A：The key highlights from Q3 2025 include gross bookings of approximately 10.2 GW at a base ASP of 30.9 cents per watt, termination of 6.6 GW of bookings under multi-year agreements, a record of 5.3 GW of module sales, Q3 earnings of $4.24 per diluted share, and gross cash increased to $2 billion.

A：Manufacturing achievements include producing 3.2 GW of modules in the third quarter, with 1.2 GW from US facilities and 2 GW from international operations. Changes include reduced production in Malaysia and Vietnam due to customer defaults, and capacity expansion initiatives at the Louisiana facility.

A：Intellectual property actions include separate filings requesting that the US Patent and Trademark Office deny petitions by affiliates of Canadian Solar, Cinco Solar, and Munda to invalidate US Topcon patents, referencing the acting director's view on the strength of patents based on their age.

A：First Solar's progress with sustainability efforts includes an Ohio facility earning a gold rating in the Responsible Business Alliance's validated assessment program, reflecting continuous improvement in sustainability and human rights performance.

A：Updates on domestic manufacturing and supply chain disruptions indicate that while script of domestic glass suppliers faced disruptions limiting full capacity operations, impacting Q3 production by approximately hoodi gigawatts, corrective actions have been implemented. Production certificates are expected in Q4 for the Louisiana factory, and a new production facility in the US will be established to onshore the finishing of Series Xi modules, with a planned capacity of 4 GW starting in the last quarter of 2022 through the first half of 2027.

A：The current policy landscape affects First Solar positively as it remains generally favorable, with US trade and policy developments supporting the company's competitive differentiation through pricing and delivery certainty. The competitive advantage is emphasized in the US solar market due to the ability to provide domesticated supply chains and localized production capabilities, which are crucial for realizing tax benefits and mitigating risks associated with tariffs and project schedules.

A：Trade and policy developments that amplified competitive advantages for First Solar include the US Court of International Trade ruling on the Biden administration's suspension of duties, the US International Trade Commission's affirmative determination in an antidumping and countervailing case, and the investigation initiated by US Customs and Border Protection against Huawei Solar. These developments have potential implications for duties on solar imports and continue to create headwinds for developers relying on Chinese supply chains, enhancing the value of First Solar's vertically integrated production capabilities.

A：Notable policy changes in India include the increased application of tariffs for imports of finished modules and the progression of the country's renewable energy value chain towards including domestically made wafers. First Solar was automatically qualified in the recently announced List II, which is mandatory for solar OEMs to sell into key segments of the domestic market starting June 2026. These regulations are expected to strengthen First Solar's position in the Indian market.

A：The base ASP in the company's contracted backlog could potentially increase contingent upon achieving specific milestones within their technology roadmap by the time of delivery.

A：First Solar has filed a lawsuit against BP Solar, its holding company LLD, and its affiliate Lightsource Renewable Energy Trading following their failure to cure multiple breaches of contractual obligations.

A：First Solar recognized 5.3 GW of module sales in the third quarter, including 2.5 GW from its US manufacturing facilities. The net sales totaled 1.6 billion, representing an increase of 0.5 billion compared to the prior quarter.

A：First Solar's total pipeline and mid to late-stage booking opportunities remain strong at 79.5 GW.

A：First Solar believes a reasonable estimate of potential future losses related to manufacturing issues will range from approximately 50 million to 90 million.

A：The tax credit transfer agreements executed by First Solar, totaling up to 775 million in tax credits, have highlighted the liquidity of the 45x credit market and strengthened the company's near-term liquidity to support its technology road map priorities.

A：First Solar's capital expenditures in the third quarter totaled 204 million, mainly driven by investments in the Louisiana facility. As a result, the net cash position increased by approximately 0.9 billion to 1.5 billion.

A：The trade and policy environment influenced First Solar's operational decisions, shaped its strategy, impacted quarterly performance, and informed adjustments to forward guidance. The strategy included managing production to fulfill international commitments and actively pursuing tariff recoveries while temporarily curtailing capacity where recovery was unlikely.

A：The implications of First Solar's decision to establish a new 3.7 GW U.S. production facility include approximately $370 million of total program direct spend, including $260 million of capital expenditures and $70 million of non-capital expenses. Additionally, there are forecasted incremental indirect charges of about $10 million in 2025. The company also continues to evaluate options for its remaining Malaysia and Vietnam facilities.

A：The loss of gross margin assumed in 2025 from the termination of contracts with BP affiliates was largely offset by a termination payment recorded in Q3 and increased underutilization expenses due to reduced plant throughput with tail production. Given this termination of demand, the company incorporated the low end of its guidance range.

A：The company's guidance did not include additional costs associated with potential restructuring charges or asset impairments that may impact future operating results.

A：Gross margins are expected to be between $2.1 and $2.2 billion, representing approximately 42%. This includes estimated Section 45x tax credits ranging from $1.56 to $1.59 billion and ramp under utilization costs between $165 to $165 million.

A：Capital expenditures for 2025 are now expected to range between $0.9 and $1.2 billion. The year-end 2025 net cash balance is anticipated to be between $1.6 and $2.1 billion.

A：The company is engaging in opportunities to find the right volume and timing for rebooking the terminated volume, aiming for prices close to $1.50 per watt. They continue to look at potential fixed price contracts and are cautious about the impact of revised tariffs. Existing contracts do not allow for revisions related to new tariffs and have clear obligations for both parties.

A：The company takes the position that existing contracts are binding and do not account for new tariffs like Section 232. They intend to enforce their contractual rights and will not include such outcomes in pricing that was fixed at the time of the contracts. The company has the capacity through international operations to engage the market once the outcome of Section 232 is known.

A：The company is evaluating the opportunity to bring more manufacturing into the US using existing international front-end capacity. They will reassess this once they understand the outcome of 2022 and have provided guidance for CapEx, with the potential to increase capacity if it aligns with their strategic goals.

A：The company aims to keep the throughput of the finishing line balanced to maximize value, utilizing a blend of international and domestic content. This balance is thought to optimize the realization of value for the finishing line and align with production in Perry, which has a North Ridge capacity of about 1 GW as well.

A：Of the $260 million of direct CapEx spend mentioned, $26 million is forecasted for this year, with the remainder, $330 million, to be spent in 2026. The non-CapEx spend is about $70 million, which includes decommissioning costs, equipment rightsizing, and associated tariffs. Some of this incremental charge will occur in 2023, with severance for impacted associates in Southeast Asia also included.

A：Approximately 20% of the company's backlog was not in a take-or-pay structure and was thus at risk of being canceled. This includes the 16% supported by nonrefundable deposits or termination fees, plus an additional 4% that was not in the take-or-pay bucket.

A：The company recognized revenue from the termination of the BP contracts through cash deposits received from BP, which are recognized as revenue. Additionally, some long-term credits (LCs) that were in accounts receivable were pulled as part of the settlement, and the residual amount, which includes parent guarantees, is being litigated to recover.

A：The net mix of products is mostly international at the front end of the supply period, transitioning into a larger portion being domestic as the timeline extends further into the future.

A：The current year's supply is composed of a mix of products from both international and domestic sources.

A：The company is evaluating the potential for adding new finishing lines in the US, including potentially half the capacity of existing Ed finishing lines or new lines that could be Series 7. Decisions regarding timing and investment will be informed by various factors, including market opportunities and demand.

A：Pricing for the 4.1 GW of confirmed but unbooked opportunities is influenced by historical pricing, variable pricing dynamics with customers, and some contracts that are not yet fully secured. Market pricing is something the company is happy with and believes there could be tailwinds supporting a favorable pricing environment. The exact pricing is not reflected in current market pricing due to these dynamics.

A：The company is continuing to evaluate potential for additional finishing lines and will make decisions based on capacity, module sales agreements, and working capital position. The strategy for managing cash and CapEx involves assessing opportunities for further investments and aligning them with the company's overall framework for capital deployment, which includes considering accretive deployment and capital return as needed.

A：The likelihood and risk profile associated with the 54,000.5 GW of contracted backlog involve potential changes in commitment to renewables by large oil and gas multinational companies like BP, as well as other grid operators re-evaluating their US market commitments. The risk profile includes potential customer-specific terminations and project-related challenges such as permit issues. There's also a risk if sponsors decide to go in a different direction, but despite these challenges, the company remains optimistic due to the positive policy environment, growth in grid demand, and strong project economics.

A：The ramp-up of DRT in Alabama has been going well, although it has faced its own set of challenges and disruptions in the glass supply chain that have impacted factory throughput. The factory is currently at a good level, meeting its throughput requirements despite the challenges indicated in the prepared remarks.

A：The product qualification in Louisiana is going extremely well, with the process being ahead of schedule and set to be completed in Q4, after which the company will start shipping the product.

A：Product quality is being managed by being very diligent during manufacturing and ensuring a high level of field performance through accelerated life testing and field deployment. Changes were implemented in the Alabama and Louisiana organizations based on the key learnings from the initial launch of Series II and necessary adjustments to the manufacturing process.

A：The company has not directly provided a precedent for successful litigation against a customer in a similar breach of contract but has mentioned the strength of their contracts and the belief that there are consequences for defaults. They have also discussed the general approach to contract terminations and the payment obligations which have been honored by the majority of counterparties.

A：The company is very positive about the structure and enforceability of their contracts, supported by past experiences and input from outside counsel. They believe that the contracts are strong and are optimistic about their legal standing, especially in the state of New York, where similar contract conditions have been upheld by the courts.

A：The company is utilizing the international facilities' front-end capacity to fund operations in the US, which will lead to good absorption for the front-end manufacturing. They have also made headcount reductions to minimize back-end processing and are bringing tools used in back-end processing into the US for absorption against finishing processes. Negotiations are ongoing for offtake agreements to structure deals for large customers with significant requirements.

A：The company has a contracted backlog of approximately gigawatts for Series Hood International, indicating that they have some runway in terms of volume and absorption for their production assets.