Q2 EARNINGS REPORT August 2025 © 2025 Shoals Technologies Group Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations; expectations regarding the utility-scale solar market; project delays; regulatory environment; the effects of strategic pricing ...

Core Insights - Enphase Energy has announced a new safe harbor agreement with a solar and battery financing company, which will provide third-party ownership agreements to homeowners, including leases and power purchase agreements (PPAs) [1] - The safe harbor agreement specifically covers Enphase's U.S.-manufactured IQ8HC™ Microinverters, ensuring that future projects can maintain eligibility for both the base investment tax credit (ITC) and the domestic content bonus credit [2] - This initiative aims to help solar businesses secure current tax credit qualifications and mitigate risks associated with potential future policy changes [2][3] Company Overview - Enphase Energy is a global energy technology company based in Fremont, CA, recognized as the leading supplier of microinverter-based solar and battery systems [4] - The company has shipped approximately 83.1 million microinverters and deployed over 4.9 million Enphase-based systems across more than 160 countries [4]

Core Viewpoint - SolarMax Technology, Inc. has entered into an EPC agreement for a utility-scale battery storage project, expected to generate approximately $127.3 million in revenue, marking a strategic shift towards commercial-scale EPC services [1][2][3]. Group 1: Project Details - The EPC agreement involves delivering full-scope services for a 430 MWh battery energy storage system and associated high-voltage interconnection infrastructure, with project completion anticipated by June 30, 2026 [2]. - The battery energy storage system is designed to enhance grid stability and energy affordability in Texas by storing renewable electricity for peak demand periods [3]. Group 2: Strategic Implications - The contract is seen as a significant step in expanding SolarMax's commercial footprint in the U.S. and diversifying its operations beyond residential solar [3]. - The company is actively pursuing additional project opportunities across the U.S., indicating strong momentum in its project pipeline and positioning itself to capitalize on the growing demand for large-scale clean energy solutions [4]. Group 3: Company Background - SolarMax, founded in 2008 and based in California, aims to make sustainable energy accessible and affordable, with a strong presence in southern California [4]. - The company is focused on scaling commercial solar development services and expanding its residential solar operations [4].

Core Insights - FTC Solar reported second-quarter revenue of $20.0 million, reflecting a 74.9% increase year-over-year and a 3.9% decrease from the previous quarter, attributed to higher product volumes [8][9] - The company secured a $75 million strategic financing facility to support future growth and enhance customer confidence [2][13] - Adjusted EBITDA loss for the quarter was $10.4 million, compared to losses of $9.8 million in the prior quarter and $10.5 million in the same quarter last year [11][19] Financial Performance - Total revenue for Q2 2025 was $20.0 million, up 74.9% from Q2 2024, with a gross margin percentage of -19.6% [5][8] - GAAP net loss was $15.4 million, or $1.18 per diluted share, compared to a net loss of $12.2 million or $0.97 per diluted share in the same quarter last year [11][29] - The company's backlog now stands at approximately $470 million, indicating strong future revenue potential [12] Product and Innovation - FTC Solar introduced an extra-long tracker designed for 2,000-volt systems, which can reduce balance of system (eBOS) and operations and maintenance (O&M) costs while increasing power capacity by 33% [4] - The company claims to have the most easily constructible tracker on the market, with features that enhance flexibility for customers, including high-wind and multiple terrain-following options [3] Management and Governance - Tony Alvarez was appointed as an Independent Director, replacing Dean Priddy, who retired from the Board [15][16] - The company continues to strengthen its sales team and enhance its market position, with multiple gigawatts of business added over the past year [2][7] Outlook - For Q3 2025, the company expects revenue to increase approximately 5% compared to Q2 2025, with a more significant ramp in revenue anticipated in Q4 2025 [18]

Core Insights - FTC Solar reported second-quarter financial results for 2025, showing a revenue of $20.0 million, which is a 74.9% increase year-over-year and within the target guidance range [8][9]. - The company secured a $75 million strategic financing facility to support future growth and enhance customer confidence [2][13]. - Innovations in product offerings include an extra-long tracker for 2,000-volt systems, which can increase power capacity by 33% while reducing costs [4][3]. Financial Performance - Total revenue for Q2 2025 was $20.0 million, a decrease of 3.9% from the previous quarter but a significant increase of 74.9% compared to Q2 2024 [8][9]. - The gross loss was $3.9 million, representing 19.6% of revenue, compared to a gross loss of $3.4 million or 16.6% of revenue in the prior quarter [10]. - The net loss for Q2 2025 was $15.4 million, or $1.18 per diluted share, compared to a net loss of $12.2 million or $0.97 per diluted share in the same quarter last year [11][11]. Operational Highlights - The company has made significant strides in enhancing its product and market position, adding multiple gigawatts of business with Tier 1 accounts [2][7]. - Cost efficiencies have driven operating expenses to a multi-year low, with total operating expenses at $7.6 million for Q2 2025 [10][11]. - The contracted portion of the company's backlog now stands at approximately $470 million, indicating strong future revenue potential [12]. Strategic Developments - The company appointed Tony Alvarez as an Independent Director following Dean Priddy's retirement from the Board, bringing significant solar industry expertise [15][16]. - The outlook for Q3 2025 anticipates a revenue increase of approximately 5% compared to Q2 2025, with expectations for a more significant ramp in revenue in Q4 2025 [18].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Polysilicon market in China - **Context**: The call discusses the recent buyout plan aimed at reducing excess polysilicon capacity and its implications for the market dynamics. Core Insights 1. **Buyout Plan Initiation**: Six low-tier polysilicon producers have agreed to exit the market, selling a total production capacity of 0.7 million tons (mt), equivalent to 350 gigawatts (GW) per annum. This is the first step towards forming a coordinated production strategy akin to "OPEC" for polysilicon [1] 2. **Capacity Reduction**: The buyout plan will reduce China's polysilicon production capacity from 3.2 mt (1,602 GW) to 2.5 mt (1,252 GW), which is below the initial target of a 1.0 mt reduction. The market is expected to remain oversupplied, with utilization rates projected to improve only slightly from 38% in 2025 to 41% in 2026, amid declining global demand [2] 3. **Price Control Impact**: Recent government price controls have resulted in a 37% increase in polysilicon prices within a month. This price recovery is crucial for the earnings of polysilicon producers, particularly for cost leaders like GCL, which is nearing breakeven [3] 4. **Investment Recommendation**: A "Buy" rating is maintained on GCL (3800 HK), identified as a cost leader in polysilicon. The company is expected to benefit from ongoing market consolidation and policy developments favoring a quicker consolidation process in 2026 [4][7] Financial Projections 1. **Earnings Scenario Analysis**: The analysis indicates that the average selling price (ASP) is a significant driver for recovery. Different scenarios project unit net profits for GCL Tech under varying ASPs (RMB/kg) and utilization rates, with potential profits increasing significantly if ASP reaches RMB 80/kg [18][19] 2. **Valuation Metrics**: GCL Tech's target price is set at HKD 1.65, implying a 32% upside from the current price of HKD 1.25. The valuation is based on a price-to-book (P/B) ratio of 1.14x for the solar materials segment [22][24] Risks and Considerations 1. **Downside Risks**: Potential risks include a significant drop in polysilicon prices, reduced demand from the US or other global markets due to trade disputes, and rising upstream raw material costs [22] 2. **Market Volatility**: Investor sentiment remains mixed, leading to share price volatility amid uncertain policy and recovery outlooks [4] Additional Insights - **Utilization Rate Projections**: The expected utilization rates post-capacity buyout are limited, with various scenarios suggesting rates of 41%, 47%, and 55% depending on global demand [12][14] - **Government Intervention**: The Chinese government's direct intervention in pricing is a new development, and its effectiveness in stabilizing the market remains to be seen [14] This summary encapsulates the key points discussed in the conference call regarding the polysilicon market in China, focusing on the buyout plan, financial projections, and associated risks.

Core Viewpoint - Xinyi Energy (XYE) reported a 23% year-on-year increase in net profit for 1H25, driven by higher power generation, reduced interest expenses, and lower tax expenses, despite a decline in gross margin due to worsening curtailment [1][2]. Financial Performance - XYE's net profit reached RMB450 million in 1H25, reflecting a 23% YoY growth, attributed to increased power generation and a 19% YoY reduction in interest expenses [2]. - Gross margin decreased to 61.8%, down 2.5 percentage points YoY, primarily due to deteriorating curtailment [2]. - Income tax expenses fell by 17% YoY, benefiting from lower withholding tax in 1H25 [2]. - The company declared an interim dividend of HK$0.029 per share, a 26% increase YoY, maintaining a 50% payout ratio [2]. Strategic Moves - XYE has demonstrated prudent asset acquisition strategies, acquiring only 30MW of new projects in 1H25 while awaiting clarity on provincial tariff policies [3]. - The company is pursuing overseas opportunities, particularly in Malaysia, where it is set to begin construction on a 100MW joint venture solar farm in 2H25, which is expected to enhance profitability in the long term [4]. Valuation and Outlook - The company maintains a BUY rating with a DCF-based target price of HK$1.50, factoring in lower interest rates and tax expenses [4]. - The target price implies a 4.1% dividend yield for 2026E, assuming a 50% payout ratio [4]. - A key catalyst for XYE in 2H25 is the potential collection of overdue subsidies, which has not yet been fully anticipated by the market [4].

Core Insights - SolarEdge Technologies and Enphase Energy have lost their significant post-pandemic gains, with SolarEdge underperforming compared to the S&P 500 Index and the iShares Global Clean Energy ETF [1] Company Performance - SolarEdge Technologies is currently underperforming relative to both the S&P 500 Index and the iShares Global Clean Energy ETF, indicating a decline in market performance [1] Market Context - The decline in performance for both SolarEdge and Enphase Energy suggests a broader trend affecting clean energy stocks post-pandemic, reflecting potential shifts in investor sentiment or market conditions [1]

Core Insights - First Solar reported strong Q2 2025 results with GAAP revenue of $1.10 billion, exceeding analyst estimates of $1.04 billion, and earnings per share (EPS) of $3.18, surpassing the expected $2.66 [1][2] Financial Performance - Q2 2025 GAAP revenue was $1.10 billion, an increase of 8.9% from Q2 2024's $1.01 billion [2] - GAAP EPS for Q2 2025 was $3.18, a decrease of 2.2% from Q2 2024's $3.25 [2] - Operating income reached $362 million, with a gross margin of 45.6%, down from 49.4% in the previous year [2][5] Business Overview - First Solar specializes in solar energy modules using cadmium telluride (CdTe) thin-film technology, which performs well in extreme climates [3] - The company focuses on utility-scale solar developers, primarily in the U.S. and India [3] Strategic Focus - The company is concentrating on innovation in advanced module technology, global manufacturing expansion, and responsible solar manufacturing [4] - Key success factors include R&D investments, a vertically integrated U.S. manufacturing base, and adaptability to global trade policy changes [4] Operational Highlights - Revenue growth was attributed to increased module sales to third-party customers, with gross profit reaching $499.9 million [5] - The Series 7 solar modules have shown improved field performance and warranty resolution [6] Manufacturing and Supply Chain - U.S. factories benefited from government support, including tax credits from the Inflation Reduction Act [7] - Tariffs of up to 46% on some products pose risks to facilities in Malaysia and Vietnam, with $3 billion in contracted international product revenue potentially at risk [7][8] Backlog and Orders - The backlog of signed orders stood at 66.1 gigawatts, supported by nearly 2.1 gigawatts of new bookings [8] - Management is working with customers to manage tariff exposure on affected orders [8] Environmental and Social Governance - First Solar promotes low-carbon manufacturing and has a robust recycling program, appealing to customers focused on sustainability [9] Future Guidance - Full-year 2025 EPS guidance was raised to a range of $13.50 to $16.50, reflecting ongoing tariff risks [10] - The company anticipates a year-end net cash balance of $1.3 billion to $2.0 billion, driven by manufacturing tax credits [11]

Core Viewpoint - Sunrun Inc. (RUN) is expected to report its second-quarter 2025 results on August 6, with a focus on sales growth driven by solar demand and challenges from increased costs [1][4]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Sunrun's Q2 sales is $557.2 million, reflecting a 6.4% increase from the previous year [4][9]. - The earnings estimate for the upcoming quarter is a loss of 18 cents per share, a decline from earnings of 55 cents per share reported in the same quarter last year [4][9]. Group 2: Factors Influencing Results - Strong sales volume for solar energy systems and products, along with a growing customer base and increased storage attachment rates, are expected to positively impact revenues [2]. - However, rising expenses due to higher battery hardware and installation labor costs from increased storage attachment rates may negatively affect overall earnings [3]. Group 3: Earnings Prediction Insights - The current Earnings ESP for Sunrun is -47.26%, indicating a low probability of an earnings beat this quarter [5]. - Sunrun holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook compared to other stocks in the sector [6].