First Solar Q4'25 Earnings and 2026 Guidance Call February 24, 2026 | Safe Harbor Statement Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this presentation, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand ...

Core Viewpoint - Abbvie has filed a lawsuit against the U.S. Department of Health and Human Services, contesting the inclusion of Botox in the prescription drug price controls mandated by the Inflation Reduction Act of 2022 [1]. Group 1: Legal Action - The lawsuit was initiated in the federal court located in Washington, D.C. [1] - The Centers for Medicare & Medicaid Services (CMS) and its administrator Mehmet Oz are named as defendants in the lawsuit [1].

Medicare and Drug Pricing - Medicare premiums and deductibles are increasing, with the standard monthly premium for Medicare Part B rising by 9.6% to $202.90 and the annual deductible increasing by 10% to $283 [3] - The Inflation Reduction Act of 2022 introduces a $2,000 annual cap on overall prescription drug costs, which could lead to significant savings for retirees [1] - Major price cuts on 10 leading drugs are expected, ranging from 38% to 79%, projected to save Medicare beneficiaries approximately $1.5 billion in out-of-pocket costs in 2026 [8] Social Security Adjustments - Social Security's cost-of-living increase (COLA) for 2026 will be 2.8%, resulting in an average monthly increase of around $56 for recipients [5] - However, this increase may not keep pace with inflation, as the cost of living rose by 3% over the past year [4] Retirement Savings Contributions - Contribution limits for individual retirement accounts (IRAs) are increasing, with limits set at $7,500 for those under 50 and $8,600 for those 50 and older in 2026 [9][11] - For 401(k) plans, the maximum contribution will rise to $24,500 for those under 50, with additional catch-up contributions available for older savers [12] Future Challenges for Social Security and Medicare - Both Social Security and Medicare are facing significant financial strain, with projections indicating that Medicare's Hospital Insurance Trust Fund could be depleted by 2033, leading to potential benefit cuts [13] - The Social Security trust fund for retirement benefits is also projected to run out in 2033, which could result in cuts of at least 19% to benefits [14]

Financial Performance - Q2 2025 diluted EPS was $3.18, exceeding the high end of the previous earnings call forecast[6, 29] - Q2 2025 gross cash was $1.2 billion and net cash was $0.6 billion[29] - Net sales for Q2 2025 reached $1097 million, a $87 million increase year-over-year[23] Module Production and Sales - 3.6 GW of modules were sold in Q2 2025, surpassing the midpoint of the previous earnings call forecast[6] - Total production reached 4.2 GW, with 2.4 GW in the U S and 1.8 GW internationally[6] - The company booked 2.1 GW in July 2025, contributing to a total bookings backlog of 64.0 GW extending through 2030[30] Market and Policy Environment - The company anticipates the implementation of revised tariffs effective August 1, 2025[30] - Total booking opportunities amount to 83.3 GW, with 20.1 GW in the mid-to-late stage[30] - The company assumes the sale of 2025 Section 45X tax credits from nearly all U S facilities[30] 2025 Guidance - The company expects module sales to be between 5.0 and 6.0 GW in the third quarter[27] - The company forecasts advanced manufacturing production tax credit to be between $390 million and $425 million in the third quarter[27] - The company forecasts third quarter earnings per diluted share between $3.30 and $4.70[27]

Financial Performance & Guidance - Fluence raised its FY23 revenue guidance to $2000-2100 million[47], and expects to be close to Adjusted EBITDA breakeven in Q4 FY23[52] - The company reaffirms expected 35-40% revenue growth in FY24[53] - Q3'23 revenue was $536 million[41], with an Adjusted Gross Profit Margin of 44%[41] compared to a negative 11% in Q3'22[42] - The company ended Q3'23 with $416 million in total cash[52] Order Intake & Pipeline - Q3'23 order intake was $565 million[41], including 14 GWh of solutions, 015 GWh of services, and ~1 GW of digital[41] - The contracted backlog as of June 30 was $29 billion[41] - The pipeline experienced a significant increase of ~$12 billion quarter-over-quarter[57] Strategic Objectives & Supply Chain - Fluence secured a US battery cell supply agreement with AESC to procure US manufactured battery cells[50] - The company is on track to meet its commitments and has secured US battery supply[47] - All FY23 battery needs are in country or in transit, providing high confidence for execution and achieving guidance[64] Products and Services - Fluence has been awarded a cumulative 650 MWs for Energy-Storage-as-Transmission[91] - The company launched its predictive maintenance feature for battery energy storage on its Nispera application[50]