Mitch Ennis | Investor Relations |
Mark Widmar | Chief Executive Officer |
Alex Bradley | Chief Financial Officer |
Philip Shen | ROTH Capital Partners |
Joseph Osha | Guggenheim Partners. |
Keith Stanley | Wolfe Research |
J.B. Lowe | Citi |
Ben Kallo | Baird |
Good afternoon everyone and welcome to First Solar’s Fourth Quarter 2021 Earnings Call. This call is being webcast live on the Investors Section of First Solar’s website at investor.firstsolar.com. At this time, all participants are in a listen-only mode.
As a reminder, today’s call is being recorded. I would now like to turn the call over to Mitch Ennis from First Solar Investor Relations. Mr. begin. may you Ennis,
well will afternoon associated company thank announcing issued full the results quarter Good [phonetic]. for us. copy are A its a for Alex me Widmar, Chief Today and Mark update. of as financial on XXXX Solar’s the a release Bradley, Financial year its everyone then you. financial available guidance Chief are discuss you First providing XXXX full website fourth and and results press joining fourth today as at presentation XXXX. begin Thank Officer. will press release Alex for Mark Officer; business quarter investor.firstsolar.com. and by year With our Executive and the
outlook. then for his financial guidance our Alex will Following will and Mark remarks, XXXX. discuss provide a strategy business
is will current including we involve statements forward-looking the actual results materially open will severity the questions. to that cause call risks that call this Please could expectations remarks, differ their among management’s Following other note and include uncertainties introduce risks of safe uncertainties and for Executive from and the We my Mark? you more pandemic. encourage of for press description. COVID-XX to Chief and the review a complete It effects in pleasure presentation statements to release Mark contained harbor Widmar, the today’s now Officer. duration
dynamics, work chain, to by these challenges. where hard industry faced Thank begin their manufacturing gratitude my expressing and First logistics, we much and I you manufacturing scale thank have team our of cost, pandemic-related Good the for would you, to in afternoon solar Mitch. points like we positions process, of have market. which perseverance for model joining to constantly successful strong model, supply continued evolving a Despite principles which the Solar of today. term. entire growth-oriented and manufacturing balance our us traded a and us continuous thin-film the vertically responsible believe our in cad-tel a be to solar, adapt commitment the a over Through long business and business technology, module differentiation, sheet a capacity integrated include a to our year we
prior growth. accomplishments, us some we our securing XXXX three, XX.X double commercial today, we net had gigawatts brings perspective While our provided the annual record total a XXXX, at this year positions result, to quarter share of full midpoint highlight provided overview time comprehensive in is EPS solidly Alex of challenging call. I’ll within note diluted our earnings since highlight range on for or believe per an previous Beginning with has we this range above XXXX which last our an would the into key bookings freight our like I record. guidance carried third earnings guidance year XXXX the of X.X bookings This will provide net to year financial unprecedented EPS $X.XX a in more original a came during of than results, results momentum of sustainable also more calls To Of excellent despite which gigawatts begin, February. gigawatts. environment we slide that XX.X our from
discuss sales into from benefit volume thing platform, this COVID-XX, customers planned result by Expansion reduction in per of implement and commitments, inability near-term our we product also the and the as been an X.X program. we cost in our call. evolution around of this which important the produced our strategy XXXX, the X% several later [phonetic]. and for the produced technology commodity significant de-risking XXXX, freight costs, very to contracting I inflationary our have XXXX enables approach end against between delivery reduced water Moreover, partially as despite gigawatts As watt a challenges. in delivering We has employing to pressures, XXXX. pandemic-related position a despite we the cost our module secure rising of been future, while will
reach approximately in factory, generation the Malaysia produce new XXXX, of announced to X in Series solar foundation early capacity of are in factory Ohio. India sixth set we XX plans which As and XXXX, gigawatts to for our second we calling we our X factories in our added next panels, Series
are As demand, in benefit increase their near expected the come combined approximately profit reducing per watt gross two sales are our expected by online the Series supply $X.XX and combining to X fleets. a reminder, cost Series locating existing relative to with to factories X of of XXXX with freight, $X.XX to to
US bin to competitive we’ll increased more our the yield our sale In front, of We these North technology businesses. module process. summary, [phonetic] XX% on X.X% X.X% in includes This result February. guidance production which last are as result reduced O&M our our degradation provided lifecycle year-over-year improvement the advantage, And watts, can On X.X% have which power finally, project warranted top the X our XXX and differentiated from line rate of development to in Series we to to focus manufacturing greatest a achievements and output XX-year the our energy of our basis. we meaningful American year. per increase represents a completed intent each on technology with
in the most respectively, and quarter the provided greater QX and towards fourth X.X gigawatts discuss of X, guidance I shipments but year our range was We X.X and lower we earnings gigawatts which will detail. end the for shipped during our within approximately Slide to that bookings full Turning call. recent next XXXX
a the this transfer is commonly revenue whereas customer a we facilities, one modules the to volume leaves which as arrival customer, define port of the the project when our of or size. sold As at reminder, occurs and recognition process of shipment the control of generally the upon destination module delivery the commences to
call. to delays and recognized freight of Due Now, record due in constraints reliability previous year gigawatts towards the The year issues, since our challenges, ended experience we continues of shipments extended transit of X.X revenue. the range. megawatts XXX availability and shipments on with as hand container which market being scheduled end time these has the inventory transit to earnings guidance full worsened XXXX contributed of to levels lower our not global
volume it average. the the meaningfully While unfavorably XX-quarter trended transit was in trailing QX. logistic Several above in declined quarter-over-quarter, challenges
increased times total by factor weeks of norms. transoceanic for transit and nearly Firstly, historic freight a double levels between reaching QX QX
congestion challenging Secondly, ports, US are exasperated which holiday continues season. advance of to be the at in further
were a significant canceled XX three reliability planned the the Thirdly, was around sailings year. as of turn issue in
impact the in higher terms level of momentum In earnings a regard our years. bookings, November bookings costs to worst in is carrier Finally, to of capacity the perspective trucking performance. highest gigawatts net ratios from summary, related a and at freight over accelerated call. with both XX.X load several are experiencing road since two-front truck constrained to has with With we
they’re need continue our terms technology XXXX. We see to we increase SB and the certainty XXXX, and our of executed with in partner valued driven deployment an X.X agreements, this, suppliers’ of an the supply Energy long-term highly in XXXX, agreement customers have for in multi-year projects of ethics. integrity by in and in module investing gigawatts sale Representative to
which in for the XXXX, planned extended fourth year-to-date and respectively. sold shipments As X.X gigawatts, during out of shipments and our gigawatts XXXX X.X expected bookings, our future quarter, has we X.X including XX.X gigawatts deliveries approximately XXXX, XX.X for they’re for gigawatts, and into XXXX are XXXX are gigawatts, accounting
classes in provide of unsolicited like would in asset Accordingly, acquire the our Japan an O&M I platform. development purchase our to platform remaining includes project Japan, could power O&M unlock offerings platform on coupled and Japan the Japan. advanced sell project Next, are We XXXX, generating of we America, participation in strategy Japan our outside certain we late believe of North Japan, core ownership element in O&M potential platform. platform full our of scale stretch module project update platform. terms O&M our and a negotiations Japan development business and our of with to Today, development potential businesses, assets. received most scale continued our prominent and project in stage leading profitability. of that to in the perspective, outside our an remaining complementary to these solar offer Of In is
Alex? agreement or call our no of compelling, complete over that discuss this XXXX though, full the or and QX an will buyer transaction, is contracts transaction definitive not do alternative either selling certainty year expect we for counterparty, we Alex, over there the projects value this results. the if we down that contemplated we approach time, will turn believe our consider And While I’ll our who execute continue a is platform. with to
and O&M modules reporting. opportunities year of And largely With and the Mark. XXXX, our and before business sale revenue quarter the financials lie a potential our our update product core I’ll results for outside Japan development our O&M Japan internal relatively on long-term with of Thanks as result segment full to of structure first our small provide an margin in legacy contracts generating America, with reportable platform, developed, pool of outside obligations existing North we for reporting prior we’ve that changed segments any our assets activities. strategic projects a and previously Accordingly, systems align of our power plan. and discussing
million was This manner. segment. only quarter the and margin Going Starting to presented million, volume statement represent XXX our or Slide on in primarily to highlights full calculated Japan segment prior module the year business the QX. now with the module X, will in associated XXXX, cover was business prospective prior Any activities three increased compared are an a in the for revenue segment projects in fully our quarter. first sold Net this were result other with module purposes, is in income of presented to or reportable of XXX the sales forward, periods. but comparable our quarter sale and as our fourth I’ll historically comparative increase which systems
our and to range, was For due XX% in Gross but net the guidance net XXXX. in aforementioned to recognition, the a as lower of quarter compared in challenges. third XX% quarter. the the to sales within the delays X.X were of our freight X.X billion expectations, logistics in full billion sales guidance sales, year towards revenue result end versus XXXX, fourth Relative margin module were
margin gross million, full ‘XX. was QX, project our fourth the operations our unchanged guidance project margin For approximately Module year end QX XXXX, is sales XX% QX Japan. was the range profit results guidance completion which quarter. million be and full could gross unchanged year. of of two the segment assume the the above prior our three for XX XXXX which is quarter, XXX the in business was high residual gross sales for in from XX%, The in prior year from
module by of our million. end XXXX, low below For our range gross the full segment guidance the XX came in year profit approximately
XX% from points module gross XXXX. due Additionally, segment items. in was XX% XXXX down percentage of several fully with This margin was X to
adversely Note points and by Firstly, QX gross report our financial freight points reducing percentage XX continued XX sales impact in year as expense. in to peers of points XXXX. as percentage results, operating XXXX, margin XXXX, X separate reminder, module a costs a many of freight full percentage
you margin when consider we peers. to this to relative For encourage purposes, factor our module percent our comparison gross benchmarking
volumes the and over norm. aforementioned XXXX capacity megawatts Secondly, full fell expectations year issues, The to oceanfreight year the historic due XXX congestion, above transit XXXX number constraints. our road modules reliability of in trucking end below remains port
of XXXX lower related expenses point utilization XXXX were million in and of downtime XX and The and underutilization factory ne full resulted ramp gross X upgrades under in percentage Thirdly, year margin. higher production.
QX third circumstances, performance. with cost XXXX primarily our module and costs. increase environment other between of million expense in segment approximately million produced production end staff factory XX This inbound to million freight expense operating occurred project certain SG&A, driven in predominately fourth to R&D the the testing, production R&D and a solid partially in within and totaled quarter of will the million Operating X XXX as our range that XXXX. cost XXX gross for in represents expense compared XXX higher and was guidance results million addition quarter. and staff current staff SG&A, XXXX. earnings per a the of we by year-over-year in increase X profit of expenses million increase Finally, full margin a the share XXX reduced million, by produced XXXX in we year delivered and year production with payment Income although XXXX XXX charge to full how quarter, reduction. faced pleased and an to light million XXXX in headwinds expenses XXX we’re CuRe In in which significant a offset million income watt the was full are to in XXX which XXXX. We Overall, by the result was watt $X.XX year prior the below Fourth million, total development the the related expense of $X.XX, of tax in a gross was expectation, X% relative prior segment from we the our was of related million module period. X and to XXXX. of versus pleased Ohio, million navigated increase in XXX quarter. R&D third came for
compared XXXX, earnings to year full XXXX. $X.XX $X.XX For in share per was
earnings original result EPS the of above range third in XXXX came also provided February. provided the and guidance within midpoint we last Our on we the quarter the range call, is
challenging business overall ability a over the year. year, last our Although challenges model course several strength performance of reflects unexpected and faced benefits navigate the of we environment to and the our
our the billion, end the X, decrease XXX and balance restricted of at equivalents, from So X.X cash million and was marketable cash cash in securities prior Slide a year quarter.
end restricted securities, decrease year million cash quarter. of prior cash marketable includes billion, cash equivalents cash debt, X.X XX position, less was a Our and net in which
is in million million to due our were timing balance million XXXX. in projects in compared than for million capital were XXX quarter expected lower in delayed that business strategy compared turn the With range expenditures that, call flows in CapEx XXXX higher the in XXX million development update. XXXX guidance XXX cash cash to to in Cash Japanese project Mark for spend net XX XXXX. XXX a and to expenditures Our operations of Capital was than and versus was payments on fourth the XXXX. I back will third to the million XXX quarter and provide
you, Alex. Thank
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multi-year United and continue a see projects, we XX, and multi-gigawatt both to in markets high interest levels India. key Slide to Turning as in well as individual the States customer of and agreements across engagement active
gigawatts opportunity in contracted XX.X evaluate scaling stage mid Incrementally we capacity gives very capacity. our expansion. to engagement. for set coupled XX.X confident backlog our robust, us remain we manufacturing potential of opportunities the total Our continue the with to bookings late as with This future continue customer gigawatts
with path call, started catalyst, to balance expense cad-tel our QX expansion. largely we roadmap, sheet, technology fixed expansion. referenced line and sight certain a for ensure to we evaluate earnings of As on modules, critical further engage cost strong each a have demand believe the operating have strong suppliers structure are we dynamic We for as on tools
be India beyond, US, ensure expansion may clarity to on have domestic expansion the no Note, seeking in this solar made are such or well such While decision we potential we policies positioned. our are back capacity the Alex who plan. contribute unlikely XXXX the any to and to at to over call and time will this discuss expansions XXXX outlook provide turn I’ll production guidance. financial is
Mark. Thanks
I’d Before on financial like roadmap. update our to guidance, provide an discussing ‘XX cost
XXXX our last cost end could of to In As and revised XXXX [phonetic] freight XX%. aluminum initially to X% X%. year inbound increased we year-over-year based costs presented assumption a reduction the adhesive end in reduction guidance on of final call, watt payment to produce our forecasted reduction November, we X% year XXXX February
our flat XX%. our to our basis, approximately watt cost freight watt On remained year $X.XX. is and in assumption reduction despite X% per by a full between was headwind the result of difference increase and sold year-over-year a revised year year-over-year. and is cost per of sold XXXX sales end a cost original So, forecast expected remains X% our to in original impact in year watt note, XXXX of a result final This X% full November, watt per per year-over-year
sold rate, approximately by of watts same the effect of cost for period. the the declined sales X% our Excluding
perspective, we’ve Looking benefits, from agreements high glass XXXX, economic at stabilized have price that production. long-term we through largely levels a of domestic achieve suppliers with as this fixed cost predominantly
XXXX impact Malaysia support QX of sites. we call, our On the glass COVID-related highlighted new startup delays timing earnings and facilities the Vietnam to
the expected pricing, the for to reduce competitive sites. international to facility addition our freight cost inbound is In of
anticipate framing China. XXXX. to of our Given be the a commodity in call contracts Futures swap The access Note, Exchange, earnings reference anticipate majority benefiting this without US aluminum in supplier aluminum contract local of that hedging this race the given in historical costs market our in the in a cost registered will during on factories Vietnam elevated aluminum, We many and our consumption Asia, relative challenge, place, QX recent we which investors production with Shanghai Malaysia Southeast a COVID covered to of trade and which improvement in new the entity will cannot makes foreign year. first had commence facility per we we norms. the situation highlighted begin half watt
domestic sites, aluminum international remains for strategies several to levels, process pre-pandemic cost the and framing near and reduce both term. forward, While pricing going in are there and above
are for interface materials the back a finally, in Firstly, reducing to by secondary, rail mechanical our certain geographies design of India. module; and our versus installed loads; Series by of and modules differentiating by X optimizing costs array for evaluating parts in construction exposed frame, mounting high frame standard including steel X Series and the alternative modules the for our the for
and basis outbound to be expected the watt market, by and acted As prior approximately will sales cost Despite a end in freight XXXX. per watt an dislocation of context per trade XX% generally Note, to fleet-wide in where $X.XX sale we XXXX anticipate expected we contract fleet freight per in we a half XXXX. the watt, per a in our XXXX, X% between reflected [indiscernible] X% reducing XX% is On produced per the of expected it flat logistics, is In sales aforementioned between XXXX, increase was Global costs be provisions to XXXX. our on end sales provide are relates penny relative by watt wide to watt $X.XXX XXXX, sold to in which our watt anticipate to basis, Freight recent the per in respectively. to guide. freight approximately $X.XX
cover decline same to partially to which rate in our our of majority sales XX% of in Excluding the expected sales similar period. rate cost freight, by recovery, our provisions expected approximately shipment. year. to the of a watt contract shipments to cover expected XX% provisions anticipate X% XXXX, increase the are is sales sold By approximately the over XXXX significant Note, recovery per by we X% effect sales per in offset watt for one-third
forward, certain and looking midterm Starting bifacial monofacial around to our with watt. Turning Series roadmap a believe despite continue X and XXX commodity goal logistics our watt per model. revised XX, term costs, inflationary will midterm near we XXX our slide is costs reducing efficiency, pressure watt enable to us
is watts each per watt and costs. including provided of benefits fixed reminder, component improvements module a As in generally cost freight sales variable, our
tracking X% solution XX% resulting we’re a in manufacturing fixed by to benefit. Secondly, to increase mid-term cost the existing in base, throughput on our
factories manufacturing customer modules through Thirdly, of reduction customer the midterm, our shipping to the container. to bill to positive in our and a our in combination a we finally, Series in see employing X, our reduce includes in and sales contracting, reduction transport costs we both Separately, aforementioned rate anticipate glass. see a to it we relates Ohio yield X cost XX% sales of cost framing near factories profile, Fourth, cost. watt X in across cost benefit continue Series legacy reducing fitting mechanisms midterm. X. of recaptured value are we to contracting to to our potential of of and total freight assumptions expected sales expected XX.X% reduce primarily opportunities by by sharing cost platform. material and per Combined long-term in per to could increase and net freight, systems optimization, the lowest lead module XX% development culmination in cost to to Series increased this as benefits believe current the Note, planned the And risk Vietnam. discuss strategy, to XX% net fully context we XX. and to is watt than and sales have in relative With $X.XX once India XXXX I’ll Slide freight items, locating demand pleased with costs and guidance. ramped supply with of Turn selling O&M approximately that to $X.XX Series the included mind, cents our financial Starting with lower
which enter guidance agreement million the to would a recognized assumes between XXX which as While million, an no margin lies P&L. on there’ll income operating and for approximately XXX into that be gain we will on gross a a businesses, our be assurance of sale gain transaction, of
this which also platform until costs planned a we sales headwind impacting assumption development assumed will closed, As the ongoing from sale this is change XXXX. benefit in to gross expenses. any margin, gross with continue Furthermore, in asset operating previously is portfolio, margin overhead on associated
we the sell a sales expected signed in contracts gross O&M shown half an expect is XXXX, to we of on income first closing agreement remaining addition, between statement pre-tax recognize the outside up on approximately XX In Japan, of which margin and in income to million. international operating gain
in future, multi-asset generating as with discussing sales assets, in call, X.X to November for No recover plan shipments are production evaluating a project holding is gigawatts, the guidance levels this impairment if whether to previously project continue year XXXX. be profitable such coordination XXXX on require relates sales included in in expected inventory the and lenders, to it of a higher in As to any charge could project. than value carrying this impact Chile, from power of in to the exceeds X.X the our net our it’s series or due on which our result gigawatts expected whether X.X earnings we Considering we’re year-end for unable sale X.X between lose to would project. are XXXX.
India. factory and of by XX million. incurred expansion primarily million, new to to approximately XX factory factories income million impact are upgrade Ohio to expenses operating the expected Our XXX our XX comprises This in roadmaps by and million startup
production class other will anticipate contribute improvements XX to we’re previously plan. require in downtime As underutilization XXXX upgrades upgrades We Series of million and in upgrades these estimated X planning million. implement by losses to in These XXXX. Vietnam mentioned, meaningfully XX resulting
strategic liquidity capital long-term position a without regard has prioritized industry differentiator an growth to been in structure. Our historically that’s
and few For opportunities. our also one solar weather companies the and example, volatility sheets periods of the both last exited balance and entered to enabled of that us pursue to growth we’re strong decade
billion existing X can roadmap. X.X finance XXXX coupled self cash with believe whilst strong fund of cash. from self liquidity Series ending our flows expansion existing we our operating factories, position liquidity net Series we Based Additionally, we to maintaining on position, X were expecting our our transition with able
and construction a XXXX our on the based raise a XX. for benefits that competitive cover new slide of we will guidance of to when strategic term in the entering financing India. partner, However, to opportunity I new on factory market, ranges secure may
XXX million. XX segment which segment guidance activities. includes segment Gross X.X XXX be million margins from gross underutilization XX revenue. X.X of billion margin and other impacts XX net to which module predominantly XXX and gross expected million is and includes legacy to margin Module million, Our negative of million is million losses sales to module between billion, million XXX between
‘XX compared we XXXX. in for gross XXX discussed, significant SG&A total sale As and in million freight to reduce segment of XX million, million percentage anticipate year module to we a our freight to headwind XXX points and by margin will the will XXX be anticipate XXXX. expense XXX to XXXX full sales is million in XX expected
to XX tracked the XXX of XX% XXX the and in savings XXXX is approximately million reduction cost million and XX pleased expense operating and on expected sits our of results line. last expect on versus which with R&D plan indicated million XX XX in to business savings guidance US million sale XXXX, well As a million total call anticipated go-forward of this the we basis. annualized to in We’ve to approximately relative expense million February, respectively. development to product the
R&D gain related and XXX to is million our and million the As million planned to income production we million, costs expected million XXX Operating under further aforementioned million. and we utilization are million and R&D additional and staff expenses, XXX sale XXX transactions between between XXX expected intend to combined to XX O&M expected operating expenses. grow development approximately million million headcount to million an million of to XX of project XXX capacity, totaled on to be and combined XX team to international continue Initiative. expense, manufacturing included invest Advanced SG&A Research million our also XXX be Japan add and startup inclusive XX to XXX to total to expenses
in our year the close. XXXX with expenditures Capital expense the pan-developed XX a XX were million which income, So share the of an Ohio year note in expected gradually forecast other course to from Full to which interest improve our earnings a be to profile to programs. quarter, earnings we impact XX XXXX significant results perspective, of the in zero the interest driven is earnings year will from related in to is full and over diluted This expense range construction items expense of the guidance any tax to advance FX And R&D in we fleet effects million. predominant platform Japanese and and sales million XXX to project. other per million to interest to plant non-operating as million, and upgrades range to India net invest cadence $X.XX. income by is X.X XX and billion related negative anticipate
manufacturing net which financing due be expenditures expect end by plants, be Our our is between billion. X.XX year India balance and Ohio the XXXX we capital XXXX to anticipated is to of offset net year cash from The and associated end will primarily with our X.X building proceeds. decrease partially balance cash
net to Demand gigawatts key with message robust, bookings Turning slide call. the XX, I’ll from from XX.X previous summarize has today’s been earnings call.
to gigawatts XX.X opportunities late at a grow opportunity to set global Our continues pipeline with opportunity including stage gigawatts. XX.X of mid
expand our with was EPS to XXXX and and prepared metrics. year year complete On we per with forecasting modular the XX capacity of energy our for full With ended to questions. XXXX remarks share open of that earnings Operator? $X.XX. our cents full $X.XX are We XXXX call the and $X exit efficiency see We expect approximately improvements mid-term gigawatts and continue cost opportunity side, significant in to for capacity. we supply manufacturing
[Operator Instructions] with ROTH from Capital Our first Partners. Philip Shen question is
Hi, everyone. for Thanks questions. taking my
pricing. on is First one
‘XX, in both concrete through ‘XX your opportunities to there? be you expect market then pricing ‘XX speak drive what a was eg be recent could solar the flattish? maybe the think ‘XX, as be watt? in do per in wondering be? And or strategy As down the might And some blended $X.XX headwinds or you to you do ‘XX higher not backdrop relatively stay And you margins expected some possibly helpful. in also like with you so your the you you high be think of finally if out of and some to is be contracting healthy the seems if you any for might might or and ‘XX pricing plant could through abates talked see about your was $X.XX can the you bookings, and of if whether touch very opportunities, be the especially wondering with that through what a you pricing resi then new volume for ‘XX would and work, for exploring so, new roll able your OpEx a I products in it the some be some talk investment, It Could as that kind Ohio? nice product Thanks. color there new of so ASPs, cost could and
that example, potentially in coefficient what going opportunities backlog the in the or product, something contracted if guess, XXXX, but If there the above so could adjustments, the have somewhere pricing the there’s we therefore, monetized to, Phil, it. impact upside gigawatts which with relates to not the extent not bit so, able be Alright, about up right see. capital, rate significant -- to a overly the I a XXXX be that potential have do that. appropriately there’s are obligations under think XX% sales of contracted. off the the we which some the XX improve is opportunity of to in ASP and, to, so we temp on in I we And think on like I little take adjust that has cost can that will then comply increase that XXXX, the And some our that for current $X.XX sales, or around K agree contract in the are of volume show will but pricing, there’s is significant you
I As in sales adjustment, rate, is flat; that, there’s in what but that’s of penny out we’re the about on the relative that. tenths that pricing and a the today, of that, relatively look, includes said pull are there’s or not north the what the down about net average, a of to cost little bit sure ‘XX. a three take in like of at $X.XX ASPs so understood. our the for take the I K I essentially, to XXXX, I you delivery $X.XX module, Again, the the will or I of which something want pricing module ‘XX if or call cent But you a $X.XX penny go think is pricing or module, so think about our only you least make is at into you
our that says effectively module that pricing So net about $X.XX. is
ASP an see same If back off to ASP take increase revised have because you analysis and we XXXX we you $X.XXX, for so There’s the of going contract. from have, XXXX, structured that in of do how the that $X.XX that you’re higher monetization $X.XXX would structure potential contracting a than in of the just of we structure. about
percent XX of accept bookings embedded that a don’t freight the risk, modification for take referenced, it have therefore, we pricing, example, or that actively have we structure, type of may and only they’re an the responsible all the or example. in in a that XX so export formula customer Now, that as as an we’ve of XXXX about that whole contracts done, just gigawatts
include that the in include [indiscernible] $X.XX the be opportunities, significant see adjusters if price you there’s could be the increases you bid ‘XX. if which so for technology, over So, and if ‘XX take by could and on, you sales higher you and freight, could the
it. how them structured on on profile get of have sort you on and depending we again, can how assumptions, various make the potential upwards structure that But can to the there’s individual math, three the sales start freight, your XXs the for reasons opportunities into the you we of own do not, can contract and does it risk You or will pushing how handles that. see we
of the that As opportunity to margin, give is what ‘XX. of will reducing upward that, cost over other on we XXXX I in expected say in referenced. there’s it X% based per there’s watt that but took of can’t you indicated numbers you Alex I can over down I and XXXX relates what ‘XX opportunity single types continue, on just ASPs then absolute digit
a right do a is the still trajectory per it forward, see just we’re lower that you with very can if watt. that drive dealing can So that Even you trajectory. that now your math, challenging, carry to in there’s cost environment is still there a
So do expected in the the as of terms the and is margin call cost during you it we’ve described can well what by math on around margin how is as the doing side. ASP the
an high we On the are are tandem traditionally for which comment market looking about a segment Digi currently expand saying opportunity while at we’ve the to modules that now been drive serve. efficiency of that utility structures scale we there and that
we’re higher a mean, of XXX As I we great even it get an going clearly yes, if opportunity I of market, we gigawatts. some you product then overall participate, we’ve are some that on XX that a evolution, but But regard, conversations and megawatts, as [indiscernible] in to we’ve the got still ASPs. maybe type gigawatt, relatively want that say, be, could we Digi think had let’s that services, a business. enable of path open percentage entitlement through dealing, to small to mean, roadmap great it’s a does Phil, know,
one add have and get it to call cost to that on come ‘XX you X of to indication into Mark thing top that one line. when Series gigawatts is just on So gave of ‘XX, on ‘XX the two going the or ASP we’re
backlog that. sales we $X.XX some on in upside and freight. has some already from some cost in has It ASP in cases, As indicated but assume, Series an not based you advantage it entitlements, reflected X as also the $X.XX a maybe [indiscernible] that to may can cases, be
So in you through the as well to coming of benefit get XXXX. going are that
Thank you.
Guggenheim Partners. Osha Joseph next Our from is question with
Hello, to you. gentlemen, continuing so well. questions on Two congratulations represent for solar manufacturing American
clarify, that – be XXX XXXX and the but you’re you could for perhaps fluidity some policy, of with First, I terms forward exemptions. the in I’m pushing so, I the secondly, depending vis-à-vis some sort in if great. I heard bookings? that pricing Have maybe would more seen in the to comments on recent vis-à-vis that, shift then manifest bifacial wondering, clarify Ohio, given And of your conversation we’ve you in obviously, If could plans think policy. relatively Mark, in seen there, recent you the
Yeah.
other the this, The provided. bifacial your the just example. me, in just take reality as which our every as the On look for with advantage general, talk ability a has and attributes that. from talk disappointed watts allows electrons relates policy, to talk that the just labeled but are XXX the takes that around was exemption about beyond we coefficient, talk our lot, way clearly, and many to bifaciality moisture a is we be shading our module I attributes, at were model makes response And in attributes Those about the takes spectral all electrons. that air nothing our our to choose and photons and temperature about humidity. turning module of than technology about we We an basically do into attribute generated photons electrons. energy another how and and is damaged different you response that, photons It is, for more additional and we
me to degradation, to itself wouldn’t duties, long-term then sense. long-term x, why does have than bifacial exemption me exempt somebody if the be could you you’d below to our sense that, exempt. a rate long-term different degradation attribute, would any if It’d common rational could no where in the there be that’s modules any it is reason any be from degradation no which, make you bifacial say sense, XXX nor make be So
As right refer it with our by relationship more Solar. They partners, relates things the are of in them deliver in when are customers, times First to stand going challenging, value they willingness our challenged in partner customers, and to and right. our honor and to to contracts our our that why customers they when as value well to things now. times are we more And were that’s and we
enable can to solutions going find and each work together other we that We’re success. we’ll
is, of all different we’ll and this better end world that And to than our photons look we’re to again, us. a electrification of as we As so marathon, starts electrification. world of want work anyone a else journey, partners long-term a with turning electrons front by which into do that and
partners flows, policy through of ebbs their again, will And and the can to uncertainty so and but stand certain and angst, there’s journey, by our competitors, that the look around could for happen. that say any our able vastly corner some competitors Chinese yes, nobody be of things
play does strengths. our it So to
at look just our booked XX we gigawatts. Just --
those we about we gigawatts a booked metrics earnings We stage, pipeline to call, up gigawatts. XX XX just the XX of talked late-stage what booked, during those mid-to -- including gigawatts. about got are pipeline gigawatts, both we XX last After XX and early got were we of have gigawatts from
lots of there’s opportunities. So
value our what the company growth right plan, the America’s our that being referenced our a our in Joe, market think means now. solar proposition, our technology, uniqueness, along you’ve lines, expansion, lot in we’re I
plays to strengths. it our think So I
that I the by talked of and India. bookings, evaluate backlog that going to got we’re new Ohio gigawatts two in it’s we factory where factories, in are there and we’ve position, ability to pipeline we continues here what pipeline evaluating to further and expansion, relative another this expansion -- to sell our we’ve driven two X beyond committed gigawatts We for opportunities already another As to but be there capacity mentioned growth, to, relates a expansion get to working fundamentals then be what to demand grow, marketplace, our one could or and point about before another factories often of if and growth, X need all determined, is is to, start forward. in to meant of our of we
closely do is come and to updated. So keep know if to we’ll that were opportunity, we’re it very about. with you we’re tool hey, enable working All that working trying through our to let to we’re that, suppliers people
you. Thank
Research. Stanley is question Our with from Wolfe next Keith
Hi. Thank you.
First, I given. just sales. balance detail guidance from operations to appreciate some business year confirm on and O&M the year-end the the XXXX contribute noted the gain of cash earnings for and clarifications Japan the the Much planned just [phonetic] want to the includes you’ve and you’ve separate
limited and sale any through very be gain this the the of assumption is wouldn’t come sale. of reflected assumed from business, sell that we the contribution in Yeah, on year, so the and assets business will O&M there’s in the business the Japan all
about additional you’re business. XXX O&M an seeing value XXX the be that the sale with million of number to there’s associated XX So and full
earnings. of seeing We’re limited addition and ongoing revenue
that the is sale keep assumption is a that that time sale. business lumped the cash the from we end. in perspective, year and yes, to For in gets all gain cash begin we value that -- the the on the that number view cash From a
Citi. our with is Perfect, Lowe thank And you. question J.B. next from
any to have the have the But guys further far unexpected basis down have customers if $X.XX. Thanks. just given or my was, Question out you few other there, I from about that engaging to is Europe of with a we of guess, Hi, terms I know mean you mentioned started? customers only since you you this I’m what freight, about kind Alex. you in, of Mark I of so would could seen it on, your ASPs just being And in over of previously and even about and was that, like, ongoing with walk have crisis net new it this be all responses question through places, X.XXX, in expansion wondering takes the puts -- up days Mark, question. just Europe, or the been XXXX been goes ahead potentially? but on engaging piece. then
it $X.XXX. put back a So were way have about we ago, perspective, in adjuster. XXXX, contracts in some sales Again, XXXX we reported freight of year to look our just where we in again, about at ASP, XX% on at number it, freight QX the of look to there’s was our in that the
So of year lot. from in to gone last $X.XXX a QX $X.XX we’ve
drive $X.XX and [indiscernible] assumed implied balance, of our historically is, it up, really around -- generally dilutes freight average assumption everything that’s continue So as it’s we the we didn’t improved that’s kind have and what been and historically to lots what we it else. a lot
saw happen that this that risk. so in weren’t of our of started we such XXXX, carrying we to QX contracts shift modifying we dramatic entire freight kind So starts
so have not flow of freight have or much associated of form adjuster ‘XX we’ll they higher them. XX% percentage, the -- from about ‘XX, so. forward everything just And some flow benefits there’re a start into all adjuster really to will with that adjusters, ‘XX, into freight they flow now At and
to see and about some as we adjustments half a progress the or being you headwind about a you going got penny. nominal a some amount throughout it So and the half, when to ASP you’re it, recover $X.XX think up me as results about -- ends somewhere you a from will that this year, maybe in back a year’s customer penny so excuse
our what’s a will see structured right, through and our for these there’s from XXXX. shipments. XXXX will to sales reflected going how But half we that now ASP that you’re freight So a up penny in in come do math same looking backlog our right and about we adjusters as trend are rate
a on of is penny. So ASPs, apples-to-apples, the when look sales going the you year-on-year, up recovery it to that go at because the about rate,
this upside So that you’re is for your XXXX. -- a going XX.X, to closer that you thinking about deploy into going and penny then ASP year of to got about probably you XX
me I’m going and that anything total because to or technology And the above be rates then is we pay really caring still my that if them right. goes well, adjusters, beyond assumes then $X.XX, it ASP the be that all customer $X.XXX up platform other piece to for of accompany and we this me go will accretive as higher, sales adjuster to risk as to into rate Now, going that. sales at stays these refer about XXXX $X.XX, only to is is
a baseline premium becomes a have LTR it producing we’re anything If call do bins better. will product, So with on a the we’ve look about may it into XXX be it and the at just CuRe today, what the that we customers, But that, to it is starts well. bifacial, the as whatever gets baseline get standard X product, [phonetic] basically, contracted XXXX, flowing better, gets product. better, [indiscernible] Series
make. will the backlog. contractually those that -- have will trying contracted to backlog. ASP. while because be of out those point way, over see incremental become delivered, exact don’t So, in reflect we be to Those our the all structured we you’ll and we’re And can’t into the improve contracted time they’re benefits That’s that certainty product realized it then
Thank you.
Our next question Ben is Kallo Baird. from with
doing Is selling more both this any Thank changed costs it final And cost you bifacial it us taking Has localized ASP you into the of decision when is to any as to freight about for how you get and you. out on around your of Thanks you has a contracts, Hi. question. about question that can how and that ‘XX? out and that talk from talk you’re question can doubling, going to and make third thoughts India? long-term my us just look far? then you means what perspective? And my products
I let question I and left been and question seeing There’s Europe. an to we to thing one about anything Ben, before, we ASP. your back Europe were asked as to -- just answer, Yeah, to the get want – so I about go last answered the
US As there’s creating it around -- the relates domestic journey India, in ongoing what well Europe, and in to here we’re been around evolving Europe with we’ve to as what as seeing is their in had similar Europe discussions saw we manufacturing. capabilities
some manufacturing So in -- Europe we’ve engaged, there. conversations have we around had are we
to it’s got So US for along evaluating of with the opportunities the are that that for we and we one. any example, one expansion, further India, cover
of our customer take on freight then telling again, price we’ll costs, I’m So think doing, is base $X.XXX. X, our it, and that what the just we’re
going any at and XXXX, I sales XXXX to will ASP, customer variable and rate incremental number really go and that go there’ll covered in on then ‘XX stays into incremental such actually we ‘XX, an as cents, a as that be results way market, ASP volumes go So cost, partners of into it volatility into on our $X.XX forward that so out that long so how our in the risk fixed given will and there sharing, We to $X.XXX. largely and that ours think is see continue. the it it at what’s a contract uncertainty element and take position as some who of be the we should that’s manageable same knows
to thinking a come on, freight a how sales forward. we terms it of balance horizon, out you’re in modules So as India, opportunity. pipeline, there’s go lot to needed. going approach doesn’t we’re of there’s a the as of see maybe contracting generally book expected around booking year far lot I secure we’ve think them going normally that India we’re out to do reasonable about as about deliveries and how a are when
this with could we or happen could out project year We’re factory delays, a with our don’t comment tool events still will than through that want more construction schedule out that end loading ‘XX, to to and the careful customer. the selling looking with because unanticipated and running so production front little installed, just volume the of be point, to second we’re or we’re up it when the being half could delay the be potential a volume at
the our customers. level a volumes of we’re in leaving to quarter until the first as with as certainty, we’re gain, right. interest of really we’ve bookings end install further it’s multiple it’s along lack of well to demand, energy not and pipeline, a for you’re the kind of we open is India. got the in the have of say now of commit and for Bifacial, opportunities higher But going So think before the construction gigawatts the front I tools to the see an it’s right lot of in year end --
depending in be still If X% say probably where is of little of you to to silicon quarters the -- on what worth, a look of at crystalline X% three half. it, range bit get we’re penny energy, is going markets let’s lower going a to and is about a say, than right sharing energy it should penny a our give to and bifaciality but now
you X%, premium a bifaciality be going X% and half; if of, you’ve to close in it’s energy, the So going you got range $X.XXX you be opportunity ASP to it to it’s if $X.XX. get call for an and of get for a penny
that actually other somewhere there and and, may are entitlement. some some profile of be of not may $X.XX it’s as because will system balance which energy be different than there’ll ASP. silicon, penny critical accretive, it from drive some full [indiscernible] BLS incremental and right it’ll be the we costs on of pull see the trade-offs, comes capture But now, bifaciality, value the a do No that ASP sell It’s to that half ASP the you the between that costs higher So, benefit it it energy is need things module. and and would another currently you we actual of energy. loss, and a to of labeled out then
Thank day. you, the a for and for wonderful participation your again you that presenters. This all today. conference. today’s time concludes we have Thank That’s have
all disconnect. may You