Recent FSLR transcripts
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| Richard Romero | executive |
| Mark Widmar | executive |
| Alexander Bradley | executive |
| Moses Sutton | analyst |
| Philip Shen | analyst |
Good afternoon, everyone, and welcome to First Solar's Fourth Quarter and Full Year 2023 Earnings and 2024 Financial Guidance Call. This call is being webcast live on the Investors section of First Solar's website at investor.firstsolar.com. [Operator Instructions] As a reminder, today's call is being recorded. I would now like to turn the call over to Mr. Richard Romero from First Solar Investor Relations. Richard, you may begin.
you us. thank and afternoon for joining Good Today, fourth financial quarter issued a results announcing its press release XXXX. and for well its the as company as guidance full year XXXX website and of copy are First today Officer; Chief the Mark release and Chief at A associated Alex me investor.firstsolar.com. With Bradley, press available presentation on Widmar, Executive are Solar's Financial Officer. provide for XXXX. outlook business and update a Mark will the guidance fourth well will XXXX. quarter full Alex results discuss as financial financial year as for our for our XXXX and
Following for you safe that is review the their description. It open materially will encourage introduce in cause the call call now will differ for harbor this current my remarks, We we and pleasure today's could Widmar, to questions. Please more include involve and Officer. a Chief that to Executive management's to complete contained expectations. note, presentation forward-looking uncertainties results Mark statements actual statements press from release risks
the today. for Good Richard. a marks anniversary you, as Thank founding, that of this of First and by making the us company. afternoon that milestone like This month remarkable is positioned XXth Solar's most thank you in technology the module leading experienced a in oldest manufacturers us solar Hemisphere's the to world. start X manufacturing noting Western us joining I has module and would journey solar and
the end scale last the American at come the only existence solar of not we're at we to While today. only are manufacturer century, remain to one the into
driving decision-making technology one long-term of our our a not the about value and value underpinned simply shareholders for a strategic is and by this but creation partners. differentiated story business model, However, of survival,
future. story and our we innovation, of proud energy the leading perseverance, Ours of and world's competitiveness sustainable a is work towards are values,
years as been journey as growth our few continues, our to XXXX. long-term As consequential have strategy
modules, expanded technology evolve manufacturing and investment, and we historic to a our year, road of levels, past expanded continue product Louisiana, map. produced contracted our increased capacity, our shipped to facility record and announced at in backlog volume the mobilized R&D Over latest and
XXXX, demand, the demand. at Despite as From XXXX and key such Let's drive global challenges, long-term in continue at volatility, X.X especially watt macro the an strong call of assuming in we customers of oversupply procurement and a added States, to established watt. shown our bookings of ASP per industry or XX.X gigawatts United new previous continued review of multiyear XX to long-term earnings XXXX gigawatts mid- accomplishments ASP $X.XXX technology realization over with adjusters since the continue bookings commercial net pricing per see with per the We a as Slide as adders. the perspective, to secured beginning momentum in $X.XX of watt, $X.XXX excluding net base X.
backlog Our gigawatts now stretching this XX.X of total stands at decade. with contracted orders end to the
in by produced investment a guidance a XXXX. in XX% of and provide our XXXX our While XX.X increase and at ranges impact the of ranges, QX results, XXXX, our will tax our sale a year which comprehensive midpoint adversely production $X.XX, items, XXXX Cubic the QX in Alex is the our included watt. From a neither overview year and our full included perspective, came XX we of in our financial of over initial manufacturing representing which PV. guidance impairment Section above were in EPS XXXX of EPS impacted full credits the $X.XX These record approximately gigawatts of per
in X at XXXX. factories ramping XXXX. successful megawatts an gigawatts gigawatts This produce of Series increase our India, X.X by growth have the first excellence combined U.S. which X.X compared of As surpassed manufacturing a result, in and to production which we driven XXXX, manufacturing produced XX the gigawatts XXXX, began factories, and commercial Series our of we now XXX more cumulative X since in was in to new than
top map conversion for panel. bin to watts. We XXXX, and launched solar cattail X committed bifacial XXX recently Our top our remain watts, Series based Series bin technology was production for technology the progressing XXX in a world-record our was and product production X achieved XX.X% on our road first having and efficiency thin-film research CuRe
plans, agreements steel with and and achievements expect manufacturing in into CuRe logistics glass to meaningful front addition, American-made on in front pace entering U.S. this In manufacturing our for expansion we've of Key Vitro and supply XXXX back progress our including operations keep supply made of and Onco our our successfully XXXX. It's back lead XXXX. to quarter modules vital Alabama at Louisiana. ICE manufacturing fourth supply trial in under facilities by the in line for fourth this our and in our with powered and chain our operations industries program to in rails quarter technology that begin we readiness completed manufacturing Perrysburg the the and with
modules for We also signed in back supply to agreements with Single our India. the Bain glass
and for gigawatts expected XXXX. When progress, expect approximately and a another of XXXX nameplate in is capacity exited me, India. with XX In manufacturing footprint marks add in facility with both are nameplate In global X.X $X.X facility Alabama which expansions, a XXXX, our year-end from combined X.X X -- of operations of gigawatts gigawatts. driven domestically Regarding of to capacity gigawatts XX new we approximately Indiana. of in year our gigawatts we increase in the internationally in XXXX Series investment XX.X a which with growth, the to our XX manufacturing at capacity our by announced an Ohio of we Louisiana, This excuse factories in gigawatts billion nameplate commencement capacity. Ohio nameplate
invest continue half to respectively. innovation of Ohio. our center facilities R&D the These on also both in and first half second and line, construction commence We development to are XXXX, our our perovskite with technology in and expected operations
are has Evolar, a we we in in technology. leadership technology, become necessary Additionally, cycles Sweden extend transitioned our believe thin-film laboratory its our the in and us to to to allow R&D perovskite facility XXXX, solar of acquired first leader since European in innovation, accelerate
Turning to Slide X.
aggregate of an value we we XXXX, year-end XXXX, of aggregate ASP XX.X total XX.X approximately we gigawatts. backlog additional contract total pre-adjuster a These gigawatts $X.XXX for XX.X per contracted year-end realized. accounting most or XXXX, watt gigawatts additional adjusters backlog X.X per into XXXX XX.X average at per $X.XXX gigawatts $X.XXX of in approximately gigawatts entered of totaled or $XX.X billion $X.XXX backlog end contracted with per the gigawatts our Through contracts, with ASP $XX.X if watt. technology bookings As resulting of entered an recent a an average into $X.XXX per with After watt XX.X have sales XXXX, an an began are of billion of watt. have value of contracts or in an watt. Since of of of
road adjusters, of realize increase opportunity security to achievements we have future includes our move the within current precedent map pipeline the XXX now Additionally, our conditions delivery contracted grouping bookings technology these India, from of within megawatts base previously as received our against substantial of the for application of through backlog subject timing we're to A signed to volumes expected in if product. contracts ASPs to able portion which opportunities backlog. the our to overall
of not the turn total of XX.X $X.XX sales may would the volume for contract generally applicable utilized results. could of to increases upward realized, Alex, contracted be who quarter, As will which under the sales or of which call the and these to billion commodity if approximately with over additional changes. I'll related price majority contracted which are aluminum backlog, module to excuse result approximately fourth our delivered -- include the of or watt, approximately or to downward, full adjusters, the being does end customer, and we the in ASP XXXX. per me, rate both $X.X amount in steel discuss QX which applicable year adjust adjustments, XXXX ultimate between or gigawatts XXXX the fully realized This had potential revenue or now
net cover an Slide of fourth million and fourth compared results Starting the X, for financial to Mark. on The year full our by net sales increase including sales X we was Thanks, that new sales modules continue prior in facility in $X.X in driven quarter billion, Ohio. I'll higher higher $X.X of to increase XXXX. our Net at quarter volumes sold, Series the the quarter. were production ramp
January of the XXXX, by within million $X.X to the $X.X resulted volumes Section year prior tax in valuation in recognized from We U.S. del related we business expected expected of current cash of manufacturing of of transaction. integrated we net cash entered increase in a higher third fourth proceeds credit our to tax Fiserv, sales sold by million. were of end connection sale full carrying remainder primarily revenue in of Luz on quarter to recognized factor the aggregate offset XXXX of sale. In module watt is of of the sold agreement increases the resulting with of $X.X million produced our partially as was the to net operations billion module XXX the with and which $XXX of sales Norte we For residual approximately model and $XX and April both vertically adjustment credits in per cost December, project to the an the value of Section from the driven expect of to billion XXXX. to be which from the the the sales ASPs, our $XXX billion lower in this year. compared initial qualify into cost the which by amount period prior billion to the a during expected of $X.XX XXX to an in the was party, our reduction received the each with sales This approximately form transaction, $XXX year. Based received reduce $X.X In a modules, million credits differentiated sale for proceeds
respectively, adjustment. Gross not credits, of factories, and the credits; for including XXX margin by primarily associated XXX decrease sale tax the Section do year $XXX quarter. materials, XXXX, the recognized modules compared For the partially qualify was attributable and legacy XX% certain adjustment our in XX% and million, the This to Section mix quarter from we tax was of full cost the fourth sold of third million of module Section aforementioned non-U.S. the fourth which a of in continued our the XXX reductions. effect higher quarter production $XXX with to write-off offset credits; tax
increase an year prior XXX continued Section of rates in tax and net module compared in to the quarter was full sale in the in sales reductions, our XXXX, $XX the they gross in impairment year. costs ramp margin a the was the project credits, year, to X% detention XXXX. The in gross Luz Norte The compared in recognition with increased the to partially increase in million third primarily merge fourth $XX and For cost million margin factory charges, ASPs, module XX% due associated and were of which prior are ramp period the incurred charged quarter. offset del by to the charges underutilization in the in decrease
were full million XXXX the to $X quarter. Our year ramp costs prior for in million the compared $XX
Our XXX the in sale Section of This partially fourth costs from and factories an quarter. was relative approximately of with prior losses in attributable X India. SG&A, to expenses offset the the receivable. our of primarily driven lower-than-expected resulting increase million credit associated increase compensation, credits in Ohio totaled by increase new our million start-up $XXX an XXXX to and production primarily XXXX our Series collections $X improved fees accounts ramp were quarter, incentive tax R&D by and
year SG&A, million full to start-up along the $XXX million with losses, litigation the and For prior XXXX, R&D compared expenses, in were production $XXX year.
during we a attributable was and credits, systems to to module higher increase new the of reminder, activities. loss primarily recorded related additional litigation, planning enterprise quarter fees a of a research XXXX our operating development The system, business. litigation $XX material XXX employee million testing to remaining legacy million the expense $XX As due second our head with resource sale associated count, implementation and the of higher professional Section our of costs for and tax higher compensation
expense million, expense $XXX million; which and compensation Our of costs with credits of of the systems-related legacy XXXX accretion million; costs $XX and associated $X sale of $XX of million; $XX our Section operating was million; income fourth startup amortization XXX tax income of million; depreciation, included million. of $XX $XX ramp production quarter share-based
our took million, compensation the a Our costs million, ramp year credits XXXX million, Cubic $X $XX million, million expense fourth income full sale Section share-based $XXX PV. $XX legacy of of amortization operating systems of million. In depreciation, impairment business-related which costs $XX associated XXXX and of quarter, expense the strategic in was XXX associated includes of $XX of with we and $XX $XXX with costs start-up accretion million, of production investment million; a tax
thesis million is plan tandem thesis, planned recorded investment to and manufacturing to perovskites million domestic interest work on recently the due costs and increase of interest in This declining for full income prior the capacity. rates was fourth the an prior silicon to in prices, investment full $XX higher development and $XX of triggered to quarter. abandoned year, million, securities. an Our income $XX quarter. our as was for anchored expense diluted which compared their in cash We technologies. million, tax continuing was per wafer to of the develop $X.XX $XX share wafer roughly $XX the and compared our year they fourth primarily the same quarter Outside surge XXXX on quarter the construction to in And due year. Fourth prior the quarter marketable impairment. Interest $X.XX income income million was had
a share For the full compared income per $X.XX of in loss XXXX, of diluted was share to XXXX. year $X.XX diluted
cash securities, decrease Slide $X.X to the billion cash and X and information. prior was of a year. The prior our aggregate sheet the quarter end at the the of an select Let's summary equivalents, $X.X turn flow equivalents to $X.X of cash, year, balance from discuss of billion marketable balance from and restricted cash, increase billion restricted items cash
expenditures primarily $X.X million aforementioned Our and cash the the fourth year-end of less from primarily the prior cash increase including debt module expenditures cash due sales, payments of were balance operating net partially in flow. Cash year the construction billion compared Alabama, driven sales, partially the year. full billion, from an expenditures, billion was XXXX. expenditures from ongoing $X.X operations by The XXXX in decrease expansion module support the by cash third in in in received offset which was module the to our by quarter prior flows, XXXX. was by includes in partially future receipts module balance driven capital our billion advanced sold operating position, segment a balance cash to advanced $XXX payments Capital manufacturing in $XXX million in to expenditures Capital during $X.X year. offset cash with fourth compared from were higher Louisiana higher modules in future our $X.X was operating offset quarter segment under and of and in for XXXX This $XXX increase net The from in net decrease our the flows quarter plants compared $X.X million associated capital million new to quarter. billion primarily XXXX $XXX decrease for were India. by lower received
Mark I to strategy and update. provide business the Now turn back the to call
about A in conditions Thank environment. overall you, policy All market Alex. the word right.
and blunted address conditions As enter ambitions prepare market. And continued a robust nondomestic announced in distorting regions -- the of countries, month, enacted a a ability serve contracted circumvention here continue and from our of the in suppliers and in its cell the imports, operate these we to position module light of deteriorating ambition the the oversupply general cell while duty caused ability manufacturer, Department significant practices practices continuation significant market from administration's Southeast help pricing. Last and manufacturing market to Commerce's Chinese segment and action. to upon Germany, and manufacturing to to dumping determination country's in for shutting ] to of pricing Chinese India, policymakers and points threat self-sustaining supply by leveraging and base. In of domestic subsidization headwinds we of already strength, a of measures countervailing broad the XXXX, solar U.S., of record [ local scale, has to the of and in pricing governments as manufacturing cell strong achieve or markets take of module differentiation the stated resulting the and market antidumping that these Asia expeditiously European the a chain forcing Burger, industry. In country challenges forecasted state of of such notwithstanding Meyer content backlog, collapse cell module them from a X has either poses of disincentivizing move current exemplifying current and resulting to efficacy renewable the reduction a to in the creating onshore to module assembly the goal securing the to and shuttering sudden imports measures scaling domestic the level manufacturers in call domestic we the India's in reinforce U.S. create to Europe
market-distorting exploited XXX of domestic the undergoes tariffs that has measures safeguard bifacial it to the been to imposing advocate temporarily here foreign-made to the the have Vietnam a of Section as increased number instance, unfettered released U.S. in scale therefore and U.S., Trade threatening exclusion blocking the new imports recent as from silicon tariffs report along position executive Malaysia, order a U.S. door a the on solar bifacial panels. U.S. of cited availability the market, XXX solar XXXX this For of to Commission eviscerate these industry. crystalline exemption for bifacial long manufacturing. Indeed, that of the leading noted that the Department the opened for American intent commenters the to solar Commerce safeguard taken simply with by Cambodia, its the Thailand the access we closes administration current which evaluation have solar multi-gigawatt product We International exemption,
put been which Prevention Border scourge of Uyghur the the Labor to Forced is utilize ALMM, to books in domestic and that shipped addition, this forced we list in all have progress already chain, legal a tools of and manufacturers, incentivizing law for enforced. In within to regardless impacts domestic labor enforcement at port pauses advocate with product of while which of ensure risk. ensure investment, on in approved the India, into, respect strategy addresses in In the of has Act, of consistently and to comprehensive the similarly solar module or the utilizing the law Protection the application Custom to toolbox requirements are its manufacturing place related pricing the effective supply
country. currently We waivers are expire of the of grant QX are expanding and to to solar India the to India's actions chain federal such the reducing on heartened ALMM the consider believe future and that incentivize of in not and, at their supply waivers requirements dependency our These in we capital in further the manufacturing. place government also sell this the ambitions ALMM expected to investment Chinese would equivalent will end foster encourage in view,
Turning to the EU.
Zero with for While its help goal development month's remains region done. prioritize the of will to the which we achieve and are pleased XXXX, funding be to Act, to EU climate-neutral by Industry work deemed necessary technologies Net this permitting recent establish much making the
a artificially labor. forced prices playing modules as situation, are the As is Such to as being can of investment harmful in use continuously in policies field. require at only scale level we an of local the oversupply stated, sold ensure when in sufficient well trade the manufacturing impacts have low measures Chinese that where of loopholes measures long-term, create addressing consistent, current place
over local Lafayette commissioned This us has domestic economic across communities our capital This conducted impact economies direct, released that Solar the of to supported X,XXX XX,XXX that and study excludes in This by an manufacturing. was is jobs Louisiana demonstrated XXXX. by the tied induced in found First Solar of illustrated benefits University and by the jobs and establishing indirect U.S. an additional solar construction-related study XXXX. and yesterday. investments First to
by XX economic that jobs on study annual is this will for the solar in terms delivers to output turn domestic U.S. trade alone in U.S., expected level X $X.X and U.S. job, support oversupply ratio labor gigawatts, economy markets, in X. of jobs direct, stands solar to forecasted establish across playing XXXX. loopholes operations current to annual a of to Solar the data and XXX increase maintain gigawatts total the measures remain and to quarter. this a an country now basis approximately our approximately that manufacturing Slide First at to key the of jobs to supply in First bipartisan capacity in approximately This the by economy. necessary the trade indirect and Despite domestic X.X $XX construction, field. We and Solar's Total to and the should tangible provide as representing billion political our scale And policies potential defines XXXX. We megawatts to XX.X XXXX Chinese of income increase pipeline modules estimates XX,XXX nameplate every believe XXXX, analysis pipeline. we bookings the support an that and a policies in since induced in billion our chain the robust excluding Slide forecasts X value supported examine As bookings opportunity provide reflected previous
includes gigawatts gigawatts X.X includes contracted X.X India. pipeline ] gigawatts our [ XX ] late-stage gigawatts in have XXX and X.X America, to opportunities to to subject Our that which CP gigawatts India in [ XX.X by mid- decreased mid- in North approximately in of to are EU. Included gigawatts within X.X opportunities megawatts precedents, and late-stage the
are shorter Given not and would that we markets, seeing product same expect the India United the relative in to contracting the contracted frame currently other multiyear time between in delivery States. we commitments
full a security are as until we the As contracts signed against received India reminder, not offtake. recognized bookings in have
Turning X. to Slide
XX gigawatts with second local projects which the to pleased are begin completed respectively. year, of in be Alabama we to XXXX commercial approximately the is half Once and be U.S. and our of with first global which capacity, progress these new expect are our capacity the forecasted of completed, facility, to over manufacturing nameplate Ohio in exit shipments of and are halves expansions expected We
gigawatts on commercial late our the facility total over is Louisiana is gigawatts U.S. XXXX XX in expected and new bringing expected to with Our also in XX by of to capacity track XXXX, operations end commence the nameplate
we in through map optimization production slide. the XXXX a road on reflection existing continued of exit have and our of XXXX for summarized As this expected this capacity expansion nameplate fleet,
Our strategic which Inflation American-made ITC resulting XXX credits, First eligibility value of the extensive demand Reduction combined the expansion to integrated from Tax performance benefit in and with Credit vertically domestic The manufacturing efforts for in -- Act. enables facilities content for supported capacity our significantly is U.S., our by Solar's Production domestic our customers' of is chain, an solar contribute coming to the the tax from begin years. to technologies, manufacturing bonuses to under Section financial the expected
a photovoltaics. progressing the generation our and to manufacturing to plans, in commercialize we pursuit develop point goal expect view to our the our foundational year of next of addition be R&D of In expansion from XXXX of accelerating efforts
a we allowing covering driven for in we As than our on previously significant expect it of continued would manufacturing pilot booking the sandbox year. Located we recent stronger X.X a a and markets -- it. backlog, addition we perovskite to and production our Alex, throughput XXXX Perrysburg facility impact a across points operations, to commission near accelerate over growth, we Day, existing advantaged entered X turn and pipeline to profitability. I'll contracted line core square a as we in an and will manufacturing capacity momentum separate Ohio focused will of tandem robust some mentioned allow who capabilities, differentiation increased cost. To demand noted, PV most began create Reflecting it opportunities R&D approximately landscape from at established on business our expect of will Analyst business discuss which R&D feature our off-line, the in position goal investment this outlook with close, a line, the current high-tech with million focus mission-critical to and prototypes and and record This manufacturing we manufacturing of center which new our call a an without progress, by than I've area a online, feet, XXXX entered tools full-size despite new now development policy exit our decade guidance. this center thin-film to of our ended us continued will modules. innovation R&D entered challenges. We coming balanced stronger XXXX Series our on the our and model liquidity of product and taking of
Thanks, Mark.
to investment thesis, to Before guidance, to into our bookings discussing related reiterate Analyst and our backlog growth our I'd X recent from themes India. our our Day our approach financial and like and expansion
our from to XXXX. The XXXX prototypes business at facility of line deployment commercial capacity our at our bifacial decade plan Firstly, modules across evidenced and the is last our significant manufacturing our the continue we thesis nameplate including by to to of guided the perspective, informs and in doubling attributes, capacity XX% a and a the significantly and XXXX test XXXX. that over map road differentiation across gone coefficient efficiency, early degradation, by supported temperature CadTel R&D optionality converting with in investment to in from to a and are XXXX strategic bifaciality. forecasted XXXX growth XXXX We've end strategy expand approach fleet end capacity increase our balances of of scaling from exit business framework a our of energy to and from for long-term module systems the model on guided It in deploying at nameplate business, an focus growth, direction. lead profitability portion liquidity. decision-making This of
commercial begin to in quarter we expect XXXX, modules our CuRe our lead Additionally, line in of the fourth production of first Ohio. on
it this volume, relates to certainty. As prioritize contracting continue we to
across security and liquid asset related but contractual backlog, X specific U.S. India and world timing. Common by class, multiyear contracts have types which project; fixed includes provisions technology are these typically excludes for and adjusted adjustments a and typically or reported larger, in of include [ typical may frameworks, for signed improvements made contracts: to with price leasebacks less XXX% ben and ] Our risk those which of structure, our contracts which a which of commodities. delivery often over is and certainty rest bookings include is freight security, up
had December aluminum our form steel of freight form XXXX, and approximately of megawatts some approximately XX% As and XX% protection commodity protection. in cost of of XX, backlog some had the
number We large termination of often features to has set acquired limited regulatory a a backstopped committed. advanced portion is related contracts value generally reminder, multiyear substantial generally the requirements invoked This provision, contractually a As our to contain some termination require notice percentage at framework to us. or for a form of security. customer convenience of payment substantial payment and contract and be by a of a
this generate In increased of stated as this year-over-year expansion. we call significant as do expect significant will validated today's metric. On of this margin in is our of earnings thesis contracted our are termination our that operating megawatts percentage convenience provide we at on with associated that XXXX, we to sale, a for we not process capacity, in that is operating our September As margin of a Note, termination had our Analyst provision significantly drive of margin the clause given saw to payment an negotiated Day that believe that module contribution to roughly obligation anticipated in the deal nameplate backlog growth given expansion. updates customers was we call, terms with of XXXX. in equivalent XXXX, that February one many
XXXX to our to as we reflected growth, provided margin operating in continue see expect continue we guidance today. in our capacity As expansion
with uncertain enter is to in through are the dates larger India, as resilience tendency ramp process, is It delivery as delivery contracts, the for it undertake delivery closer inherent comfortable timing This to get available oversold time new planning project we given of we supply. and we our we position the excluding year supply The relates our contracted out well to development met our factories. The we and start process for overallocation. of some the provides that we cumulatively potential our overallocation annual up and to able in framework a look as Secondly, with XXXX. the further ensure natural backlog, to deliberate. demand remain more incremental any more the frame, be as delay as
beyond As of in requests significant seen supply-demand not for occurred have late forecasting. schedule our typical daily and balancing changes QX customer XXXX, the that we weekly
XXXX conclude from of X the development through delivery year, have project our seen as requests we the process planning of function some shift we a months first for to timing out As delays. volume customers
where possible, As their customers by do. we to constraints our including expect including in our production stated we selling Day, schedules, our with of the continue needs, Analyst and including dates to our medium optimize to and shipment will which delivery balanced we production moving short in the at term project work previously, XXXX, full
often also our contractually discussions. not govern relationships situations, us and relationship could overselling delivery of This should time underlie be we but overallocated unable expose approach lines. for and these to customers to the business strength contractual customer long-standing just Our First key, flexibility our In position. certain providing to our our Solar is manage is where
so U.S., any damages not event associated supply-demand our do issues or provisions from the us we supply in in disputes. balancing protects Contractual long-term modules and our Given the near customer forecast with of overallocation term ability India XXXX. in the to to far also
example, significant do to delivery project. of and modules recently customer financial this they position on current to we their XXX megawatts notified a that by corporate were for For are intend of of we delivery XXXX. scheduled based take their delays distress, not experiencing in And
for customer circumstances, contractual with rights of in breach. their similar our the this the to in enforce damages and but or to the optimize First outcome contractual Solar, continue both we event working other and to penalties termination will We are other this customer
approach on supply-demand discussed at our contracting earnings recent cycles believe and Day, also previously we the expect the industry. we our to Analyst been pace forward previously in calls slow We've years. has the record pricing stated and that to past through multiple As bookings X contracting in of after validated
expect prioritize our by policy and Put and elections the our with continue gigawatts highly position and of the through in value XXXX and us pricing Our more book relationships case, will take previous policy significant presidential we to to XXXX. advantage the in of the around uncertainty as this on the of periods in current reflected oversold in do remain differentiation variables earnings X did impact selective forward extending We year, any not their sector, the not as end our to XXXX would strength the potential the who contracting of to this out U.S. XXXX deals and optionality X.X the be earlier be discussed customers end Mark since in long-term XXXX. simply, we provides we expect the congressional with contract and given sold bookings decade, bookings call. But environment years we as and and that cumulatively through renewable uncertainty. well if backlog, the of of
Finally, mid- it signed a had contracting to late-stage relates as with earnings October, call gigawatts our QX of India, X.X perspective, pipeline. as to we contracts of our in from
we As against as India a recognized in bookings offtake. received not signed have until the contracts security reminder, will be full
XXX-megawatt is today's from a X.X number Stock by New delisted customer default As who of gigawatts York following a call, recently has the Exchange. that
segment, We contractual having expected the We at temporary on XXXX owed and excluding the fleet opportunity margin an to reflected costs reinstatement contractual our payments the in provides market rights average termination with gross currently perspective, a short-term to of policy together in enforce vertical discussed this of integration, are the are and with is believe a to impact address which tax suspension ASP recover the contract our us. From the domestic credit margin, seeking end ability ALMM we which is domestic QX, guidance. earlier serve our that the our content market a profile, given production Chennai under benefit, market lower the Section to facility. comparable given positioned uniquely negative the the gross ASPs Mark ALMM seeking of to the are XXX to
mind, Slide to with guidance. X. financial So Please next turn in I'll the included in XXXX discuss our assumptions context this
we XXXX, have in module-only referenced As effectively a company. completed to the transition back
business. Consistent We earn-outs, systems segment collection remaining no in the guidance seat we reporting, but impact to payable, continue other warranty provide financials. resolution former note indemnities, longer certain shall obligations, risks, segment-specific consolidated any with involvement significant legacy to future accounts other our receivable, to cash XXXX have to and our from related liabilities, the accounts
our perspective, sold XX.X we X.X sell on connection growth-related of to the at X relates new XX sales XX growth, upgrades our million From India, million to $XX XXXX, by and to we're it beyond. Operationally, and increase remain our is are which comprises gigawatts operating expansions anticipated and to at plans to to schedule As to in estimated incurred modules. to gigawatts $XX our costs The in to factory in gigawatts X.X XXXX, This contribute produce expenses million. XXXX is nameplate XXXX. in of income Ohio start-up capacity expected produced expect factories Alabama expected impact to primarily in million in will $XXX of a expansion year-end costs in Alabama. factory and XX.X domestic of upgrades our gigawatts to be approximately expected million global $XXX million XX.X to gigawatts, India. with and $XX U.S., of to to X.X production meaningfully ramp seemed $XX to In
driven sold of from per domestic freight to cost volume, the approximately as an is with Day be and improvements range India sold increased September From adders. yield recognize versus watt, certain in the full watt $X.XXX of cost well of in to expect mix year inbound costs X% reduced expected offset year, $X.XXX the the produced to variable our line our in and of full XXXX a to ASP Analyst the a For This costs as lower-cost improvement by partially bifacial base India a our product. of forecast roughly to increased $X.XXX ASP related benefit rollout throughput, an X% perspective, per of fleet and XXXX. non-India includes and This is commodity we production, by technology, watt. approximately freight expectations benefit
cost to prior it fleet full versus XXXX forecasting of a year. average the ramp approximately year of other $X.XX period sales watt As in relates sold are costs rate, watts resulting X% per reduction and warehousing approximately watt, we cost sold,
of the Analyst pass of customers X/X our at of costs in mentioned variable materially. Day, costs to the mechanisms have are X/X the subject that approximately derisked these to cost approximately and of contracting, the contractual module through event forward given agreements to As long-term X/X approximately fixed, our costs cost or is change is our
XXXX sale to and programs operating tax a module strategic capital form from flexibility including sales, periods growth X sales some in position module expect weather rate finance Additionally, sheet over to finance. leading anticipated well we flows a able enabling significant XX% volatility growth. We us to our Series with structure remains of been forecasted Section differentiator, external as pursue Series our our strong announced the coupled gross to X be ended XXX currently XXXX liquidity to cash cash protection, without of and our has of of both providing visibility. From strong has perspective, funding a balance and requiring our capital of and backlog prepayments, margin opportunities, from credits as
sale XXXX a Section to and for credits, valuations forecasting year to monetization. I'll options relates But party. value discount payments we XX. to earlier elect continue of are these direct to the a our full Slide ranges therefore evaluate now to guidance XXX XXXX third it As credits and are for cover no on assuming we'll the
to ability XXXX. to Our and in total increasing $XXX billion. total million due leverage our or line to operating while net head and to in commencing are million which combined between $XX expected expenses largely of billion million in demonstrating our are income $XXX $XXX expected expectation to initiatives. $XXX to ramp to R&D $XXX billion production R&D $X.XX XX% approximately model $XXX to are $X.XX to billion million. $XX fixed to and expenses, costs our million of include to of be start-up to R&D R&D is million innovation to $X.X cost and million Total is to of adding perovskite is demonstrates expected credits operations sales further which XXX expected billion production. R&D of contribution to value in of driving million total expect expansion. margin and count to $X.X XXX million expenses million research structure $X to $XXX be a Gross Section Compared inclusive largely to margin expanding XXXX, development primarily an expense between operating guidance versus expected SG&A expected and to margin advanced to billion center and million to between between in SG&A applying SG&A team approximately invest $X.X combined XX% $XXX the $XXX $XX $XXX $X.X of expenses at are growth to the operating of XXXX, $XX operating and start-up $X.XX million an and million. Operating margin and cost billion billion, our $X leverage and of margin business costs. $XXX this $X.X is tax incremental includes shows we XX%, plant be operating $X expenses million increase of versus credits. billion which Section fixed year-over-year our ramp structure, how billion expense, million of tax million $XXX against
items. nonoperating to Turning
range net million. $XX guidance earnings Full $XX. to to $XX to is to of $XXX forecast This results interest and million expect million year other $XXX share year expense in be to full per interest income, expense a $XX million. tax We to diluted income XXXX
Approximately $XXX and excluding and from expenses the QX, We of we're cost Section operating income in in million XXX this of approximately and year. across profile technology XX% related million in X/X of factories, construction maintenance in tax approximately we and progress quarter second the with our sales of a second $X.X year, fleet forecasted X operating Louisiana sales upgrades XX% earnings XX% credits, $X.X are the evenly other element tax approximately million an in second roughly of and capacity the X/X expecting results remainder XX% range to XXX QX, net and and the of in associated expansion, our of to quarter, throughput the first programs. the Section in an expenditures QX R&D-related billion billion of the year. Capital logistics. earnings second Alabama share half cadence in year. With replication R&D the as the split in the the perspective, with QX and in $XXX relates to half to from XX% and XXXX credits and to in So of XX% of our per expected profile mostly center half benefit the forecast Series profile, in invest $XXX CapEx is
billion. $X.X anticipated net XXXX and year-end balance be to between Our is $X.X cash billion
Turning XX, Slide call. solid gigawatts. to I'll since the summarize backlog messages gigawatts bookings key the Demand of a from to with of contracted X.X previous XX.X today's net been earnings has call, leading
Our opportunity XX.X late-stage opportunities gigawatts. with to pipeline of of gigawatts, remains strong opportunity global set including a mid- XX
We expect in of including continue nameplate XX U.S. to of capacity nameplate approximately to exit with gigawatts expand our and XXXX of capacity gigawatts gigawatts nameplate manufacturing XX capacity, the approximately capacity, XXXX XX.X with exiting
projected We to to are, half adding as allow to models. Earnings be XXXX, credits XXX $XX. Section guidance. above to and full earnings including the the believe first R&D with improvements XXXX XXXX our Cubic tax year impairment optimize the diluted we will of our PV, manufacturing investment our facility Ohio, XXXX, was of $XX share technology in and of previously us forecasting $X.XX in per the of in less new We're diluted impact midpoint initial in operational of disruption which commercial updated dedicated selling QX our announced, significantly share a
energy we over to strategic prepared development other and in strength, to a that, journey of balance concludes position, the and tax $X.X march and credits, of XXXX us and invest places $X.X balance questions. the around our net position future. With billion our we optionality world's monetizing capacity, in cash Operator? a with with net year improvements that sustainable our a of much end billion remarks as of to XXXX our few This ended with $X.X cash cash net debt. expand on together of technology the Finally, for lead million research, opportunities forward expect debt Section XXX a to
take Paribas. We'll Sutton, Instructions] [Operator the Moses first BNP question from
I X of bookings, mean I to quarter? that time can't given eventually until price just see. It and was more a in of near At way see execution. momentum conversely, simply naturally, think investors I point, want the range? we think continued on $X.XX, passes should say, that. some all Congrats and to kind Or like lower went into ASP great which $X.XX book
I through So what should just precisely? but we curious how you book more that could the dynamic plays some, expect know year.
Yes.
that take I'll So guess. one, I
conversion to represent subject in included early-stage patient. the late- India, in of pipeline as The opportunities mean, you're there, India. to will contractors see both Clearly, as going happen to Alex plan to that is got bookings be U.S. from -- of terms can remarks, mid- his of opportunities, our and obviously, a I CP. the those we've we continue we pipeline. Separating you In that to indicated,
So that's on expect, to continue a XXXX. to it, cadence particular going hundreds any position of megawatts, call would maybe in you and gigawatt sell that a quarter, for through that
momentum So continuing. you'll see that
relates the ASPs, quarter. the customers. that engage it Great our is of conversations adders strategy largely technology As market for we're to bookings and patient associated with counterparties, this good with I'm happy how last to our being it. U.S., up the showed with we going very
and very and touches So of -- that for lot time a of A constructive 'XX that's into into out period 'XX and goes 'XX fettered even. us. 'XX,
earnings call. that window next standpoint. We've right and the we've short now got now -- a from happy So got between
as are a for booked there see the late-stage But right and we've the ongoing, for got I've to So commercial I reflect could of that U.S. the this here in that conversations now bookings volume India. softness -- call. will into ongoing outside XX% would earnings now was of About we of call you maybe in of got continue north been expect negotiations. to period shipments a recognize that for has next And that. actually, text
and kinds that of the right in available customers. There's to to try to and be they a strategy resolved there you us. provide ASPs which conversations D.C., there's to issues think step mean, in certainty administration, all well. And engage, and I potential our on there's uncertainty, was and on more and through there's barriers are about. would change less if how But customers we there a that our in highlighted the I going conserved And choose have maintain that think the engage? administration aggressive the think Alex So any trade to back a get as on they would choose be potential they don't Chinese, whole how policy lot to now. to is can Republican environment the lenient we When reflect, momentum I and IR. to that how is It's of deliver our they
value they to certainty the their they go. Solar so and as derisk as far can First looking out projects And of
The going that you've other marketplace indicated in with position especially enforce has is, on IP. an for Topcon. recently driving transitioned market Topcon, still thing as the to as uncertainty the that have strong has that's seen Jinko -- and they some IP to a standpoint, IP they're
to that they're also going Topcon position you make as around a And as enforce. statements Maxeon got seen that they've You've an significant know, is transition Topcon. well IP towards there
to also customers have their properties. our with freedom counterparties through to intellectual think So operate around
of a to engaging through, a outside and there's So there's have lot of with First lot Solar. think uncertainty that they
so our surprised around be pocket out negotiations. we'll measured which and will fill year, in that XXXX. or would in I if our bookings we'll be our out largely, a profile. opportunity was not surprised gigawatts so book-to-bill, X:X this that all But our be And would I disciplined of ZIP shipment we wouldn't as And is XX somewhat that in at be finish have code. somewhere
have through and could XXXX the how that through with year have we we going think to backlog of in out end position the exit solid now book this we right So comfortable and a decade. about very continuing potentially a
question next Shen, We'll take the Philip from ROTH Partners. Capital
expect recent of talk First a on was that but you I'd environment. it how almost. relates lot a greater one oversupply, Great it You back get your policy for a recently, has pricing. on the as to the activity customer mentioned kind could through to of kind very conversation Or UFLPA price can of love even may also, through And bifacial through [ is And decline dynamics talk bunch bookings, the feel enforcement that it to inflected customer influencing 'XX? module then pricing customer earlier, do pricing? at do go volume this that question XXX Last momentum $X.XX in Mark, the is swung a have think favor it take for of of being X removed. Can you conversations ] is exemption job And that could potential that that much or year, X about. an product. of there here inflected. the steady a aSPs have lower? The how it megawatts and Or you risk that go delivery around there's just can't higher? that second you recently? potential There's talked remain you
be could floating as Our checks on this X.X around. much suggest gigawatts there as
better know in do And so risk to the something have expect initiated market, understand but some have but to customers I So you and at transact your 'XX? deal you with in it's to many to should But level, manage -- as can protections, secondary have you market if ultimately that ultimately, it's well. megawatts how be it do your and will, you the not it.
Yes.
start has it I'll some gone into -- the as And to and -- a the X It self-consumption, to not we are megawatts that just one-off a ultimately, would second corporate -- self-generation, for raw with X, transaction with. obligation years just XXX not I'll they're challenges to those financial customer right? use an time back go who electricity leverage -- generation customer the it sure and think think for potentially it almost And to stated in me I'm first of of for looking one. I beyond customer. Look, from prepared was frame. the was it that the basically ago. specifically the to was booked it was let to was we of megawatts your it having then exact one the So distress and form potentially provide. That deal going that remarks,
rights the We contract. will on enforce the
has cited who modules the the of extent consent, of does that we'll will and given with There'll that pay is consent, honoring be question, then along a the about product in times is it. rights and asset -- that the transaction assignment permitting to markets we I one enforcing and happen, contract. underneath support is To that's again if is. our project there's to are type challenge secondary issue. Phil, standpoint. that our for marketed opportunity other the are We to If a know couple from the this an right market, -- That how the And then is spirit project go that an an that a itself now out a believe with with asked successful That because being particular for not, customer you've we'll development customers of of that if to I is in interconnection. right it then that, them delivery will work that. The state now. -- recontract take available project, to obligation see us. and with also there
it's As it you something relates very to well are that interconnection aware additions, of.
with a out or third let's We'll the a our the worked put work. try possible find transact our they Our solution customers. lot when of this the I'm in to with to take We are contracts option to could is aware spirit and have always warehouse is of try need customers to volume about to those XXXX. Their warehouse a of modules. figure not they outcome into in find delivery right talking fact this, potentially, megawatts. is that And hundreds to can a look and it that This of of a party.
book don't just maybe an in unique But and available deal to want it. continue believe that isn't its about to make reflective I have circumstances of to opportunities marketplace. ability in on that. I XXXX on was necessarily and to the the given of the you're our also that things. of that be hearing one may we talked significant other eye about sure those will keep I'm that So have But scheduled aware impact movements any it volumes we'll types any in
payback in economic we're that. a creating I and American to tethered value being the As technology, well. This the certainty our the be our doing our of well of but closely happier value work solar to with certainty mean our partners manufacturing, just who Solar that of and one and aspects be centers, to think back conversation emphasize from value value up -- that data investing and when into last you couldn't that want is And jobs, First to of is momentum, American our of customers around the lot supporting and right than forth it partnering now, America talking And clearly proposition also inherent all trends pricing to First usage toggles thing relates and and I technology, and different that try of And -- is there footprint it First week, the a uncertainty Solar. -- to and economy. and plays ASP like impact, were into and strength. contracted policy they I to of back with that's that, continue and down. mean our energy about and relationship our standpoint. they're circular carbon gets water offtake to responsible their selling the they proposition. I as other value Solar, no largest I American to our But strength it's the their that astute was having as
unique now. that And with certainty in a the opportunities don't so into still know I percent, is in the deep customers. partner the But proposition counterparty other happy XX-plus And a to more I that are that these engagement may having value pay got front a do one-off. and have that. almost Solar. basically, But to is more relationship a conversations And this at of I the we've First of our us. our equally is right XXX% a this is and This when creating, First and we're are and they said, little see as sole-sourced than generally for Solar, multi-gigawatts look, almost as yes, policy brand look environment bit helpful important. And attributes I
so and strength probably important. position we you There's why why definitely related ourselves would of to is mentioned stay pricing demand to in which so steady. And the pricing, disciplined elasticity that want we is put be some the of
mentioned We price market, to could therefore, forward some degree, the deals. We -- I step the that X to we end erosion. out. the some manage back. still can and call, chase we of If year the years go have afford between no there and book on need now And nothing we ourselves to find in of and out is uncertainty can sold
that strategy. work bookings a to -- brings. I term. value lower continue Mark not find lot acceptable And bookings we people pricing but slower therefore, would that's long the we'll you'll So more sell that we see to attributes if pace at with pricing, wanted happen, think the and Clearly, in that of drop the that
book-to-bill tether XXXX. would open as we think X:X a can I back be it company year, through if XXXX, our to, we a just we position very result exit this look, well in I And great think sell Yes. position achieve as the largely and
today's for time conference. does have all And conclude today. for you like to This questions thank We participation. the is your that we everyone, would
now You may disconnect
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