Ben Kallo

Ben Kallo asked when Ormat plans to update its longer-term targets beyond 2028, and how operations have adjusted to federal changes like faster permitting. He also inquired about Ormat's strategy for building infrastructure around EGS development, such as employees, financing, and land position, to prepare for potential scale in 2030-2031.

Answer

CEO Doron Blachar stated that Ormat is preparing for EGS success by increasing exploration efforts, expanding BD, and looking at larger land positions in additional states. He mentioned adapting binary technology for large-scale EGS power plants and multiplying Ormat's efforts. He confirmed that an analyst day in September will provide longer-term megawatts targets, noting that faster permitting and BLM land auctions have accelerated progress.

Ben Kallo asked when Ormat plans to update its longer-term growth targets beyond 2028, and how recent federal changes, such as faster permitting, have impacted operations. He also inquired about Ormat's strategy for building the necessary infrastructure (employees, financing) around its EGS development to support potential scale in 2030-2031.

Answer

CEO Doron Blachar explained that Ormat is preparing for the potential EGS transformation by increasing exploration, business development efforts, securing larger land positions beyond Nevada and California, and adapting manufacturing for turbines and heat exchangers. He mentioned that increased exploration efforts are yielding results (e.g., Griffith), and faster permitting and BLM land auctions are accelerating progress. He announced an analyst day in September to provide longer-term megawatt targets.

Ben Kallo from Baird asked how the certainty of tax credits and easier BLM permitting has affected Ormat's early development strategy and whether recent market changes have had a net positive or negative impact on its 2028 growth targets.

Answer

CEO Doron Blachar explained that the extended tax credits provide a clear, long-term runway for geothermal with minimal FEOC risk, while energy storage will need to adapt to sourcing rules. He affirmed that the 2028 growth targets are not only still valid but are now more achievable due to faster permitting, extended tax credits, and strong PPA pricing.

Ben Kallo asked about the rationale behind the significant changes in the Brook Mine's processing technology and flow sheet, specifically how the company decided on the new carbochlorination route. He also inquired if these changes would impact the timing of existing discussions regarding offtake agreements and government partnerships.

Answer

Michael Woloschuk, EVP of Critical Mineral Operations, explained that carbochlorination was a considered option, and recent test work revealed significant economic improvements, particularly for higher-purity gallium. Jason Fannin, Chief Commercial Officer, added that the shift to a gallium-centric product slate de-risks the process, as carbochlorination is a proven technique, and enhances discussions with strategic partners and the government due to the rapidly expanding semiconductor market.

Ben Kallo asked about the rationale behind the significant changes in the Brook Mine's process and technology, specifically the carbochlorination flow sheet, and how this pivot impacts the timing of potential off-take agreements and government discussions.

Answer

Michael Woloschuk, EVP of Critical Mineral Operations, explained that carbochlorination was a previously considered option, and recent test work revealed significant economic improvements, particularly in gallium recovery and purity, justifying the flow sheet change despite potential PFS delays. Jason Fannin, Chief Commercial Officer, added that the shift to a more gallium-centric product slate enhances discussions with strategics and the government, as carbochlorination is a proven technique and the gallium market for semiconductors is rapidly expanding.

Ben Kallo asked about the implications of U.S. deals with allies on supply and government support for domestic critical mineral development, and later inquired about de-risking the process of extracting rare earth elements from coal, including whether this has been done elsewhere.

Answer

Randy Atkins, Chairman and CEO, and Mike Woloschuk, EVP for Critical Mineral Operations, discussed the macro political implications of U.S. deals, viewing them as short-term solutions until domestic supply ramps up, and noted the government's supportive stance. Mike Woloschuk clarified that Ramaco extracts rare earths from clays and shales, not fly ash, and that the high-risk extraction part is proven. Randy Atkins added that coal is an unconventional, easier-to-mine, and non-radioactive feedstock compared to hard rock minerals.

Ben Kallo asked about the macro political implications of U.S. deals with allies for critical minerals and how this might impact U.S. government support for Ramaco's domestic development. He also inquired about the process of extracting rare earth elements from coal, the de-risking efforts, and whether this has been done elsewhere.

Answer

Chairman and CEO Randy Atkins discussed the macro political implications and the government's ongoing support for domestic industry. EVP for Critical Mineral Operations Mike Woloschuk viewed allied deals as short-term solutions until U.S. domestic supply increases. Regarding extraction, Mike Woloschuk clarified that Ramaco extracts REEs from clays and shales intermingled with coal, not fly ash, emphasizing that solubilizing high-value critical minerals is the key de-risked step. Randy Atkins added that coal is an unconventional, easier-to-mine, and non-radioactive feedstock compared to hard rock minerals.

Ben Kallo asked for more details on Array Technologies' market share gains, specifically where they are coming from and whether they represent taking actual share from competitors or benefiting from customer volume growth.

Answer

CEO Kevin Hostetler stated that Array's 35% domestic volume growth in 2025 indicates significant market share recovery, supported by internal win rates. He clarified that 4 GW of orders from new customers included both direct market share takeaway and wins with companies migrating to utility scale.

Ben Kallo asked for more details on where Array Technologies is seeing market share gains, without naming specific companies, and whether these gains come from customers growing volume or directly taking share from competitors.

Answer

CEO Kevin Hostetler stated that Array's 35% domestic volume growth in 2025 significantly outpaced industry growth, indicating market share recovery. He noted that internal win rates on bids continue to show strong positive momentum. The 4 gigawatts of orders from new or competitor customers in 2025 represent a blend of direct market share takeaway and new utility-scale customers migrating from DG who are familiar with Array.

Ben Kallo asked how First Solar is squaring the urgency around 'time to power' and the need for electrons with its booking strategy and various moving pieces.

Answer

CEO Mark Widmar highlighted First Solar's strong position with 50 gigawatts of contracted volume. He acknowledged the clear sense of urgency from customers to execute and achieve 'time to power,' driven by safe harbor deadlines (Section 48 for 2028 and 2030 projects). He noted that customers are actively managing permitting, financing, and construction, and are being creative with on-site generation to bypass interconnection constraints. This urgency is also a catalyst in pricing discussions.

Ben Kallo (Baird) asked how First Solar is balancing the industry's urgency for 'time to power' and the need for electrons with its current bookings strategy and various operational moving pieces.

Answer

CEO Mark Widmar emphasized First Solar's strong position with 50 GW of contracted volume. He acknowledged the clear sense of urgency from customers to execute projects by safe harbor deadlines (end of 2028 for Section 48, end of 2030 for continued safe harbor), despite challenges like permitting and financing. He noted that customers with interconnection agreements are actively lining up modules and EPCs, and this urgency is a catalyst helping First Solar in pricing discussions.

Ben Kallo asked about potential M&A opportunities outside of Brazil, including any size limits or impact on the balance sheet. He also requested more information on SAF (Sustainable Aviation Fuel) volumes and pricing trends.

Answer

CEO Randall Stuewe stated that Darling is on an 'M&A holiday,' with the Potencei acquisition being a unique, forced liquidation. The current focus is on organic expansion in Brazil, Paraguay, China, and the U.S., including debottlenecking and new plant construction. CFO Bob Day explained that U.S. SAF buyers are often large tech companies and banks seeking Scope III credits, with airlines acting as brokers. Discussions are strategic, long-term, and potentially high-volume, leading to future dedicated capacity, though timing is hard to predict.

Ben Kallo asked about M&A opportunities outside Brazil, including any size limits or willingness to add debt. He also requested more information on SAF volumes and pricing trends.

Answer

Randall Stuewe, Chairman and Chief Executive Officer, stated that Darling is on an 'M&A holiday,' with nothing currently appealing except the Potencei opportunity due to its forced liquidation. He emphasized a focus on organic expansion in Brazil, Paraguay, China, and the U.S. Bob Day, Chief Financial Officer, explained that SAF credit buyers are often large tech companies and banks, with airlines acting as brokers. Discussions are strategic, long-term, and potentially high-volume, but take longer to materialize, and he expressed encouragement about their direction.

Ben Kallo of Baird asked for insight into the expected EBITDA cadence for the core business in Q2, assuming current market conditions remain stable.

Answer

CFO Bob Day advised against modeling a specific Q2 result, suggesting that the remaining quarters of the year are expected to be broadly similar. He recommended subtracting the reported Q1 core business result from the full-year guidance and assuming the remainder is spread across Q2, Q3, and Q4.

Ben Kallo asked about the dynamics of potential renewable diesel capacity shuttering and the long-term evolution of the SAF market, including the risk of oversupply.

Answer

CEO Randall C. Stuewe noted that while some capacity has been shuttered, the growing RVO mandate makes widespread closures unlikely. An executive stated that SAF demand, estimated at over 4 billion gallons, far exceeds current production capacity. Stuewe added that Darling's strategy is to secure long-term contracts for its first SAF plant before considering further expansion.

Ben Kallo asked about how QuantumScape's supply partners view future customers beyond Volkswagen, the impact of supply chain work on attracting new customers, and how current OEM retrenchment or excess cell capacity affects discussions with potential new customers.

Answer

CEO Dr. Siva Sivaram and CFO Kevin Hettrich emphasized the importance of their ecosystem partners (e.g., Murata, Corning, tool vendors) who are excited about QuantumScape's expansion into new markets and customers. They highlighted that a secure supply chain, reducing dependence on single sources, strengthens their value proposition. While acknowledging market turbulence, Dr. Sivaram and Hettrich noted that OEMs, especially at senior levels, remain optimistic about long-term electrification and solid-state batteries, citing recent partnership expansions as evidence of continued interest.

Ben Kallo asked about QuantumScape's supply partners' perspectives on future customers beyond Volkswagen and how the established supply chain helps with new potential customers. He also inquired about the impact of OEMs retrenching and excess cell capacity on discussions with new potential customers.

Answer

CEO Siva Sivaram emphasized the importance of the QS ecosystem, including capital equipment and advanced materials partners like Murata and Corning, who are excited about expansion into new form factors, markets, and customers. CFO Kevin Hettrich added that more activity strengthens the ecosystem for both suppliers and customers, and a ready supply chain enhances the value proposition. Siva also noted that securing the supply chain involves reducing dependence on single materials or places. Regarding market turbulence, Siva stated that senior OEM levels remain optimistic about long-term electrification and solid-state batteries, and Kevin highlighted QuantumScape's expanded collaborations in 2025 as evidence of continued excitement and growth in the automotive sector.

Ben Kallo from Baird asked for more specifics on the timing and ramp-up of the Cobra separator production process. He also inquired about any early feedback from customers on the B-samples and how having physical samples in hand might alter future customer engagement.

Answer

CEO Siva Sivaram detailed the Cobra timeline, noting that key equipment will be in place by the end of 2024, with a gradual transition from Raptor to Cobra as the primary production process during 2025. Regarding feedback, he explained that direct customer data is proprietary, but QuantumScape's own extensive testing on sister cells, which formed the basis of the reported performance data, will be refined based on specific customer input.

Ben Kallo inquired about Fluence Energy's capacity to execute on its large pipeline, specifically regarding contract manufacturers and supply chain flexibility for volumes up to 10 GW/year. He also asked about the company's liquidity for supporting larger volumes and the framework for operating leverage.

Answer

Julian Nebreda, President and CEO of Fluence Energy, explained that their supply chain strategy involves base and upside suppliers, providing flexibility to go beyond current upside cases. Ahmed Pasha, CFO of Fluence Energy, confirmed that the $1.1 billion in liquidity is sufficient for the current plan, but additional capital would be sought opportunistically for future significant growth, while being mindful of shareholder value. Nebreda outlined that operating leverage is achieved by ensuring overhead grows at less than half the rate of top-line revenue growth, leading to significant EBITDA expansion.

Ben Kallo asked about Fluence's capacity to execute on its large pipeline volume, such as 10 GWh per year, including the flexibility to ramp up and any capital constraints related to manufacturing and supply chain. He also inquired about operating leverage, specifically if gross margins would remain constant as volume grows and how that translates into operating margin.

Answer

Julian Nebreda (President and CEO, Fluence Energy) explained that Fluence uses a long-term volume plan with base, upside, and 'hit-it-out-of-the-park' cases, supported by diverse suppliers, expressing confidence in the supply chain to go beyond current upside cases. Ahmed Pasha (CFO, Fluence Energy) stated that the $1.1 billion liquidity is sufficient for the current plan, but additional capital would be needed for significant new opportunities, which Fluence would raise opportunistically. Julian Nebreda clarified that Fluence assumes gross margins remain constant, with operating leverage driving growth, as overhead would grow at no more than half of the top-line growth, leading to significant EBITDA growth.

Ben Kallo asked about the extent to which 'safe harboring' is part of customer discussions post-election. He also inquired about the threat of Chinese competitors establishing manufacturing in the United States and whether the election outcome might prevent that.

Answer

CFO Ahmed Pasha stated there has been no material change in customer behavior or discussions since the election. President and CEO Julian Nebreda added that Chinese competition is a global reality, and Fluence competes effectively even in open markets. He noted that if competitors built factories in the U.S., he would welcome the investment and jobs, and Fluence would continue to compete on its merits.

Ben Kallo asked about the impact of the 'bring your own power' trend on Nextpower's discussions and orders. He also inquired how the company plans to address or work with the rapidly growing energy storage market.

Answer

Howard Wenger, President, confirmed that the 'bring your own power' dynamic, driven by AI, electrification, and data centers, is influencing their opportunity base. He highlighted the symbiotic relationship between solar and storage, noting that over 80% of new electrical capacity is solar and storage. Dan Shugar, CEO and Founder, clarified the definitions of 'bring your own power' and explained that Nextpower's inverter platform is designed to support both solar and storage, with ongoing development.

Ben Kallo asked about the impact of the "bring your own power" trend on Nextpower's discussions and orders, and how the company plans to address the large and growing energy storage market.

Answer

Howard Wenger, President, confirmed that the "bring your own power" trend, driven by AI, electrification, and data centers, is significantly impacting Nextpower's opportunity base, with hyperscalers increasingly involved in securing power. Dan Shugar, CEO and Founder, clarified that most "bring your own power" involves grid-connected generation for end-use, a trend ongoing for over five years, with increasing pull from data centers. He added that Nextpower's inverter platform and power conditioning system are fundamentally designed to support both solar and battery storage, a logical extension for the company.

Ben Kallo asked about Nextracker's appetite for future acquisitions following several recent deals, and how the company allocates capital for integrating and growing these acquired businesses going forward.

Answer

Dan Shugar, CEO and Founder, described a holistic approach to new products and services, combining internal R&D (tripled to ~$100M) with strategic acquisitions driven by customer needs. He cited the advanced module frame acquisition as an example of accelerating market speed and complementing internal efforts. Chuck Boynton, CFO, emphasized intentional post-close investment, focusing on the long game by funding R&D, marketing, and sales to ensure the success and integration of acquired companies.

Ben Kallo asked about Nextracker's appetite for future acquisitions and how the company allocates capital, including R&D and other types, to feed and integrate acquired businesses, and how investors should think about these numbers for the upcoming year.

Answer

CEO and Founder Dan Shugar stated Nextracker views new products/services holistically, combining internal R&D (tripled to ~$100 million) with strategic acquisitions driven by customer pain points and opportunities for greater yield. He used the advanced module frame business and Origami Solar acquisition as a case study, highlighting how acquisitions accelerate market speed and complement internal efforts. CFO Chuck Boynton emphasized an experienced M&A team focused on intentional post-acquisition investment, playing the long game, and investing in R&D, marketing, and sales to ensure success. Shugar added that operationalizing new businesses takes time to achieve scale and margin leverage, but they are confident in the portfolio's contribution.

Ben Kallo inquired about Nextracker's international business performance and the expected margin profile for this segment going forward, as reflected in the company's backlog.

Answer

President Howard Wenger confirmed that the international business remains consistently between 30-40% of revenue, a mix reflected in the backlog. He highlighted contract signings in 17 different countries in Q4 alone, demonstrating broad geographic demand. Wenger reiterated that while international margins are generally lower, the company's overall blended margin remains healthy.

Ben Kallo asked about margin trends for large international projects, noting past commentary that Australian margins were similar to the U.S., and how these large projects impact the overall margin cadence.

Answer

Howard Wenger, President, confirmed strong international sales across multiple regions. He acknowledged that margins vary by region and the international environment is more competitive and upfront cost-sensitive. However, he stated there is no material change to the margin profile guidance at this time, as the company's differentiated offering, reliability, and balance sheet allow it to perform well.

Ben Kallo from Robert W. Baird & Co. asked about the company's strategic priorities, questioning whether Nextracker optimizes for sales growth, margin, EPS growth, or cash flow, given the trade-off between higher-margin U.S. business and the large international growth opportunity.

Answer

CEO Dan Shugar responded that the company aims to grow responsibly, profitably, and in an accretive way. He explained that when entering new regions, the company evaluates if the move is accretive, similar to an M&A analysis. He affirmed the company will continue tapping into global demand responsibly, citing India's large renewable energy targets as an example.

Ben Kallo asked about MP Materials' perspective on price floors for heavy rare earths and the advice given to the administration. He also followed up on the specific nature of the advice provided to the administration regarding heavy rare earths.

Answer

Jim Litinsky (Founder, Chairman and CEO) explained that heavy rare earth deposits often make economic sense as concentrate or mega feedstock for refiners like MP Materials, rather than building full refining capability around them, positioning MP Materials uniquely to accept these feedstocks. While keeping detailed advice confidential, he generally described the industry as a global structural oligopoly. He positioned MP Materials as America's national champion with structural advantages and advised the government to continue catalyzing private capital through investments, loans, and grants.

Ben Kallo asked about MP Materials' perspective on price floors for heavy rare earths, especially as they advise the administration, and what specific advice they offer the administration regarding heavy rare earths.

Answer

Jim Litinsky (Founder, Chairman and Chief Executive Officer) explained that for heavies, deposits often make economic sense as concentrate or mega feedstock for a refiner like MP Materials, rather than building full refining capability at each site. He noted that MP Materials is well-positioned to accept these feedstocks and that various incentives can encourage upstream production. He emphasized that the industry structure is closer to a global structural oligopoly, and MP Materials, as America's national champion, has a structural advantage due to vertical integration, being years and billions ahead. He advised the government to continue catalyzing private capital through investments, loans, and grants, praising the administration's thoughtful approach, and cautioned private investors to be clear-eyed about structural economics.

Ben Kallo inquired about the potential timelines for new partnerships or investments and which part of the business (Stage 1, 2, or 3) would be the primary focus. He also asked whether the company's momentum would be lost if the current trade war with China de-escalates.

Answer

CFO Ryan Corbett highlighted that the most significant interest is in scaling US magnetics capacity (Stage 3) and pointed to the company's track record of speed, having built the magnetics business from an idea to EBITDA-positive in a few years. CEO Jim Litinsky addressed the trade war question, asserting that regardless of any de-escalation, the US government now recognizes the national security imperative of a domestic magnetics supply chain for applications like drones and robotics, ensuring continued momentum for the company.

Ben Kallo asked for an update on MP's strategy for heavy rare earths, including both upstream separation and downstream sourcing for its magnetics business. He also asked if there were any policy initiatives with "actual teeth" to support domestic production pricing.

Answer

COO Michael Rosenthal explained that the primary strategy for heavies is their internal separation project, which is designed to support the Magnetics business and can also process third-party materials. CEO James Litinsky added that many emerging physical AI applications require limited or no heavies. On policy, Litinsky reiterated the need for a "level playing field" and pointed to recent political discourse on trade reciprocity as a very positive sign for the business.

Ben Kallo sought clarification on whether magnet samples were being provided to customers other than General Motors, given the existing offtake agreement, and asked about the company's policy 'wish list' for leveling the international playing field.

Answer

CFO Ryan Corbett clarified that while the 'preponderance' of volume is committed to their foundational customer, General Motors, the company is not demand-constrained and continues to have healthy dialogues with other potential customers. CEO James Litinsky added that the facility is positioned to serve various customers over time, especially in robotics and national security. On policy, Litinsky stated there is no single 'wish,' as remedies could include tariffs, tax credits, or defense policy to counteract advantages of competitors who lack a true cost of capital or reagents.

Ben Kallo asked about Rivian's R2 pricing philosophy, contrasting it with Tesla's strategy of launching highest trims first, and how pricing will be set given potentially limited supply at Normal and differentiation with the Georgia plant. He also inquired about the role of advertising and marketing in distinguishing Rivian's EVs amidst other OEMs' retrenchment or hybrid focus.

Answer

RJ Scaringe, CEO, stated that an R2 event early next year will detail the full product portfolio and pricing levels. He explained that the launch edition will be a well-appointed dual-motor variant, not the most expensive, chosen to satisfy the most customers, with other trims added after the initial ramp-up. Regarding marketing, he noted that awareness will grow from R2's presence and word-of-mouth, but Rivian is also thoughtfully planning targeted campaigns, including physical activations and digital marketing, to drive awareness for the product, despite historically not relying heavily on paid marketing.

Ben Kallo asked about Rivian's philosophy around R2 pricing, specifically the $45,000 starting price, and how it's set versus potential future price adjustments, considering limited initial supply and differentiation with the Georgia plant. He also inquired about the role of advertising and marketing versus price cuts to determine market size, and how Rivian plans to distinguish its EVs.

Answer

CEO RJ Scaringe stated that an R2 event in early next year will detail the full product portfolio and pricing levels. The launch edition will be a dual-motor, well-appointed variant, not the most expensive, but designed to satisfy most customers, with other trims added later. He discussed building awareness through R2's presence, accessibility due to its lower price point, and word-of-mouth, alongside thoughtful and measured deployment of paid marketing through unique physical and digital campaigns to highlight the product's value.

Ben Kallo asked if Rivian has seen an uptick in demand resulting from recent events at Tesla and inquired about the company's perspective on "slate auto" (a new product concept).

Answer

CEO Robert Scaringe noted that Rivian's flagship products operate at a significantly higher price point than Tesla's high-volume models, limiting direct cross-shopping, but stated that the R2 will compete more directly on price. He commented that the "slate product" is in a very different consumer space and that he is encouraged to see new product concepts emerge, as the market needs a diversity of choices.

Ben Kallo from Baird asked about Bloom Energy's experience with large-scale projects, referencing the 80 MW SK deal, and how customers gain comfort with the technology for even bigger deployments. He inquired about Bloom's capability to handle projects ranging from 100 MW to 900 MW and the decision-making process for expanding manufacturing capacity beyond the current 2 GW target.

Answer

K.R. Sridhar, Founder, Chairman, and CEO of Bloom Energy, explained that Bloom's modular, copy-exact architecture eliminates scaling risks, allowing for projects from small retail stores to very large data centers with increased reliability at scale. He reiterated Bloom's commitment to proactively expanding capacity to avoid being a bottleneck for customer growth, with factories designed for rapid expansion.

Ben Kallo asked about Bloom Energy's experience with large projects, referencing the 80-megawatt SK project, and how customer comfort with the technology has evolved. He also inquired about Bloom's capabilities for even larger projects (e.g., 100 MW vs. 900 MW) and the go/no-go decision process for expanding capacity beyond 2 gigawatts, including the speed of such expansion.

Answer

K.R. Sridhar, Founder, Chairman, and CEO of Bloom Energy, explained that Bloom's purpose-built, modular architecture ensures no scaling risks, as each 'Lego block' operates identically regardless of project size. He noted that larger projects, with more modules, actually increase system reliability. Sridhar affirmed that Bloom is actively discussing much larger projects with customers and is committed to expanding capacity as needed to avoid being a bottleneck, designing factories for rapid expansion.

Ben Kallo from Baird asked if ITC changes were causing projects to be pulled forward, how 'Next Frontier' assets fit into the tax policy landscape, and requested an update on international expansion plans.

Answer

President and CEO Jeffrey Lipson stated that the company is not seeing a meaningful pull-forward of projects, as clients are typically already developing as quickly as possible. He noted that many 'Next Frontier' asset classes are less dependent on tax policy. Regarding international expansion, Lipson reiterated that there was nothing new to report and that the most likely path would be to partner with an existing multinational client.

Ben Kallo asked about the expected investment cadence for the upcoming quarters amid uncertainty around the Inflation Reduction Act (IRA) and which subsectors the company currently finds most appealing.

Answer

President and CEO Jeffrey Lipson stated that the strong Q1 was not a pull-forward and that the company remains bullish on volumes for the rest of the year, seeing business as "usual, if anything, slightly elevated." He reiterated that the pipeline is well-balanced and that the company does not see a significant impact from IRA uncertainty due to strong fundamental demand.

Ben Kallo asked about the status of discussions for a subsequent co-investment partnership with KKR or others, and questioned the rationale for expanding into new asset classes and international markets, asking if it signaled a lack of opportunity in core areas.

Answer

President and CEO Jeffrey Lipson stated that while a co-investment strategy will be a permanent part of the capital structure, it is premature to discuss a successor to the current CCH1 vehicle. He definitively clarified that the expansion is about growth and not a reflection of the core business running out of capacity, a sentiment with which Chief Revenue & Strategy Officer Marc Pangburn concurred.

Ben Kallo questioned the availability of battery supply given potential tariffs and foreign entity of concern (FEOC) rules. He also asked about the company's flexibility to shift its workforce between different business segments, such as from solar to energy efficiency, to adapt to market conditions.

Answer

Nicole Bulgarino, President of Federal Solutions & Utility Infrastructure, responded that Ameresco is closely monitoring FEOC rules and mitigating risks by using diverse suppliers and including tariff adjustment clauses in customer contracts. George Sakellaris, Chairman, CEO & President, confirmed the company's operational flexibility, noting that they are already pivoting some solar development staff to focus on battery storage and have successfully managed labor resources to avoid project delays.

Ben Kallo from Baird questioned the company's confidence in achieving its target of new assets next year, given interconnection delays. He also asked if uncertainty around the Inflation Reduction Act (IRA) is impacting customer orders or Ameresco's own asset development plans.

Answer

CEO George Sakellaris clarified that the target for next year is closer to 100-120 megawatts, following a very strong 2024. Regarding the IRA, he sees minimal risk, noting strong bipartisan support for battery storage ITCs and the difficulty of reversing the act. Mike Bakas, President of Renewable Fuels, added that many IRA benefits go to red states, further insulating them. Sakellaris also suggested that a potential slowdown in offshore wind could benefit Ameresco's distributed solar and storage projects.

Ben Kallo of Baird inquired about Itron's M&A strategy in the current regulatory environment, its capital deployment priorities given the growing cash balance, and the outlook for earnings and revenue growth into the next fiscal year.

Answer

CEO Tom Deitrich confirmed that the M&A strategy is unchanged, with a continued focus on disciplined, accretive acquisitions in the software and services (Outcomes) space. CFO Joan Hooper noted that while it's too early for specific 2026 guidance, year-over-year growth is expected, with the pace depending on the timing of bookings in the second half of 2025.

Ben Kallo inquired about the removal of the 12-month backlog metric from investor materials and sought details on the regulatory environment for capitalizing software sales in the U.S.

Answer

CEO Tom Deitrich explained the 12-month backlog was removed to reduce confusion and affirmed the demand environment remains strong. He also noted that the regulatory environment is constructive for software sales, with mechanisms like term licenses and performance-based rates in approximately 40 states enabling utilities to include these purchases in their rate base, contributing to the Outcomes segment's 14% YoY growth.

Ben Kallo asked for details on the demand environment by region, particularly in North America, and whether there has been any pushback from public utility commissions due to rising electricity rates. He also inquired about the competitive environment and the uniqueness of Itron's third-party application ecosystem.

Answer

CEO Tom Deitrich described the opportunity funnel as 'never been better,' with North America leading demand, strong activity in Asia Pacific (notably Australia/New Zealand), and a flatter outlook for Europe. He stated the regulatory environment remains constructive with commissions still approving deals. Deitrich asserted that Itron has a 'pretty substantial lead' in Grid Edge Intelligence and that while competitors are talking about similar capabilities, they are not close to Itron's 13 million endpoints already in the field.

Ben Kallo asked for clarification on the 2025 growth outlook and inquired about the market dynamics and specific deals driving the strong bookings expected in the fourth quarter.

Answer

CFO Joan Hooper clarified that while not providing 2025 guidance, analysts should normalize 2024 revenue by removing $125 million in catch-up revenue before modeling future growth. CEO Tom Deitrich described the market as "extremely constructive," noting that regulatory progress on over half of a previously mentioned $1 billion in pending awards supports the company's conviction for a full-year book-to-bill ratio of 1:1 or greater.

Ben Kallo from Baird questioned how customers are approaching contract renewals in the current low-price environment, the pricing structure of the recent prepayment deal, and what other cash-saving levers, like the dividend, could be pulled.

Answer

An executive explained that discussions are ongoing for 2026 renewals with structures similar to past deals (market-exposed with protections). CFO Neal Sheorey clarified the prepayment deal is market-indexed, not at a fixed discount. Both executives emphasized they are constantly pulling all levers—CapEx, costs, productivity—to manage cash flow.

Ben Kallo from Baird asked for an explanation of the market dynamics where prices are falling despite rising demand and capacity curtailments, and inquired about the impact of lithium recycling in China.

Answer

CEO Jerry Masters described the market as dynamic and opaque, with new capacity additions and excess conversion in China offsetting curtailments. He noted that while recycling is a growing long-term factor, it has recently decreased in China due to low prices making it uneconomic compared to new material, and that the market ultimately relies on supply and demand fundamentals.

Ben Kallo questioned whether ESS was in discussions with strategic partners like Honeywell or SoftBank for cash infusions. He also asked if the recent tariff changes and IRA uncertainty have led to an increase in customer inquiries for lithium-ion alternatives.

Answer

CFO Tony Rabb confirmed that ESS is having ongoing, productive discussions with Honeywell and other existing investors regarding capital. Interim CEO Kelly Goodman added that while existing investors are highly supportive, the company is also seeking new investors to diversify its cap table. Goodman also confirmed that tariff uncertainty and the broader push for electrification have positively driven an increase in customer inquiries in recent weeks.

Asked about the possibility of asset sales for liquidity, why they weren't pursued earlier, and whether there is room for further workforce reductions after the recent significant cuts.

Answer

Management responded that borrowing against their cash flows via the new loan facility was economically superior to selling assets, although asset sales remain an option. On cost cuts, they noted that after reducing headcount by over 30%, they are reaching diminishing returns but will continue to look for efficiencies, particularly in capital markets transaction costs.

Inquired about the company's internal expectations for EV sales in 2025 and 2026, potential catalysts for EV demand, and the strategic rationale for maintaining manufacturing in both the U.S. and Europe versus outsourcing.

Answer

The company expects EV market growth in 2025, driven by new regulations in Europe and new models in North America, but is conservatively building its financial plan based on a flat market to ensure profitability. They view their in-house manufacturing footprint in the U.S. and Europe as a key strategic advantage for controlling costs, improving margins, and capturing future growth, noting that the major capital expenditures have already been made.

Asked about the trend of repeat purchases from existing customers and whether they are scaling up orders, and requested an update on the vehicle volume required to achieve EBITDA breakeven.

Answer

The company has repeat customers and is focused on seeding the market with many different fleets to gather data on use cases. Connecting Northern and Southern California with fueling infrastructure is a key enabler for more sales. The process with national accounts involves pilots and navigating internal goals. Regarding breakeven, the previously discussed volume range hasn't changed, and achieving scale is key, but they declined to give a specific number.

Asked about the competitive threat from EV trucks like Tesla, how customers perceive the different technologies (diesel vs. EV vs. hydrogen), and the company's view on political risks leading up to the November election.

Answer

The company believes there is bipartisan political support for hydrogen, with major projects in both red and blue states. Competitively, they see fuel cell trucks having advantages over battery electric trucks in specific use cases due to faster refueling, better range retention in adverse conditions, and avoiding depot charging infrastructure challenges. They offer both BEV and FCEV on a common platform to serve different customer needs.

Asked for more detail on the opportunity at California ports and the typical purchasing cadence for new fleet customers.

Answer

The port opportunity is significant, with 30,000 trucks, and Nikola is focusing its fueling infrastructure there. Initial orders are substantial (e.g., 10 trucks at a time), and customers are interested due to the truck's superior range and fast refueling compared to BEVs.

Sought clarification on which Spoke operations are paused, the profitability of black mass sales from operating Spokes, and whether the Glencore Portovesme project will proceed.

Answer

The Ontario Spoke is paused, while other major Spokes continue operating; future Spoke expansions are on hold. The company aims for operating Spokes to generate liquidity but did not confirm current profitability. The Portovesme Hub project with Glencore is still moving forward, with only the timing of its feasibility study under review.

Inquired about changes in customer discussions due to market dynamics, the possibility of securing capital through customer prepayments, and sought clarification on the status of EPA permits for injection wells.

Answer

Executives noted that customers are increasingly seeking to diversify their supply chains. The company is exploring customer prepayments as a funding option. They clarified they have the main permit but are working to satisfy specific conditions on that permit to get final EPA authorization to inject.

Inquired about how customer discussions have evolved given global supply dynamics, the potential for securing capital through prepayment deals with partners, and sought clarification on the company's permit status with the EPA.

Answer

Customers are increasingly seeking to diversify their supply chains away from single sources. The company confirmed it is exploring prepayment financing structures. Management clarified that they possess the necessary permit but are working to satisfy its final conditions with the EPA, not seeking a new permit.