First Solar, Inc.

Good afternoon and thank you for joining us on today's earnings call. Joining me today are our Chief Executive Officer Mark Whitmar, now Chief Financial Officer Alex Bradley. During this call, we will review our financial performance for the quarter and discuss our business outlook for 2025. Following our remarks, we will open the call for questions. Before we begin, Please note that some statements made today are forward-looking and involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We undertake no obligation to update these statements due to new information or future events. For discussion of factors that could cause these results to differ materially, please refer to today's earnings press release and our most recent annual report on Form 10-K, as supplemented by our other filings with the SEC, including our most recent Form 10-Q. You can find these documents on our website at investa.fursolar.com. With that, I'm pleased to turn the call over to our CEO, Mark Widmeier. Mark?

Good afternoon, and thank you for joining us today. Beginning on slide three, I will share some key highlights from Q1 2025. From a commercial perspective, since the previous earnings call, we have secured net bookings of 0.6 gigawatts at a base ASP of 30.5 cents per watt, excluding adjusters and India domestic sales. As a result, our contracted backlog today stands at 66.3 gigawatts. In Q1, we recorded 2.9 gigawatts of module sales, which is in line with what we forecasted on the previous earnings call. Our Q1 earnings per diluted share came in below the low end of our guidance range at $1.95 per share, primarily due to a greater portion of our Q1 sales being forecast to be an international versus U.S. product. Alex will provide further details regarding our financial results later in the call. From a manufacturing perspective, we produced 4.0 gigawatts in Q1, comprised of 2 gigawatts of Series 6 and 2 gigawatts of Series 7 modules. We completed a limited commercial production run of modules employing our CURE technology from our lead line in Ohio during the quarter and continue to deploy these modules in both commercial and field test sites. Initial data indicates the enhanced energy profile expected from the superior temperature response and improved bifaciality of our CURE technology is being realized. Furthermore, the laboratory accelerated life testing is confirming the industry's leading annual degradation rate. Our domestic capacity expansion has advanced during the quarter as we continue the ramp of our Alabama factory. At our Louisiana facility, construction of the building was completed and equipment installation and commissioning is fully underway. The facility remains on track to begin commercial operation in the second half of this year, and once ramped, is expected to increase our U.S. nameplate manufacturing capacity to over 14 gigawatts by 2026. Turning to slide four, I would like to focus on recent policy and trade developments. We continue to experience significant near-term uncertainty from the budget reconciliation process and its potential impact on the Inflation Reduction Act, clean energy, tax credits, and now from the evolving trade landscape as the administration implements its new tariff initiatives. However, despite these near-term challenges, we believe, on balance, the political and trade environment continues to be an overall long-term favorable from a first-seller perspective. While the implementation of certain new trade policies was a possibility with the change in administration, the new tariff regime imposes earlier this month has introduced significant challenges to 2025 that were not known at the start of the year. I will focus on outlining the operational challenges that tariff poses for solar, while Alex will later discuss the detailed implications to our full year guidance. We have elected to update our guidance range with an upper end that assumes the current applicable 10% universal tariff structure remains in place throughout the year. The lower end assumes both a range of non-tariff related risks to our operations as well as implications from the previously announced but temporarily suspended country specific reciprocal tariff structure. We currently operate international manufacturing in India to serve both the India and U.S. market, and in Malaysia and Vietnam, which almost exclusively serve the U.S. market. The President's implementation of reciprocal tariffs earlier this month, with rates of 26%, 24%, and 46%, applicable to India, Malaysia, and Vietnam, respectively, creates a significant economic headwind for our manufacturing facilities in these countries selling into the U.S. market. While a subsequent 90-day pause to the effectiveness of these tariffs and the application of a 10% universal tariff partially mitigates the impact, the lower rate would still result in a meaningful adverse gross margin impact to sales into the United States absent the duty being fully passed through to the module buyer. In addition, the uncertainty surrounding whether the reciprocal tariffs will be reinstituted after this 90-day pause or whether the pause will be indefinite, or whether a different tariff regime will be put in place, has created a challenge to quantifying the precise tariff rate that would be applied to our module shipments into and beyond the second half of this year. Our sales contract for international volume shipped to the United States typically include provisions that are intended to mitigate the adverse gross margin impact from changes in law due to the implementation of tariffs on modules. These provisions, which may be invoked at First Solar's discretion, come in a variety of types, including some where First Solar may terminate the contract if it chooses not to absorb the new tariffs, others, either the customer is required to absorb or First Solar and the customer is required to share up to a certain amount of the tariff before either party may terminate, and others, which represent the majority of these contracts, where a negotiated period is contractually required for First Solar and the customer to discuss the allocation of tariff risk before either party may terminate. To the extent the contract is terminated on the basis of these provisions, the agreement would effectively unwind, with neither the customer nor First Solar being responsible for termination payment, resulting in a corresponding reduction to our backlog, as well as a return to the customer of any related deposits. These provisions are intended to protect First Solar in the event of changes in law related to tariffs that pose significant economic risk to us and that could otherwise force First Solar to transact at a loss. With respect to our overall backlog of 66.1 gigawatts as of March 31st, 2025, we have approximately 13.9 gigawatts of forward contracts for delivery of international product into the United States. After accounting for the remaining volume sold in 2025, at the low end of our revised guidance range that Alex will later discuss, there remains a forecasted year-end net 12 gigawatts international product in the backlog that may be terminated based on these tariff-related provisions. With an ASP below the backlog average, and after accounting for lower production costs but significantly higher sales rates, including port-related costs, warehousing, and storage associated with the international product, the profitability of this portion of our backlog is below the overall backlog average. Note, if this first solar elects to absorb the tariffs cost beyond its contractual obligation, no termination right exists and the volume will remain in the backlog. Furthermore, with respect to our module contracts for delivery of product from our U.S. facilities, Module tariffs are not applicable and therefore is not impacted to our contracted backlog with respect to this volume. From an allocation standpoint, our ability to optimize our U.S. production with our international production to support our customers' qualifications of the domestic content ITC bonus may be constrained under the new tariff regime. as we may not be able in a position to utilize our currently available international production capacity absent customers' willingness to absorb or meaningfully share the increased tariff exposure. Our customers' willingness to bear some or all of the tariff costs beyond this module contracted obligation must be considered in the contents of the overall project-related cost increases from the new tariffs. including not just with respect to the modules, but also tracker, inverters, transformers, and other imported equipment. Given the majority of the best components, with some dependency on Chinese supply chain, solar plus storage projects in particular may face significantly increased costs. Given these headwinds, we expect to pivot our India facility away from exports to the U.S., and towards producing more product for the domestic India market. With regards to the impact of new tariffs on our Malaysian and Vietnam factories, we will continue to evaluate best options to optimize production across these sites in a potentially reduced U.S. demand environment for non-domestic product, but are mindful that we may need to further reduce or idle production at one or both of these locations especially if the announced reciprocal tariffs are put in place. That said, despite these near-term challenges presented by the new tariff regime, we believe the long-term outlook for solar demand, particularly in our core U.S. market, remains strong and that First Solar remains well-positioned to serve this demand. This belief is based on our unique profile of First Solar compared to its peers. We are the only U.S. headquarter PV manufacturer of scale, And by the end of this year, we will be the only one with a fully vertically integrated U.S. solar manufacturing presence across three states, including a large domestic supply chain, not just in Ohio, Alabama and Louisiana, but across states such as Wyoming, Utah, Indiana, Illinois, Michigan and Pennsylvania, among others. As we've mentioned before, by year end, Our U.S. presence alone is projected to support over 30,000 direct, indirect, and adduced jobs across the country, representing almost $2.8 billion in annual payroll. Our powerful contribution to the U.S. economy is due to our differentiated proprietary thin-film technology, but is also dependent in part on a level playing field given the unfair and illegal trading practices of so many and the Chinese Crystal and Silicon supply chain. As we've engaged with political leaders over the course of the year, and as recent developments have demonstrated, we believe there is recognition among politicians, policymakers, and other authorities of the need to address these unfair practices, as well as the criticality of maintaining an industrial policy that allows high-value solar manufacturing to grow and thrive in the United States and contributes to our energy and national security. One example of this recognition is the recent final determination results in the ADCVD case known as Solar 3, addressing illegal dumping and subsidization by the Chinese headquarter companies operating in Cambodia, Malaysia, Thailand, and Vietnam. Last week, the Commerce Department announced generally substantial ADCVD duties across all four of the Southeast Asian countries, which are generally retroactive and stacked on top of the existing Section 201 tariff regime and the 10% universal tariff rate currently being applied. This results reflect what we have known, that the unfair practice by Chinese headquartered solar companies put American manufacturers and American jobs at risk. And the enforcement of the rule of law is essential to securing our manufacturing base and our domestic energy security. That said, while we were pleased with the results of Solar 3 and applaud the professionalism and the tireless work of the Commerce Department, we're also well aware that the Chinese are shifting production to lower tariff regions in order to take advantage of our trade laws. Trade data published since our previous earnings call further demonstrates a surge trend of imported cells and modules from certain countries, including Laos and Indonesia, when compared to the same period of years. We have no doubt that these Chinese manufacturers are also seeking to establish production in other regions around the world, such as Saudi Arabia, forcing us into a continued game of whack-a-mole. The American Alliance of Solar Manufacturing Trade Committee, of which we are a member, continues to monitor this data. And as noted on a previous earnings call, all trade remedy options remain on the table, including initiating a new anti-dumping and countervailing duty case directed towards those countries where the data is supportive. While it's time consuming and resource intensive, First Solar will continue to engage in trade actions as long as it's necessary to support a level playing field and ensure compliance with existing trade laws. And we will not hesitate to pursue a critical circumstances determination that if imposed, any new tariffs are retroactive. In addition, we, together with like-minded allies and advocates in Washington across numerous industries, not just solar, continue to encourage legislation such as the Leveling the Playing Field Act 2.0. which would combat repeat offenders by making it easier for petitioners to bring new cases where production moves to another country in an effort to evade tariffs at the level playing field as a key aspect of the Chinese unfair practices playbook. This legislation, which was reintroduced at the end of February of this year and which was bipartisan, would also go a long way towards strengthening and monetizing U.S. trade remedy laws and ensuring that remaining effective tools to fight against unfair trade practices and protect Americans. Turning to industrial policy, while ultimately the outcome of the budget reconciliation process will determine the fate of critical supply chain initiatives, such as the 45X Advanced Manufacturing Tax Credit, and demand side incentives, such as the investment in production tax credit, or ITC and PTC, as we continue to engage with the administration and members of Congress on trade and industrial policies, we are encouraged by the response we are receiving on our message. Specifically, we continue to advocate for maintaining these key tax policies, particularly with modifications such as the foreign entity of concern, or FIAC provision, which would prevent Chinese companies from receiving U.S. taxpayer dollars. We also continue to advocate for strengthening the domestic content provision to make ITC and PTC eligible contingent on the use of high-value domestic content product produced in America. We believe these modifications to clean energy tax credits would provide significant U.S. government budgetary savings, support the administration's efforts to make the Tax Cuts and Jobs Act permanent and would represent major steps forward towards mitigating the risk of America's energy supply chain being contracted, concentrated in adversary foreign countries. We are pleased to see a growing number of Republican policymakers in both the House and the Senate recognize the value of preserving existing tax credits such as 45X and the ITC and PTC. We recognize that these incentives help, in their words, spur new manufacturing investment and ensure certainty for businesses that have already made meaningful U.S. investments. They also recognize that doing so would reduce utility bills for American consumers. The imperative of affordable, reliable electricity for American households and small businesses is top of mind not just for politicians, but for leaders of American utilities as well. Recent analysis released by the National Electrical Manufacturing Association projected the US electricity demand will grow 50% by 2050, or 2% annually, with data center energy consumption growing by 300% over the next 10 years. In our recent discussions with several CEOs of some of the nation's leading utilities, these leaders recognized the reality of the near-term significant growth in the U.S. energy demand and share our view that solar has a critical place in an all-of-the-above power generation strategy, where a diversified portfolio of natural gas, nuclear, hydro, solar with energy storage, and other technologies work together to power our nation to prosperity. They have shared with us that they are lending their influential voice to continue to advocate for maintaining clean energy tax credits and the transferability provisions associated with them, as doing so will enable greater solar generation deployment more quickly and at a lower cost than traditional forms of generation to help address the immediate power generation need and help mitigate potentially rising ratepayer electricity costs. There's plenty of evidence supporting the case for solar as a prominent component of the electricity generation mix. Texas, Florida, North Carolina, and Nevada, markets where some of the country's highest level of utility-scale solar deployment has consumer electricity bills that were between 8 and 24 percent lower than the national average in January of 2025. While the new tariff regime has introduced a new source of uncertainty in near-term product development timelines, we believe that it is unlikely to significantly impact U.S. load growth fundamentals. As the country's top grid operators testified during a March hearing by the House Energy and Commerce Subcommittee on Energy, there's still an urgent need to not just maintain, but to add capacity to meet significant demand growth. America leadership in AI, cryptocurrency, and reshoring manufacturing needs abundant cost-competitive electricity generation. Absent new generation capacity coming online there risks not being enough electricity to power these strategically important industries to their full potential before the current administration ends. With 92% of the U.S. interconnection queue being comprised of renewables, solar is the fastest form of new generation. The current ITC and PTC regime, which together with domestic content bonus, drives competitive solar PPA pricing, and First Solar with its uniquely vertically integrated U.S. manufacturing process that critically features a domestically produced cell supported largely by domestic value chain remains, in our view, the vendor of choice to enable development partners to qualify for domestic content bonus, especially with the annually escalating domestic content points requirement. Continued policy uncertainty included with the new announced universal and reciprocal tariffs may result in delays to some announced domestic wafer and cell manufacturing. Given the multi-year lead time required to build and commission new factories, the uncertain environment gives First Solar the ability to leverage another one of our competitive differentiators, delivering on our commitments to our customers. This differentiation is particularly valued by sophisticated developers seeking to secure module pricing and delivery certainty early in their project timelines. through long-dated module sale contract. We believe First Solar's established U.S. manufacturing presence provides greater certainty of delivery and pricing compared to other prospects and speculative sources of supply. Furthermore, given First Solar's profile as a U.S. company, any future domestic capacity expansion would be unencumbered by the prospects of FEAC legislation a concept based on discussions in Washington, D.C., and elsewhere, has been favorably received by certain members of the administration and Congress, and we believe must be factored into capital commitment decisions by the large majority of our prospective domestic competitors. This consideration is particularly predominant in the industry where these competitors are overwhelmingly Chinese-owned or controlled. Another factor which may further prevent manufacturers and their financing parties from having the clarity necessary to make capital and investment decisions is the fact that public reporting indicates that the reconciliation process and therefore the fate of existing clean energy tax credits under the Inflation Reduction Act may not be known until late 2025, or perhaps not until some point in 2026, particularly if the scenario where addressing tax policy is delayed to a second reconciliation bill. The impact is compounded when you further consider the fact that the Section 45 manufacturing tax credit begin to phase out at the end of the decade, reducing the window of availability for these credits for factories that are not operating. Our industry leading established US presence provides further competitive advantages under the current tariff environment. Over the past several years, we have invested heavily in a largely domestic supply chain particularly as it relates to high-value aspects of our bill of material, such as glass and steel, where we have entered into long-term contracts with domestic suppliers. It is our estimation that any new crystal and silicon competition would likely have to import significant aspects of their bill of material to support U.S. production, particularly with respect to pattern glass, which currently does not have any domestic source of supply. and aluminum, which is domestically supply constrained and priced at a significant premium to imports. In a rational market, these BOM cost increases would be expected to drive higher pricing for domestically produced competitive products. In summary, while we are facing unanticipated near-term challenges following the imposition of the April tariff regime, we remain confident in the long-term prospects for First Solar in terms of the U.S. solar energy demand and First Solar's ability to leverage its unique profile and competitive differentiation to serve this demand. Through this confidence, we must be tethered to the continued enforcement and strengthening of the U.S. trade laws and supportive of industrial policy, given the irrational and illegal Chinese trade practices. This confidence is based on our profile as America's largest and most established domestic solar module manufacturer. It's only fully vertically integrated producer, our significant network of domestic supply chain vendors, our proprietary CAD tail-based semiconductor that is not beholden to the Chinese crystalline silicon industry, and our ability to enable prospects, aspects of the administration's platform of reshoring American manufacturing and supporting the powering of the next generation of critical industries. And I'll turn the call over to Alex, who will discuss shipments, bookings, Q1 financials, and guidance.

Thanks, Mark. Beginning on slide five, as of December 31, 2024, a contracted backlog totaled 68.5 gigawatts with an aggregate value of $20.5 billion, or approximately $0.299 per watt. In Q1, we recognized sales of 2.9 gigawatts and contracted an additional 0.5 gigawatts of net bookings. resulting in a quarter-end contracted backlog of 66.1 gigawatts, with an aggregate value of 19.8 billion, or approximately 30 cents per watt. Since the end of the first quarter, we've entered into an additional 0.2 gigawatts of contracts, increasing our total backlog to 66.3 gigawatts. Of this total backlog, as Mark previously mentioned, 13.9 gigawatts as of today, and forecasted 12 gigawatts by year-end 2025, are under contracts containing provisions that, if invoked by First Solar at its discretion, serve as a circuit breaker to prevent meaningful gross margin erosion in a tariff regime scenario such as was announced earlier this month. Given that we're only in the initial stages of engagement with our customers on any tariff-related impacts to these contracts, all of these agreements remain in place and are included within our backlog as of today's call. A substantial portion of our overall backlog includes the potential to increase the base ASP through the application of adjusters, contingent upon achieving milestones within our current technology roadmap by the expected delivery date for the product. At the end of the first quarter, we had approximately 32.5 gigawatts of contracted volume with these adjusters, which, if fully realized, could generate additional revenue up to approximately $0.6 billion, or about $0.02 per watt, with the majority of this revenue expected to be recognized between 2026 and 2028. Contracted volume associated with these adjusters reduced approximately 4.6 gigawatts since the previous earnings call. Approximately half of this is due to adjusters being confirmed with the associated change to the contracted backlog. The remainder has been removed as a function of the expiry of contractual notification periods, as well as an expected delay in the timing of cure conversion in Vietnam following the new tariff announcements. This figure does not account for potential adjustments that apply to the total contracted backlog, including potential changes to the ASP based on the specific module bin delivered to the customer, as well as fluctuations in sales rate costs or applicable aluminum and steel commodity prices. As reflected on slide six, a total pipeline of potential bookings remains strong, with bookings opportunities of 81 gigawatts, an increase of approximately 0.7 gigawatts since the previous quarter. Our mid- to late-stage bookings opportunities have increased by approximately 2.7 gigawatts to 23.7 gigawatts, including 17.3 gigawatts in North America and 6.1 gigawatts in India. Increase in our mid- to late-stage bookings opportunities primarily driven by increased demand in India from the PM Kusum segment, the government-funded initiative to add solar to distribution feeders supplying power for agricultural pumps. Launched in 2022, the scheme aims to add approximately 30 gigawatts of solar capacity by March 2026. Recently, several Indian states have allocated substantial capacities to developers under this initiative. The requirement to use modules with India-made cells allows First Solar's locally manufactured Series 7 modules to qualify for deployment in this scheme. A mid- to late-stage pipeline includes 3.8 gigawatts of opportunities that are contracted subject to conditions precedent. As a reminder, signed contracts in India will not be recognized as bookings until we've received full security against the offtake. Beginning on slide 7, I'll cover our financial results for the first quarter. We had 2.9 gigawatts of module sales in Q1, of which 1.75 gigawatts was domestically produced U.S. volume. This resulted in net sales of $0.8 billion, reflecting a $0.7 billion decrease from the previous quarter. Decrease in net sales was due to an anticipated seasonal reduction in the volume of module sold during Q1. Gross margin was 41% in the first quarter, up from 37% in the prior quarter. This increase was primarily driven by a higher mix of modules sold by U.S. factories, which qualified as Section 45X tax credits, as well as the difference in IRA credit valuation between periods, partially offset by higher module production costs of domestic U.S. module volume. Despite the quarter-over-quarter increase, our Q1 gross margin fell below our forecast. Although we met our guided shipment and revenue numbers, our mix of U.S.-made modules sold was approximately 250 megawatts less than expected at the midpoint of our guidance, with a corresponding reduction in IRA Section 45X credit recognized. Approximately half of this shortfall was driven by both lower-than-exicipated U.S. production in Q1, as well as the timing of sale of cure products from our limited production run, which concluded in Q1, which is now forecast to sell in the second quarter. The remainder resulted from shipping challenges in the final weeks of the quarter, And note, as we continue to work through both the impact and module shipment schedules from our previously discussed and resolved Series 7 manufacturing issues, as well as typical early year seasonality, approximately 70% of our volume sold in the quarter was recognized as revenue in March. We did not incur any additional warranty charges from the sale of Series 7 modules affected by manufacturing issues. And as of Q1 quarter end, we continue to hold approximately 0.7 gigawatts of potentially impacted Series 7 modules in inventory. In addition, during the quarter, we began reaching agreements in principle and final resolution for some potentially impacted Series 7 modules from our initial production run, consistent within our current warranty reserve. Furthermore, as an additional update, an independent analysis and review of the root cause, corrective actions, and implementation plan for the manufacturing issues in our initial Series 7 production has been completed. Some of the results of the independent review have been shared with customers and financing parties. SG&A R&D and production startup expenses totaled $123 million in the first quarter, reflecting an increase of approximately $12 million compared to the fourth quarter. This increase was primarily due to a higher reserve for potential credit losses as a function of an increased accounts receivable balance, as well as increased production startup expenses for the ramp up of our Louisiana facility. Our first quarter operating income was $221 million, which included depreciation, amortization, and accretion of $126 million, rampant underutilization costs of $20 million, production startup expenses of $18 million, and share-based compensation expense of $3 million. Non-operating income netted to an expense of $4 million in Q1, which was favorable relative to the fourth quarter by approximately $6 million. This increase was primarily driven by high interest income from past due payments on accounts receivable from customers. We recorded tax expense at $8 million in the first quarter compared to $53 million in the fourth quarter. This decrease in tax expense is primarily due to a favorable jurisdictional mix and lower pre-tax income in the current period. Additionally, there were high reserves for state taxes in the comparative period for jurisdictions that do not adhere to the federal tax provisions of the IRA regarding the tax exemption of Section 25X credit sales. Combination of the aforementioned items led to first quarter earnings for the limited share were $1.95. Next, turn to slide eight to discuss select balance sheet items and summary cash flow information. Total balance for cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities was $0.9 billion at the end of Q1, reflecting a decrease of $0.9 billion from year end. The first quarter saw a decrease in our cash balance accompanied by an increase in accounts receivable and inventory accounts compared to year end 2024. Change was driven by several anticipated factors. Firstly, our 2025 shipment profile, with its back-ended revenue profile, assumes continuous production throughout the year to meet our contracted commitments. This profile results in a transitory working capital imbalance, leading to an increase in our finished goods inventory and warehousing costs, thereby creating near-term headwinds to our gross cash. Pending any potential impact into national production as a function of the new tariff regime, which I'll discuss shortly in the guidance section, we expect this trend to continue in the near term, but anticipate we'll reverse once our shipments increase from the second half of the year, reducing our inventory build. Secondly, we've seen an increase in our overdue accounts receivable balance of approximately $350 million as of quarter end. Within this is approximately $70 million due from 1.8 gigawatts of terminations, primarily due to default in 2024. We've not received the entitled termination payment and are continuing to pursue litigation or arbitration to enforce our full termination payment rights under the respective contracts. In addition, a negotiated settlement with a customer following a payment default has deferred approximately $100 million of payments until Q4 of this year. While this deferred payment is fully backed by a surety bond and carries interest that is accreted to the year, it nevertheless creates an additional near-term liquidity imbalance. We've also seen a recent increase in overdue AR as a function of ongoing discussions with customers related to the initial Series 7 manufacturing issues last year. Thirdly, our capital expenditures totaled $206 million in the first quarter, This expenditure is primarily related to our newest facility in Louisiana, which is projected to end a startup in Q3 of 2025 and to ramp production through the second half of this year. Accordingly, our net cash position decreased by approximately $0.8 billion to $0.4 billion as a result of the aforementioned factors. Before discussing our updated financial outlook, I'd like to comment on the challenges facing us as it relates to providing operational and financial guidance in the current policy and trade environment. particularly with the imposition of the new universal and reciprocal tariffs earlier this month. Please turn to slide nine. When we provided our initial full year 2025 guidance on our earnings call in February of this year, we provided context, including related to risks in two key areas. Firstly, the risks of policy uncertainty in Europe, India, and the United States, especially in the US with regards to tariffs and the ongoing budget reconciliation process and its potential impacts on the IRA. And secondly, our imbalanced supply-demand position, where excluding India, we were cumulatively oversold through 2026, but with an undersold position in 2025 for our Series 6 Malaysia and Vietnam production, driven in large part by 2024 contract terminations and module delivery shift rights in 2025 utilized by customers facing project delays and policy uncertainty. Policy uncertainty relating to the budget reconciliation process and the IRA remains. Policy impacts and uncertainty relating to tariffs has increased significantly. The recently announced tariffs directly and adversely impacts for solar in multiple areas, including by increasing capital expenditure costs for our new US factories. Increasing US factory production costs. Adding significant costs to import finished goods to the US from Malaysia, Vietnam and India facilities. And therefore potentially driving reduced international factory production, which leads to increased under utilization expenses. They also indirectly increase risk and volatility for First Solar through their impacts to our customers, who face increased project costs and project financing and construction delays, which may in turn cause shipment timing delays for First Solar, delays in timing of cash receipts, may reduce new sales opportunities for us in the near term. We've elected to update our financial guidance with ranges based on expected impacts from the new tariff regime. For the upper end of our range, we assume the impacts from the tariff policy in place as of today's call remaining through at least the end of 2025, including the 10% universal tariff rate, the suspension of individual country reciprocal tariff rates on all countries except China, higher tariff rates applicable to certain products from China, certain tariff exclusions for specific HTS imports codes, Section 232 tariffs on steel and aluminum imports, and Section 301 fees on Chinese-built vessels. The lower end of our range is assumed to be above, with the addition of including the impacts from the assumption that reciprocal tariffs take effect as of July 9, namely 26%, 24%, and 46% applicable to India, Malaysia, and Vietnam, respectively. Tariff and cost-sharing provisions across our contracts with both customers and suppliers vary. And while currently reflected in our guide, we'll continue to engage with both to assess tariff exposure, allocation, and ultimate cost and other related impacts. Certain other potential indirect and or unknown costs related to these tariffs, including but not limited to costs associated with any restructuring or asset impairments, are excluded from our guidance provided today. Beginning with volume sold. Our forecast for 9.5 to 9.8 gigawatts of sold volume manufactured in the United States remains unchanged. Internationally, as it relates to Series 6, our previous guidance included an assumption of approximately 0.7 gigawatts combined Malaysia and Vietnam product forecast to book and bill within the year. Given the tariff-related uncertainty associated with a solar project's overall capex and the challenges of booking new volume in the current unsettled policy climate, our updated guidance removes this volume from both the high and low end of the range. In addition, both the high and low end of our guidance range assume a reduction in capacity utilization and throughput at our Malaysia and Vietnam factories beginning in Q2 to align with anticipated reduced demand for these potentially highly tariffed modules. The low end of our range includes an assumption of partial or full idling of these plants continuing through year end. We continue to evaluate how best to optimize production across these sites in a potentially significantly reduced demand environment for internationally produced product, including through ongoing dialogue with customers. Temporary idling of production, despite the near-term under-utilization cost impact, approximately 40% of which is non-cash, provides us with optionality as we await further updates to the tariff regime as it relates to Malaysia and Vietnam, as well as the outcome of the budget reconciliation process and any impact to the IRA. So relates to International Series 7, we previously forecast approximately 2 gigawatts of the 3 to 3.2 gigawatts of India production in 2025 being sold into the US market. A revised forecast assumes total production in India is unchanged, but the reallocation of approximately half of this 2 gigawatts back to domestic India market in the second half of the year to avoid expected tariff impact. This results in an increased domestic India book and bill dependency for the year from approximately 0.7 gigawatts previously to approximately 1.5 gigawatts in our current guidance. Combined, we now forecast full year module sales of 15.5 to 19.3 gigawatts. Combined impact of these volume and ASP changes is approximately 100 to 375 million. In terms of import duties on finished goods, we forecast approximately 90 to 70 million of tariff expense on module imports. To relate to production costs, the impact of the previously announced Section 232 tariffs on aluminum and steel imports into the US at a rate of 25% was assumed in our previous guidance range. With the newly announced tariff regime, we forecast a total 2025 tariff impact on raw material imports of approximately 25 to 55 million, primarily related to aluminum frames and substrate glass imports as we continue to ramp available domestic glass supply. Our forecast of fleet average sales rate, warehousing, ramp, underutilization, supply chain LDs, and other period costs has increased by approximately 65 to 270 million, primarily as a result of underutilization charges from running the Malaysia and Vietnam factories at lower than full production capacity, and the associated impact from underabsorption of fixed costs, which are accounted for as period expenses. In addition, we expect small incremental freight and logistics charges as a function of accelerating imports ahead of the reciprocal tariff effective date of July 9, as well as due to expected 301 tonnage fees on Chinese-built vessels beginning in Q4 of this year. I'll now cover the full year 2025 guidance ranges on slide 10. Our net sales guidance is between 4.5 and 5.5 billion, which includes an unchanged range of U.S. manufactured volume sold. At the high end of the range, we assume a reduction of $300 million from the removal of 0.7 gigawatts of international Series 6 volume sold, as well as the lower ASP associated with approximately 0.8 gigawatts of India-produced Series 7 volume moving from being sold in the U.S. market back to being sold in the India domestic market. At the lower end, we assume an additional reduction in international volume sold as a function of the reinstatement of reciprocal tariffs. Gross margin is expected to be between $1.96 and $2.47 billion, or approximately 44%, which includes $1.65 to $1.7 billion of Section 45X tax credits, and $95 to $220 million of ramp and underutilization costs. SG&A expenses are expected to total $180 to $190 million, and R&D expenses are expected to total $230 to $250 million. SG&A and R&D combined expenses are expected to total $410 to $440 million, And total operating expenses, which include $60 to $70 million of production startup expense, expected to be between $470 and $510 million. Operating income is expected to be between $1.45 and $2 billion, implying an operating margin of approximately 35%. It's inclusive of $155 to $290 million combined ramp and utilization costs, advanced startup expense, $1.65 to $1.7 billion of Section 45X credits. This results in a full year 2025 earnings per diluted share guidance range of $12.50 to $17.50. In summary, the upper end of our EPS guidance range is reduced by $2.50 per diluted share, which includes approximately $1 per share of direct tariff cost impact, approximately $1 per share of indirect tariff impact to volume sold in ASPs, approximately 50 cents per share of indirect tariff impact, increasing underutilization and logistics costs. The EPS guidance range from high to low of $5 per diluted share, driven by a volume sold impact of approximately $3 per share, and incremental underutilization costs for approximately $2 per share. From an earnings cadence perspective, we anticipate module sales of 3 to 3.9 gigawatts for the second quarter, 310 to 350 million in Section 45X credits, and expected earnings per diluted share between $2 and $3. Capital expenditures in 2025 are expected to range from $1 to $1.5 billion, including $25 to $50 million of tariff impact. Our year-end 2025 net cash balance is anticipated to be between $0.4 and $0.9 billion. As a reminder, our net cash guidance does not account for the sale of our 2025 Section 45X credits, but as in prior years, we will continue to evaluate options and valuations for potential earlier monetizations. To a slight level, I'll summarize the key message from today's call. Q1 earnings per deluded share came in below the low end of our guidance range at 195 per share, primarily due to a change versus forecast in the mix of U.S. versus international products sold within the quarter. Our forecast for U.S. produced volume sold remains unchanged for the year. In the near term, policy uncertainty, especially relating to the newly announced tariff regime, has introduced significant challenges to the year that were not known at the start of the year. We've updated our guidance to reflect a range of universal to reciprocal tariff impacts known as of today. For the full year 2025, we're forecasting earnings by diluted share of $12.50 to $17.50. In the longer term, we remain confident in the long-term prospects for both U.S. solar energy generation demand broadly and for First Solar specifically through leveraging our unique profile and competitive differentiators, including fully vertically integrated manufacturing, domestic supply chain, a manufacturing base, and a proprietary CAD cell-based semiconductor technology. With that, we conclude our remarks and open the call for questions. Operator?