Jon Windham

Jon Windham asked for Dan Shugar's perspective on the potential impact of increased storage availability, particularly from repurposed EV batteries, on solar demand in the United States.

Answer

Dan Shugar, CEO and Founder, expressed enthusiasm for the growth in U.S. battery manufacturing capacity, emphasizing the complementary nature of solar and storage. He noted the trend towards longer storage durations (from 1-hour to 24-hour projects) and the significant cost reduction in storage, similar to photovoltaic cells, which makes solar more ubiquitous.

Jon Windham asked Dan Shugar about the potential impact of increased battery storage availability in the U.S., particularly from repurposed EV battery manufacturing, on solar demand.

Answer

Dan Shugar, CEO and Founder, expressed enthusiasm for increased battery manufacturing capacity in the U.S. and other markets, including repurposed EV battery production for stationary storage. He emphasized the complementary relationship between solar and storage, noting the significant increase in storage duration (from 1-hour to 4-8 hours, and even 24-hour projects) over the past five years. Shugar attributed this to a cost reduction learning curve similar to photovoltaic cells, which he believes will make solar more ubiquitous.

Jon Windham of UBS Group AG inquired about Array's progress in international markets and asked for an update on the company's capital structure priorities following recent financing activities.

Answer

President & COO Neil Manning noted a strong but uneven first half internationally, citing macroeconomic headwinds in Brazil but optimism for diversification efforts. CFO Keith Jennings stated they are very pleased with the current capital structure, which provides significant operating runway, and view the preferred equity as reasonably priced long-term capital for now.

Jon Windham from UBS Group asked for an overview of key state-level policy and subsidy trends that investors should monitor, noting the historical tendency for states to react to shifts in federal policy.

Answer

President & CRO Paul Dickson affirmed that state-level programs remain stable and durable. CEO Mary Powell added that growing grid constraints and energy demand from AI are creating a new catalyst, expecting states to increasingly focus on and incentivize dispatchable resources like battery storage, which directly benefits Sunrun's strategy.

Jon Windham of UBS Group asked for clarification on why the adjusted EBITDA guidance was held constant despite a $30 million increase in the revenue guidance midpoint.

Answer

CEO Brandon Moss reiterated that the margin impact was due to promotional pricing to attract new EPCs and a growing mix of new products that can have lower initial gross margins. He emphasized that SG&A is stable and will provide future operating leverage. CFO Dominic Bardos added that operational efficiencies from the new facility consolidation have not yet been realized.

Jon Windham asked for the key milestones to watch for over the next year regarding nuclear development and the Westinghouse business.

Answer

CEO Connor Teskey explained that while the core services business is stable, the key driver is new build nuclear, with recent outperformance driven by European activity. Co-President Wyatt Hartley highlighted the U.S. as the most significant area to watch, citing a recent executive order aiming for 10 new gigawatt-scale reactors by the end of the decade. He noted that Westinghouse is the most credible technology provider and that Brookfield is working with stakeholders, including hyperscalers, to advance projects in the very near term.

Jon Windham from UBS Group AG asked for management's thoughts on the key milestones for nuclear development and the Westinghouse business that investors should watch for over the next year.

Answer

CEO Connor Teskey explained that Westinghouse's business has two parts: a stable services business for the existing global fleet and a high-growth new-build component. Co-President Wyatt Hartley elaborated on the U.S. opportunity, highlighting a recent executive order aiming to start construction on 10 gigawatt-scale reactors by the end of the decade. He noted Westinghouse is positioned as the most credible technology provider and is working closely with the government, utilities, and hyperscalers to advance these projects in the near term.

Jon Windham of UBS Group asked a big-picture question about GFL's strategy to insulate itself from potential large swings in the CAD/USD exchange rate, including any hedging or mitigation plans.

Answer

Executive VP & CFO Luke Pelosi explained that GFL currently has a good natural economic hedge between its cash flows and expenses. He noted that the primary impact is translational and that as the U.S. business grows, the company will likely switch to being a U.S. dollar reporter in the near to medium term, aligning with peers and mitigating the issue.

Jon Windham of UBS Group AG inquired about the status and progress of the Generac partnership, now two years old, and asked for details on the Quasar 2 bidirectional charger project, including its partners and scale.

Answer

CEO Enric Asunción explained that the Generac partnership is progressing well, with Wallbox supplying co-branded home chargers and integrating its software into the Generac ecosystem. He also mentioned a new joint solution for fast charging paired with industrial batteries is in pilot stages. Regarding Quasar 2, Asunción highlighted it as the first certified CCS bidirectional charger in North America, launched with Kia for the EV9. He noted that initial units have been delivered, with plans to ramp up production to over 100 units per quarter by Q4 2025.