FREYR Battery, Inc. /DE/ (FREY)·Q3 2024 Earnings Summary

Executive Summary

• FREYR reported Q3 2024 net loss of $(27.5) million and diluted EPS of $(0.20); no revenue recognized as the company has not yet initiated commercial manufacturing .
• Cash, cash equivalents, and restricted cash declined to $184.1 million at quarter-end; management reiterated the company has no debt .
• Management announced a transformative acquisition of Trina Solar’s U.S. module assets and guided to positive EBITDA in 2025, with ranges of $75–$125 million for 2025 ramp, $175–$225 million at full module run-rate, and $650–$700 million for integrated domestic cell+module operations; CapEx for domestic cell estimated at ~$800 million .
• Catalysts: closing of the Trina Solar asset deal (late 2024/early Jan), CFIUS review and shareholder approval (2Q), financing and offtake developments for domestic cell build, and continued strategic monetization of European assets .

What Went Well and What Went Wrong

What Went Well

• Transformative strategic pivot toward U.S. solar manufacturing with Trina Solar assets; management expects FREYR to become a top-3 U.S. module producer and to generate revenues and positive EBITDA in 2025: “Upon closing, FREYR will become a top 3 U.S. solar module producer… we now expect to generate revenues and positive EBITDA in 2025.”
• Clear, quantified earnings power guidance: 2025 EBITDA $75–$125 million; full module run-rate $175–$225 million; integrated cell+module $650–$700 million (including PTC benefits) .
• Discipline on financing structure and timeline to close, including a $100 million commitment from top shareholder and staged financing to support cell development; transaction terms laid out with attractive acquisition multiple (~3.1x full run-rate EBITDA) .

What Went Wrong

• Continued lack of revenue and operating losses; Q3 loss from operations $(31.8) million and net loss $(27.5) million, with a restructuring charge of $4.5 million in Q3 .
• YoY deterioration in net loss due to lower other income (notably smaller warrant liability adjustment vs. prior year) and restructuring; net loss widened from $(9.8) million in Q3 2023 to $(27.5) million in Q3 2024 .
• Liquidity decline as cash and equivalents fell to $181.9 million with total cash+restricted cash at $184.1 million at quarter-end, reflecting ongoing cash burn and limited non-dilutive inflows in the quarter .

Financial Results

Income Statement Summary (no revenue recognized to date)

Operating Expense Mix

Balance Sheet & Liquidity

Cash Flow Trend (YTD)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Upon closing, FREYR will become a top 3 U.S. solar module producer. And accordingly, we now expect to generate revenues and positive EBITDA in 2025.” — Daniel Barcelo, CEO
• “Total consideration of $621 million… our $621 million price is 3.1x our estimated full run rate of EBITDA… we expect to be fully ramped up in 4Q ’25.” — Evan Calio, CFO
• “We expect integrated domestic cell and module could generate $650–$700 million of EBITDA, including solar cell PTC.” — Evan Calio, CFO
• “Site selection for the next phase which is construction of the U.S. solar cell manufacturing plant is underway… production expected sometime in 2026.” — Daniel Barcelo, CEO
• “We are becoming a combined and unique complementary solar plus storage company… turning us into a $1 billion revenue-generating company and a triple-digit million dollar EBITDA generating company starting already next year.” — Tom-Einar Jensen, CEO FREYR Europe

Q&A Highlights

• European asset monetization: Management emphasized multiple strategic pathways and stakeholder interest; no specific valuation guided, updates to come in due course .
• Prior quarter Q&A context: Focus on prioritizing near-term revenue/EBITDA through modules/packs given capital markets backdrop ; technical steps toward fully automated unit cell production at CQP and project sourcing funnel for FREYR 2.0 .

Estimates Context

• Wall Street consensus via S&P Global was unavailable for FREY due to missing CIQ mapping in our SPGI dataset at the time of request; therefore, comparisons vs consensus EPS/revenue/EBITDA estimates cannot be provided currently. We attempted retrieval but encountered a mapping error and will update once SPGI mapping is available.
• Given lack of consensus data, we highlight management’s quantified EBITDA guidance as the primary near-term earnings framework .

Key Takeaways for Investors

• The Trina Solar U.S. module acquisition materially changes FREYR’s profile from pre-revenue to an expected positive-EBITDA operator in 2025, with quantified earnings ranges and clear domestic content strategy; this is a credible rerating catalyst contingent on closing and execution .
• Liquidity remains adequate but declining; cost discipline and structured financing are critical bridges to domestic cell build-out and integrated EBITDA realization .
• Near-term trading implications: watch for deal closing (late 2024/early Jan), CFIUS outcome and shareholder vote (2Q), and offtake/financing updates; each milestone de-risks the guidance path .
• Medium-term thesis: integrated cell+module economics under IRA could drive substantial EBITDA ($650–$700 million) and potential valuation peer re-basing toward U.S. solar manufacturers, subject to execution and market pricing assumptions .
• European assets represent optionality; successful monetization would extend runway or fund growth while sharpening U.S. focus .
• Operational execution in Wilmer (ramp to 5 GW, offtake beyond 1.5 GW) and disciplined capex for domestic cells are the key drivers of achieving the 2025 and full-run-rate guidance ranges .
• Strategic alignment and insider support (top shareholder commitment) reduce financing risk and signal confidence in the plan .

Additional Relevant Q3 Press Release

• EU Innovation Fund selected FREYR for a €122 million grant to develop a joint venture CAM project in Vaasa, Finland (30k tons/year initial capacity), with formal award finalization targeted in Q1 2025 .