FREYR Battery

T1 reported 2Q production of 935 MW of solar modules, gross margin of 19.5%, and adjusted EBITDA of $10.7 million, which included a nonrecurring $24 million IEEPA tariff refund received after the quarter ended. Gross margin improved by roughly 300 basis points versus 1Q. Cash, cash equivalents and restricted cash were $149 million at the end of the quarter. Management said full-year 2026 production should be near the high end of the 3.1 GW to 4.2 GW guidance range, with Q3 and Q4 run rates expected to exceed 2Q. They also reiterated integrated production run-rate guidance of $375 million to $450 million for Phase 1 and $650 million to $700 million for matched 5 GW G1/G2 volumes. In August, T1 closed a $120 million private offering of convertible notes due 2031 as a bridge to a comprehensive financing solution for the remaining balance of G2_Austin Phase 1 capex, which Evan said could still be $200 million to $250 million.

Dan Barcelo framed the quarter around “ambition and execution,” emphasizing that T1 is building an end-to-end American solar platform with domestic supply chain, owned TOPCon IP, and new commercial wins. He said the Section 232 framework aligns with T1’s strategy and should improve the industry conversation toward domestic manufacturing and onshoring. His tone was confident and expansion-oriented, but he repeatedly stressed that the near-term priority remains getting the comprehensive financing done before thinking about Phase 2.

Evan Calio highlighted the quarter’s financial improvement, citing 19.5% gross margin, 2Q adjusted EBITDA of $10.7 million, and $149 million of cash, cash equivalents and restricted cash. He said SG&A was higher because of event-driven items, including the April convertible offering, advisory and legal fees tied to financing, and two litigation matters, while also building the organization for growth. He said the $120 million convertible notes offering is a bridge to a comprehensive financing solution with a significant debt component, and reiterated that Q3 and Q4 run rates should exceed 2Q as deliveries ramp.

Analysts focused on how Section 232 could affect pricing, tariff offsets, and sourcing economics, and management said they were already seeing more customer calls and greater confidence around domestic product, but did not give pricing guidance. On the tariff offset mechanics, management said the benefit could materially reduce tariff burden on imported cells or wafers on a company-by-company basis, but that they are still working through the details with Commerce. Questions also centered on financing timing and remaining G2 capex; management said delays were longer than expected, but they are now “extremely confident” in the comprehensive financing and estimated remaining Phase 1 spend at $200 million to $250 million.