William Grippin

William Grippin asked about current market observations for commodity prices and developments to watch for potential improvement. William Grippin also inquired about the EPA's expected 2026-2027 biofuels RVO release and any potential changes to Waste Connections' RNG offtake approach or capital deployment for those projects.

Answer

Mary Anne Whitney (CFO) noted incremental weakness in early Q4, then stabilization, with a recent uptick in OCC offset by weakness in plastics, resulting in a stable overall basket. She highlighted that demand for fiber (cardboard), driven by underlying economic activity and consumer confidence, is the key factor to watch for improvement. Mary Anne Whitney (CFO) reiterated that RNG projects are compelling across a range of RIN outcomes, and they will continue to opportunistically pursue them. She mentioned stability in RIN values and encouragement from D5 RINs as an indicator for D3. Ron Mittelstaedt (President and CEO) announced the recruitment of a top RNG expert to join the company, starting Monday, to further improve their capabilities in this area.

William Grippin with Barclays PLC asked about current market conditions for commodity prices and developments that could signal or support improvement. William also inquired about the EPA's expected release of 2026-2027 biofuels RVO, and if it could change the company's approach to RNG offtake or capital deployment.

Answer

Mary Anne Whitney (CFO) noted recent stabilization and a slight uptick in OCC offset by weakness in plastics, resulting in no overall basket movement, and is watching for increased underlying economic activity driving demand for fiber. Mary Anne Whitney (CFO) stated that RNG projects are compelling across a range of RIN outcomes, and the company will continue to opportunistically pursue them. Ron Mittelstaedt (President and CEO) announced the hiring of a top RNG expert, starting Monday, to further improve their capabilities.

William Grippin (Barclays) asked for details on Xylem's M&A spending during the quarter and sought quantification of the accretive impact of the international metering divestiture on the Measurement & Control Solutions (MCS) segment's margin.

Answer

CFO Bill Grogan clarified that the M&A spending was primarily related to the international metering divestiture. He confirmed that the divestiture is expected to be approximately 100 basis points accretive to the MCS segment's margin on a run-rate basis.

William Grippin of Barclays asked for details regarding M&A spending in the quarter and sought quantification of the accretive impact of the international metering divestiture on the Measurement and Control Solutions (MCS) segment's margin.

Answer

CFO Bill Grogan clarified that the M&A spending in the quarter was primarily associated with the international metering divestiture. He confirmed that the divestiture is expected to drive a 100 basis point margin improvement in the MCS segment on a run-rate basis.

William Grippin inquired about the potential for skid-based hardware to reduce 2025 CapEx and whether these savings could offset a potential loss of 30C tax credits. He also asked for early observations from the NACS connector pilot site.

Answer

CEO Badar Khan explained that federal incentives like 30C are not critical, representing only about 10% of gross CapEx per stall, whereas EVgo's next-gen charger program targets a 30% cost reduction. He anticipates a modest improvement in average CapEx in 2025 from prefab skids, though the average is affected by higher-cost flagship sites. On the NACS pilot, he stated it's too early for detailed data but confirmed an increase in Tesla vehicles charging at the site, even without any marketing.

William Grippin of UBS asked about the future strategy for monetizing 30C tax credits and requested a more granular breakdown of the 56% of throughput coming from rideshare, OEM, and subscription customers.

Answer

CEO Badar Khan stated that EVgo is evaluating the optimal strategy for 30C monetization to maximize returns, whether through one or multiple sales per year, and expects to continue monetizing at similar levels. Regarding the throughput mix, Khan noted that the 56% figure comprises rideshare, subscription, and OEM charging credit customers, with commercial (largely rideshare) accounting for about 24% of that. He described this as a predictable "baseload" demand.

William Grippin questioned the significant gap between the large contracted project backlog and the 2025 revenue guidance, and asked about potential EPA approval delays for new RNG plants.

Answer

CFO Mark Chiplock clarified that the full contracted backlog is executed over 12-36 months, not a single year, and pointed to the $1.1 billion in 12-month contracted backlog as the key indicator for 2025 revenue. Executive Mike Bakas addressed the RNG question, stating the company is comfortable with the EPA certification timeline, noting past approvals took only a month or two and that they can sell environmental attributes even while awaiting final certification.

William Grippin from UBS Financial asked if Ameresco is considering safe-harboring equipment to protect against potential changes to the Investment Tax Credit (ITC). He also inquired if the company is getting closer to monetizing ITCs from its RNG capital expenditures.

Answer

CEO George Sakellaris confirmed they will look to safe-harbor some equipment for RNG plants but less so for solar, as he believes the solar ITC is secure. He also stated that the company has started exploring the sale of ITCs related to its RNG assets, noting the potential is significant, and they are evaluating the opportunity.

William Grippin of UBS inquired about Wallbox's potential exposure to U.S. import tariffs, its mitigation strategies given its manufacturing footprint, and the funding runway provided by the recent $10 million capital raise.

Answer

CEO Enric Asuncion and CFO Luis Boada addressed the questions. Asuncion stated that the company is well-hedged with manufacturing in Europe for Europe and in Texas for North America. The primary risk lies with fast chargers manufactured in Barcelona, but they have plans to shift production to the U.S. if necessary. Regarding the capital raise, Asuncion highlighted that the funds, combined with inventory reduction, working capital optimization, and renegotiated interest-only loan periods, are intended to minimize the need for additional capital, though the ultimate outcome depends on top-line growth.

William Grippin of UBS asked for more detail on framework agreements with equipment suppliers and the extent to which these agreements help safe harbor U.S. development projects from potential changes to PTC and ITC levels.

Answer

Executive Connor Teskey clarified that over the last few years, the company has negotiated large-scale arrangements with equipment suppliers, particularly in the U.S. He explained that these agreements leverage the company's scale to secure best-in-class pricing and priority on order lists. This positions them favorably to procure equipment domestically if tariffs make that option more valuable, helping to mitigate policy-related cost risks.

William Grippin asked about the company's use of IRS 'safe harboring' guidelines to mitigate policy risk for tax credits and inquired about the specific drivers for the accelerating FFO per share growth implied in the Q4 guidance.

Answer

Executive Connor Teskey confirmed the company is always across initiatives like safe harboring to de-risk the business, leveraging its scale and diversification. For Q4 FFO growth, Teskey and fellow executive Wyatt Hartley identified four key drivers: 1) run-rate contributions from recent M&A and development, 2) strong underlying performance from businesses like Colombian hydro and Westinghouse, 3) gains from asset sales, and 4) capturing stronger prices from inflation indexation and hydro recontracting.

William Grippin asked for more detail on how framework agreements with equipment suppliers help safe harbor the company's U.S. development plans against potential changes to PTC and ITC levels.

Answer

Connor Teskey (executive) clarified that the company's scale, advanced pipeline, and access to capital are key differentiators. Specifically on equipment suppliers, he explained that large-scale framework agreements, particularly with U.S. domestic manufacturers, ensure best-in-class pricing and priority for securing volumes, providing a strong competitive position regardless of how tariff discussions play out.

The analyst requested more details on the amount and timing of growth investments and asked how these investments align with the guidance for flat free cash flow through the end of the decade.

Answer

The executive explained that the current guidance and CapEx plan cover the 2025-2026 period, focusing on CEPF buyouts and repowering. The guidance does not yet incorporate growth opportunities beyond that, which would be funded by the resulting free cash flow.

William Grippin inquired about the development status of JinkoSolar's tandem cell technology and its potential commercialization timeline. He also asked about the company's confidence in its TOPCon intellectual property position amid ongoing industry litigation.

Answer

Haiyun 'Charlie' Cao, CFO, explained that the tandem cell technology is still in the 'early stage' and that commercialization is unlikely for at least five years. Regarding TOPCon IP, Cao expressed strong confidence in their patent portfolio, citing their role as a technology leader and significant R&D investments. He noted that JinkoSolar has already granted a patent license to another company, which he said 'demonstrates our strong capabilities on R&D and patent position.'

Asked how the September 1 domestic content mandate might moderate growth compared to price increases, and requested an update on the Project Hestia initiative.

Answer

The company does not expect the domestic content mandate to significantly moderate growth, as they believe there are sufficient equipment options available from partners. The focus remains on managing growth to maximize cash generation. The Project Hestia initiative was used successfully last quarter, and they look forward to using it more.

Asked about the impact of accelerating ABS transactions on future cash generation and whether the company's financing terms have been affected by its stock and debt trading levels.

Answer

The company stated that accelerating securitizations pulls forward significant cash and they will move to a more disciplined, steady pace in 2025. They also confirmed there has been no negative impact on their financing terms or advance rates.

William Grippin asked about the implications of the recent patent infringement suit outcome against Aiko Solar and Maxeon's future IP defense strategy. He also questioned the company's potential exposure to new import tariffs given TZE's increased ownership.

Answer

CEO Bill Mulligan stated the preliminary injunction denial was not a surprise and that they remain confident in the merits of their case, planning to vigorously defend and monetize their extensive IP portfolio. Chief Strategy Officer Peter Aschenbrenner added they are appealing the decision and have other actions pending. Regarding tariffs, Peter Aschenbrenner explained that policies like the 201 bifacial exemption and AD/CVD cases are country-specific, and they are actively working with governments to secure favorable outcomes, believing their commitment to U.S. jobs is a key factor.

Asked about the anticipated costs and investments required to build out a direct DG customer base to replace the lost SunPower volume. Also inquired about the production cadence and whether there would be a manufacturing gap during the transition from Maxeon 6 to Maxeon 7 modules.

Answer

The company plans a 'light touch approach' to building its U.S. channel, replicating its efficient European model and leveraging the team from the Solaria acquisition, so significant new investment is not expected. To avoid a production gap, they will pre-build Maxeon 6 inventory to bridge the transition to Maxeon 7. They noted that despite this pre-build, overall inventory levels are still expected to decline.

Asked for clarification on how investment amounts are calculated, the sources of capital for 2024 investments, and the comparative returns between in-house development projects and third-party acquisitions.

Answer

The company clarified that investment figures represent their equity portion only. Funding sources include the balance sheet, asset recycling, and cash flow. While development typically yields higher returns, they are open to acquisitions which may offer similar returns at lower risk in the current market.