Maheep Mandloi

Maheep Mandloi questioned the possibility of retroactive changes to safe harbor rules for projects qualified before the July 4 executive order. He also asked for clarification on the updated ITC sales guidance of $70-80 million, inquiring if it represented a reduction from previous estimates.

Answer

CEO Gilad Yavetz stated that the broad consensus among law firms is that retroactive legislation is unlikely. He also added that key projects are planned for operation before 2027, providing an additional layer of protection. Director of IR Yonah Weisz clarified that the tax benefit guidance was narrowed from a previous range of $60-80 million to the current $70-80 million, representing a slight increase at the midpoint.

Maheep Mandloi of Mizuho Financial Group sought clarification on safe harbor rules, asking if it's possible for regulations to retroactively affect projects that were safe harbored before July 4, based on legal checks. He also asked a housekeeping question about whether the updated $70-80 million guidance for ITC sales represented a reduction from previous estimates.

Answer

Gilad Yavetz (Co-Founder, CEO & Director) and Yonah Weisz (Director of IR) provided answers. Mr. Yavetz stated that the broad consensus among law firms is that retroactive legislation is unlikely. He added that several major projects are planned for operation before 2027, providing an additional layer of security. Mr. Weisz clarified the ITC guidance, explaining that the range was narrowed from a previous $60-80 million to the current $70-80 million, not a reduction.

Maheep Mandloi of Mizuho Financial Group sought clarity on whether safe harbor rules could be retroactively changed for projects secured before July 4, based on the company's legal checks. He also asked a housekeeping question about the $70-80 million guidance for ITC sales, questioning if this represented a reduction from previous estimates.

Answer

CEO Gilad Yavetz stated that the broad consensus among law firms is that retroactive legislation is unlikely. He added that several major projects are scheduled for completion before 2027, providing an additional layer of security. Director of IR Yonah Weisz clarified the ITC guidance, explaining the range was narrowed from a previous $60-80 million to $70-80 million, representing a slight increase at the midpoint, not a reduction.

Maheep Mandloi of Mizuho Financial Group sought clarification on safe harbor rules, asking if projects safe harbored before July 4 could be retroactively impacted by new regulations. He also asked a housekeeping question about the updated ITC sales guidance of $70-$80 million, questioning if this represented a reduction from prior estimates.

Answer

CEO Gilad Yavetz responded that the broad consensus among legal experts is that retroactive legislation is unlikely. He also noted that several major projects are planned for operation before 2027, providing an additional layer of security. Director of IR Yonah Weisz clarified the ITC guidance, explaining that the range was narrowed from a previous $60-$80 million to the current $70-$80 million, which is a refinement, not a reduction.

Maheep Mandloi from Mizuho (asked by Jack) asked if HASI would be interested in prepaid leases, a product discussed by third-party ownership providers, and if such products would offer similar yields to traditional leases.

Answer

Marc Pangburn, Chief Revenue and Strategy Officer, stated that HASI would certainly consider prepaid leases if opportunities arose but has not yet been presented with any, deferring further comment until such a time.

Maheep Mandloi (via Jack) asked about Hannon Armstrong Sustainable Infrastructure Capital's interest in prepaid leases within third-party ownership models and whether they would yield similar returns to traditional leases.

Answer

Marc Pangburn, Chief Revenue and Strategy Officer, acknowledged that prepaid leases are a product Hannon Armstrong Sustainable Infrastructure Capital could consider but confirmed that no such opportunities have been presented to date.

Maheep Mandloi of Mizuho Financial Group questioned what asset types are included in the new 'Next Frontier' pipeline category and asked for clarification on the opportunity to replace tax equity in project capital stacks.

Answer

President and CEO Jeffrey Lipson noted that while specific 'Next Frontier' investments in the pipeline are not yet being disclosed, the category represents a successful expansion of HASI's scope. Chief Revenue & Strategy Officer Marc Pangburn clarified that the opportunity to replace tax equity is a future prospect that would arise after tax credits phase out, creating a void in the capital stack that HASI could fill.

Maheep Mandloi questioned the potential impact on HASI's project funnel if IRA tax credit transferability were removed and asked how the company manages interest rate risk between locking in investment yields and securing financing.

Answer

Chief Client Officer Susan Nickey and CEO Jeffrey Lipson noted that transferability has broad support and that much of the pipeline is already insulated via safe harboring. CFO Charles Melko explained that the company uses its revolver for initial funding and employs hedging products to lock in interest rates, managing risk for both short-term funding and longer-term takeouts.

Maheep Mandloi asked how investment yields are trending in Q1 given market risks and whether the 'Next Frontier' opportunities will have different yield or tenure profiles.

Answer

President and CEO Jeffrey Lipson stated that pipeline yields are currently in a similar range to 2024's results. Chief Revenue & Strategy Officer Marc Pangburn clarified that the current guidance is based on existing asset classes. He suggested the new asset classes are being evaluated similarly as infrastructure assets with long-duration, contracted cash flows, implying a comparable risk-return profile, though this is still to be determined.

Maheep Mandloi asked about the accounting for the 50/50 JV, specifically how the NiSource project's estimated $6-7 billion CapEx would translate into Quanta's backlog ($3 billion) and how revenue recognition would be handled.

Answer

President and CEO Duke Austin stated that Quanta's backlog would be incremental, with the larger portion (pending air permits) hitting in the second half of next year, similar to a SunZia-sized project. CFO Jayshree Desai clarified that the accounting would be proportional, reflecting Quanta's share of revenue and profit. She added that the project is currently in the LNTP phase, moving to FNTP after air permits mid-next year, with meaningful revenue pickup expected in late 2026, and more significantly in 2027 and 2028.

Maheep Mandloi asked about the accounting for the 50/50 JV, specifically revenue recognition and backlog impact, given NiSource's $6-7 billion CapEx.

Answer

President and CEO Duke Austin clarified that backlog will be incremental, with the larger piece (air permits) hitting in the second half of next year. CFO Jayshree Desai added that accounting will be proportional, reflecting Quanta's share of revenue and profit, with revenue pickup expected in the second half of 2026, and more significantly in 2027-2028.

Maheep Mandloi from Mizuho asked for clarification on Bloom Energy's decision not to provide specific Q4 guidance, inquiring if it was primarily due to the timing of large, lumpy installations around the December/January period.

Answer

K.R. Sridhar, Founder, Chairman, and CEO of Bloom Energy, confirmed that the lack of specific Q4 guidance was indeed due to the timing of project-based installations. He explained that while Bloom can deliver systems on time, customer readiness to accept power can cause projects to fall on either side of the December 31st deadline, making precise quarterly forecasting challenging, though full-year guidance was improved.

Maheep Mandloi asked a housekeeping question regarding the reason for not disclosing Q4 guidance, specifically if it was due to the timing of lumpy installations in December or January.

Answer

K.R. Sridhar, Founder, Chairman, and CEO of Bloom Energy, confirmed that the lack of specific Q4 guidance is indeed due to the project-based nature of installations, particularly greenfield projects. He explained that customer readiness can cause projects to shift a few days before or after the December 31 deadline, impacting timing for reporting purposes but not the overall project or revenue.

Maheep Mandloi sought to confirm that the 100 basis point tariff impact was based on the current 10% rate and asked about the potential impact if tariffs reverted to higher, previously discussed levels.

Answer

K.R. Sridhar (Founder, Chairman, and CEO) confirmed the 100 basis point estimate is the result of a detailed portfolio analysis of the entire supply chain. He described it as a 'thought-through process' and reiterated the company's commitment to mitigating the impact through internal efforts to maintain its full-year margin guidance.

Maheep Mandloi from Mizuho Securities followed up on FEOC compliance, asking specifically about the 45X tax credit eligibility for U.S. manufacturing assets and whether Canadian Solar plans to alter the ownership structure of CSI Solar in the U.S. to maintain compliance.

Answer

Chairman and CEO Dr. Sean Hsu stated that the company's legal and external teams believe the OBBBA language is clear, allowing them to assess compliance for 45X credits. He expressed confidence in navigating the material assistance requirements each year due to a diversified global supply chain. Dr. Hsu confirmed that the company has a strategy and will take necessary actions in the future to ensure its structure remains compliant with OBBBA rules annually.

Maheep Mandloi from Mizuho Securities USA LLC questioned if the guided quarter-over-quarter gross margin improvement applies to the full year and requested insight into the specific impacts of lower e-STORAGE shipments and trade duties on Q1 margins. He also asked about the handling of potential steel and aluminum tariffs.

Answer

Yan Zhuang, President of CSI Solar, confirmed the margin improvement trend is expected throughout the year, driven by increasing storage shipments and a better channel mix. CFO Xinbo Zhu specified that the primary drag on Q1 margin is the lower seasonal volume from the high-margin e-STORAGE business. CEO Shawn Qu added that steel and aluminum tariffs are already factored into their cost structure, with some impact absorbed by suppliers.

Maheep Mandloi of Mizuho Financial Group inquired about the expected margin profile for new products like OmniTrak and the pending APA Solar acquisition compared to the rest of Array's business.

Answer

CEO Kevin Hostetler did not provide specific product-line margins but emphasized that new products like OmniTrak and Skylink, which now constitute 35% of the order book, are designed to be accretive to the portfolio. He highlighted that the combination of OmniTrak and APA's foundations will create a market-leading solution for difficult terrain, implying strong value capture.

Maheep Mandloi from Mizuho Securities asked about the potential for book-and-bill upside to the 2025 guidance and the impact of potential steel and aluminum tariffs on components.

Answer

CFO Keith Jennings acknowledged that upside is possible given their lead times but stated they are holding to current guidance amid market uncertainty. President & COO Neil Manning and CEO Kevin Hostetler asserted that Array is well-positioned against tariffs due to its high domestic content strategy, with a goal of 100% domestic content in H1 2025. Hostetler also noted that tariffs could indirectly benefit Array by allowing domestic steel producers to raise prices, improving ASPs.

Maheep Mandloi asked about SolarEdge's battery cell sourcing strategy for this year and next. He also inquired if the gross margins on batteries have returned to the company's target levels.

Answer

CEO Shuky Nir explained that the battery sourcing strategy prioritizes quality and reliability, followed by optimizing the supply chain for tariffs and domestic content rules. CFO Asaf Alperovitz declined to provide product-level gross margins but acknowledged that batteries have a lower margin profile and that the company is actively working to improve their cost structure.

Maheep Mandloi of Mizuho Financial Group asked for clarification on the volume growth rate assumptions that underpin Sunrun's multi-year ITC safe harbor plan.

Answer

CFO Danny Abajian responded that the safe harbor plan is based on an assumption of 'modestly growing' volume. He emphasized that the company remains anchored on margin growth and disciplined execution rather than pursuing aggressive volume expansion.

Maheep Mandloi sought clarification on the net PPA price increase required to offset tariffs, considering ITC benefits. He also asked about the new Flex product's impact on upfront costs and return profile.

Answer

CFO Danny Abajian detailed that the 3-7% annual cost impact from tariffs would be partially offset by a higher ITC basis, with the remainder addressed through pricing, cost efficiencies, or other measures. Executive Patrick Jobin explained that for the Flex product, installation efficiencies from larger systems largely offset higher equipment costs, resulting in similar or even superior upfront returns before accounting for upside revenue.

Maheep Mandloi asked for the reasons behind the flattish solar installation guidance for 2025 and requested more detail on why a slower ramp in domestic content for affiliate partners is impacting the cash generation forecast.

Answer

CEO Mary Powell attributed the flat solar volume to slower growth from affiliate partners as Sunrun prioritizes its higher-growth direct business and storage-first strategy. President and CRO Paul Dickson elaborated that smaller affiliate partners face challenges in obtaining qualifying domestic hardware and operationalizing the qualification process.

Maheep Mandloi asked for clarity on the safe harbor process under the Inflation Reduction Act (IRA), questioning if there are new guidelines similar to the previous two-year window for sunsetting tax credits.

Answer

CFO Danny Abajian clarified that there is a four-year safe harbor period under the new IRA rules. He affirmed that Sunrun has 'developed playbooks' from past experiences with safe harbor strategies and that the company's financial guidance considers all possibilities.

Maheep Mandloi from Mizuho Financial Group asked for more color on the revenue contribution from international markets, given the company's 20-gigawatt pipeline and backlog composition.

Answer

CEO Brandon Moss reported that while 2025 revenue contribution has been minimal, they have secured projects in Chile and Australia. He noted that approximately 13% of the BLAO is for international projects and expects revenue from this segment to accelerate in 2026, driven by their export partnership and tracking in line with Investor Day projections.

Maheep Mandloi of Mizuho Securities requested more information on the announced contract with a hyperscaler and asked a housekeeping question about the expected shrinkback litigation costs for the remainder of the year.

Answer

CEO Brandon Moss clarified that the product supplied to the hyperscaler consists of large DC combiners and recombiners with a high average selling price, and expressed confidence in Shoals' ability to win in the BESS space. CFO Dominic Bardos outlined the litigation timeline, expecting potential mediation in Q4 2025 and a possible trial in 2026, indicating that legal expenses will continue for the foreseeable future.

Maheep Mandloi asked for a quantification of the tariff impact on the Q3 2025 earnings guidance and inquired about potential risks from Section 232 tariffs on silicon carbide, a material used in some power electronics.

Answer

President & CEO Badri Kothandaraman clarified that Enphase does not use silicon carbide, so it is unaffected by those potential tariffs. He detailed that the Q3 gross margin impact from reciprocal tariffs is estimated at 3-5%, or a 4% midpoint. This breaks down to a 1% impact from microinverters, due to supply chain diversification, and a 3% impact from batteries, primarily from cell sourcing. He stated the long-term solution to offset this is the fifth-generation battery, which will fundamentally improve the product's gross margin structure.

On behalf of Maheep Mandloi, David Benjamin asked if the Q2 guide assumes negative impacts from tariffs on Southeast Asian modules and whether the elevated channel inventory implies a new round of destocking.

Answer

President and CEO Badri Kothandaraman clarified that Enphase does not deal with modules and expects no impact on residential solar demand from those tariffs. He explained that channel inventory is slightly up due to lower-than-expected Q1 sell-through, but he views it as a normal cyclical adjustment that will be corrected through disciplined shipments and seasonal demand improvement in Q2.

Maheep Mandloi asked about the financing of the safe harbor deals and questioned if there was a difference between the gross margins in Europe versus the U.S.

Answer

President and CEO Badrinarayanan Kothandaraman declined to provide details on customer financing. He clarified that European gross margins are at similar levels to U.S. gross margins, as the pricing strategy and list prices with distributors are approximately the same in both regions.

Maheep Mandloi asked for the specific launch timing for the commercial and residential versions of the IQ9 microinverter and inquired about Enphase's plans for deploying its nearly $1.8 billion cash balance.

Answer

President and CEO Badri Kothandaraman stated the IQ9 will launch in the second half of 2025, starting with commercial versions and followed by residential models. Regarding the cash balance, he outlined a three-pronged strategy: first, funding organic growth and expansion; second, pursuing selective M&A in areas like energy management software; and third, executing systematic share buybacks, particularly during periods of stock pressure.

Maheep Mandloi of Mizuho Financial Group questioned the geographic mix of module sales, asking about international plans and margin expectations for fiscal 2026. He also inquired about leveraging declining Indian interest rates for new debt or refinancing.

Answer

CFO Kailash Vaswani stated the current order book is largely for the Indian market but the company is building an international pipeline. He expressed cautious optimism that margins would remain strong in FY26. Regarding interest rates, Vaswani noted the company will opportunistically refinance existing debt and benefit from lower rates on new financing, highlighting that approximately 40% of their debt is floating rate.

Maheep Mandloi from Mizuho Securities USA LLC asked for an update on the solar cell and module production run rate, the expected revenue recognition from the manufacturing backlog, potential risks from Topcon patent litigation, and the valuation multiples for the recent 300 MW asset sale.

Answer

An unnamed executive, likely CEO Sumant Sinha, reported module production is at 10-11 MW per day and cell production is also ramping up with high efficiency. CFO Kailash Vaswani clarified that third-party sales are reported, while captive sales are capitalized. An executive also dismissed concerns over Topcon patent litigation, as ReNew does not export to the U.S., and confirmed the recent asset sale valuation was in line with past capital recycling transactions.

Maheep Mandloi inquired about the drivers of recent cost optimizations and the potential for future reductions. He also asked for clarity on PPA pricing for new capacity, the rationale for reconfiguring the solar/wind mix in hybrid projects, and whether the 900 MW external module order book includes international sales.

Answer

CFO Kailash Vaswani attributed cost savings to discretionary spending cuts and renegotiated O&M contracts, with benefits expected to continue. Sumant Sinha, Founder, Chairman and CEO, added that new projects meet return thresholds and that reconfiguring hybrid projects with more solar and batteries is driven by falling equipment costs, which improves IRRs and reduces variability. He confirmed the current 900 MW order book is entirely domestic to India.

Asked about the amount of residual cash flow available after backing the new loan, how much of the previously stated levered cash flow is being used for the new term loan, and if there are any other near-term debt maturities in Q1 or Q2.

Answer

Management clarified their focus is on addressing corporate debt, not acquisitions, and that their cash flow base is large and under-levered. The new loan facility does not encumber all cash streams (e.g., emission credits, MSA fees), leaving significant cash flow available. They noted that levered cash flows are increasing. The only other near-term maturity is a loan warehouse, which is being addressed through a securitization.

Inquired about the reason for the lower customer additions forecast despite higher megawatt growth, and asked about the basis for the September 1 domestic content mandate timing.

Answer

The company's focus is on cash generation and megawatt-hour growth, not simply customer count. There is potential for upside in demand, but it must be accompanied by additional cash generation. The September 1 date for the domestic content mandate is based on conversations with their OEM partners.

Maheep Mandloi asked for the drivers behind the high gross margin in Q3 and why it might not be repeatable, and also inquired about the cadence of bookings since the recent election.

Answer

Dan Shugar, CEO, explained the strong 36% gross margin in Q3 was due to tailwinds including favorable FX, operationalized savings in freight, and material cost savings. He noted Q4 margins would be slightly lower due to international mix. Howard Wenger, President, addressed the political climate by stating customers are calm and focused on the strong macro story of solar meeting rising electricity demand, which prevails across administrations.

Maheep Mandloi asked about the expected cadence for reaching positive EBITDA in the second half of the year and the key drivers for this improvement. He also inquired about the specific pricing levels Maxeon is seeing in new bookings for U.S. utility-scale projects.

Answer

CFO Kai Strohbecke explained that the turnaround to positive EBITDA is driven by returning to full capacity and securing better pricing in the U.S. power plant business. Chief Strategy Officer Peter Aschenbrenner added that while they are seeing significant upward pressure on forward pricing for utility-scale projects, they do not disclose specific numbers due to customer confidentiality. He noted that the existing backlog into 2025 was also booked at healthy ASPs.