Mo Chen

Mo Chen, on behalf of Truist Securities, asked if Shoals is seeing more large-scale international agreements like the one with UGT Sun Africa and inquired about the supply chain strategy for growing international volumes. He also asked about the margin profile of this 12-gigawatt contract compared to the current backlog.

Answer

CEO Brandon Moss expressed excitement about the 12-gigawatt MOU, noting it's largely an export opportunity driven by U.S. EXIM Bank's domestic content requirements. He reiterated the long-term plan to establish in-region resources for international markets. While declining to comment on the specific contract's margin profile, he stated that projects funded by the EXIM Bank would look and feel similar to typical U.S. projects.

Mo Chen, on behalf of Jordan Levy at Truist, asked for clarification on why new orders lagged pipeline growth, what initiatives were underway to grow the backlog, and about pricing dynamics heading into 2025.

Answer

CEO Kevin Hostetler explained that strong North American order momentum was masked by de-bookings of delayed projects in Brazil. He clarified these were not cancellations. Regarding pricing, he stated that ASP declines have been driven by falling commodity prices, not competitive price wars, and noted that the market, particularly in the U.S., remains disciplined. He also suggested that recent increases in steel prices could be a positive dynamic for Array's future ASPs.