FREYR Battery Q4 Earnings Call Highlights

T1 is prioritizing completion of a vertically integrated U.S. solar supply chain with its G2 Austin solar cell factory on schedule (phase I 2.1 GW) and management targeting an April close for the remaining ~$350 million of phase‑I funding, with 2027 called a potential “step change” year for earnings and cash flow.
The company completed multiple financings to support expansion — including a $72 million registered direct, a $50 million convertible preferred tranche, and concurrent equity/convertible offerings that raised combined gross proceeds of $322 million — and has begun monetizing Section 45X tax credits via a sale to a U.S. financial institution.
Operationally, the fully operational G1 Dallas module plant hit record quarterly production (surpassing 1 GW) and produced 2.79 GW in 2025, with 3 GW under contract for 2026 and a 2026 production target of 3.1–4.2 GW; management expects improved profitability in 2026 driven by cost reductions and contract changes (including removal of Trina service agreements).
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T1 Energy executives used the company’s fourth-quarter and full-year 2025 earnings call to outline plans for completing what CEO Dan Barcelo called the company’s “vertically integrated domestic solar chain” in the U.S., while detailing recent capital raises, progress at its Dallas module plant, and construction milestones for its Austin solar cell facility.
Strategic focus shifts to completing U.S. solar cell capacity
Barcelo framed 2025 as “the year we built T1’s foundation,” with 2026 focused on building the company’s G2 Austin solar cell factory and 2027 targeted as a “step change” year for earnings and cash flow. He said the U.S. market “completely changed on January 1 with the implementation of new federal rules on foreign content and ownership,” positioning domestically manufactured solar components as a key strategic advantage.
Barcelo said T1 plans to add additional EBITDA streams “through organic and inorganic opportunities,” while also looking to “unlock value from the legacy assets in our European portfolio,” including Nordic data center assets.
Capital raises, 45X credit actions, and a new offtake partnership
Reviewing fourth-quarter activity, Barcelo highlighted multiple transactions and commercial milestones intended to fund expansion and preserve tax credit eligibility. He said the company completed a $72 million registered direct common equity offering and a $50 million convertible preferred tranche led by funds managed by Encompass Capital Advisors. In December, he said T1 executed concurrent common equity and convertible notes offerings that raised combined gross proceeds of $322 million and brought “several new institutional investors” into the capital structure.
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Barcelo also referenced a strategic partnership with Treaty Oak Clean Energy, including a three-year agreement for T1 to supply 900 MW of G1 modules using G2 domestic cells starting in 2027.
In addition, he said T1 completed “a series of transactions intended to preserve our eligibility for the Section 45X tax credits” under the “One Big Beautiful Bill Act,” and “validated our ability to monetize the credits” by completing its first sale of 45X credits to a U.S. financial institution.
Barcelo said the company’s fully operational G1 Dallas solar module facility delivered record quarterly production and sales during the fourth quarter, surpassing 1 GW of quarterly production and sales “for the first time.” He attributed demand in part to customers clearing out “45X eligible inventory before year-end.”
He said the operations team took G1 from “initial production to maximum daily run rates over our 5 GW nameplate capacity” in roughly one year. T1 produced 2.79 GW of solar modules in 2025, meeting its annual production target.
Looking to 2026, Barcelo said T1 is maintaining production and sales targets of 3.1 GW to 4.2 GW for G1, and said management is “growing increasingly comfortable” with the ability to reach the high end of the range. He added that T1 has 3 GW of G1 modules under contract for 2026 and is sourcing cells from international suppliers that have certified non-FIOC status to support production ahead of G2’s ramp.
Chief Financial Officer Evan Calio said the company expects 2026 to be “significantly better” in terms of profitable operations, though he noted timing shifts in the first half. Calio said T1 is deferring some first-quarter deliveries into the second quarter due to customer requests and timelines, stressing that the change affects timing rather than full-year revenue or adjusted EBITDA expectations.
G2 Austin construction timeline and remaining phase I funding
SVP of Project Engineering Otto Erster Bergesen said construction of the first 2.1-GW phase of the G2 Austin solar cell facility “continues on schedule.” He described a two-phased plan to exceed 5 GW of capacity, with phase II expected to be “at least 3.2 GW.”
Bergesen said the site has been leveled, the building pad prepared, and foundation work started, with concrete work following shortly. Structural steel was ordered in November and the first full section is scheduled for delivery and erection in April. He said the design is 90% complete and the production line equipment design has been locked in with turnkey equipment vendor LAPLACE. Equipment manufacturing began earlier in the month, and Bergesen said the company expects equipment to arrive in the U.S. over the summer.
He also said T1 has “deployed significant cash” to reduce the remaining capital expenditure required to complete phase I, which he put at $350 million.
Management said it expects to reach full financial close for the remaining phase I funding in April. Barcelo said the company has “passed on” certain “higher cost options,” and that progress at G2 and operating proof points at G1 have improved counterparties’ confidence. Calio added that the company is evaluating multiple funding pathways to balance “cost, leverage, structure, duration,” and potential strategic benefits, while maintaining flexibility to expand G2.
Commercial pipeline and Nordic data center monetization efforts
On commercial activity, Barcelo said T1 has sold and delivered modules to some of the largest U.S. utilities and developers but has not disclosed names publicly due to confidentiality preferences. He said customer visits have increased, with “over a dozen very significant customers” visiting G1 Dallas and expressing satisfaction with QA/QC and interest in the company’s progress at G2. Barcelo also said market interest centers on high-efficiency TOPCon cells.
Barcelo outlined what he described as a large opportunity set:
Nearly 13 GW of merchant sales opportunities under discussion with current and potential customers
More than 10 GW of advanced offtake pursuits
Approximately 18 GW of mid-stage pursuits
Total opportunity set of 41 GW, according to management
In Europe, Barcelo said the company is seeking to monetize legacy assets tied to data center infrastructure, particularly in the Nordics. He noted the restoration of a 50-MW grid allowance in Mo i Rana, Norway, and said the company has an application “in the queue for up to 396 MW.” In the Q&A, Barcelo said T1 has hired Pareto to market the Norwegian asset and is open to divestment or partnership. He also discussed a Finland site where the company is “getting close to permitting” and said it is ready to execute an option tied to building permits for “close to 300 MW of power.”
While declining to estimate proceeds, Barcelo pointed to current market pricing he described as ranging “from anywhere from half a million dollars per MW to $1 million per MW in terms of power,” adding that the Nordic market is “very robust” and that the company is committed to divesting and/or partnering “as soon as possible.”
EBITDA miss drivers and 2026 cost structure changes
Calio said 2025 EBITDA was affected by “one-time” items related to the implementation of new restrictions ahead of 2026, which he said “account for much of the miss versus guidance.” He listed several specific items discussed on the call:
An accounting classification issue related to a $34 million sales commission waiver that created a favorable cash impact but could not be recognized as a P&L reversal under accounting standards
$16 million of net sales coming in lower than expected due to an inventory sale tied to changing regulatory restrictions at year-end
$22.7 million of net sales coming in lower due to a customer offtake true-up
$15 million in higher-than-forecasted tariffs on imported cells ahead of new supply chain restrictions
Looking ahead, Calio said the company is “moving away from service agreements with Trina,” citing estimated savings of $30 million to $100 million at a 3 GW to 5 GW run rate, tied to the deletion of a trademark licensing agreement and changes affecting sales commission. In response to analyst questions, Calio said these contract deletions are separate from the company’s offtake agreements and do not change offtake contract calculations.
The call also touched on trade policy and compliance. Barcelo said the company has been supportive of AD/CVD cases and Section 232, describing a robust Section 232 outcome as important for leveling the playing field and improving margins for U.S. manufacturing. Management also discussed its IP licensing arrangement with Evervolt and stated it is focused on maintaining compliance with FIOC-related requirements, including by sourcing non-FIOC cells during the bridge period.
T1 Energy’s executives closed by reiterating near-term priorities: securing April financial close for G2 phase I, keeping construction on schedule, improving profitability at G1 Dallas through cost reductions and automation, and continuing to pursue strategic opportunities that could expand EBITDA and cash flow as the company moves toward integrated domestic solar cell production.
Editor’s note: This article summarizes statements made during T1 Energy’s fourth-quarter and full-year 2025 earnings conference call.
About FREYR Battery (NYSE:FREY)
FREYR Battery is a sustainable battery technology and manufacturing company focused on producing high-performance lithium-ion cells for electric vehicles (EVs) and energy storage systems. The company aims to leverage low-carbon hydroelectric power in Norway and renewable energy sources in other regions to supply clean battery cells that meet the growing global demand for decarbonized transportation and grid resilience. FREYR’s product roadmap includes battery modules, packs and integrated storage solutions, designed to serve auto manufacturers, utilities and large-scale commercial energy users.
Headquartered in Oslo, Norway, FREYR Battery was founded in 2018 with the mission of establishing cost-efficient, scalable gigafactories in strategic locations.