Recent FSLR transcripts
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| Byron Jeffers | executive |
| Mark Widmar | executive |
| Alexander Bradley | executive |
| Brian Lee | analyst |
| Philip Shen | analyst |
| Mark W. Strouse | analyst |
Good afternoon, everyone, and welcome to First Solar's Q4 and Full Year 2024 Earnings and 2025 Guidance Call. This call is being webcast live on the Investors section of First Solar's website at investor.firstsolar.com. [Operator Instructions] And please note that today's call is being recorded. I would now like to turn the conference over to your host, Byron Jeffers, Head of Investor Relations. Please go ahead, sir.
you us thank call. today's and afternoon for on joining earnings Good
me Executive Officer, Chief Chief are Alex Mark Joining our our Officer, today Widmar; and Bradley. Financial
and our this XXXX. performance During will future review we for outlook call, XXXX discuss for our business financial
remarks, then open for the we will our call Following questions.
obligation differ some We begin, and cause could uncertainties that today update materially management's forward-looking expectations. statements to to current from we no due Before information note and statements are undertake that future actual made or please to involve risks these results the new events.
discussion that XX-K press of release For with these a earnings please Form our factors filing results materially, to differ and today's the cause to refer SEC. could
can You documents at these find on our investor.firstsolar.com. website
turn our pleased over call Mark? I'm CEO, Widmar. that, to With to Mark the
of selective us XXXX thank afternoon, X, a will contracted share and start Good terminations. XXXX. us key gigawatts year for $X.XXX saw net of commercial ASP adjusters, we sustain securing to I you the XX.X of a watt, full X.X From Beginning excluding base Slide from highly a to year-end led domestic contracting, per highlights which approach some sales at This foreshadowed India bookings perspective, and backlog gigawatts. at on of year, the today. joining a
XXXX. are We gigawatts XX.X pleased to have record modules in sold of a
$X.X XX% sales in with earnings line of net billion, year-on-year. increase a Our guidance record represented our prior call
our the more in share. at sale guidance, range $X.XX per our credits, XXXX Alex in tax full our share financial Our Section which results regarding EPS, December included XXXX end $XX.XX will the an call. in low came was of year later diluted of October not provide of below which per impact detail guidance included from the after-tax approximately XXX
in first X cure producing of Series a manufacturing our X.X XXXX, lead our line and We X modules in in high-volume commissioning modules. began began new our campus. pilot produced X.X QX. capable map progressed Series perspective, perovskite center line our a form XX.X featuring we modules R&D a of in road and small new we selling a at producing factor innovation in modules line Ohio dedicated Perrysburg gigawatts gigawatts technology including development ramping XXXX, From from gigawatts of manufacturing scale and production And Ohio,
throughput gigawatts the Our gigawatts new approximately exited the of our during an as Ohio. nameplate driven of and by capacity, we year manufacturing X in growth XX continued over XXXX addition global optimization increase of with XXXX, facility Alabama over
construct the to expected year. by half gigawatts Louisiana $X.X to our second which commercial facility increase nameplate operations begin XX the capacity global of our in to continue billion manufacturing XXXX, over in manufacturing over Once ramp remains this we track Additionally, course XXXX. on of to is
megawatts a arrangement distributor. volume. will contracted X. of or was revenue India, with of through sales XXXX, current our year-end gigawatts up a $XX.X watt, Slide to most with our of backlog reached partially were billion earnings ASP of an U.S. shipments by $X.XXX contracted watt, In below we excluding At $XX.X additional of discuss of approximately call, an approximately includes to and have XXXX, offset XX inventory value adjusters or X.X we gigawatts a residual $X.XXX XX.X value net applicable, backlog gigawatts watt. This the Turning gigawatts gigawatts customer contracting new of base of X.X X.X sales gigawatts of sharing adjusters realization a -- bookings assuming net in backlog module per resulting minimum an sale recent to requirement, with contracted previous bookings. contracted bin our gigawatts aggregate watt. XX.X of our recognized our aggregate The I scale the per nontraditional approximately end include an X.X and per X.X $X.XXX of contracted utility Since $X.XXX X.X per the or net in of bookings, gigawatts, terminations. billion XX.X traditional and
year adjusters, of full to gigawatts X.X the XXXX, For our traditional including an bookings at $X.XXX utility base net were per of bookings customer our gigawatts gross watt, of X.X X.X approximately U.S. scale ASP excluding of or $X.XXX realization volume X.X domestic India per the A in gigawatt the module watt, applicable aforementioned assuming X.X sales terminations. agreement lower up of and of gigawatts distributor, were adjusters gigawatts through module to of
sales or the customer, generate volume been increases ASP majority $X.X XX.X downwards, subject total base be the delivery of the India, backlog an XXXX bookings to per the gigawatts gigawatts. may which the contracts the these contracted realize upwards of to had addition, ultimate in end of increase terminations delivered we changes. application or were technology of for module ASP adjusters, approximately aluminum QX, conditions the commodity opportunities which the in approximately of estimate but the and adjusters billion included saw to total to of our would through the we current which which adjustments, as sales contract In in road our within are achievements under to A for and number of portion backlog we contract substantial price contract generally recognized XXXX and precedent of our not our expected if not between or trade map includes steel we in potential amount contracted applicable which applicable determinations By XXXX. for $X.XX time adjust the backlog up both with X.X This include product. could and additional does a watt,
potential remain gigawatts a As X, our previous Slide from with totaling bookings X.X XX.X total of quarter. pipeline opportunities bookings in the decrease reflected strong, and of approximately gigawatts
Within our contract gigawatts subject gigawatts opportunities conditions mid- late-stage XX XX.X gigawatts X.X and X.X India. our that gigawatts to late-stage now America to precedent. decreased are in and pipeline, opportunities to by mid- Our North of approximately bookings gigawatts includes to in X.X approximately
As offtake. the full a in we recognized contracts not booking reminder, be have until security as India against will signed a received
We in our long-term we selective our continue customers points this elections, will differentiation. U.S. the previous long-dated to on are approach relationships and new terms. and contracting time we value the customer with stated need uncertainty be contractual payment given selling, continue intend to earnings bookings into from policy approach which who other to align to balanced key our now ASPs, position the And of our strength As with related recent we security of highly leverage contracted project prioritize our year. appropriately forward in environment visibility frame and backlog the call, to to
I'll now over full results. will who and turn to year the XXXX call Alex, QX discuss our
$X.X billion, $X.X Thanks, Mark. X. Beginning In prior QX, quarter. billion net sales the from increase at Slide were a
year, higher full year, sales volumes previous sold. $X.X driven the the For billion, were an net to by of compared increase billion $X.X
were earnings benefited Series $XX million our net and customer contract sales results charges terminations, year QX on discussed reduced benefited full X contract Our by by due by from prior from warranty terminations $XXX and call. manufacturing our sales customer of million the to issues million were net $XX
year compared Gross gross margin leading full in to XX% year Full the in gross was quarter. to XXXX, prior quarter of from fourth percentage a XX%. but margin margin points XX% increased X the
lower Our forecast due gross to several than was factors. QX and full year margin
received sale $XXX In of by into gross transaction approximately gross margin percentage of proceeds expected tax XXX and we QX receive discount these points million of to by a the $XXX cumulative XXXX, Visa, $XXX of with credits in in we the reflect X with transaction. carrying year December We margin resulting full entered the QX, million in in discounted which Section X value QX, remaining by QX $XX Firstly, point the cash million, to of a XXXX. credits. impacted in percentage million from
modules the the was relating Secondly, quarter estimated warranty of charges earnings as affecting $XX are driven primarily led issues of fourth modules in to impact charges believe we which warranty issues. has to in discussed which result this additional during these production our recognized million remediated have call, but million which our the the to total $X by initial prior of million that ranging issues X initial $XXX and following in million, Separate to X from of manufacturing on related, was in actions sold charge, identification Series recognized manufacturing we taken production corrective $XX QX, in third quarter. Series the
While we continue disputes to is advance resolution, there collaborate to with formal the customers that potential arise.
been of this In have sale to on prior shipment shipments This of remediation the aggregate, XXX by low-bin the resulted part identified $XX relative termination from through aggregate, the of into forecast. the the the charge, warranty QX negatively aforementioned certain of module in sale approximately of delayed to megawatts addition, modules in delay, In approximately of XXXX megawatts distributor module aforementioned of $X our as as sale product million approximately quarter XX deferral impacted to fourth a XXXX. XXX-megawatt the contract customers gross margin process. payments impacted million and inventory
grounding, part resulted X.X demurrage the manufacturing inventory. other into X and issues, in XXXX million and year-end, approximately costs we Series the from modules potentially to delays quarter as retention, logistics shipment addition, in both and incremental of QX QX. within warehousing due In XXXX gigawatts $XX large of impacted in aforementioned in Note, approximately held
of Ohio, And with Despite spare high-volume experienced unforecasted achieving capability, material ramp-related amounting the an that manufacturing. higher-than-anticipated entering which on specific glass trajectory Thirdly, parts glass to ramp-up applied $XX of cover losses In cover commitment the million Series and a in conversion including imports. approximately X to to other manufacturing associated facility technology CuRe pace and approximately our India, facilities we of to India, import the to full charges, $X cost million. Alabama in all these due unforeseen our costs, yield underutilization duty the underscoring regulations newest operating production rapid million our recent in imposed its ramp-related incurred continues plant incurred XXXX clarification line. exceed on a charges expenses we $X lastly, to unforeseen a growth consumption usage our of previous supporting U.S. in
in SG&A, quarter. R&D totaled $XXX million of the prior expense a approximately QX, decrease relative and million to started $XX production
QX related and Louisiana Now, $X expansions. Alabama above largely to guidance production of million the our start-up range, our midpoint was
count year. in material increase compared and investments R&D costs in quarter significant by compensation driven facilities due For depreciation increases This employee prior related full million, year an in the increase R&D to our to maintenance includes case equipment. million $XX and expenses prior testing -- each module primarily a to higher costs, in expense, and head operating of million and growth XXXX, $XXX our $XX totaled
by offset mainly the and the prior CuRe to lower $X for facilities reduction litigation Alabama loss Louisiana expense by performance-based These due $XX the year. increased increases were of as expense start-up partially the our $XX implementation and line compensation as the to Additionally, a from million, our attributable nonrecurrent of ramp-up lead million SG&A well million expense in program.
million, share-based fourth compensation of which production accretion million, utilization operating income ramping depreciation, million. Our million startup included $XX expense and amortization was of costs of quarter $XXX $XXX of million, $XX and expense $X and
For of expense $XX million, billion, XXXX, $XXX included the amortization million. year and of expense of income our million the million, was ramping production accretion start-up which $XX $X.X cost operating and of on share-based full compensation $XX depreciation, utilization
for QX income, $XX million expense and income and full of the QX in currency full income and million in totaled $XX million million income $XX Interest recorded other expense of $XXX tax interest losses year. We expense, year. for the foreign in
the sales. Our liabilities. and jurisdictions in federal tax state of the that our expense included taxes to tax and share XXXX a $X provision tax was based exemption in jurisdictional Section of QX per compared estimated our not on tax higher shift to due year towards for approximately of in provisions do previous million differences our Residual earnings diluted earnings mainly the and in adjustments were jurisdictions the reserve in $X.XX tax between mix QX tax credit quarter. of follow tax a $X.XX to actual increase XXX expense full
in $X.XX For the per were to earnings share diluted full $XX.XX XXXX. year XXXX, compared
I'll aggregate the of from cash, the decrease the increase balance quarter, select equivalents cash cash items year. and review year, equivalents, from billion information. the securities, a cash at and Turning summary restricted of marketable $X.X flow billion end to billion an prior balance was Slide of prior of $X.X X, and sheet restricted our $X.X cash,
expenditures, Louisiana driven collection were the an the by operating primarily $X.X in The billion, third sales partially increase cash by positive XXXX segment net cash in billion tax current made billion partially year-end Capital the XXXX. in Capital aforementioned XXXX. flows, XXX partially suppliers year. the the net in primarily flows which from expenditures to in compared the in compared Alabama was net Our proceeds receipts to and increase operating $X.X a prior left increase quarter was were offset $XXX the primarily of our prior decrease $X.X includes in sale $X.X balance billion billion decrease with in $X.X XXXX in cash proceeds were payments quarter fourth in year year segment our to by billion quarter compared the of balance Cash the driven position, to our expenditures of and operations was in billion tax the from full module $X.X of from fourth the cash compared of capital sale The flows. This module associated XXXX $X.X and and in offset debt XXX billion from to an lower cash for billion by $X.X million $XXX to the from from Section increase credits, capital module Section cash quarter. in credits year. due balance offset by expenditures was facilities. $X.X prior million
Now Mark I'll turn and policy. technology who'll the an provide on call back to update
Thanks, Alex.
now brief overview our Turning X. technology will to strategy. a provide I Slide of
way electrification the lifeblood discuss life. electricity a and further we'll where we As upon age in the the believe us, modern moment, economy that the of of is is of
thin technologies. of efficiency, require demand a energy is for future be solar diverse opportunity going the part solution we will While technologies. has to commercialize of of sources generation, next the and energy to electricity solar key that we on unprecedented cost, mix. Optimizing of believe solar and the this develop providing dependency a believe across meeting generation film the
have strategy result, a X on on we pillars. concentrated technology focused embarked As a core
first The technology. improvements around pillar CadTel semiconductor our to centers core single-junction
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to line field intend now performance results line lead Previously life the testing, to our back we successful permanently the accelerated lead Ohio QX the production XXXX, of in initial learnings intend CuRe. we expect allow of validation QX Upon forecasted to XXXX. convert convert XXXX and the of confirm in for begin to Ohio phase address field key across to time the CuRe in replication manufacturing a early to validation the to further from technology run and of to fleet our
associates technology the The is This be acquisition. film performed California second through Technology deployed on also to to perovskite by the pillar thin relates semiconductors able of our commercial research Center, at developing and supported over focused at scale. the brought next generation volar
have is new continue and a date, We we able we advance on comparable been scalable expect expected commercially benefit Ohio To product. QX R&D which dedicated of in race improving the achieve with this effort the stability viable to our work to that development are from fully perovskite operational we by our results be efforts year. and line to best-in-class efficiency and to develop believe and reliability perovskite to
create Our a third centers to different around combining Tandem range which spectrum the efficiency solar semiconductors, pillar high of module. very next-generation to a optimize X device,
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of positions well to thin-film a we technology future the a in well technology efficiency of more to through the our we our based and believe research and of X-pillar in race platform. long near energy CadTel leadership and the term perovskite are transformative into us us with to and structure. benefits compete positions silicon provides us commercialize the our technology crystalline expertise believe explored thin-film term, therefore in prioritizing the path the best-in-class a a as manufacturing crystalline fully We we scale it While CuRe likely enables believe thin-film as advancing approach And device and semiconductor. silicon previously product, possibility framework Tandem this
to and assert U.S. one JinkoSolar to last JinkoSolar call, to and China. issues and silicon IP another. Solar, landscape, LONGi LONGi subsidiary, against during moment would our sued that take patent-related Since patent China infringement for in I CSI shared the recently, we crystalline overview we address earnings in continue claims like Australia, the Canadian Solar, see in a challenge property intellectual industry. California of the to continue a manufacturers in a Most Trina Solar's the which sustainable [indiscernible] China leading Japan sued court
in patent As Solar First of portfolio through XXXX. disclosed Topcon XXXX, TetraSun a also acquisition in we possesses our
[indiscernible] Air and portfolio Australia, top Kong, European South Japan, with the issued applications Our Japan, Hong Emirates portfolio Mexico, pending Hong in The and China, XXXX validities Union, Vietnam Canada, beyond. the Union, Malaysia, are Kong, Vietnam. includes also in the United Singapore, States, includes to extending patents patent -- European United United Korea, and Emirates
actively infringing with continue TOPcon we certain to continue This same interest enforce this for U.S. our various is that that expressed consistent District States technology. TOPCon our JinkoSolar discussion of that today, a intend District portfolio. companies alleging resolving numerous have following companies United previous engagement of efforts, other with patent under rights one commercially. our advance in we commercial time, the the lawsuit the on Delaware patents. statements complaint At infringement enforce against entities, We intellectual against rights to with Court the our we to Earlier filed property our issue exploit
the licensing entered scheduled facility X-gigawatt announced a in for to TOPCon U.S. first with TOPcon's solar TOPCon that we our portfolio our by tel combined owners that manufacturers announced commence tax potential developers, again, to of commercial interest parties of U.S. patent companies risk commoditized as the to customers' XXXX. reinforces belief patents securing discussions the subject which manufacturing off-takers some must that from to unique, pivot license a challenges. First panels. solar cell first as debt the risk give manufacturer with and to highly example, PV, node as a have our PPA TOPCon, For our semiconductor lawsuit and cells, recently over their lawsuit the of The technology today, operations the highly into project financing Solar's evaluate Once exposure CAD with that expressed Solar's to decision PERC earlier equity of Talend own we agreement legal well crystalline their underscores as products silicon differentiated Jinko procuring be of TOPCon quarter could environment First this IP-related benefits in well and
Turning mandate A overall X next environment. and has reshape our Beginning Trump X. to market President about economic word that an Slide administration's the terms the macro and the in U.S. over including abundant, stable economy the defined conditions electricity expansive could production environment, policy dominance artificial of reducing power innovation, energy particularly inflation, require accelerating bringing jobs years, global American of intelligence, establishing and Champion economic back consumption, growth, manufacturing goals as with generation.
a expected the the challenges. while commission. which new time Consider will The it the X turbines, the chain meaningful that supply capacity showed gigawatts significant it over of gas grid capacity to plants ago, take expand half of natural high including as will will thanks to it in first construct demand. of takes constraints, did infrastructure. peak the to more is cost century, could preside to And large-scale shortage permit, to not most without by and take meet XXX and years power decade XXXX and come this need President to much online power be summer demand growth a as U.S. generation decade electricity is twice nuclear than Trump Forecast new capacity
innovation anticipated While be can -- decommissioned while plants small country before by scale gigawatt its cannot maintained deploy, to to not are nuclear XXXX. an simply, secure at XXXX. energy inflation, Quite commercially modular to assets economic potential long. its hiked X recommissioned order to quicker and wait reportedly, energy competitiveness option, expected the price-related and that independence, and economically are avoid in reactors and operate only be
and the Given other access speed to its cost that unprecedented China solution The cannot capacity and dependence mix. energy economics have relative through to of field. addressed should alone. significant to of factors, in and a solar that near-term innovation Congress threat level generation deep attributes growth in country's American The sources not China of from generation, power administration is part and clearly playing this must a deployment existential on market the be manufacturers is be and ensure low
importing includes of Given or This remitted tax enduring of U.S. supply high-value Chinese to fueled funded manufacturing, domestic have the value-added dominance this Considering assembly jobs. continue more China solar actions [indiscernible] of incentives. subsidy middle-class tied communist chain not to for also manufacturing laws value shops, companies prevents to is U.S. energy the set in global exclude from China. to U.S. that incentives, China's created entities to but retained secure billions low and the taxpayer-funded Chinese other by impactfully security unfairly backdrop, incentives. ensuring we assessing undermine advanced weaponization the to XXX, reduces decisive that credit, fee while not advocate programs and and like and that from only address manufacturers accessing the in it establishing overcapacity components manufacturing of concern U.S. party of number tax oversea legislation up cost large American
trade. to Moving
Vietnam, Commerce Southeast XXXX, made in call. of issuing has Malaysia, its November, our critical higher-than-anticipated Vietnam. Department antidumping while earnings rates establishing determination last preliminary circumstances Thailand and findings for cash In Thailand April Asia since released deposit for and affirmative AD/CVD case filed progress of Cambodia, the significant
cross-border CVD upon preliminary subsidies up result a solar from past space. Cambodia, nearly a a post certain AD CVD as examination. rates Commerce imports preliminary revised plus manufacturers of prior this XXX%, In tied wafer, total of rate examining addition, this now glass Chinese XXX% to X rates this month, In around CVD of and preliminary and of to examination, have rate solar XXX% the
in from concerning committee We near those the crystalline silicon such, the Chinese expect which rates -- countries. Overall, and Malaysia increase Thailand pleased import and continues countries, practices Loss all the and countries to table. options monitor on related trade as to commerce see the Vietnam respect in in data and to applicable trade and CVD with results the other manufacturers Vietnam to determinations remedy relative Cambodia, may and among is Malaysia, all cross-border term, subsidizations remain including Indonesia, trade subject
I call will back Alex, who outlook items. now to the and our turn XXXX will discuss
Mark. Thanks,
financial guided It important gigawatts growth contracting a Before at decision-making. and last discussing volume significantly an we our bounces and that business guided our I'd and to of end our and reiterate our where Continue at by of forward approach are on totaling our contract expand growth, like per strategic also volume an differentiation systems to U.S. informs the watt. focus liquidity. built approach It framework and the approach to manufacturing This base. drives guidance, year-end our to strategy long-term ASP $X.XX decade significant XX.X in the R&D nearly backlog of at profitability our exit thesis to domestic bookings. and to XXXX backlog
structures Those in frameworks, of to related security asset over technology excludes our flexibility delivery are backlog, provisions larger freight includes security across and have typically often made project adjusted reported include include of shift is volume Rest certainty typical contracts. for delivery and less bookings adjusters XXX% and signed which backed price with a and structure, contracts these Our which a to by World risk. less more specific in-class and may up and multiyear customers or and is which of X typically specific which commodity but across U.S. for timing contractual therefore, risk sites improvements Common years. within India having with fixed
XX, and/or to XX% uncertainty, had of today. over some substantially long-term customer of and our protection. aluminum as of backlog business cost macro approach we our during had our of This of is face freight form some December and commodity of As all steel contracting XXXX, industry protection backlog especially important model periods and such form
number power, advanced believe the in is and Mark fixture of speed mix the well its relatively the With are to to economies decade. long-term demand of a Solar sustained the As we profile low as for next positioned of energy there we growth discussed, energy to drivers be in cost progress a generation.
increased However, by present, in throughout is there elections expansions. also U.S. the remains This domestic environment driven significant pour November. near-term continuing largely trend some unresolved a a at at XXXX, uncertainty that still in the least uncertainty driving manufacturing policy following
but manufacturer solar is announced plans month, Indian of citing one policy a the Energy's example, earlier uncertainty. plant As in that this Premier U.S. pausing build to cell
to and our This clarity This environment Given project is time commission the has relates customer of a multiyear is further uncertainty as facility, driving lead policy uncertain manufacturing also time cell lines delay allocation in procurements caution, lack XXXX it presence position. required however, the to as manufacturing new competition. and build uncertainty, a also the XXXX. in potential and particularly increased of to high-value domestic reflected
oversold remain India, through Excluding XXXX. we cumulatively
planning inherent delay further in out we and discussed, well longer to the buying. addition as development project delivery with whilst allocation this with conditions pricing us in As in we we some historically has comfortable experienced of process more to our provides start beneficial as us window. the frame, To ensure factories. visibility demand incremental revenue delivery resilience of that the the be our is for flexibility in an Therefore, the as supply near-term dates overallocation. uncertain position undertake contracts, and for that timing with and the deliberate to we process, this get we delivery look potential larger enter is the more with can closer be the The industry to the in oversold in met providing resolved volatile available up time the providing year in are annual term, delivery us must framework revenue trade-off any previously tendency given as natural
earnings previous call, development progress through As project on from function push saw to out XXXX, we we customers schedules delays. a as of requests increasing and discussed our delivery as
and India saw the termination which contracts termination for initial the for X.X gigawatts default also the and incurred year We convenience supply domestic our gigawatt terminations including backlog, for for majority for bookings which in of was default, of X.X but X allocation of included after balancing completed. not demand signed gigawatts of were
earnings payment enforce to quarter or third our will termination seeking the termination in our contracts. rights for mentioned entitlement, terminations we not have we under full litigate or As received payment respective call the arbitrate
position driven are a respect other, in and rights; previously X employing Vietnam our Malaysia in factors: mentioned our customers part underallocation in large delivery XXXX This position the production, U.S. production. contract the an occurred module terminations strong in XXXX. to shift for by that X with one, and is enter we While Series we
it mentioned, to less module of certainty previously delivery rights, timing. framework typically livery As relates multiyear a as shift specific contracts have
As enter shift year, out gigawatt we exercised. the rights with allowing move XXXX had of product contracts option X this approximately have to of
intra-year and drive requesting half In which year, in year weighting a back-end we deliveries results. shipment of will full flexibility addition, second many the the customers with of revenue cases, in expect our
that contract terminations aforementioned those contracts. we deliver international XXXX Additionally, in intend terminated are in delivering not to product under the to XXXX, due we
of would to these deliveries typically, the shifted terminated customers. reallocating impact to While we by mitigate seek factors or other
less Europe, our oversaturation destination combined dumping In to market, of field. the policy produced for EU becoming market of by constrained product of the aim has playing to block Our India Southeast in China's strategy near the with as the the in is level EU a in trade ability action the environment and do term employ and remedies Asia relates capturing production. combination responsive Europe, product it fiscal our lack international so attractive the to the resulted the to U.S. with European of
and models expansion effect the manufacturers As applaud consequence we environment, market the nontariff by for as QX, market a in $X the while have encouraged to the its approximately to Malaysia down QX. efforts of the cover domestic tariff China's sales in expected we Indian -- from incurred largely measures government Indian as in list and as These product. dominate existing severance approved cells EU-based in eliminating are address to of shut destination and well ratio, which charges this our modules. We including India, of of the the its made XXXX million decision a to Vietnam measures, we efforts and
our Finally, international according this prospect is of environment, resolved XXXX. in there the to potential and domestic process, half is currently relating to be -- our policy second the to which advantaged to a customers to our reconciliation expected the uncertainty increased including relative IRA In until view process. public postelection generally the U.S., as subject tariffs modules not of to environment, the reporting revisions
route customers economic value to of recently customers. more long-term points-based products content their the While to The taken bonus for together, these domestic IRA the items provides enabled our remains create bonus place enable opportunities see to bonus significant guidance domestic continue near-term international the We with current create optimize qualification clearest our and policy issued content international domestic assuming allocation position. a for our This content we headwinds point-based unchanged, our efforts. finance production, way and U.S. guidance. provisions believe is in by
the as the contracts fleet, allocation In the For greater and we're greater combination First in and original delivery to utilization module global Solar, XXXX, provide expected intra year modules entirety expect together shift our module the while XXXX optimize us in uncertainty customers, opportunities delays opportunity promoting environment demand year will included rights, the leads delivery imbalanced ASP with challenging to inter with the production flexibility we our policy to of of allocation a supply-demand and versus sale optimize and the and and key increased enter project the the by markets, agreement. balancing encouraged and for of U.S. near-term experienced summary, current full in of by given long-term product, fleet quarterly while entire have guidance in maintaining termination of chain the domestic position the we international across points-based our XXXX. both supply
context our I'll next guidance. So Slide mind, assumptions Please discuss in with turn the financial included to XXXX in XX. this
phase production, ramp In in our QX factory XXXX. growth end to the our in gigawatts by expansions upgrades completed XXXX. on of to exit capacity of expected relates footprint increase and our Ohio, to it remain is nameplate In expansion we at global As to expected XXXX. Alabama, XX factory our QX the schedule
product policy forecast Malaysia a from start-up a environment, international of in half reduce year to a given this total detailed, of of this of that be leads QX Louisiana Series of India of product the X.X second factories Internationally, year. and Europe, and made decision impact X current forecast total in ramping we've gigawatts. Asian Vietnam gigawatts. Our in and to supply-demand to imbalance into combined X.X to of Combined, XXXX gigawatt X.X of newest U.S. begin the to output for just production the facility our X A the this production by production domestic forecast to the Southeast X.X
Malaysia our all our to million a Southeast factory and new of associates our Louisiana, in sales. operating XX gigawatts $XX on to Growth forecast In Alabama, full the with $XX and in U.S. expected production related manufacturing in to to India, the connection This for we're new temporarily million, the deploying of X XXXX $XXX comprises for This in reduction to by our portion forecasting production expense facilities. costs XX% combined impact to of $XX are engineering to million startup X X.X connection million and ramp destined million. aforementioned estimated production, Vietnam. of utilization income U.S. factories million costs across remainder Louisiana, Asian leads a substantially with and Note, approximately an domestic gigawatts.. of experienced $XX in approximately we market gigawatt to $XXX year are XX
factories. contributing these growth-related startup support costs, to ramp While is to of this the and expected
XX inventory sales volume sales with to and drawdown, is forecast U.S. India. X.X U.S. gigawatt to late X we the is in India gigawatts, XXXX, to the gigawatts of approximately XX be assumed Combined in shipped in X.X domestic produced module including of to which
it's to value range, sales at the India watt, in and an For per including approximately to product, below between which of forecast of domestic ASP ASP our the the Included evenly guidance the within adders. average. and and domestic and current and assumption split Series International book within ASP product approximately backlog is freight full year we $X.XX an recognize gigawatts year, the expect X of certain commodity approximately international India Series X.X bill X technology,
perspective, cost watt, full following per key year yield we $X.XX quarter our technology loss from a factors: utilization to end From $X.XX expected on XXXX, under the of of be quarter. XXXX, by watt Firstly, ongoing per run XXXX per is Ohio, on approximately a approximate impacts an over cost to increase watt anticipate produced by X in from driven fourth is the line, CuRe and manufacturing the high-volume which conclude forecast first
the as forecast less QX expected forecast factory the ramp to exits phase in Alabama, continues as occur for than produce in to is Secondly, at but normal of production remainder XXXX. the capacity
an to production inventory increase expect capacity produced until normal such capitalized We cost see but into reached. is in
toll we domestic X/X to as fixed product our to India cost a point as watt both relative anticipate of sites a mounting increases relates function sales. in fleet impact which a structure cost cost of for the fixed tariffs expected mix a to basis, from XXXX of a factory. well capacity half U.S. watt it factories Vietnam per made XX%. recently structure higher of Vietnam blended production per coming headwind is the versus higher as lower rate from production and X announced of tracker lower see with a is of production U.S. U.S. scheduled XXXX, increase of at relative to combined the Fourthly, total the versus is U.S. at increased the Thirdly, imports gigawatt Malaysia leading testing the XXX a higher our function Fifth, production, approximately production aluminum the destined factory, we a the throughput. India expected cost lastly, production cost negative cost imposed these aggregate to reduction for market gigawatt Malaysia, on and decrease international in this approximately Section In as cost into India on X at used as for expect online. export at And our
is duties products are Malaysian import items our rails produce a the in domestic after Series X tariffs form of tariff the of into borne [indiscernible] of Given manufacturing whether administration with process new product for to of countries if U.S. for exclusively Solar the that imported to from they The is modules contracts or Note, also announced importation reciprocal the products. First the protection form our sale are by our that either imposed really from tariff module American the frame assessing for have tariffs applying customers. international some deliveries the ultimate frame. rate the which aluminum supplier, shared were in machinery typically absorption implementation the on U.S., undergo currently customer
of earlier of tariffs, Related to the concerning export X China's control tellurium critical word month. containing announced this topic Ministry products the the on Commerce by including minerals
have, mitigate sole over products tellurium, used sourcing products to tellurium containing the mitigate certain and and tellurium among process, China additional a the our production module our position cadmium strategy to diversify raw dependencies to key supply undertaking in containing sourcing a our we China including tellurium. telluride, past chain to for are Although on in strategic materials decade employed measures
States that tellurium. to development this development the continue decision, materials, While be any evaluate from copper strategic mining we accelerate impact there of China's need operational of processing including emphasizes the urgent and byproduct for to United its will latest the
what cross above warehousing, cost underutilization long-term assumptions. costs watt, $X.XX our average to previous ramp per Moving of but fleet from a we're and other sales reduction forecasting period sold, approximately freight, XXXX
impacts. largely seen rates, although relates protected we've from some contractually sales we it these in are increase to rates, freight So
charges as do some the from we our increase freight India However, to volumes we sold U.S. expect incremental
of expected warehousing capacity profile increases election. time, the to XXXX. and the have rates an in risk constraints sales seek which At by fit given November following tariff the increase a domestic driven surge capacity imports a in increased, same of of in shipment warehousing in combination and manufacturers the mitigate in are manufacturing the increase referenced production call, driven well challenges earlier as back-ended expected a our seen in have to needs balancing We as our by storage result allocation
aforementioned As warranty estimated manufacturing it losses $XXX relates million we've X to issue, $XX to million. the of Series
forecasted approximately gigawatts costs full year period and inventory. of held sold as Series noted, to X.X approximately XXXX a modules X As of cost in potentially we in impacted year-end, $X.XX. was Combination results production
differentiator, operating position, a From and a Series remains both pursue as well of including X in been growth ended funding liquidity to X enabling balance has and capital sheet strong strong strategic volatility structure opportunities, periods flexibility a from able us perspective, growth. weather We flows payments providing December Series to external XXXX from the our announced our as flow capital XXX XXXX with forecasted from finance be credits currently requiring coupled of and with residual and cash advanced to orders, we module to expect XXXX in cash sale of our Section module without tax financing. sales, operating programs
previous a our relates sale monetization. no these party. third credits to for and we'll are Section XXXX, credits, the evaluate of forecasting it But earlier XXX for continue and therefore, these as not assuming credits the So to in of XXXX a we sale options discount to in valuations value to years,
$XXX our billion advance development on our to commencing XX. $X.X Gross in to underutilization $XXX is million XX%, in which expenses $X.XX expected billion costs. and or and between to billion R&D Section structure, fixed guidance expected million guidance to XXXX. operating of count on billion expectation XXX $XX while due of $X.X to invest sales adding R&D tax our expense line. head R&D our and ramp $XXX margin ability is is XXXX, primarily billion. to now be to to total team and year SG&A R&D innovation $XXX billion includes million $XXX research further and million leverage increasing perovskite initiatives. million versus of the center to total at between to $XXX approximately million the million $X.XX Slide production. $X.XX expected is versus Net XXXX and largest to full $X.X operations credits expense ranges million I'll cost cover demonstrating $XX expanding
startup Operating $XX is of expected is combined to expenses, to million $XXX expected to and $XXX be to billion to plant credits. of $X.X and billion to total income an to million billion $XX and expense of million million combined between million R&D to and Selling and $XXX $X.X $XXX is which are production $XXX operating and margin $X.XX million $X.XX expected be $XXX total implying million includes SG&A and expense expense XXX million. inclusive approximately operating costs between of start-up items. XX% ramp Section nonoperating billion, of
expected to of are We programs, half to of expect perspective, CapEx remainder be R&D maintenance. quarter earnings with and resulting guidance Net to Zero. diluted by the cadence year earnings Louisiana is associated XXXX Capital of gross full module from to Approximately $X.X from in per in results and expenditures Full year $X.XX. earnings Note range in at interest between $XXX income, which margin similar and forecast year driven relates million. other plant tax income capacity majority XXXX interest expense of to expense in replication with $X.XX an share share and expect range of a is diluted quarter to X.X million between This $XX full technology we $XXX gigawatts billion. $XX. our expansion, per X the first $X.X to our the sales first average, to billion
be anticipated cash Our year-end is billion and to net $X.X between balance XXXX $X.X billion.
the credits as with liquidity as we throughput tax largely to as with today's significantly the of facility case below Growth principles lower our expectations, high-volume our strengthened million in result XXXX, call. associated from $XXX connected of our industry-leading strategic Slide liquidity summarize of we higher ramp this decision-making well the incurrence sheet. the I'll year EPS Alabama connection full while was in messages Turn of came conversion balance and to and U.S. now cure XX. costs to our Section key framework. our attributable in achieving the initial to yield growth the of With diluted of as and discrete our pursuit costs manufacturing respect manufacturing expand to sale losses in XXX
with net the perspective, impacting costs the guidance That X increased an We $X.XX sales initial logistics delayed year. resulting XXXX came shipments, production driver XX.X modules. the range for Series connected manufacturing per the of ASP in cost revenue XXXX other The a affecting a said, margin with from associated from with issues watt. largely discrete with within totaling year our backlog, exited of maintaining gigawatts, average full contracted significant year similarly
full EPS our year over represents XX% addition, results. year prior diluted a result In the full XXXX increase
strength position grand unchanged, of U.S. confronted with are in underallocated are production, position respect we rest with the uncertainty policy our year in assuming key with we leading international current our long-term with global us domestic XXXX, products increased our production. the the fleet. our reduction to encouraged industry, associated insight the an markets, remains a That are production to with to Asian the in of although environment the by to together For Southeast the we the of content said, respect and in optimize provisions opportunities costs the construct of
forecasting For an an would full $XX, $XX increase diluted earnings represent of which year over XXXX, midpoint approximately to guidance the range per XX% XXXX. share we're of
open With call Operator? the and prepared that, our we conclude for remarks questions.
Lee, Our Instructions] Goldman question Sachs. Brian today [Operator is first
off. start to wanted I
year playing safe maybe would in just that? environment where Asia around through realize? to question walk over of kind seeing this you're that on you volume some blend. What take shipment X be on second of you harbor to question, that how allow through last uncertain as of any how back is lighter is of what is output the customers harbor, of move to doing guidance, much out, really moving how potential. kind It I tied through First up? Mark, guidance Maybe range. focused and But Alex, talked a little just left revenue to the uncertainties the I'm selling you tied? than of And safe are ASPs then advantage Southeast And turned seems you from is pieces. expecting the know usual. there the India Are gigawatt customers potential year? even process much your and
impact if through it happening the year? and if on around your curious any would as thoughts later of potential is what did see a you Just that
safe and safe the talk about -- lot take the shipment let weeks look, a year. the The I the And safe think revenue. last the I'll harbor. right everybody lot question, end meeting particular. -- have harbor of over Brian, guide several has harbor already a Alex on The as I'll is of look, now, customers the of last been people of in
them have customers their but transformers harboring. like, our safe most high-voltage the of used have used Some of equipment to do and modules,
of so harbor of of under And But much that. safe the a execute And of multiyear our they've most in XX is that everybody guidance. there's got uncertainty. kind a position portfolio so now they right against kind would
change in time. this anything at not point Let's
So you the they're back the move from continue some implication every to to for or step potential or new and into are be seems a think, projects, day, there something clearly, to and to code that have out I running coming obstacles reason administration going reassess reevaluate. some have could as headwinds that
from we contract in comments, for an that customer, into of risk. to module. allocation could to get what the know requirement change lens. forward. Alex that for certainty, optionality But have Today, And that that do around as potentially uncertainty conversation of you which which allow imposed. of got be do the take his then And of want differently it's get certainty our want point don't into clarity as a a will pretty an of modules. project could customers I've largely get the tariffs, going and this you conversation and are can have happens domestic well, the if once still it to what they there's if domestic certainty optimize implications we sooner If mentioned more a we a that how we at to the the risk I and to it has if include amount also don't want the to thinking us tariffs latitude into And greater level. of a if now in talk neither going in a conversation, around could done achieving We'll to can content, one to evolve talk that? to which right with have risk mean, better. of of, other that the take required biggest Today, wants is, how And needs I look forward. now The product better But environment we point international comes we now. don't knowing XXX% right industry we right and product that take going the then move additional commitment counterparty clarity and optimization, through -- move now. that to just customer you we with conversations and exactly sale because we're than what lens. well, As to what international look example, That's But modular with that thing from much tariffs domestic on agreement, that right you have domestic conversation that our is of with at for start anyone anything our this then a that from neither got then that is I share because step uncertainty. I would certainty, okay, it both who's generally to industry the risk. risk. achieve are get construct into really as and we
for been say, would a there's harbor. I lot activity yes, of So safe
very that saying, out I "Hey, of are, determine bodes just move the to to we we we how projects have forward built that to now, be year. of of are amount can uncertainty think But there." amount stay have well we think sort continue I this people once where certainty, let's for to from continue right assess, somewhat
], so about half-half Brian, International year a that's And X. Series X.X there's we domestic unsold the [ shipment for XX We [ on range. about and there. of so gigawatt in XX X dependency piece, to said split between we said the it's gigawatts India ] guided
of U.S. on some that, top uncertainty So around you've got
[ X.X in ] with we the U.S. had [ X.X think I guide ] to
run the end of it's always full more rate risk to run year not a year, back So a split [ from X QX the other at I across risk things have would and back But the gave full the that slipping And say, year, end is the and ]. divide in as can general, number. even the see you given you the we were we by year QX, if we is a haven't back there's risk you very out. end of
of the X.X I'd related there's delays those believe of international Generally, say That's the warranty and little the of there's profile that bit for questions dependency resulted book ongoing U.S. follow-on shipments. some resolved, overall with said adds bill in a there's disclosed. get some has and to negotiations certain then also issue from just and risk. in the We which we will year, also customers We that year.
the I just just a add at sell-through would won't for have Brian, as recognize And and of don't say, until of to payment India assumption works. that, the in risk current think much we we market volume I generally on India. the security. the market I India mechanics -- And price booking XXX% there's have indicated, our don't we for there's if India, just how plan know we the the
this much And or year year some assuming we So of this domestic into exit not that international mix I product. in second half of there. we will risk with of think optimization allow will that better second as we the there's are of really there as this be clarity half enter and the
that how that's not bill we anticipate to a of it's clear and volume. So for and book lot
Shen, Partners. ROTH from The Capital Philip next question comes
A few topics here.
your they have indeed the X First words, results. About heading and you In modules are the your issues? line earnings. street was to solved other impact the production expenses that a one lot expected. perform the warranty. the coming guys warrant Series on There confirm could as speculation you of Can into today how on off expected
meaningfully higher, that the risk million? suggests much may can be overall XX-K would So capped expense expense Is higher than warranty case? What quantify that's the higher? first the warranty is be the million. so, that category. the $XXX If indeed how $XXX Your at you risk
can is in back for guide, simply, And degree very here finally, included to little share bit the the topic you just are about Second warranty then a here. what tariffs guide? to
some like are the bankrupt could have by production these that for the X% customers impacted lower the bought modules of that X% be Some systems with lower sharing of some us production. They're just production and might of lower the projects.
you buying to Solar may again. left be the these systems projects First be may and with warranty, buy may reluctant underperforming be while and down So modules customers
know Tier that's So really I these a what X lot. may -- are that thoughts left with I situation some it. these on underperforming appreciate utilities this your challenging IPPs customers, and be of regulated projects. including
All Yes. right.
we're So I'll the I November we it that of a engineering and that even and last before earnings start last was corrected, couple call. some margin around call, identified fixed actually that in is there of already One performance off was the on changes one some in implemented we impacts, the And items. So calculation that. our identified, of right? the think the warranty. Phil, the That
our was [indiscernible] that X ramping the didn't the the Alabama other Series for water. factories, didn't all the setup in example, which were it our in items impact are have The impacting factory, just the layout. And on that underperformance, same up, again, particular, time -- of
comfort the customers have cause to is and would the term corrective That the third impact based the our financing now. like highlighted corrected Will of else used product an and a third-party products X right of have the come shipped in the additional dwell in accelerated have -- and did parties to Series been is across which expect Alabama. engineers obviously, items like. So in implementation. But also being that assessment testing and We've have product product. off that now we and action of right fleet, for didn't customers ongoing produced, the to still validation, of to study are out those perform we line with of a independent the we'd being because on help that do root our party specification coming expectations here. we everything to provide independent the in near will that and some
little range range that. bit understanding of now there's the of right to indicator we being have the the would of again, The we underperformance, look and currently range -- laboratory that still testing done the of better more off low the within measurements, a end best And based estimate still the likely have -- we've a that it's the we of our the than have range on is have, the best So don't because estimated. of done range work that we the information we range. the not then of be
range again, the for a information have million. point that's in $XX up to $XXX at There's basis the And the It's that's best So reserve. this we time. . million.
it not First Solar's U.S. tariffs or to either Vietnam or modules we're into As relates tariffs, coming India. on any assuming product Malaysia, coming the from
that tariff rate, which charges carriers. even some with about some Chinese-owned have that to into assuming adverse subject other will impacts additional are on We week across aluminum, components tariffs, came the trade I assuming imported this we believe of for is our or be U.S. example, that we the XX%. mentioned, There are do like noise Alex that as aluminum other will recently are manufactured be associated
And are assuming so we adverse that impact.
And we results, that. where for Phil, particular. had freight standpoint. know is headwind terms to cost adverse where target as ocean some -- that right play see, see we customers We about as of right generally took will the on extent that see XXXX the same And an carrier deal side that our we're be million house. out I pretty is Look, cost we times. way was think, absorbed how continues a we going the tried customers, stated of we'll this partnership. both on X, this. for there's market, times house. we abrupt to in But have to $XXX moving the we relates XXXX, something have to substantial the total we've in X, X we our be it changes the to impact before, on increases we disclosed had standpoint, aluminum, to of our we how our now. a what it's there we going up for true in of and would could stress look, warranty most with in had substantial our containers, this now, That's had and our we from see with it exposure for sides obligation. it and to all relationships And the of So the financial commodity that. accommodate that Look, impacts which stress
customers thing year. to increases on I We commodity still the have that on will things obligations. to cost through will come within and this input that XXX% The around and that going an I'm some contract. a are some my our our and warranty of customers. with there's XXX% behind that contract, that which my changes with and technology and costs, obligation stand which we contract, have going with take parameters of absorb contract deliver there's fulfill hits that's other which is frameworks our measurement engage associated the and the tariffs Same and of we
accordance they assess long-term of Solar try that very we field and agreed stand We'll has with That's what really we to just We'll framework And relationships and counterparty a not obviously, the see have shortfall and within terminology. First and can behind customers we relationship. corners substantial manage that the counterparties. it customers credible frames you to between have If think mean, the been the product. see product, having of that and get this value a commitments we that's that any by. damages do we still long-term X the and I consequential journey. of we to customers warranty the and our expand into try partner, of technology that using as on And everything we'll stand don't to operate a to to our have. again, a a to the impact have that see long-term the X us. I adverse and in on behind I our our beyond the
We'll Mark take next Strouse, the question JPMorgan. from
produced of tracking want per the ago and cost the The you're I ahead Yes. about Analyst expectations Day years your produced to guide XXXX difference of in it sold. watt X.X watt so. cost per $X.XX, to back like between or go from seems
Day, you targets think Just Analyst laid -- XXXX I about well. the trying to as out at think
sold, to opinion, still if watt following Just that to that. you the then And track this kind cost extra outperform transitory. think how lot to be seems year, in of $X.XX, you're about a that, the my think on fairly number. per of
out to and looking you guidance, per produced XXXX, cost XXXX do Looking close? watt not sold but per for cost formal watt look think
Yes.
on say the go in So we or you high-XXs. I back mid-XXs if were basis, down produced somewhere a think
to certainly at in it's And time we be where weren't some potentially close expected it's Analyst of Day. but aware the produce the to side we pretty this challenges year, looking at time on have slightly do of year So back Day. the Analyst that the over wouldn't we have been this
from back you more into making the products U.S. coming go India So to
piece of a in impacts seeing, of some cost you X produced factories. production the If tariff about Asia our to we're in look significant curtailing gigawatt what Southeast the that at related there's
So it's cost but it or produced cost not does enough higher. underutilization, our at comes that that period to mean a the into curtailment of is
you there So you go see lower costs as fixed absorption of throughpu. the going into
where period be. we a on significant expect is produce seeing to would the close to relative So where we're What it side, to costs relatively on the we be. expansion you're thought we
gigawatts, million If A of us for you look $X.XX period a roughly watt. at XX that, across has that's been sales so. $XXX $X.XX or around historically costs rate
is would that roughly end. So of range of sales about million in rate. historical $XXX the somewhere the numbers That's where
you talked $XX all expenses around bucket. some It's count, The some and cycle about, that generally has small. warehousing. have warranty. of significantly is and got ongoing look that costs about the above variance included overhead of then number. in other noise million we've And scraps that period a you've OpEx, ramp hedging in It's happen, that's we that we some versus piece bit line that in that -- LCM, sits sits specifically, so that at pretty little If got that changed big
you go back significant have we a Analyst warehousing. didn't to So of the if Day, assumption
centers, do the think you you at but million. bringing say right of I ourselves as now in customers as optimizing storing that finding $XXX generally XXXX find saw across the to looking lagging that as year, this I'd move significant loading in we around of a volume through 'XX And that's maybe number we of with we end of If of may product at because delays the going fleet, and because we things that, of the And to some we associated product have U.S. shipment we the happening. we in issue saw significant some the transitory. portion back-end the of distribution that right into be strategy the a have from approach warranty talked warranty inventory we that be look close to of terms issue of then are into about. a get that warehouse XXXX, is still function said,
relatively rate means shipping across consistent our creating at And lagging the have that's and year consistent deploy inventory, year factories, the and the XXXX XXXX. as was shift customers we that which that in we're XXXX, that sold storing even of push if there coming same the back, We product produce can rights for about into that effect. we try a then volume within talked under a fact in not
unusual. not So big is change cost here pretty cost around the is is warehousing. The residual for freight that within piece standard. The piece -- what period sales
the a now So thing in little Yes. on as highlighted, just it The we that I CPW I've got changed that of before. only I'll anticipated wasn't aluminum the bit things tariffs terms right? little have tariffs -- now bit, in mean, because add core my just a already terms of
So that a is to close $XX million on costs. impact our core
to scaling we it our basically, of in to glass has one, close be were I to just decommissioned other just so become -- up into bring incremental continued bit mean right, we're continue has costs almost cost the pushing get to that of understand, highlight they challenging, the And in put we're back just that's XX% people that, of operations little The There's to U.S. a is market we're production. glass headwind. to scale for out that produced and been as U.S. with perspective, associated a facilities
suppliers. see we're the more also within glass anticipated little higher cases, higher our gas we we're on there's brownfield extent in to what taking assets cost of and glass the driving bit pressure they're I well. that on starting natural bit that also we than a then we our anticipated. driver on but And But had a little gas, natural cost think greenfield prices. we're commodity consumer, So in to large still glass some -- see a could cost our range a that we framework of commodity pressure glass with as agreements see
to component take another So into consideration.
And our ladies and gentlemen, does that question-and-answer conclude session.
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