T1 Energy Inc (TE) Earnings

Management highlights

### Strategic Mission & Construction Progress - Core mission is to build the first vertically integrated American silicon-based solar company, with the G2 Austin 2.1 GW Phase 1 cell fab as the flagship project. - Construction of G2 Austin is progressing steadily: the building is structurally complete, ready for mechanical, electrical, and plumbing installation; all key Phase 1 production line equipment is either in U.S. ports or en route; clean room installation is scheduled to begin in Q3 2026, with production line installation starting in Q4 2026. First cell production is targeted for Q1 2027. - G1 Dallas sequential production increased throughout Q2 2026, hitting 935 MW for the quarter, with monthly volume growth quarter-to-date. ### Commercial & Acquisitions Updates - Secured a 641 MW strategic module offtake agreement with Clearway Energy Group, augmenting the existing 900 MW Treaty Oaks contract, to supply modules built with domestic G2 Austin cells, validating market demand for T1's high domestic content offering. - Acquired full ownership of the foundational TopCon solar cell intellectual property previously licensed from Evervolt Green Energy. The acquisition is NPV positive, eliminates future licensing costs, strengthens competitive differentiation, and creates optionality for third-party licensing revenue. - Closed the acquisition of Core Power, rebranded as T1 NRI, a capital-light, high-margin power system solutions business with a 50-year history serving blue-chip customers. This acquisition expands T1's operating footprint, adds engineering talent, and creates cross-selling opportunities with T1's core solar business. - Advancing value optimization for legacy European assets: the Moirana, Norway data center asset with a 50 MW power allowance is attracting interest from data center developers, and management is exploring multiple monetization pathways. ### Policy & Regulatory Alignment - Supports the newly issued Trump administration Section 232 proclamation, which imposes minimum import prices and ad valorem tariffs on imported solar modules and subcomponents, and offers tariff offsets for companies with committed domestic manufacturing investments. - T1's existing strategy, including domestic polysilicon sourcing from Hemlock, domestic wafer sourcing from Corning, and ongoing G2 Austin construction, aligns perfectly with the policy's incentives; management is in active discussions with the U.S. Commerce Department to maximize tariff offset benefits. ### Capital Markets Updates - Closed a $120 million private placement of convertible notes in July 2026 to serve as a bridge to a long-term comprehensive financing solution for G2 Austin Phase 1, which is targeted to include a significant debt component. This bridge financing keeps construction on schedule while management finalizes the long-term deal. - Higher Q2 2026 SG&A was driven by one-time transaction costs for the convertible offering, legal fees for ongoing litigation and financing activities, and headcount buildup to support G2 Austin launch.

Guidance

- Full-year 2026 G1 Dallas solar module production and sales are now expected to land near the high end of the existing 3.1 to 4.2 GW guidance range, maintained from prior guidance. - First cell production at G2 Austin Phase 1 is confirmed to be on track for Q1 2027, unchanged from prior preliminary guidance. - Adjusted EBITDA is expected to improve in the second half of 2026, with Q3 and Q4 run rates exceeding Q2 2026 levels as deliveries ramp. - No changes to long-term run rate guidance for integrated production: a run rate of $375 to $450 million for Phase 1, and $650 to $700 million for the matched 5 GW of combined G1 and G2 capacity, maintained. - Management did not revise prior expansion guidance for G2 Austin Phase 2 (which is planned to bring total capacity to 5 GW or more), as Phase 1 financing remains the top priority.

Segment performance

T1 Energy operates two core solar manufacturing segments and one acquired support services segment: 1. G1 Dallas (solar module manufacturing): Produced 935 megawatts of modules in Q2 2026, the second highest quarterly production for the facility. Gross margin for the quarter was 19.5%, an improvement of 300 basis points compared to Q1 2026, driven by higher throughput and favorable delivery mix. 2. G2 Austin (solar cell manufacturing, under construction): Phase 1 (2.1 GW capacity) is progressing through construction; no revenue generation yet as first cell production is targeted for Q1 2027. 3. T1 NRI (formerly Core Power, acquired earlier in summer 2026): A capital-light, high-margin power system solutions business serving industrial, data center, and government sectors; no specific Q2 2026 financial results were disclosed, as it was acquired mid-year. Overall company Q2 2026 adjusted EBITDA was $10.7 million, which included a non-recurring $24 million IEPA tariff refund. Cash, cash equivalents, and restricted cash totaled $149 million at the end of Q2 2026.

Risks & headwinds

- Finalization of the targeted comprehensive debt-inclusive financing for G2 Austin Phase 1 has been repeatedly delayed past prior projected timelines (end of May, end of June, end of July), introducing execution risk to the project timeline. - While management is confident in aligning with the Section 232 framework, final implementation details are still being reviewed, and tariff offset eligibility is contingent on Commerce Department approval of construction progress, creating regulatory uncertainty. - The incremental 3 GW of wafer demand required to match G1's 5 GW total module capacity is not yet fully secured from domestic suppliers, creating potential supply chain gaps that would require imports and reliance on tariff offsets. - G2 Austin Phase 2 expansion is dependent on sufficient customer demand, successful completion of Phase 1 financing, and board approval, with no guarantee of timing or execution. - Monetization of the legacy Nordic data center asset is still in exploratory discussions, with no finalized deal, creating uncertainty around the timing and value of this asset optimization.

Analyst Q&A

• Q: Post the Section 232 proclamation, have you seen changes to customer pricing dynamics, and can you comment on the potential for pricing above $0.42-$0.43 per watt?

  A: Industry-wide, there has been a surge in customer inquiry and scrambling to comply with the new onshoring requirements since the proclamation was issued. T1 is uniquely positioned to benefit because it already sources all polysilicon from Hemlock and all wafers from Corning, fitting the policy's incentives perfectly. Management declined to provide specific near-term pricing guidance, but noted that the new framework has increased customer confidence in T1's domestic product offering. Management confirmed they are well positioned to qualify for tariff offsets for any required imports before G2 is fully operational, due to their existing domestic investments.

• Q: The comprehensive G2 financing has been delayed multiple times. Can you provide updated color on timing and confidence in closing the deal?

  A: Management acknowledged the process has taken longer than initially expected, but reaffirmed high confidence that the targeted debt-heavy comprehensive financing will be completed. The $120 million convertible bridge financing was raised to keep G2 construction on schedule while finalizing the long-term deal, balancing progress on construction with securing the optimal financing structure.

• Q: When might G2 Phase 2 be pulled forward by domestic demand, and can domestic wafer suppliers support incremental capacity?

  A: Phase 2 expansion has not yet been approved or sanctioned by the board, and management's core priority remains closing the Phase 1 financing before pursuing expansion. Management noted that conversations with domestic suppliers like Corning indicate there is sufficient capacity or incentive to add capacity to support future growth, but cannot commit to firm expansion timelines at this stage.

• Q: How much remaining CapEx is there for G2 Phase 1, and will the comprehensive financing cover other costs in addition to remaining CapEx?

  A: Remaining capital expenditure for G2 Phase 1 is up to $250 million, including contingency. Management confirmed it is reasonable to expect the comprehensive financing will cover more than just remaining CapEx, potentially including other costs such as the TopCon IP acquisition and refinancing of existing debt structures.