T1 Energy Inc.

Good day, and thank you for standing by. Welcome to the T1 Energy third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeffrey Spatel, Executive Vice President, Investor Relations and Corporate Development. Please go ahead.

Good morning, and welcome to T1 Energy's third quarter 2025 earnings conference call. With me today on the call are Dan Barcelo, our Chief Executive Officer and Chairman of the Board, Evan Calio, our Chief Financial Officer, Jaime Guali, our Chief Operating Officer, and Otto Erster Bergeson, our SVP of Project Development. During today's call, management may make forward-looking statements about our business. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expectations. Most of these factors are outside P1's control and are difficult to predict. Additional information about risk factors that could materially affect our business is available in our annual report. on Form 10-K filed with the Securities and Exchange Commission, and our other filings made with the FCC, all of which are available on the investor relations section of our website. With that, I'll turn the call over to Dan.

Thanks, Jeff, and welcome everyone to our third quarter earnings call. Let's turn to slide four, please. Many of you may be new to the T1 story this quarter, so we'll begin today with a brief look at our current position in the U.S. solar market. With five gigawatts of annual capacity at G1 Dallas, T1 is the largest American manufacturer of silicon-based solar modules, and we are the second largest American-owned solar module producer in the U.S. But we're just getting started. As we'll discuss on today's call, we are advancing our plan to start construction of the first 2.1 gigawatt phase of our U.S. solar cell fab, G2 Austin, before year end. G2 is the centerpiece of our strategy to build the first end-to-end domestic polysilicon solar supply chain in the U.S., This strategy is intended to competitively differentiate T1 and to align the company with the growth dynamics in U.S. power markets. Now let's move to slide five for a closer look at the big picture developments which underpin our strategy. Today's theme is Powering America. With U.S. electricity demand growing faster than it has in decades, we are positioning T1 as a homegrown enabler of three increasingly evident macro trends, accelerating U.S. AI development, on-shoring of advanced American manufacturing, and strengthening American energy security. These three trends are the thematic pillars of T1's investor's case. Energy is key to unlocking the future of AI. New data centers now routinely require gigawatts of electricity, and they are growing exponentially more compute and energy intensive. Energy has emerged as the leading checkpoint for AI growth. The U.S. has the natural resources and talent to bottleneck the equation, and T1 plans to contribute by bringing the capability to produce leading-edge solar technology at scale domestically. T1 intends to power American AI by investing in American advanced manufacturing. The reshoring of manufacturing is another trend that is driving electricity demand growth and presenting T1 with the opportunity to strengthen critical U.S. energy supply chains. We have ramped up domestic PV module production at G1 Dallas. We are advancing towards the expected start of construction at G2 Austin, our U.S. solar cell fab, and we are expanding our U.S. supply chain through our recently announced partnerships with Hemlocks Corning, Next Power, and Talent PV. We have entered an era when control of digital intelligence and AI infrastructure will determine the fate of nations. This underscores the strategic value of domestic energy capacity, and we believe T1's plan to build a domestic EV solar supply chain will contribute to U.S. energy security. In addition, standing up a domestic end-to-end polysilicon supply chain should strengthen our national ability to produce semiconductors, advanced materials, and grid and space technologies, all of which involve common inputs and production processes. Turning to slide six, let's drill down into the AI power theme. If the U.S. is to maintain its lead in AI, we need more electrons and we need them now. Leaders from the technology industry have suggested the U.S. must double the 2024 pace of electricity additions to 100 gigawatts per year to close the widening electron chasm between AI-driven demand and power availability. At T1, we are proponents of U.S. energy abundance. And we endorse the strategic merits of adding new natural gas and nuclear power capacity to our grid. But those technologies can only play a limited role in the near term due to swollen order backlogs, permitting red tape, and construction cycle times for new generation facilities. Solar, coupled with battery storage, is the obvious choice to bridge this gap as a rapidly deployable resources scale. The dawn of the AI age is a company making opportunity for T1. We have available capacity at G1 Dallas, where we recently eclipsed the daily production record, equating to an annualized rate of 5.2 gigawatts. As we look to 2026 and beyond, our plans to integrate upstream of G1 will position T1 as the first company that can offer hyperscalers and their partners a high domestic content polysilicon based top consular module. Now let's move to slide seven for an update on T1's business. Shortly after we announced our preliminary third quarter results in October, we closed two successful equity capital markets transactions. T1 raised $72 million in gross proceeds from a registered direct common equity offering with high-quality new and existing institutional equity investors. And, as previously disclosed, T1 entered a $100 million commitment for the issuance of preferred and common stock to certain funds and accounts managed by Encompass Capital Advisors LLC in connection with T1's acquisition of Trina Solar's U.S. manufacturing assets. Last month, T1 elected to make the second and final draw of $50 million pursuant to this $100 million commitment. This infusion of equity capital positions T1 to begin the first phase of construction at G2 Austin during the fourth quarter of 2025. Although we initially intended to focus on raising debt prior to an equity tranche to partially fund the first phase of construction at G2 Austin, these two transactions enable us to raise capital at attractive terms while we engage with prospective debt investors and advance the traditional project financing. The additional trading liquidity from a higher share count and market capitalization also provides opportunities for us to add new shareholders who were previously unable to trade in our stock. At T1, we are focused on shareholder value and as equity owners ourselves, we are highly sensitive to dilution, so we continue to use equity judiciously to fund growth capex while we optimize our capital stack. Our capital formation progress positions us to add G2 to our expanding domestic polysilicon solar supply chain, which now encompasses a growing network of American partners. In August, we announced an expanded polysilicon supply agreement to include production of American-made solar wafers with Hemlock Corning. And in October, we signed a framework agreement with NextPower for the provision of domestic steel frames. And we made a strategic minority equity investment in Talon PV LLC, which is building a U.S. solar cell fab in Texas. These partnerships are foundational to T1's mission to build the first integrated American polysilicon solar supply chain. Our expanding partnership network and the domestication of our supply chain are also key elements of T1's policy playbook. As we highlight on the second quarter call, our team continues to advance the DeFi income process to maintain T1's eligibility for Section 45X tax credits in 2026 and beyond due to requirements in the OBVB. Moreover, our commitment to invest in advanced American manufacturing and critical domestic energy supply chains are consistent with some of the administration's top priorities. Turning to our operations, we continue to ramp production and sales during the third quarter at G1 Dallas, our state-of-the-art solar module facility. During the fourth quarter, we expect to generate significantly higher sales in EBITDA as we ship modules under previously booked merchant sales agreements. and as we sell down inventory to customers who are clearing out 45x eligible modules before year end. As a result, our 2025 EBITDA guidance of 25 to 50 million is unchanged. While we build our business in the U.S., we continue to advance our goal to generate value from our legacy European assets, which are attracting interest for repurposed data center applications. We look forward to providing updates on this initiative as warranted by our progress. As we do on each quarterly earnings call, we have a rotating guest speaker from T1's management team to expand on an important topic. Since this quarter's theme is Powering America, I'd like to introduce our SVP of project development, Otto Oerster Bergersen, to provide an update on G2 Austin, which will be the centerpiece of T1's domestic supply chain and where we are approaching the start of construction.