximately $180 million by the end of fiscal 2026 , and we continue to expect adjusted EBITDA in the range of 40 to $60 million for the year full .
Ahmed Pasha: In summary, with the right building blocks in place, our focus remains on disciplined execution for our customers and delivering value to our shareholders. With that, I will now turn the call back to Julian for his closing remarks.
Ahmed Pasha: In summary, with the right building blocks in place, our focus remains on disciplined execution for our customers and delivering value to our shareholders. With that, I will now turn the call back to Julian for his closing remarks.
Speaker #3: summary , In with the right building blocks in place , our focus remains on disciplined execution for our customers and delivering value to our shareholders .
Speaker #3: With that , I will now turn the call back to Julian for his closing remarks .
Julian Nebreda: Thanks, Ameet. Let me summarize today's call with a few takeaways. First, strong financial foundation. Our Q1 performance and record $5.5 billion backlog puts us on track to achieve our fiscal year 2026 guidance. We ended the quarter with $1.1 billion of liquidity, giving us strong visibility and flexibility to support growth. Second, US momentum is accelerating. This quarter, our order intake exceeded $750 million globally, with over $500 million coming from the US, reflecting increasing demand driven by recent legislation and a strengthening of market fundamentals. Third, pipeline and growth opportunities are expanding. Our pipeline grew by approximately $7 billion, or 30%, led by US demand, with additional upside from data centers and long-duration energy storage projects not yet fully reflected in the pipeline. Fourth, broader use cases and differentiated technology.
Julian Nebreda: Thanks, Ameet. Let me summarize today's call with a few takeaways. First, strong financial foundation. Our Q1 performance and record $5.5 billion backlog puts us on track to achieve our fiscal year 2026 guidance. We ended the quarter with $1.1 billion of liquidity, giving us strong visibility and flexibility to support growth. Second, US momentum is accelerating. This quarter, our order intake exceeded $750 million globally, with over $500 million coming from the US, reflecting increasing demand driven by recent legislation and a strengthening of market fundamentals. Third, pipeline and growth opportunities are expanding. Our pipeline grew by approximately $7 billion, or 30%, led by US demand, with additional upside from data centers and long-duration energy storage projects not yet fully reflected in the pipeline. Fourth, broader use cases and differentiated technology.
Speaker #2: Thanks , Let me summarize today's with a call takeaways few . First , strong financial foundation Amen . . Our Q1 performance and record of $5.5 billion backlog puts us track to achieve on our fiscal year 26 guidance .
Speaker #2: the ended quarter We liquidity $1.1 billion of , giving us strong and visibility flexibility to support growth . Second , US momentum is accelerating this quarter .
Speaker #2: Our order intake exceeded $750 million globally, with over $500 million from the US, reflecting increasing coming demand driven by recent legislation and strengthening of market fundamentals.
Speaker #2: Third, growth pipeline and opportunities are expanding. Our pipeline grew approximately by $7 billion, or 30%, led by Usman. Additionally, there is upside from data centers and long duration energy storage projects.
Speaker #2: yet fully Not reflected in the pipeline . Fourth . Brother use cases and differentiated technology . We are seeing expanding applications for storage , particularly from data centers and large CNI where our solutions are uniquely positioned to serve customers , emerging customer needs .
Julian Nebreda: We are seeing expanding applications for storage, particularly from data centers and large C&I customers, where our solutions are uniquely positioned to serve emerging customer needs. And fifth, execution and risk reduction. We continue to strengthen our global supply chains by expanding and diversifying our supplier base. In summary, we see accelerating demand, improving visibility, and a strengthening of our execution, which together reinforce our confidence in meeting our commitments to customers and deliver long-term value for shareholders. With that, we will now open the call for questions.
Julian Nebreda: We are seeing expanding applications for storage, particularly from data centers and large C&I customers, where our solutions are uniquely positioned to serve emerging customer needs. And fifth, execution and risk reduction. We continue to strengthen our global supply chains by expanding and diversifying our supplier base. In summary, we see accelerating demand, improving visibility, and a strengthening of our execution, which together reinforce our confidence in meeting our commitments to customers and deliver long-term value for shareholders. With that, we will now open the call for questions.
Speaker #2: fifth , And execution and risk reduction . We continue to strengthen our global supply chains by expanding and diversifying our suppliers base . In summary , we see accelerating demand , improving and a our execution strengthening of , which together reinforce our confidence in meeting our to customers and deliver long term shareholders value for .
Speaker #2: With will that , we open the call for questions .
Operator: Thank you. At this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by. We'll compile the Q&A roster. Our first question comes on the line of George Gianarikas of CG. Your line is now open.
Operator: Thank you. At this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by. We'll compile the Q&A roster. Our first question comes on the line of George Gianarikas of CG. Your line is now open.
Speaker #4: Thank you . commitments time , we'll conduct the question and answer session . As a reminder to ask a question , you will need to press star one one on your and wait for your name to be telephone To withdraw your question , announced .
Speaker #4: please press star one one again . Please stand by while we Q&A compile the roster . And our first question comes from the line of George Turner of CG .
George Gianarikas: Hi, good morning, everyone, and thank you so much for taking my question.
George Gianarikas: Hi, good morning, everyone, and thank you so much for taking my question.
Speaker #4: Your line is now open .
Speaker #5: Hi . Good morning , everyone , and thank my for taking question
Julian Nebreda: Good morning, George.
Julian Nebreda: Good morning, George.
George Gianarikas: So maybe just to focus for a second on AESC, and I know you're in the process of resolving the ownership stake there. But could you just help guide us as to what resolution will look like? I mean, because there are, you know, certainly several potential outcomes to this. So just help us understand, you know, how you're framing this for us. Thank you.
Speaker #2: Good morning .
George Gianarikas: So maybe just to focus for a second on AESC, and I know you're in the process of resolving the ownership stake there. But could you just help guide us as to what resolution will look like? I mean, because there are, you know, certainly several potential outcomes to this. So just help us understand, you know, how you're framing this for us. Thank you.
Speaker #6: George
Speaker #6: .
Speaker #5: So maybe just focus for a second on an to . I know you're in the process of resolving the but could you ownership stake , you so much just guide us as to help what resolution like ?
Speaker #5: Because, well, look, there are certainly several potential outcomes to this. So let us understand—just help with how we're framing this for you. Thank you.
Julian Nebreda: Great. Thank you, George. Our main objective in our relationship with AESC is ensuring that we have access to PFE compliant sales at, you know, competitive terms. That's our main objective. That's our priority number one. As part of that, we've been working with them on ensuring that they meet all the different conditions of the OBBA or BBBBA. In terms of ownership, which is your specific question on, we made them a proposal. Our understanding today is that they will address, resolve that problem within some other form. So, we got assurances from them that they will meet the conditions of the law, that they will resolve that problem, and they will resolve it without the need for us to getting involved in the ownership structure of that plan. So, you know, for us-...
Julian Nebreda: Great. Thank you, George. Our main objective in our relationship with AESC is ensuring that we have access to PFE compliant sales at, you know, competitive terms. That's our main objective. That's our priority number one. As part of that, we've been working with them on ensuring that they meet all the different conditions of the OBBA or BBBBA. In terms of ownership, which is your specific question on, we made them a proposal. Our understanding today is that they will address, resolve that problem within some other form. So, we got assurances from them that they will meet the conditions of the law, that they will resolve that problem, and they will resolve it without the need for us to getting involved in the ownership structure of that plan. So, you know, for us.
Speaker #6: Great . Thanks , George Our main objective in our with relationship ASC is they that we have ensuring that access to fee compliant sales at .
Speaker #2: Competitive Our main That's our priority . Number one . As part of objective . that , we've been working them on ensuring that they meet all the different conditions of the Oba or BBVA in terms of ownership , which is your specific question ?
Speaker #2: terms .
Speaker #6: That's
Speaker #6: .
Speaker #2: We made them a with proposal . Our understanding they will resolve that problem in some other today is that form . So a we got assurances from them that meet the they will conditions of the law , that they will resolve that problem and resolve they will it for need us without the to get involved in ownership the structure of the of that plan .
Julian Nebreda: You know, we, as you know, we have been working with them for many years. We trust them very much, we think they're gonna do, and, and, you know, we're, we're working with them and waiting for them to give us more light. Today, they have not communicated to us the details how they expect to do it, but we're very confident they will meet the deadlines of the law and the commissions, you know? In terms of the other ones related to material assistance and IP and all of that, we as part of our process work, we have all that information. That's where we, it's the ownership where we still need to wait. But, and I will make a point that I think is very, very important, if you will, which is a side point here.
Julian Nebreda: You know, we, as you know, we have been working with them for many years. We trust them very much, we think they're gonna do, and, and, you know, we're, we're working with them and waiting for them to give us more light. Today, they have not communicated to us the details how they expect to do it, but we're very confident they will meet the deadlines of the law and the commissions, you know? In terms of the other ones related to material assistance and IP and all of that, we as part of our process work, we have all that information. That's where we, it's the ownership where we still need to wait. But, and I will make a point that I think is very, very important, if you will, which is a side point here.
Speaker #2: So , you know , for us , you know , as you know , we have been working with them for many We trust them very years . much .
Speaker #2: So , you know , for us , you know , as you know , we have been working with them for many We trust them very years .
Speaker #2: We think they're going to do . And , you know , we're working with them and waiting for them to give light . us more Today .
Speaker #2: They have not a communicated to us the details of the expect to do it , but we're very confident they will meet the deadlines of the conditions .
Speaker #2: They have not a communicated to us the details of the expect to do it , but we're very confident they will meet the deadlines of the the law and You , in know terms of the other ones related to material assistance and IP and all of that , we , part of our process , as we have all that information as well as the ownership where we still need to wait .
Speaker #2: and I But will make the point that I think it's very , very important if you plan , which is a side point here , the market for sales in the US is spending like crazy .
Julian Nebreda: The market for sales in the US is expanding like crazy. We have all these EV battery lines that are converted into ESS now. So we're seeing for the first time, you know, plethora of projects or people offering all types of things. So we are, if you tell me, we will see here in the US something similar what we saw in China two years ago, you know, or three years ago, when all these EV lines converted into ESS. So we're very excited about what the prospects for a company with our structure and our strategy will do in the US during the next couple of years, you know. So, you know, I think this is a great time, this is a great opportunity.
Julian Nebreda: The market for sales in the US is expanding like crazy. We have all these EV battery lines that are converted into ESS now. So we're seeing for the first time, you know, plethora of projects or people offering all types of things. So we are, if you tell me, we will see here in the US something similar what we saw in China two years ago, you know, or three years ago, when all these EV lines converted into ESS. So we're very excited about what the prospects for a company with our structure and our strategy will do in the US during the next couple of years, you know. So, you know, I think this is a great time, this is a great opportunity.
Speaker #2: We have all these EV battery lines that are converted into , into now into gas . So we are seeing for the first know , plethora projects of people time , you offering all of types of we if you things .
Speaker #2: are tell me , we here in the So will sit US , something similar we saw in China ago . You two years know , when all or three years ago these EV lines converted into .
Speaker #2: It . We're very excited about what the for a company with prospects our structure and our strategy will will do in the US during the next couple of years .
Speaker #2: So , you know , I is a think this time . This is a great opportunity . We are very confident ASC on and we are very , optimistic about the very for future for for the battery the storage in market the US due to the how the market changing the is dynamics .
Julian Nebreda: We are very confident on AFC, and we are very, very optimistic about the future for the market for battery storage in the US, due to how the market is changing the dynamics. We saw what happened in China the last couple of years with the Chinese when the EV demand came down, and it brought in more suppliers, better quality. It really changed how the BESS market changed, so we're excited about this time.
Julian Nebreda: We are very confident on AFC, and we are very, very optimistic about the future for the market for battery storage in the US, due to how the market is changing the dynamics. We saw what happened in China the last couple of years with the Chinese when the EV demand came down, and it brought in more suppliers, better quality. It really changed how the BESS market changed, so we're excited about this time.
Speaker #2: We saw happened in China the last couple of years what with the Chinese , when when the EV demand came and how down that , you know , allowed to markets for our grow brought more in suppliers , better and quality .
Speaker #2: It really changed how the changed market . So we're excited about this time .
George Gianarikas: If I may ask a follow-up?
George Gianarikas: If I may ask a follow-up?
Julian Nebreda: Yeah, please.
Julian Nebreda: Yeah, please.
Speaker #5: If ask a follow I may up , a good segue what the competitive into environment looks like , and I would some of imagine these data center offs , you know , of the big hyperscalers bake don't want to use one of their competitors as a supplier .
George Gianarikas: Segue into what the competitive environment looks like, and I would imagine some of these data center bake-offs, you know, some of the big hyperscalers don't wanna use one of their competitors as a supplier. But are you seeing, you know, any increased competition from the likes of Ford, who's doing the exact thing that you mentioned, converting some of their, you know, cell supply into energy storage-related cells? So help us understand what the landscape currently looks like, particularly in data center. Thank you.
George Gianarikas: Segue into what the competitive environment looks like, and I would imagine some of these data center bake-offs, you know, some of the big hyperscalers don't wanna use one of their competitors as a supplier. But are you seeing, you know, any increased competition from the likes of Ford, who's doing the exact thing that you mentioned, converting some of their, you know, cell supply into energy storage-related cells? So help us understand what the landscape currently looks like, particularly in data center. Thank you.
Speaker #5: But are you seeing any increased competition from the likes of Ford , who's doing the exact thing that you converting some of mentioned , their , you know , cell supply into energy storage related cells ?
Speaker #5: Help us, so the landscape currently—understand what it looks like, particularly. Thank you, in data.
Julian Nebreda: I don't think the competitive landscape has changed today. There have been other people, there's some, but I don't think the competitive landscape has changed at all. What we have seen is a significant diversification of battery cell suppliers. It probably will change over time. I don't disagree that it might change, you know, and because of some people might decide to do different things. But what we have today is, you know, no real changes in the competitive environment, but a real change in the way the supply for battery cells in the market, especially for the second half of 2026. You know, and you know, we-- there will be new entrants. This market is exciting.
Julian Nebreda: I don't think the competitive landscape has changed today. There have been other people, there's some, but I don't think the competitive landscape has changed at all. What we have seen is a significant diversification of battery cell suppliers. It probably will change over time. I don't disagree that it might change, you know, and because of some people might decide to do different things. But what we have today is, you know, no real changes in the competitive environment, but a real change in the way the supply for battery cells in the market, especially for the second half of 2026. You know, and you know, we, there will be new entrants. This market is exciting.
Speaker #2: I'll see the landscape competitive has changed today There are no other people . There are some , but I don't think the . competitive landscape has changed at What we have seen all .
Speaker #2: is significant a diversification of cell suppliers . It battery probably will over , and I don't that it disagree might change . because You know , some time do people might different things .
Speaker #2: But what we decide to today have you is , know , no real changes in the of competitive environment , but a change in the real way the for battery cells supply in the market , especially for the second half of 26 , you know , and agree , you I know , we there will entrants .
Julian Nebreda: If, you know, it's growing crazy, there will be new entrants in the market, and we compete in the world with the, you know, with a Chinese state, you know, with a, with a Chinese competitor, with the support of their government. So here, competing against some of these players, I don't think it will be more difficult than what we do globally. So, you know, we like competition. It's a great driver of our innovation and gives me wake up... allow me to wake up early. Let me put it that way. I sleep very well, but wake up early; we're excited about what we're doing. So, hey, excited about the prospects for the US market. This is gonna be, you know, the golden years of battery storage are coming. Are starting.
Julian Nebreda: If, you know, it's growing crazy, there will be new entrants in the market, and we compete in the world with the, you know, with a Chinese state, you know, with a, with a Chinese competitor, with the support of their government. So here, competing against some of these players, I don't think it will be more difficult than what we do globally. So, you know, we like competition. It's a great driver of our innovation and gives me wake up, allow me to wake up early. Let me put it that way. I sleep very well, but wake up early; we're excited about what we're doing. So, hey, excited about the prospects for the US market. This is gonna be, you know, the golden years of battery storage are coming. Are starting.
Speaker #2: This market is exciting . be new know , it's It's you growing There will be new crazy . entrants in the market . And we compete in the world with the you the Chinese know with state , you know , Chinese with our competitors , where the support government .
Speaker #2: So here competing against some of these players , of their I don't think it will be more difficult than , than what globally .
Speaker #2: So , you know , we like we do competition . It's a great driver of of our innovation . And it me gives wake allows me to wake up early .
Speaker #2: up Let sleep very me put it well , wake up early . but about what Excited hey we're doing . So , excited about the prospect for the US market .
Speaker #2: going to be , you know , the years of This is golden battery storage are coming , starting
Speaker #2: .
George Gianarikas: Thank you.
George Gianarikas: Thank you.
Julian Nebreda: Thank you, George.
Julian Nebreda: Thank you, George.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Brian Lee of Goldman Sachs. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Brian Lee of Goldman Sachs. Your line is now open.
Speaker #5: .
Speaker #2: George Thank you .
Speaker #4: One moment for our Thank you next question you . Thank . next Our question comes from the line of Brian Lee of line is now open Sachs .
Speaker #4: Goldman
Julian Nebreda: Good morning, Brian.
Julian Nebreda: Good morning, Brian.
Brian Lee: Good morning. Thanks for the-
Brian Lee: Good morning. Thanks for the.
Speaker #4: .
Julian Nebreda: How are you?
Julian Nebreda: How are you?
Brian Lee: Good morning. How are you doing?
Brian Lee: Good morning. How are you doing?
Speaker #2: Hey ,
Julian Nebreda: Doing well.
Julian Nebreda: Doing well.
Brian Lee: Good. Thank you for taking the questions. I guess just starting on the data center-related pipeline, you know, the 36 gigawatt hours, it's pretty impressive, grew again, quarter-over-quarter. I guess the focus and the execution question now is, you know, first, how much have you actually converted to backlog? And, you know, is there any of that in the $750 million of bookings you reported this quarter? And then secondly, just, you know, what's it, it's a big number, 36 gigawatt hours. Can you just kind of give us a sense of, you know, the outlook and conversion ratio, timing that you're targeting? Maybe when do we really start to see this move into bookings and PNL impact for you?
Brian Lee: Good. Thank you for taking the questions. I guess just starting on the data center-related pipeline, you know, the 36 gigawatt hours, it's pretty impressive, grew again, quarter-over-quarter. I guess the focus and the execution question now is, you know, first, how much have you actually converted to backlog? And, you know, is there any of that in the $750 million of bookings you reported this quarter? And then secondly, just, you know, what's it, it's a big number, 36 gigawatt hours. Can you just kind of give us a sense of, you know, the outlook and conversion ratio, timing that you're targeting? Maybe when do we really start to see this move into bookings and PNL impact for you?
Speaker #7: Good morning . How are you doing Good morning .
Speaker #7: ? Good .
Speaker #7: the for taking questions Thank you just starting . on guess I Your the data center . Related pipeline . You know , the 36 gigawatt hour .
Speaker #7: It's pretty impressive . again quarter on quarter Grew . I guess the focus execution is , you and the know question now , first , how much have actually you converted to backlog and , you know , is there any of in that the 750 million of bookings quarter ?
Speaker #7: this reported And then secondly , just , you know , what's a big number , 36 gigawatt hours . Can you it's of give us a sense of , you know , the outlook conversion in ratio , timing that you're targeting , maybe when do we really start to see this move bookings and PNL into impact
Julian Nebreda: Yeah. Great. I mean, to tell you the truth, there's no these are the new type of use cases, no? We have served data centers with a behind-the-meter, you know, in front of the meter solutions with the renewable companies. Those were not included in these 36 giga. These are, you know, behind-the-meter or dedicated lines to data centers. So it's behind-the-meter or dedicated lines to data centers. So slightly different than we have done globally, just the first point. So answering your question completely, we have not converted into backlog any of the new data center parts. No, that, that's too late. This is a new market segment for us.
Julian Nebreda: Yeah. Great. I mean, to tell you the truth, there's no these are the new type of use cases, no? We have served data centers with a behind-the-meter, you know, in front of the meter solutions with the renewable companies. Those were not included in these 36 giga. These are, you know, behind-the-meter or dedicated lines to data centers. So it's behind-the-meter or dedicated lines to data centers. So slightly different than we have done globally, just the first point. So answering your question completely, we have not converted into backlog any of the new data center parts. No, that, that's too late. This is a new market segment for us.
Speaker #7: you ?
Speaker #2: great . I mean , to tell you the truth , there's no these are the of cases . use Yeah , served . Data centers with a know , behind , you in mirror front of the solutions with the renewable companies .
Speaker #2: were not Those included these 36 giga . These in are , you know , behind the center or dedicated lines to that meter behind the center .
Speaker #2: So or dedicated it's lines to that . Slightly different than we have done just the first point . So answering your question concretely , we have not converted into backlog any of the new data center part .
Speaker #2: That's today . This is a new market segment for us . These are markets that we have not served directly before . know , before You September or , you before before a couple know , of ago , we were months serving this company , this company indirectly , there's a new market We are engaging But , you know , with them .
Julian Nebreda: These are markets that we have not served directly before, you know, before September or, you know, before, before, I mean, a couple of months ago, we were serving this company indirectly. There's a new market segment. We are engaging with them, but it, you know, it's very, very difficult for us at this stage to give you a clear, you know, view of how much of that will convert and how will it work over time. However, we do, when we looked at the pipeline and we looked at what we are, the majority of the projects that we're working with, we should expect something happening, you know, in the second half of the year, but, you know, say fourth quarter, third or fourth quarter of the calendar year. That's what we should expect to some conversion of this.
Julian Nebreda: These are markets that we have not served directly before, you know, before September or, you know, before, before, I mean, a couple of months ago, we were serving this company indirectly. There's a new market segment. We are engaging with them, but it, you know, it's very, very difficult for us at this stage to give you a clear, you know, view of how much of that will convert and how will it work over time. However, we do, when we looked at the pipeline and we looked at what we are, the majority of the projects that we're working with, we should expect something happening, you know, in the second half of the year, but, you know, say fourth quarter, third or fourth quarter of the calendar year. That's what we should expect to some conversion of this.
Speaker #2: it's very , segment . for us at stage this give a you clear view of how much of that convert and how will it work over time .
Speaker #2: will However we do . pipeline and looked at the we looked at When we are , the projects that with we're maturity of the , we should working expect something happening .
Speaker #2: You know , in the second half of the year . But , you know , say fourth quarter , third or fiscal of the calendar year , that's what we to expect to some conversion of We clearly would love to do it this .
Julian Nebreda: We clearly would love to do it earlier, and as this is becoming such an important segment that as we learn more about it, we'll probably communicate more. But as of this stage, unfortunately, you know, we are learning how to do this, working with them on the first time. As you can imagine, some of these companies have been, you know, are very, very, you know, the, the supply chain teams are very detailed, and they're really - there's a lot of value involved, great, big projects. So it's a lot of work we're going through that, you know, our teams are selling, you know, and we're learning and working very well, but today, we do not have an actual number that I can share with you.
Julian Nebreda: We clearly would love to do it earlier, and as this is becoming such an important segment that as we learn more about it, we'll probably communicate more. But as of this stage, unfortunately, you know, we are learning how to do this, working with them on the first time. As you can imagine, some of these companies have been, you know, are very, very, you know, the, the supply chain teams are very detailed, and they're really, there's a lot of value involved, great, big projects. So it's a lot of work we're going through that, you know, our teams are selling, you know, and we're learning and working very well, but today, we do not have an actual number that I can share with you.
Speaker #2: earlier . And as this is coming such an important segment that as more we learn we'll about it , communicate probably But as of this more .
Speaker #2: Unfortunately , you stage . know , we are we are learning how to do this , working with them first time , can as you imagine , some of these companies at the been , know , are very , very you know , their supply chain teams are very detailed and they're really there's a lot of value involved .
Speaker #2: you big Great project . So of work . it's a lot through We're that . You know , our teams are selling , you know , learning and very well .
Speaker #2: working But today do not we have an number that I can actual share . What's exciting about I can give Brian , the point is this , if that how fast it's growing , you you know , today is what we are is growing communicating .
Julian Nebreda: What's exciting about this, if I can give you, Brian, the point, is that how fast it's growing, you know? That today is what we are communicating. It is growing very fast. You know, we think we have a competitive advantage. We look at the other technologies. We believe we can do better than anybody else, and we're working very hard using it. It goes very much to our capabilities, the viral interconnect, you know, the things that where we excel. So that's what we're so excited about it. But today, as it is a new market segment, we cannot provide more, more clarity on it.
Julian Nebreda: What's exciting about this, if I can give you, Brian, the point, is that how fast it's growing, you know? That today is what we are communicating. It is growing very fast. You know, we think we have a competitive advantage. We look at the other technologies. We believe we can do better than anybody else, and we're working very hard using it. It goes very much to our capabilities, the viral interconnect, you know, the things that where we excel. So that's what we're so excited about it. But today, as it is a new market segment, we cannot provide more, more clarity on it.
Speaker #2: very fast . This You know , we think competitive We look at advantage . the other that's believe we can do technologies , we better than anybody else we have a So and .
Speaker #2: we're Hey . working very hard using it goes very much to our capabilities of how know , the interconnect , you where we So we're so that's what excited about .
Speaker #2: But today , as it did , is a new market segment . We cannot more provide , more . Clarity on it
Brian Lee: Absolutely. No, that's great color. Maybe just two quick follow-ups on the guidance. You know, one, on the $20 million of incremental costs here related to the two projects, can you elaborate on kind of what those costs exactly were, and then how you plan to, you know, recover those costs through the course of the year, the $20 million? And then secondly, you know, Julian, obviously, you're pretty bullish on the outlook for energy storage broadly, whether Gridstack or not, and you're saying that the guide is fully covered by backlog.
Brian Lee: Absolutely. No, that's great color. Maybe just two quick follow-ups on the guidance. You know, one, on the $20 million of incremental costs here related to the two projects, can you elaborate on kind of what those costs exactly were, and then how you plan to, you know, recover those costs through the course of the year, the $20 million? And then secondly, you know, Julian, obviously, you're pretty bullish on the outlook for energy storage broadly, whether Gridstack or not, and you're saying that the guide is fully covered by backlog.
Speaker #7: No .
Speaker #7: That's that's great color . Absolutely . . Maybe just two quick follow ups on the guidance . You know one on the $20 million of , incremental costs you know , here related to the two projects .
Speaker #7: you be elaborate on Can can kind of what those costs exactly were and then how you plan to know , , you recover those costs the course of through the the year , And then $20 million ?
Speaker #7: secondly , you know , obviously , you're pretty bullish on the outlook for energy . Broadly , whether storage data center or not .
Speaker #7: And you're saying that the is fully covered by guide backlog . So , you know , with pipeline and grow , continuing to maybe it's a little bit too early .
Speaker #7: And you're saying that the is fully covered by guide backlog . So , you know , with pipeline and grow , continuing to maybe it's a little bit too early . only bookings fiscal but how would you characterize the Q1 , upside potential to your 2020 guidance outlook here ?
Brian Lee: So, you know, with pipeline and bookings continuing to grow, maybe it's a little bit too early. It's only fiscal Q1, but how would you characterize the upside potential to your kind of 2026 guidance outlook here, starting off the year? Thank you, guys.
Brian Lee: So, you know, with pipeline and bookings continuing to grow, maybe it's a little bit too early. It's only fiscal Q1, but how would you characterize the upside potential to your kind of 2026 guidance outlook here, starting off the year? Thank you, guys.
Speaker #7: Starting off the year ? Thank you guys .
Julian Nebreda: I will go over the guidance for the year, and then Ameet can give you the details on the gross margin on the two projects I had. Well, I'll tell you on the guidance, you know, our approach to our performance is that we're working towards meeting our guidance. We're committed to meeting our guidance. That's where you should expect from us. And most of what we wanna like to provide you, the better opportunities, will be for 2027. That's what we wanna do. So if you ask me today, our order intake for this quarter will be the lowest one of the year. It will be the low point of the year, and we should be able to go and deliver better order intake that will provide stronger visibility for 2027.
Julian Nebreda: I will go over the guidance for the year, and then Ameet can give you the details on the gross margin on the two projects I had. Well, I'll tell you on the guidance, you know, our approach to our performance is that we're working towards meeting our guidance. We're committed to meeting our guidance. That's where you should expect from us. And most of what we wanna like to provide you, the better opportunities, will be for 2027. That's what we wanna do. So if you ask me today, our order intake for this quarter will be the lowest one of the year. It will be the low point of the year, and we should be able to go and deliver better order intake that will provide stronger visibility for 2027.
Speaker #2: will go the guidance for the year and then Amit can give you details on the on the gross margin on the two projects I had .
Speaker #2: But I'll tell you on the guidance . You know , we our approach our performance that we to we're want working meeting our towards guidance .
Speaker #2: We're committed to meeting our guidance that where you should expect from that's us . And that we most we of where want to like to provide better the you for 27 opportunities will be That's what we want to onwards .
Speaker #2: do . So if you ask me today , intake squadron order for the our will be the lowest year . be the It will one of the of the of the low point able to go and order intake .
Speaker #2: That will provide stronger better 27 . that's how we And expect drive to giving you that , quarter to quarter . You for know , point keep we want this year a where it is or in line with our guidance .
Julian Nebreda: That's how we expect to drive and giving you a quarter-to-quarter, you know, point. We wanna keep this year where it is or in line with our guidance, hopefully, on the high, you know, the upper side or whatever, but not, we do not wanna exceed. We're working towards making 27, making 27 how we provide, you know, good news to the market. That's what we're working on. Today, we cannot provide guidance on 27, but we will, we will - that's what we're working on, and that's the way you should think of our company. So on the 20, on the, on the -
Julian Nebreda: That's how we expect to drive and giving you a quarter-to-quarter, you know, point. We wanna keep this year where it is or in line with our guidance, hopefully, on the high, you know, the upper side or whatever, but not, we do not wanna exceed. We're working towards making 27, making 27 how we provide, you know, good news to the market. That's what we're working on. Today, we cannot provide guidance on 27, but we will, we will - that's what we're working on, and that's the way you should think of our company. So on the 20, on the, on the.
Speaker #2: Hopefully , you know , the top side or on But not not we do not want to exceed we whatever . are we're working making 27 , making 27 .
Speaker #2: We are working towards providing good news to the market, as you know. That's what we're working on. We cannot provide guidance on the 27th, but we will.
Speaker #2: We will . That's what we're working on . that's the And way you should about our think company . So the on the on the 20 , on
Ahmed Pasha: Sure. Hey, Brian. So the $20 million impact, so this is the impact is at two projects, non-US projects, two different countries, different technologies, different stages of completion. And the change is essentially the change in scope of the project in both cases. One is the scope change in equipment, and the other one is in the schedule. So I think our plan is to, basically, as we have done in the past, is whenever these changes happen, we always recover those under the contract from our customers, and that is what we plan on doing during the rest of the year. So feel pretty good that we can recover this impact.
Ahmed Pasha: Sure. Hey, Brian. So the $20 million impact, so this is the impact is at two projects, non-US projects, two different countries, different technologies, different stages of completion. And the change is essentially the change in scope of the project in both cases. One is the scope change in equipment, and the other one is in the schedule. So I think our plan is to, basically, as we have done in the past, is whenever these changes happen, we always recover those under the contract from our customers, and that is what we plan on doing during the rest of the year. So feel pretty good that we can recover this impact.
Speaker #3: Brian . Hey
Speaker #3: So the $20 billion impact . So this is the impact . at is two projects US non projects two different countries , different technologies , different stages of completion .
Speaker #3: And the change is in the change scope of the the project . essentially In both cases one is the scope change in equipment and the other one is in the so I So schedule .
Speaker #3: And the change is in the change scope of the the project . essentially In both cases one is the scope change in equipment and the other one is in the so I So schedule . think is to our plan basically , done in as we have the past , is these whenever changes happen , always we those under the contract from our from customers .
Speaker #3: And the change is in the change scope of the the project . essentially In both cases one is the scope change in equipment and the other one is in the so I So schedule . think is to our plan basically , done in as we have the past , is these whenever changes happen , always we those under the contract from our from recover And that is what we plan on doing the rest of the year .
Speaker #3: So feel pretty during good that we can recover this this impact .
Brian Lee: Okay. Helpful. Thanks, guys. I'll pass it on.
Brian Lee: Okay. Helpful. Thanks, guys. I'll pass it on.
Julian Nebreda: Thank you, Brian.
Julian Nebreda: Thank you, Brian.
Speaker #7: Helpful . Okay . guys . I'll pass it on Thanks .
Operator: Thank you. One moment for our next question. Our next question comes on the line of Dylan Nassano of Wolfe Research. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes on the line of Dylan Nassano of Wolfe Research. Your line is now open.
Speaker #2: Thank you Brian
Speaker #4: One moment for our . next Thank question you . . Our comes on line of Asano of Wolfe Research . next Your line is now open Dylan question .
Julian Nebreda: Good morning, Dylan.
Julian Nebreda: Good morning, Dylan.
Dylan Nassano: Thanks for taking my question. Just wanted to check. So Tesla mentioned on their earnings call that they foresaw some Megapack margin pressure this year. I think they named some things like competition, tariffs, and the like. So just wanted to check, have you seen any kind of intensification on any of these issues recently, or you feel like you've already accounted for this all in your current outlook?
Dylan Nassano: Thanks for taking my question. Just wanted to check. So Tesla mentioned on their earnings call that they foresaw some Megapack margin pressure this year. I think they named some things like competition, tariffs, and the like. So just wanted to check, have you seen any kind of intensification on any of these issues recently, or you feel like you've already accounted for this all in your current outlook?
Speaker #2: And good Dylan .
Speaker #8: Thanks question my . Just wanted check so Tesla mentioned on earnings their call that margin megapack pressure . salsa for This I they year .
Speaker #8: think they named competition like tariffs So like . just wanted to check . Have any kind of and the you seen intensification on any of these issues recently .
Speaker #8: Or you feel like you've already accounted this all in for your current outlook ?
Julian Nebreda: Yeah, I mean, the -- yes, we also saw that. We don't see any major, any major... Competitiveness, no real changes, so unless Tesla is referring to us, maybe, you know? That's the only thing I can think of. They're saying that, hey, we're to Fluence, I mean. But in terms of tariff and, and all of those stuff, I think we are very much aligned. So we are, we're confirming our guidance with a view that there's no real change. So, you know, so we are not very clear what they were referring to.
Julian Nebreda: Yeah, I mean, yes, we also saw that. We don't see any major, any major. Competitiveness, no real changes, so unless Tesla is referring to us, maybe, you know? That's the only thing I can think of. They're saying that, hey, we're to Fluence, I mean. But in terms of tariff and, and all of those stuff, I think we are very much aligned. So we are, we're confirming our guidance with a view that there's no real change. So, you know, so we are not very clear what they were referring to.
Speaker #2: Yeah , I yes , mean , I , we , I , we also saw that don't see we major , any major competitiveness , no real changes .
Speaker #2: So unless Tesla is referring to us , maybe , you that's the only thing I know , can think of . They're saying that , we're a to mean fluence .
Speaker #2: , but in I terms of tariff stuff , I hey , think we those and all of are very much online . So we are confirming our guidance with a view that there's no change .
Speaker #2: So , you know , so we are not very were what they referring to . clear . So
Speaker #2: So , you know , so we are not very were what they referring to . clear . real Thanks . No more competitive which has environment always , as you know , very , very intense .
Dylan Nassano: Got it. Thank you.
Dylan Nassano: Got it. Thank you.
Julian Nebreda: No, no, no more. The competitive environment, which has always been, you know, very, very intense, not any different, and the tariffs have been very stable. You know, so we don't expect any major changes in 2026 numbers. There are some movement, no real movement, so no, we're confident in what we're confirming to it.
Julian Nebreda: No, no, no more. The competitive environment, which has always been, you know, very, very intense, not any different, and the tariffs have been very stable. You know, so we don't expect any major changes in 2026 numbers. There are some movement, no real movement, so no, we're confident in what we're confirming to it.
Speaker #2: Not any any different . And the tariff have been very stable . You know , we don't the so any major expect changes in 26 numbers .
Speaker #2: There are some movement not real we're movement . in what to it confirming .
Dylan Nassano: Got it. Thanks. Appreciate that. And then for my follow-up, just kind of given some of the margin headwinds this quarter. Can you kind of confirm that if you do end up being the acquirer of the AESC facility, that, you know, you feel good about kind of the your liquidity situation and no need for any kind of external capital to compensate?
Dylan Nassano: Got it. Thanks. Appreciate that. And then for my follow-up, just kind of given some of the margin headwinds this quarter. Can you kind of confirm that if you do end up being the acquirer of the AESC facility, that, you know, you feel good about kind of the your liquidity situation and no need for any kind of external capital to compensate?
Speaker #8: Thanks . Appreciate Got it . that . And then for my
Speaker #8: follow , just kind of given up some of the headwinds this margin quarter , can you kind of confirm that if you do end confident being the acquirer of the ASC facility , you feel good about , kind of the your liquidity situation and no need any kind of for external capital to consummate ?
Ahmed Pasha: Yeah. No, from AESC perspective, we already talked about in the last call, you know, we have factored that in, in our forecast and that we shared in last quarter outlook for the year, so feeling pretty good.
Ahmed Pasha: Yeah. No, from AESC perspective, we already talked about in the last call, you know, we have factored that in, in our forecast and that we shared in last quarter outlook for the year, so feeling pretty good.
Speaker #3: Yeah , no . From ASC perspective , we already in the last call . talked about You know , we have factored that in in our forecast and that we shared in the last the outlook for the So feel year .
Julian Nebreda: Well, as I said, I don't think we don't expect that they will resolve this issue some other ways. That's our understanding.
Julian Nebreda: Well, as I said, I don't think we don't expect that they will resolve this issue some other ways. That's our understanding.
Speaker #3: good pretty .
Speaker #2: But I as I said , I don't think we don't expect that that they will they will resolve this issue . Some other ways .
Speaker #2: That's our understanding
Dylan Nassano: Got it. Thank you.
Dylan Nassano: Got it. Thank you.
Speaker #2: .
Speaker #8: Thank you. Got it.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Julien Dumoulin-Smith of Jefferies. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Julien Dumoulin-Smith of Jefferies. Your line is now open.
Speaker #4: Thank you . One moment for our next question . Our next comes from the line of Julien question Dumoulin-smith of Jefferies . Your line is now open
Julien Dumoulin-Smith: Hey, good morning, team. Can you guys hear me okay?
Julien Dumoulin-Smith: Hey, good morning, team. Can you guys hear me okay?
Julian Nebreda: Yeah. Hey, Julian, how are you?
Julian Nebreda: Yeah. Hey, Julian, how are you?
Speaker #9: Hey . Good
Speaker #9: Morning, team. Can you guys hear me? Okay.
Julien Dumoulin-Smith: Hey, pleasure, my friend. So maybe just to follow up on the data center opportunity here, I wanted to press a little bit further. How are you thinking about your products fitting into what the data center community wants, especially when it comes to ramp time, interactivity? Again, I get that the product could work, but how do you think about it fitting into your product roadmap, if you think about this? Again, there's probably an iterative nature of what they're looking at versus what you're providing here. Can you speak to that a little bit? And then separately related, how do you think about setting expectations to include explicitly data centers into your pipeline and backlog specifically?
Julien Dumoulin-Smith: Hey, pleasure, my friend. So maybe just to follow up on the data center opportunity here, I wanted to press a little bit further. How are you thinking about your products fitting into what the data center community wants, especially when it comes to ramp time, interactivity? Again, I get that the product could work, but how do you think about it fitting into your product roadmap, if you think about this? Again, there's probably an iterative nature of what they're looking at versus what you're providing here. Can you speak to that a little bit? And then separately related, how do you think about setting expectations to include explicitly data centers into your pipeline and backlog specifically?
Speaker #2: Yeah . Hey , Julien , how are you ?
Speaker #9: Pleasure Hey . . So , maybe just to follow up on the data center opportunity here , I wanted to press a little bit further .
Speaker #9: How are you thinking about your products ? Fitting what ? The data center into community wants . Especially when it comes to ramp time .
Speaker #9: get that the . product Interactivity could work , but how do you think about it ? Fitting into your product think about this roadmap ?
Speaker #9: again ? There's probably an iterative nature of what If you they're looking at versus what you're providing here . Can you a little bit and then separately related .
Speaker #9: How do speak to that you think about expectations to include explicitly setting data into your pipeline and centers backlog , specifically . ?
Julian Nebreda: Yeah. In terms of our product roadmap, I think as we have communicated, there are different needs that we're meeting. I would say in the great majority of needs, there's no real change, and we have a very strong competitive advantage. Why? Dense product. Safe, you know, very safe, you know, where the risk of a thermal runaway is very limited, you know. You know, reliability, we have our reliability last year, last year was like close to 99%. Very few people can do this, you know, so we've done very, very well. Cyber security, nobody, you know, we've been working very, very strong, so we're very, very happy on that part.
Julian Nebreda: Yeah. In terms of our product roadmap, I think as we have communicated, there are different needs that we're meeting. I would say in the great majority of needs, there's no real change, and we have a very strong competitive advantage. Why? Dense product. Safe, you know, very safe, you know, where the risk of a thermal runaway is very limited, you know. You know, reliability, we have our reliability last year, last year was like close to 99%. Very few people can do this, you know, so we've done very, very well. Cyber security, nobody, you know, we've been working very, very strong, so we're very, very happy on that part.
Speaker #2: Yeah , in terms of of our roadmap . product I think we have as communicated our needs that different we're meeting say , I would in the great majority of there's no real change .
Speaker #2: And we needs , have a very strong competitive advantage . Why then say , you know , very safe , you know , we are designed the risk of a thermal runaway is very limited .
Speaker #2: You know , you know , reliability . We have reliability . Last year , was close to 99 . Very few people can do this , you know .
Speaker #2: So we don't very , very well cyber security . Nobody you know we've working been very , very strong . So we are very , very happy on on you know that part .
Julian Nebreda: Therefore, one of the needs, which is the quality of power, they need response time of, you know, below 10 milliseconds, and we have a roadmap to deliver that part. But when I looked at the pipeline, that's one of the areas where we are competing with other technologies and where, you know, we're not necessarily the first, you know, we're -- that's not what's driving the contracting we see today. There are some projects that are connected to that, but that's not what's driving. We wanna serve it. We wanna do, and we're offering these high, you know, very, very quick response time. But, you know, just to be clear, today, it is more connected to speed to power and to bring your own generation, you know, applications than necessarily to quality of power, you know?
Julian Nebreda: Therefore, one of the needs, which is the quality of power, they need response time of, you know, below 10 milliseconds, and we have a roadmap to deliver that part. But when I looked at the pipeline, that's one of the areas where we are competing with other technologies and where, you know, we're not necessarily the first, you know, we're, that's not what's driving the contracting we see today. There are some projects that are connected to that, but that's not what's driving. We wanna serve it. We wanna do, and we're offering these high, you know, very, very quick response time. But, you know, just to be clear, today, it is more connected to speed to power and to bring your own generation, you know, applications than necessarily to quality of power, you know?
Speaker #2: There for one of the needs , which is quality of power response the time they need of And we have a below ten milliseconds .
Speaker #2: deliver that part . I But when looked at the pipeline that's the one of the areas where the we are competing with other , and where the , you know , we're not necessarily the first , you know , where we are .
Speaker #2: That's what's the driving today . There are see contracting . projects that are some We connected But that's to that . we not what serve .
Speaker #2: That's what's the driving today . There are see contracting . projects that are some We connected But that's to that . we not what not We want to do .
Speaker #2: And we're offering this high , you know , very , very quick response But you know , just to be time . today clear , , it is more connected to speed , to power to bring your own and know , applications that necessarily to quality of power .
Julian Nebreda: So, we're very, very, you know, we're very confident. We are also, you know, we're not a competitor of the data center. We are, we've been very, as you know, historically, a company that has been very customer-centric, so we are. These are big buyers, so we are adapting the way we contract, the way we think to them. So I think that we are in a very, very good position. In terms of how to, you know, as I said, unfortunately, on your second question, on our ability to give you a proper guidance on when things will go into the pipeline and when we'll convert it into backlog, it's a new customer segment, so for us, we're learning. No, we are moving forward, and I think we're getting better and better every day.
Julian Nebreda: So, we're very, very, you know, we're very confident. We are also, you know, we're not a competitor of the data center. We are, we've been very, as you know, historically, a company that has been very customer-centric, so we are. These are big buyers, so we are adapting the way we contract, the way we think to them. So I think that we are in a very, very good position. In terms of how to, you know, as I said, unfortunately, on your second question, on our ability to give you a proper guidance on when things will go into the pipeline and when we'll convert it into backlog, it's a new customer segment, so for us, we're learning. No, we are moving forward, and I think we're getting better and better every day.
Speaker #2: we are So , very , you know , we're very confident we are very also you know , competitor of the center . we're not data We a are we are .
Speaker #2: We've been as you know , historically , a has company that been very customer So centric . we very and these are buyers .
Speaker #2: big our the way we So we are we think contract , the way them . So that we to are in a very , I think very good position in how terms of do you know , as I said , unfortunately , on your second question , on our ability to give you a proper guidance on when will things will go the into and pipeline when will we convert it into into a backlog ?
Speaker #2: If a new segment . customer So for we're us , We are moving forward . getting And I better every day . And team my sales is about this .
Julian Nebreda: And my sales team is really excited about this, and we brought in Jeff, who's doing a great job on this. But today is, you know, very difficult to commit to this. Additionally, as you know, I have to be very careful with my competitive information, so we will try to provide you as much information as we can without necessarily playing our card or what we're doing, because, you know, there are a lot of people trying to do this job, and we don't wanna provide them with competitive information. So that's where we are. But excited about the growth, excited about how we fit into it, excited about our, the way we approach our customers, that will work very well with these customers.
Julian Nebreda: And my sales team is really excited about this, and we brought in Jeff, who's doing a great job on this. But today is, you know, very difficult to commit to this. Additionally, as you know, I have to be very careful with my competitive information, so we will try to provide you as much information as we can without necessarily playing our card or what we're doing, because, you know, there are a lot of people trying to do this job, and we don't wanna provide them with competitive information. So that's where we are. But excited about the growth, excited about how we fit into it, excited about our, the way we approach our customers, that will work very well with these customers.
Speaker #2: brought And we really in Jeff excited doing a But great job today , you on very difficult commit to this this . . as you to Additionally , , I have to be very know careful with my competitive information .
Speaker #2: So we've been trying to provide you as much as we can without necessarily playing our cards or revealing what we're doing, because, you know, a lot of people are trying to do this job, and you want to make sure you don't provide them with competitive information.
Speaker #2: So that's where we are . excited about growth , the excited about how we information as fit it , into about excited our the way we approach our customers .
Julian Nebreda: And with our product, you know, and our product will, will do a wonderful job, and hopefully, we will see more and more coming up. And as this market segment develops for us, we should be able to provide you more clarity.
Julian Nebreda: And with our product, you know, and our product will, will do a wonderful job, and hopefully, we will see more and more coming up. And as this market segment develops for us, we should be able to provide you more clarity.
Speaker #2: That will work very well with customers and with that product . You product will will know , job . And hopefully we will see and our more more and And as this coming up .
Speaker #2: market segment develops us , for which we'll provide you be able more to clarity
Julien Dumoulin-Smith: Got it. All right. Just maybe not quite ready. Then on AESC, just to clarify earlier, you would not expect an ownership outcome? This is more of a contracting relationship, and ergo, perhaps we could see other potential counterparties that you'd be negotiating with for your domestic cell supply.
Julien Dumoulin-Smith: Got it. All right. Just maybe not quite ready. Then on AESC, just to clarify earlier, you would not expect an ownership outcome? This is more of a contracting relationship, and ergo, perhaps we could see other potential counterparties that you'd be negotiating with for your domestic cell supply.
Speaker #10: right . not . Got it . All
Speaker #10: Just maybe
Speaker #10: quite . And then
Speaker #9: to ESG just just to clarify earlier , you would not expect an ownership outcome . This is more of a Quite ready . ergo , perhaps we could see other potential counterparties that you'd be And negotiating with for , for your cell supply .
Speaker #9: to ESG just just to clarify earlier , you would not expect an ownership outcome . This is more of a Quite ready . ergo , perhaps we could see other potential counterparties that you'd be And negotiating with for , for your cell supply .
Speaker #9: to ESG just just to clarify earlier , you would not expect an ownership outcome . This is more of a Quite ready . ergo , perhaps we could see other potential counterparties that you'd be And negotiating with for , for your cell supply domestic That
Julian Nebreda: That, I will say we have an MSA. The MSA will say we respect it, but you know, we were looking. We provided AESC an opportunity for us to take on, you know, ownership on it, which they now have resolved with that. So, you know, our contract will not change at all. I mean, we will be, you know, we'll be an off-taker. Our technologies are very much intertwined, and you know, we understand that the solution that AESC is working on, which I'm not, you know, I don't have the details, will not affect in any way any of the issues we have, you know. So we will, we were trying to resolve this issue for them.
Julian Nebreda: That, I will say we have an MSA. The MSA will say we respect it, but you know, we were looking. We provided AESC an opportunity for us to take on, you know, ownership on it, which they now have resolved with that. So, you know, our contract will not change at all. I mean, we will be, you know, we'll be an off-taker. Our technologies are very much intertwined, and you know, we understand that the solution that AESC is working on, which I'm not, you know, I don't have the details, will not affect in any way any of the issues we have, you know. So we will, we were trying to resolve this issue for them.
Speaker #2: that I an MSA . The we have say but you know , we were MSA will looking we have respective , made provide a an we opportunity for us to take know , ownership on it , which they now with with that .
Speaker #2: , you resolved you know , we have our contract will not at all . I change mean , we will be taker . technologies Our an off intertwined .
Speaker #2: And , you know , we be we very much the will solution that ASC is which working on , not , you I'm know , I don't details .
Speaker #2: have the It will any way any affect in of the issues we have . And , you know , we we were trying to not resolve this issue for know them .
Julian Nebreda: So we have gave them, which was a good offer, but clearly they have something better, some other solution that is much more attractive. So, so we'll be an off-taker. We'll continue being an off-taker of that facility as we move forward.
Julian Nebreda: So we have gave them, which was a good offer, but clearly they have something better, some other solution that is much more attractive. So, so we'll be an off-taker. We'll continue being an off-taker of that facility as we move forward.
Speaker #2: have gave them that . What So we was a offer , clearly they have good better . Some other something is much solution that attractive more .
Speaker #2: Oh , so what will be continue take ? being an We'll taker . That facility as we an off So off .
Dimple Gosai: ... Right. And you could add a second offtake just to expand your-
Dimple Gosai: Right. And you could add a second offtake just to expand your.
Julian Nebreda: Oh, we already, remember, last quarter, we already added another second offtake. And as I told you, you know, so we already are working with some of the EV lines that are converted into BESS, and that market is getting, you know, very, very exciting. And as I said, this is no different than what we saw in China two years ago or three years ago, when you had all that EV capacity that suddenly didn't know where to go. So I think this is, you know, it's a good opportunity.
Julian Nebreda: Oh, we already, remember, last quarter, we already added another second offtake. And as I told you, you know, so we already are working with some of the EV lines that are converted into BESS, and that market is getting, you know, very, very exciting. And as I said, this is no different than what we saw in China two years ago or three years ago, when you had all that EV capacity that suddenly didn't know where to go. So I think this is, you know, it's a good opportunity.
Speaker #9: second offtake add a expand your just to .
Speaker #2: already Oh remember last quarter . We added a second update . And told we already know so we already some of are are as I into converting best .
Speaker #2: is And that getting , know market very , very , exciting . And as I said , this is no different you saw in than what we years ago or China two when you that suddenly working with EV to go .
Speaker #2: capacity that So I think two years ago is , you it's a this good opportunity . Yeah , yeah .
Dimple Gosai: Yeah. Awesome.
Dimple Gosai: Yeah. Awesome.
Julian Nebreda: We have-
Julian Nebreda: We have.
Dimple Gosai: All right, guys, I'll leave it there. Sorry.
Dimple Gosai: All right, guys, I'll leave it there. Sorry.
Julian Nebreda: Thank you.
Julian Nebreda: Thank you.
Speaker #9: Awesome . All right , guys , I'll leave it
Operator: Thank you. One moment for our next question. Our next question comes from the line of Mark Strouse of JP Morgan. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Mark Strouse of JP Morgan. Your line is now open.
Speaker #2: Thank you .
Speaker #2: Thank you .
Speaker #4: question comes from question the line of Mark JP Morgan . Your line styles of is now .
Mark Strouse: Yeah, good morning, guys. Thanks for taking our questions. Julian, I just want to go back to something you said in the prepared remarks. When you're talking about some of the data center opportunities not being in the pipeline, are you saying that that would be in addition to the 36 gigawatt hours that you're specifically calling out for data centers? Or are you saying some of the 36 gigs of data center pipeline is not included in your $30 billion kind of overall pipeline? And then maybe just some color on kind of what delineates what goes in and what stays out.
Mark Strouse: Yeah, good morning, guys. Thanks for taking our questions. Julian, I just want to go back to something you said in the prepared remarks. When you're talking about some of the data center opportunities not being in the pipeline, are you saying that that would be in addition to the 36 gigawatt hours that you're specifically calling out for data centers? Or are you saying some of the 36 gigs of data center pipeline is not included in your $30 billion kind of overall pipeline? And then maybe just some color on kind of what delineates what goes in and what stays out.
Speaker #7: Yeah .
Speaker #11: Taking our morning, guys. Thanks for the questions. I just want to go back to something you said in the prepared remarks. When you were talking about the data center opportunities not being in the pipeline, saying that that would, are you saying that would be in addition to your specifically 36 gigawatt-hours that are out for data centers?
Speaker #11: Or are you saying some of calling the data center of pipeline is not included in your the $30 billion overall pipeline ? And then maybe just some kind color on of what what what 36 gigs and what .
Speaker #11: delineates
Julian Nebreda: Yeah, good. So the 36 gigawatt hours we have there are projects we're working on. Some are in the pipeline, some of them are leads. We're giving you that number because that compares to the 30 gigas we gave you last quarter. In order to get into our pipeline, we need to ensure that we believe there's more than a 50% probability of the project occurring within the next 2 years, in fact. So some of these projects, you know, these are new things. So we are trying to... And we're very careful because we wanna be sure that what comes into our pipeline, that drives another set of decisions internally on how we manage them. So we're very careful looking at this.
Julian Nebreda: Yeah, good. So the 36 gigawatt hours we have there are projects we're working on. Some are in the pipeline, some of them are leads. We're giving you that number because that compares to the 30 gigas we gave you last quarter. In order to get into our pipeline, we need to ensure that we believe there's more than a 50% probability of the project occurring within the next 2 years, in fact. So some of these projects, you know, these are new things. So we are trying to... And we're very careful because we wanna be sure that what comes into our pipeline, that drives another set of decisions internally on how we manage them. So we're very careful looking at this.
Speaker #2: Yeah .
Speaker #2: So Good . the 36 gigawatt hours we have
Speaker #2: on we're working . Some are out in the pipeline there are , some on some of them are leads . We're giving because number you that compares that gigas we to the 30 stays you last order to get .
Speaker #2: A gave the in pipeline , we need quarter there's a of the project probability next years . So some of these projects , you know , these we are things .
Speaker #2: So trying to and we're very two because we careful be that want to into our what comes sure drives within the another set of decisions internally on pipeline that invest , So we're very careful looking manage .
Julian Nebreda: As these things come in very, coming in very, very quickly, we're looking at them and deciding which go into our pipeline, and some of them will probably not become part of our pipeline over time. But the ones that come into our pipeline, because are the ones who are gonna be investing money and, and, and providing offers and doing the engineering and working on them. So that's it. The 36 gigas, if, let's say, well, if they will convert, if they were all to convert into a, into a pipeline, will be a, will be - it's an upside to the pipeline we have today, to the $30 billion pipeline we have in front of us.
Julian Nebreda: As these things come in very, coming in very, very quickly, we're looking at them and deciding which go into our pipeline, and some of them will probably not become part of our pipeline over time. But the ones that come into our pipeline, because are the ones who are gonna be investing money and, and, and providing offers and doing the engineering and working on them. So that's it. The 36 gigas, if, let's say, well, if they will convert, if they were all to convert into a, into a pipeline, will be a, will be - it's an upside to the pipeline we have today, to the $30 billion pipeline we have in front of us.
Speaker #2: at this as these things come in . coming in They're very , very at them and quickly . We're looking which go deciding into a pipeline .
Speaker #2: And some of probably become part of our pipeline time . But the pilot them will not over be because are money and investing providing offers doing the and engineering and working on ones that come .
Speaker #2: So that's Yeah . it . The if , let's say , if they will if they convert , weren't convert them into into a pipeline will all to be a will 36 gigas , an the pipeline be it's upside to that we have today to the 30 billion front of us
Mark Strouse: Okay. All right, that's helpful. Thank you.
Mark Strouse: Okay. All right, that's helpful. Thank you.
Speaker #2: pipeline we have in
Julian Nebreda: Yeah.
Julian Nebreda: Yeah.
Mark Strouse: On the long duration side, don't think this as a complaint, 34 gigawatt hours is a very big number, but it is down from what you were talking about last quarter. So I'd just wanna ask kind of what's going on there quarter-over-quarter?
Mark Strouse: On the long duration side, don't think this as a complaint, 34 gigawatt hours is a very big number, but it is down from what you were talking about last quarter. So I'd just wanna ask kind of what's going on there quarter-over-quarter?
Speaker #11: you . Thank On duration long the
Speaker #11: side , don't think this as a as a . complaint . Okay . All 30 34 gigawatt hours is a very big number .
Speaker #11: But it is down from what you were last talking about quarter . So I just want to ask kind of on there quarter over what's going quarter .
Julian Nebreda: No, that's good, good point. Last quarter, we talked about what we believe the time was, or the rest of our market was, 60 gigas, of which we had more portion. We put our teams to look to that, and these are now the 30 gigas are projects that we are either in pipeline or in leads. People who that we're working on, preparing the engineer, looking at it, identifying. So these, the numbers are different, though was more of a time. I'm sorry that I got that, I saw that in a few notes, that we created that confusion. The 60 gigawatts last time was more of total addressable market that we saw at the time. Though, that included projects that were in markets that we do not serve or customers we don't work with or things like that.
Julian Nebreda: No, that's good, good point. Last quarter, we talked about what we believe the time was, or the rest of our market was, 60 gigas, of which we had more portion. We put our teams to look to that, and these are now the 30 gigas are projects that we are either in pipeline or in leads. People who that we're working on, preparing the engineer, looking at it, identifying. So these, the numbers are different, though was more of a time. I'm sorry that I got that, I saw that in a few notes, that we created that confusion. The 60 gigawatts last time was more of total addressable market that we saw at the time. Though, that included projects that were in markets that we do not serve or customers we don't work with or things like that.
Speaker #11: , ask
Speaker #12: Good point . Last quarter we talked about .
Speaker #2: What we believe the time or was the reasonable market the was gigas , of which we no had portion . We put a team to look at that .
Speaker #2: What we believe the time or was the reasonable market the was gigas , of which we no had portion . We put a team to look at
Speaker #2: And now the 30 gigas are 60. We are either in pipeline or in people that were working, preparing, or on engineer, looking at it, identifying.
Speaker #2: So the numbers are different . The other one was more of a these are sorry that I'm that I time . got that I saw that in a few notes that we created that confusion .
Speaker #2: The , the , 60GW last time that's good . addressable we saw at the market that time . That included were in that we do markets not serve customers we don't work with projects that , or things like that .
Julian Nebreda: So now the 30 are projects that have the potential to become part of our pipeline because they are in markets we serve, with customers we like to work with, and we're just going over the work on how much of it we believe has a 50% chance of really... And the 50% chance it looks at, you know, interconnection, land rights, you know, ensuring that that thing is actually a project that has not a pie in the sky.
Julian Nebreda: So now the 30 are projects that have the potential to become part of our pipeline because they are in markets we serve, with customers we like to work with, and we're just going over the work on how much of it we believe has a 50% chance of really. And the 50% chance it looks at, you know, interconnection, land rights, you know, ensuring that that thing is actually a project that has not a pie in the sky.
Mark Strouse: Great. Okay. Thank you.
Mark Strouse: Great. Okay. Thank you.
Julian Nebreda: I'm sorry for the confusion on that point. I read that in a couple of notes, and you know, we probably were not clear enough the last time, that the 60 was a time, not projects and leads that we were working on.
Julian Nebreda: I'm sorry for the confusion on that point. I read that in a couple of notes, and you know, we probably were not clear enough the last time, that the 60 was a time, not projects and leads that we were working on.
Speaker #11: Great . Okay . Thank you
Speaker #11: . I'm sorry
Speaker #2: confusion at that point . And that in a of notes you know , I and I , we probably were not I enough the last time that the 60 , the 60 was a time couple a , not a projects .
Speaker #2: confusion at that point . And that in a of notes you know , I and I , we probably were not I enough the last time that the 60 , the 60 was a time couple a , not a not leads that we were working on .
Speaker #2: And
Operator: Thank you. One moment for our next question. Our next question comes from the line of Dimple Gosai of Bank of America. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Dimple Gosai of Bank of America. Your line is now open.
Speaker #4: one moment for our next you question Thank . Our next question comes from the line of Kosai , of Bank temple of line is now America .
Dimple Gosai: Good morning, Ahmed.
Dimple Gosai: Good morning, Ahmed.
Julian Nebreda: Morning.
Julian Nebreda: Morning.
Speaker #4: open .
Dimple Gosai: Thanks for taking this question here. Just given your commentary on strengthening the domestic supply chain and, you know, module sell out, but ahead of plan, can you give us a sense of the mix of US-made versus imported cells that's kind of embedded in your 2026 delivery plan? And specifically, how much of that supply is kind of already on hand or contracted for the year? And then I have a follow-up.
Dimple Gosai: Thanks for taking this question here. Just given your commentary on strengthening the domestic supply chain and, you know, module sell out, but ahead of plan, can you give us a sense of the mix of US-made versus imported cells that's kind of embedded in your 2026 delivery plan? And specifically, how much of that supply is kind of already on hand or contracted for the year? And then I have a follow-up.
Speaker #13: morning . Good
Speaker #14: Good morning Your .
Speaker #13: Thanks for taking this question here . Just given commentary on on supply strengthening the chain . And you know , your style of plan .
Speaker #13: Can you give us a sense of the mix of us versus imported made cells . of embedded in output ahead 26 delivery plan .
Speaker #13: Can you give us a sense of the mix of us versus imported made cells . of embedded in output ahead 26 delivery That's kind your specifically how much of that kind of supply is already on or hand contracted for the I have And then year .
Julian Nebreda: Yeah, okay. I'll have Ahmed walk you through the numbers.
Julian Nebreda: Yeah, okay. I'll have Ahmed walk you through the numbers.
Speaker #13: follow a up .
Speaker #2: I'll
Ahmed Pasha: The mix is. Hi, good morning. So mix is roughly half and half, I think is the domestic versus import.
Ahmed Pasha: The mix is. Hi, good morning. So mix is roughly half and half, I think is the domestic versus import.
Speaker #2: Ahmed walk you Yeah , okay . through the the the .
Speaker #3: think is the half I domestic versus import . Yeah . And your second question was sorry I missed .
Julian Nebreda: Import?
Julian Nebreda: Import?
Ahmed Pasha: Yeah. And your second question was?
Ahmed Pasha: Yeah. And your second question was?
Dimple Gosai: Uh-
Ahmed Pasha: Sorry, I missed that.
Ahmed Pasha: Sorry, I missed that.
Dimple Gosai: That's fine. Then I asked, how much of that supply is already on hand or kind of contracted for the year?
Dimple Gosai: That's fine. Then I asked, how much of that supply is already on hand or kind of contracted for the year?
Speaker #3: that
Speaker #13: . And then I asked how much of that supply is already on hand or kind of contracted for the .
Ahmed Pasha: We have secured 100% of our domestic and international needs for this year.
Ahmed Pasha: We have secured 100% of our domestic and international needs for this year.
Speaker #3: So we have secured domestic and international needs for this Okay .
Dimple Gosai: Okay.
Dimple Gosai: Okay.
Ahmed Pasha: So.
Ahmed Pasha: So.
Dimple Gosai: And then, secondly, just to draw on that, right? As we kind of think about this gross margin or structural gross margins, can you help us frame, you know, the gross margin delta between, you know, systems that are built with non-PFE US-made cells versus, you know, today's imported mix under the, you know, the current 48% tariff load?
Dimple Gosai: And then, secondly, just to draw on that, right? As we kind of think about this gross margin or structural gross margins, can you help us frame, you know, the gross margin delta between, you know, systems that are built with non-PFE US-made cells versus, you know, today's imported mix under the, you know, the current 48% tariff load?
Speaker #13: So secondly , and just then to draw on that , right , as we kind about this gross margin or of think structural gross margins , can you help us frame , you gross margin delta know , systems that are ?
Speaker #13: So secondly , and just then to draw on that , right , as we kind about this gross margin or of think structural gross margins , can you help us frame , you gross margin delta know , systems that are ? between , you non made versus , you know , US The the you imported know , mix under current 48% tariff load .
Ahmed Pasha: ... So I think we look at, frankly, from our perspective, is branded trade. I mean, the guidance we have given is 10% to 15%. It all depends on the project scope. Sometimes we have EPC, sometimes we don't. So I think net-net, that is what we are looking at, between 10% to 15% margin.
Ahmed Pasha: So I think we look at, frankly, from our perspective, is branded trade. I mean, the guidance we have given is 10% to 15%. It all depends on the project scope. Sometimes we have EPC, sometimes we don't. So I think net-net, that is what we are looking at, between 10% to 15% margin.
Speaker #3: So so think I look we at frankly from our perspective is rate I blended mean the guidance we have given is 10 to 15% .
Speaker #3: It all depends project scope . on the Sometimes we have EPC , we don't . sometimes So think I net that is what we are looking at .
Speaker #3: Net, between 10% to 15% margin.
Vikram Bagri: Regardless of where the sales come from, regardless, like, when it's non-PFE and with the tariffs, with extra tariffs, it's, you know, so-
Vikram Bagri: Regardless of where the sales come from, regardless, like, when it's non-PFE and with the tariffs, with extra tariffs, it's, you know, so.
Speaker #13: Regardless of where the cells come from . Regardless , like when it's non-pv and with tariffs with the the it's you know .
Ahmed Pasha: Yeah. I think, I mean, it could be, you know, depending upon situation, you know, so I think, but, but net-net, that's where we land, in that range.
Ahmed Pasha: Yeah. I think, I mean, it could be, you know, depending upon situation, you know, so I think, but, but net-net, that's where we land, in that range.
Speaker #14: There's no .
Speaker #3: I mean , it could be , you know , depending upon know , so think but but net net that's I where we range learned in that situation , you tariffs ,
Speaker #3: think I
Vikram Bagri: Thank you.
Vikram Bagri: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes on the line of Ben Kallo of Baird. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes on the line of Ben Kallo of Baird. Your line is now open.
Speaker #13: you .
Speaker #4: One moment for our next question. Thank you. Our next question comes from the line of Carlo Ben of Baird. Your line is now open.
Ben Kallo: Hey, good morning. Thanks for taking my question, guys. My question is around leverage, but I want to get at it from volume. Could you talk to the amount of volume? Because you have this massive pipeline or backlog that you could execute on. Just how do we think about, you know, your contract manufacturers and your own supply chain people, and capital constraints that you guys have? You know, if you wanna go up to, you know, say, 10 gigawatts a year or something like that, what is the process for that? And, you know, how much flexibility do you guys have to ramp and execute that?
Ben Kallo: Hey, good morning. Thanks for taking my question, guys. My question is around leverage, but I want to get at it from volume. Could you talk to the amount of volume? Because you have this massive pipeline or backlog that you could execute on. Just how do we think about, you know, your contract manufacturers and your own supply chain people, and capital constraints that you guys have? You know, if you wanna go up to, you know, say, 10 gigawatts a year or something like that, what is the process for that? And, you know, how much flexibility do you guys have to ramp and execute that?
Speaker #15: Hey . Good morning . Thanks . Thanks for taking my question ,
Speaker #15: The question is around leverage, but guys, my get at it from volume. Could you talk to the amount of open volume, because you have this vast pipeline or pipeline that you could execute on?
Speaker #15: Just how do we think about your contract manufacturers and your own ? You know , supply chain people and capital constraints that you guys have ?
Speaker #15: You know , if you if you want to to , you go up know , say , ten gigawatts a year or something like that , what is the process for that ?
Speaker #15: And how much flexibility do you guys have to ramp and execute And that ? then specifically in outside of contract manufacturing and your liquidity did see side , the manufacturers on you do a raise for working capital .
Ben Kallo: And then specifically in outside of manufacturing and your contract manufacturers, on the liquidity side, because we did see you do a capital raise, you know, for working capital. And as these numbers get bigger, I know you have $1 billion in liquidity plus, but that might not be enough, as we go, you know, start talking bigger numbers. So if we could just address that. Thank you.
Ben Kallo: And then specifically in outside of manufacturing and your contract manufacturers, on the liquidity side, because we did see you do a capital raise, you know, for working capital. And as these numbers get bigger, I know you have $1 billion in liquidity plus, but that might not be enough, as we go, you know, start talking bigger numbers. So if we could just address that. Thank you.
Speaker #15: And as these get bigger, I know you have dollars in liquidity plus, but that might not be enough as we go. You start seeing bigger numbers.
Speaker #15: talking So if we could just address that . Thank you .
Julian Nebreda: So I will address the supply chain and I'll ask Ahmed to talk to our working capital and capital, you know, the capital plan. On supply chain, the way we work is we have a long-term plan of volume that, you know, that has a base case, that has an upside case, and it has a, you know, hit it out of the park case. And we serve those needs with different sources of, you know, suppliers that work either way. You know, so we have base suppliers that support our normal work, upside suppliers that have acquisition capability, and we also identify players of which we can play in. So we feel very comfortable we have the supply chains to go even beyond what, you know, what we are upside cases that we communicate to, significantly above that.
Julian Nebreda: So I will address the supply chain and I'll ask Ahmed to talk to our working capital and capital, you know, the capital plan. On supply chain, the way we work is we have a long-term plan of volume that, you know, that has a base case, that has an upside case, and it has a, you know, hit it out of the park case. And we serve those needs with different sources of, you know, suppliers that work either way. You know, so we have base suppliers that support our normal work, upside suppliers that have acquisition capability, and we also identify players of which we can play in. So we feel very comfortable we have the supply chains to go even beyond what, you know, what we are upside cases that we communicate to, significantly above that.
Speaker #2: So I will address supply chain and how to talk to our capital . And capital . You capital know the plan on supply chain where we work is we have a long term plan of volume know , you base case that has an upside case , and it has a , you know , hit it out of the park case .
Speaker #2: we those needs serve And with of different sources , you know that , suppliers work either way . You know , so we have base suppliers that support our normal work upside suppliers that have a cushion capability .
Speaker #2: And we also identify players of which we can play . feel very comfortable . We have this supply chain to So we to go even beyond know , what , you are our what cases that we upside communicate to significantly above that .
Julian Nebreda: And it's a work of working with our suppliers, with, you know, building a little bit of spare capacity, providing suppliers that have spare capacity they can deliver. So it's a little bit of a renegotiation strategy, and it has been working well. And, you know, my ambition will be to use it. You know what I mean? That to be able to use it today, and we believe that the world we're entering into this might be probably an option that will happen. In terms of capital, I will ask Ahmed to respond.
Julian Nebreda: And it's a work of working with our suppliers, with, you know, building a little bit of spare capacity, providing suppliers that have spare capacity they can deliver. So it's a little bit of a renegotiation strategy, and it has been working well. And, you know, my ambition will be to use it. You know what I mean? That to be able to use it today, and we believe that the world we're entering into this might be probably an option that will happen. In terms of capital, I will ask Ahmed to respond.
Speaker #2: So it we is and it's a of work working with our of suppliers , with , you know , building a little bit of spare capacity , providing suppliers that have spare capacity .
Speaker #2: They can little bit deliver . of a So it's a renegotiation strategy . And it has been working well . And you know , my , my ambition will be to use it .
Speaker #2: You know what I mean . That to be able to to to use it today believe . And we that where the world we're entering into this may be probably an option that will happen in terms of I will capital .
Ahmed Pasha: Sure. So, so I think you're right. We have a billion-dollar liquidity, which we believe is sufficient to support our current plan. And, I mean, in terms of the additional capital needs, I mean, Julian talked about today, you know, significant opportunities, we see, and those opportunities will require additional capital, you know, once they materialize, I think, and then we will be frankly opportunistic, you know, to see what, how we can raise that capital. And, but at the end of the day, we will be very mindful of creating value for our shareholders. I think that's, that's our job as a management.
Ahmed Pasha: Sure. So, so I think you're right. We have a billion-dollar liquidity, which we believe is sufficient to support our current plan. And, I mean, in terms of the additional capital needs, I mean, Julian talked about today, you know, significant opportunities, we see, and those opportunities will require additional capital, you know, once they materialize, I think, and then we will be frankly opportunistic, you know, to see what, how we can raise that capital. And, but at the end of the day, we will be very mindful of creating value for our shareholders. I think that's, that's our job as a management.
Speaker #2: ask Ahmed to respond .
Speaker #3: So so I think you're We right . have $1 billion which we believe is liquidity , sufficient to support our current plan . And I mean , of the additional capital needs , I mean in terms about today , you know , significant opportunities see in .
Speaker #3: opportunities will require additional capital . You know , once they we those materialize , I think , and We will be then we , frankly , you know , to opportunistic , see what how we can raise that capital and .
Speaker #3: the end of the day , But at will be very we mindful of creating value for our shareholders . I think that's that's our job as a management .
Ben Kallo: And then, just a follow-up on the leverage side. Can you just talk about, you know, what type of scale, like, in translating that to, like, operating leverage, you know, under the current gross margin, that if that's what we should expect, even if, you know, as your volume grows, or does that gross margin get bigger? Is there any leverage there? And then how that translates into operating margin, if you can give me any framework there also.
Ben Kallo: And then, just a follow-up on the leverage side. Can you just talk about, you know, what type of scale, like, in translating that to, like, operating leverage, you know, under the current gross margin, that if that's what we should expect, even if, you know, as your volume grows, or does that gross margin get bigger? Is there any leverage there? And then how that translates into operating margin, if you can give me any framework there also.
Speaker #15: And then just a follow up on the on the leverage side , can you just talk about , you what type of know , scale and , and translating that to operating leverage .
Speaker #15: You know , under the current gross that , if that's what margin , if we should if , you know , as , as your volume grows does that gross margin or get bigger , is there any leverage there .
Speaker #15: And then how that translates to operating margin, into a—give me a framework. Very helpful. Thank you.
Julian Nebreda: Yeah.
Julian Nebreda: Yeah.
Ben Kallo: Thank you.
Ben Kallo: Thank you.
Julian Nebreda: I'll tell you, the way we've been communicating. I mean, the way we think about this actually is that, yeah, you should assume that our gross margin will stay the same, and our ability to grow our EBITDA will come out of our operating leverage. And how do we think about it? And that our top line, our overhead would only grow at half and no more than half of the growth of our top line growth. So, you know, say if we grow at our, you know, top line growth grows at 100, our overhead will grow at less than 50%. And that's where the operating leverage is, and that's the way you should think about it.
Julian Nebreda: I'll tell you, the way we've been communicating. I mean, the way we think about this actually is that, yeah, you should assume that our gross margin will stay the same, and our ability to grow our EBITDA will come out of our operating leverage. And how do we think about it? And that our top line, our overhead would only grow at half and no more than half of the growth of our top line growth. So, you know, say if we grow at our, you know, top line growth grows at 100, our overhead will grow at less than 50%. And that's where the operating leverage is, and that's the way you should think about it.
Speaker #2: tell you the I'll way we're been communicating . I mean , the way we think about this actually , is that , you know , you should assume that our margin will stay the gross same .
Speaker #2: And our ability our EBITDA will come out grow of our operating leverage . about And how do it ? we think And so you a that our top our our line , overhead only grow would at half at no more than half of the growth of our top line growth .
Speaker #2: So , you know , say if we grow at our , top line , growth goes at 100 . Our overhead not will at less than where the 50% .
Julian Nebreda: If you believe that we can grow at, say, 100, then that operating leverage gives you significant EBITDA growth, you know? That's the point.
Julian Nebreda: If you believe that we can grow at, say, 100, then that operating leverage gives you significant EBITDA growth, you know? That's the point.
Speaker #2: Operating leverage is... and that's something you should think about. If you believe that we can grow at, then 100, that operating leverage gives you.
Speaker #2: Significant EBITDA growth . You
Ben Kallo: Great. Thank you, guys.
Ben Kallo: Great. Thank you, guys.
Julian Nebreda: Yeah, great.
Julian Nebreda: Yeah, great.
Ben Kallo: Thank you, guys.
Ben Kallo: Thank you, guys.
Speaker #14: You guys .
Julian Nebreda: Thank you.
Julian Nebreda: Thank you.
Speaker #15: Great . Thank you guys .
Operator: Thank you. One moment for our next question. Our next question comes from the line of Vikram Bagri of Citi. Your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Vikram Bagri of Citi. Your line is now open.
Speaker #2: Thank you . .
Speaker #4: One moment for our Thank next question you . . Our next comes from the line of Vikram Bagri of city . Your line is now open .
Vikram Bagri: Hi, good morning, everyone. A lot of discussion about competition, and Julian, you highlighted significant opportunities as well. I wanted to ask, how important is it for you to be vertically integrated, given the rising competition? How are the M&A opportunities that you see today? And then finally, could you share the threshold of return that for you to make an acquisition, whether it's a YESI or someone else, how do you look at the possibility of M&A in terms of accretion or, you know, return on invested capital? What's that threshold?
Vikram Bagri: Hi, good morning, everyone. A lot of discussion about competition, and Julian, you highlighted significant opportunities as well. I wanted to ask, how important is it for you to be vertically integrated, given the rising competition? How are the M&A opportunities that you see today? And then finally, could you share the threshold of return that for you to make an acquisition, whether it's a YESI or someone else, how do you look at the possibility of M&A in terms of accretion or, you know, return on invested capital? What's that threshold?
Speaker #16: Hi . Good morning A lot of discussion about competition and fully you highlighted significant opportunities as well . everyone . wanted I ask how you to be important is it for to vertically given rising integrated are the How opportunities that you see today ?
Speaker #16: And competition ? finally , could you share the threshold of return that you for you to make an acquisition , whether it's a yes or someone else ?
Speaker #16: How do you look at look at the possibility of M&A in terms of accretion or , you know , return on capital ? that threshold ?
Speaker #16: How do you look at look at the possibility of M&A in terms of accretion or , you know , return on capital ? that threshold What's
Speaker #16: How do you look at look at the possibility of M&A in terms of accretion or , you know , return on capital ? that threshold invested
Julian Nebreda: Yeah. So how do we think about vertical integration? We are very much integrated with our suppliers because our suppliers sell back to us our, you know, our designs, our IPs, our internal - that's how that would work. Very much, they're using our own engineering, is what's driving our supplier base. So generally, our contracted manufacturers are allowing us to have a competitive cost with access to the technology we need. So we don't really see a strong need for, you know, vertical integration. No, if things change, that will be something that you could think about it, but today we don't see any strong need to.
Julian Nebreda: Yeah. So how do we think about vertical integration? We are very much integrated with our suppliers because our suppliers sell back to us our, you know, our designs, our IPs, our internal that's how that would work. Very much, they're using our own engineering, is what's driving our supplier base. So generally, our contracted manufacturers are allowing us to have a competitive cost with access to the technology we need. So we don't really see a strong need for, you know, vertical integration. No, if things change, that will be something that you could think about it, but today we don't see any strong need to.
Speaker #2: vertical We integration ? are very much integrated with our suppliers because our suppliers sell back to us . Our , you know , designs , our our IPS , our framework .
Speaker #2: That's how that would work . Very They , much . they we're using our own engineering is what's driving our supplier base . So generally our contracted manufacturers allowing us are to have a competitive cost with access to the technology we need .
Speaker #2: we we don't really see a for strong , you need know , vertical No integration . change that will be you could think about it .
Speaker #2: that But today we don't see any strong need to do it . You know , we are we are we work with can we we contractor manufacturers that .
Julian Nebreda: You know, we can work with contracted manufacturers that integrate our technology into hardware and our software into hardware, that we can then convert into product at a very, very competitive price. So we're happy on that. In terms of, you know, any acquisition, generally, it'll have to be accretive from, you know, for us, so that's how we looked at it. You know, when we were evaluating the potential acquisition of AESC or participating in that deal, you know, it has to be accretive, so it has to make sense.
Julian Nebreda: You know, we can work with contracted manufacturers that integrate our technology into hardware and our software into hardware, that we can then convert into product at a very, very competitive price. So we're happy on that. In terms of, you know, any acquisition, generally, it'll have to be accretive from, you know, for us, so that's how we looked at it. You know, when we were evaluating the potential acquisition of AESC or participating in that deal, you know, it has to be accretive, so it has to make sense.
Speaker #2: We are able to incorporate our technology into hardware that we can, and our software into hardware that we can then convert into product at a very competitive price. So, we’re very happy on that.
Speaker #2: In Things terms of , you know , any acquisition , generally , you have to be accretive from , you know , from , from for or us so that's how we looked at a it , you know , when we were doing a the potential acquisition of ASC or participating in that deal , you know have to accretive be .
Speaker #2: , we So it has to make sense . So , you know , and and the accretion needs to create , you know , that needs to reflect the additional risk that you take when you do , when you integrate vertically .
Julian Nebreda: So, you know, the accretion needs to create, you know, is that needs to reflect the additional risk that you take when you integrate vertically, because what the great capability we have is that we are very agile. We can, we can have three or four different battery manufacturers, you know, integrated into our system, that we have developed our SmartStack, that it, it can integrate any battery. I'll, I'll tell you more. We can make any battery great, no? Using political slogans, but it is true. Any battery, we can make it great if you put it into our system. So that's what, that's our approach to supply chain. So if we were to integrate vertically, we would lose that agility and that ability to, to, to work things.
Julian Nebreda: So, you know, the accretion needs to create, you know, is that needs to reflect the additional risk that you take when you integrate vertically, because what the great capability we have is that we are very agile. We can, we can have three or four different battery manufacturers, you know, integrated into our system, that we have developed our SmartStack, that it, it can integrate any battery. I'll, I'll tell you more. We can make any battery great, no? Using political slogans, but it is true. Any battery, we can make it great if you put it into our system. So that's what, that's our approach to supply chain. So if we were to integrate vertically, we would lose that agility and that ability to, to, to work things.
Speaker #2: Because the great what capability we have is that we are very agile . We we can have 3 or 4 different battery manufacturers , you know systems that our we have developed our smart stack , that it can integrate any battery .
Speaker #2: I'll tell you more . We can make any battery great . No using political But it is true . Any battery make it we can great if slogans .
Speaker #2: system . So that's what that's our approach to supply chains . So if integrate we would vertically , lose that ability that agility and that ability to , to to work things .
Julian Nebreda: So we also take that into account when we were looking at AESC, at least. We need to take into account that we're gonna lose some of the agility we have today, that today we are talking with a plethora of potential suppliers that we can integrate and, you know, all of them with different capabilities, and we can make them all great.
Julian Nebreda: So we also take that into account when we were looking at AESC, at least. We need to take into account that we're gonna lose some of the agility we have today, that today we are talking with a plethora of potential suppliers that we can integrate and, you know, all of them with different capabilities, and we can make them all great.
Speaker #2: So we also take that into account we were to looking at the ASC , at least , hey , we need to take into we're going account that to lose some of the agility we have today , that today we are we are talking with a plethora of potential suppliers that we can integrate .
Speaker #2: And , you know , all of them with different capabilities . And we can make them all great . So .
Chris Shelton: Got it. Thank you. And as a follow-up, could you provide a split of leads versus pipeline in a data center and long duration sort of numbers that you've shared on the slides? And could you also remind us how do you define leads versus pipeline in this category?
Chris Shelton: Got it. Thank you. And as a follow-up, could you provide a split of leads versus pipeline in a data center and long duration sort of numbers that you've shared on the slides? And could you also remind us how do you define leads versus pipeline in this category?
Speaker #16: you Thank a . And as follow up , could you provide a split of leads versus pipeline in data center and long duration sort of numbers that you've Got it .
Speaker #16: shared on the on the slides could you also do you remind us how ? And leads versus pipeline define in this category you .
Julian Nebreda: Yeah.
Julian Nebreda: Yeah.
Chris Shelton: Thank you.
Chris Shelton: Thank you.
Julian Nebreda: Roughly, between leads and pipeline, roughly 25%, you know. The difference is the difference between leads. So 25% of the 34-36 gigawatt hours are in pipeline today. In order to go into a pipeline, it will be a project that we believe have, within the next 2 years, has a 50% chance of we are converted it into backlog for all. So we lose that, you know, we said a customer that we will do with that, he has a good credit, that, you know, the project is real, you know, it's not. There are a lot of people talking a lot of stuff. You go sit down and, you know, it's just an idea.
Julian Nebreda: Roughly, between leads and pipeline, roughly 25%, you know. The difference is the difference between leads. So 25% of the 34-36 gigawatt hours are in pipeline today. In order to go into a pipeline, it will be a project that we believe have, within the next 2 years, has a 50% chance of we are converted it into backlog for all. So we lose that, you know, we said a customer that we will do with that, he has a good credit, that, you know, the project is real, you know, it's not. There are a lot of people talking a lot of stuff. You go sit down and, you know, it's just an idea.
Speaker #2: And roughly it will
Speaker #2: pipeline roughly 25% . You know . And the difference is ?
Speaker #2: the the difference between leads . So 25% Thank or 34 36 gigawatt hours are in today pipeline order to go in into a it will be a pipeline , project that we believe have next within the , has a of 50% chance we are converting it into backlog for .
Speaker #2: looked at , So we you we said a know , customer that we will has a good credit that , you know , the is real .
Speaker #2: You know , do with it's There not . are a lot of project people talking , a lot of You go sit stuff .
Julian Nebreda: So those things we don't bring it into our pipeline, because what comes into our pipeline drives costs, you know, drives engineering, drives, you know, planning, drives. So we are very, very careful what comes in and what not, you know. I think my main point on data centers is how fast it's moving, no? We have to see how this big market opportunity converts into real execution within the next quarters.
Julian Nebreda: So those things we don't bring it into our pipeline, because what comes into our pipeline drives costs, you know, drives engineering, drives, you know, planning, drives. So we are very, very careful what comes in and what not, you know. I think my main point on data centers is how fast it's moving, no? We have to see how this big market opportunity converts into real execution within the next quarters.
Speaker #2: down and , you know , it's just an idea . So those things we into don't come don't , don't we don't bring it into because what comes into our a pilot is cost , you know pipeline , engineering drives , you , planning very , know drives .
Speaker #2: very So we are what comes , you know , careful how fast is moving . No , we have to see how these this the see how this big market opportunity converts into real execution within the next quarter's .
Chris Shelton: Got it. Thank you.
Chris Shelton: Got it. Thank you.
Speaker #2: .
Speaker #16: Got it . Thank you .
Julian Nebreda: Thank you.
Julian Nebreda: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Christine Cho, Barclays, your line is now open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Christine Cho, Barclays, your line is now open.
Speaker #14: you . Thank
Speaker #4: you . Thank One moment for our next question . And our next of Cho of Barclays . Your line is now open
Christine Cho: Good morning. Thank you for taking my question.
Christine Cho: Good morning. Thank you for taking my question.
Julian Nebreda: Yeah, hi, Christine.
Julian Nebreda: Yeah, hi, Christine.
Speaker #17: for taking my morning . Thank you
Christine Cho: I just have a clarification, I guess, on the last response. I think last quarter, when you talked about the 30 gigawatt hours, at least at the time of the call, you had said half was in the pipeline, and now you're saying 25%. So just curious as to what drove the change over the last quarter?
Christine Cho: I just have a clarification, I guess, on the last response. I think last quarter, when you talked about the 30 gigawatt hours, at least at the time of the call, you had said half was in the pipeline, and now you're saying 25%. So just curious as to what drove the change over the last quarter?
Speaker #17: question . Good
Speaker #14: Yeah . Good . .
Speaker #17: just have a I clarification , I guess on the on the response , I think last quarter when you talked about the least at the time of at call , 30 gigawatt hours , said half was in the pipeline and now you're saying 25% .
Julian Nebreda: Yeah, you know, things come in and out. So, you know, maybe for that, when we did the engineering, it didn't work or, you know, some things come in and out all the time. So, no, we're very excited about where we are. I mean, that's the-
Julian Nebreda: Yeah, you know, things come in and out. So, you know, maybe for that, when we did the engineering, it didn't work or, you know, some things come in and out all the time. So, no, we're very excited about where we are. I mean, that's the-
Speaker #17: So just curious as to what drove the change over the last.
Speaker #2: You know , things Yeah . and out . come in know , maybe did the So , you when we know , some come in and things some out all the So no time .
Christine Cho: Right. And then if-
Christine Cho: Right. And then if.
Speaker #2: We're very excited about where we mean—that's that.
Julian Nebreda: You know, nothing. That - we're giving you information that usually we don't communicate on how, but these things move in and out all the time. And, you know, as we go in and, hey, put in the money and the thing doesn't work, the price, there's no way you're gonna do what you wanna do, so we take it out of the pipeline and tell the customers, "Go and figure out what you're gonna do," or some other sort, some other issue.
Julian Nebreda: You know, nothing. That - we're giving you information that usually we don't communicate on how, but these things move in and out all the time. And, you know, as we go in and, hey, put in the money and the thing doesn't work, the price, there's no way you're gonna do what you wanna do, so we take it out of the pipeline and tell the customers, "Go and figure out what you're gonna do," or some other sort, some other issue.
Speaker #14: Yeah
Speaker #14: nothing .
Speaker #2: we're giving you That we don't information that usually communicate how things move in and out are . And , you as on know , I we go they put in the thing money , the doesn't work .
Speaker #2: The face , there's no way you're going to do what you So we want to do . pipeline and tell take it the customers , go out of the and figure out in and do , or some other source , issue , okay .
Christine Cho: Okay. And then if I look at your pipeline from $23 billion to $30 billion, just nominally, the US went from $10 billion to $17 billion. So just based on all the comments that you just talked about with the data center, is it fair to say that increase was primarily driven by your typical front of the meter customers?
Christine Cho: Okay. And then if I look at your pipeline from $23 billion to $30 billion, just nominally, the US went from $10 billion to $17 billion. So just based on all the comments that you just talked about with the data center, is it fair to say that increase was primarily driven by your typical front of the meter customers?
Speaker #2: some other
Speaker #17: if I look And then pipeline at from the 23 billion to 30 billion , just your nominally the went from 10 billion to 17 billion .
Speaker #17: So just based on all the comments that you just talked about with the data it fair to say center , is increase was primarily your typical front of the meter US customers ?
Julian Nebreda: That, that's right. Yeah, that's right. You know, we had we brought on board. We reorganized the company with this growth group now, rather than having it in the regions. We brought in Jeff Monday to help us run that group. He dedicated Q1 to cleaning, you know, preparing the pipeline. We're expanding our capabilities of business development and, you know, that you'll see some of the results in this, you know, new pipeline numbers we have.
Julian Nebreda: That, that's right. Yeah, that's right. You know, we had we brought on board. We reorganized the company with this growth group now, rather than having it in the regions. We brought in Jeff Monday to help us run that group. He dedicated Q1 to cleaning, you know, preparing the pipeline. We're expanding our capabilities of business development and, you know, that you'll see some of the results in this, you know, new pipeline numbers we have.
Speaker #17: driven
Speaker #14: That's right .
Speaker #14: That's right . You
Speaker #2: company with this group growth . Now rather reorganized a than having it the we brought regions a help Monday to run that us in group .
Speaker #2: jet He dedicated the first quarter and preparing the pipeline , capabilities of expanding our you know you see some of the that results business this .
Speaker #2: You know , new pipeline numbers . We .
Operator: Thank you. This concludes the question and answer session. I'll now turn it back to Chris for closing remarks.
Operator: Thank you. This concludes the question and answer session. I'll now turn it back to Chris for closing remarks.
Speaker #4: you . Thank question and answer concludes the
Speaker #4: would like to turn it Chris for closing back to remarks .
Chris Shelton: Thanks, everyone, for joining our call today. Please reach out with any additional questions, and have a great day.
Chris Shelton: Thanks, everyone, for joining our call today. Please reach out with any additional questions, and have a great day.
Speaker #1: Thanks , everyone for joining our today . any out with additional questions call day .
Speaker #1: Please reach
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
