T1 Energy Misses Q2 Revenue by 5%

Key Points

• Revenue (GAAP) was $132.8 million in Q2 2025, missing analyst estimates by 5.1%.

• Earnings per share (GAAP) were a loss of $(0.21) in Q2 2025, compared to the estimated $(0.13).

• Cash on hand (GAAP) totaled $46.7 million as of Q2 2025.

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T1 Energy (NYSE:TE), a U.S.-focused solar manufacturing and energy storage company, released its second quarter 2025 earnings on August 20, 2025. The highlight of this quarter was continued operational progress, especially through significant contract wins and U.S.-based project developments. However, revenue (GAAP) was $132.8 million, versus expectations of $139.9 million, while earnings per share (GAAP) of $(0.21) missed the estimated loss of $(0.13). Cash and short-term liquidity declined further as ongoing cost pressures persisted. Overall, the quarter marked a mixed performance with encouraging strategic steps, but it also revealed near-term financial and operational risks.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Business overview and focus

T1 Energy produces solar modules and energy storage solutions, building out domestic manufacturing aimed at serving growing renewable energy and electric mobility markets. Its portfolio centers on lithium-ion battery technology and vertically integrated solar module production, both targeting utility customers in the United States. The company’s strategy relies on scaling its U.S. operations, maintaining compliance with evolving trade and manufacturing policy, and advancing its technology roadmap.

Recent focus areas include expanding U.S. solar module output, winning utility-scale and commercial contracts, and adapting to changes in American industrial policy such as Section 45X tax credits. The success of ongoing project developments, including a planned large-scale solar cell facility in Texas, depends on securing capital, controlling costs, and achieving regulatory compliance. Key drivers of T1’s long-term growth include maintaining a robust supply chain and scaling production to meet market demand for energy storage and renewables.

Quarterly developments and key metrics

T1 Energy fell short of expectations for both revenue and earnings on a GAAP basis in Q2 2025. The company posted GAAP sales of $132.8 million, compared to the $139.9 million consensus estimate. The GAAP earnings per share loss of $(0.21) was meaningfully deeper than analysts anticipated. Gross profit (GAAP) totaled $32.761 million. Operating performance was challenged by an increase in selling, general and administrative (SG&A) expenses, which reached $61.972 million (GAAP), up more than fourfold from the prior year period.

Financial pressure was also evident in the company’s cash position. T1 Energy had $46.7 million in cash, cash equivalents, and restricted cash as of Q2 2025, down from $221.5 million at the end of Q2 2024. The cash decline included negative operating cash flow—$11.4 million of net outflows in the first half of 2025—and continued investment in production. Inventory remained elevated at $326.2 million as of Q2 2025, exposing working capital to risk if sales momentum slows or merchant sales do not materialize. Debt and related party financing totaled more than $644 million as of June 30, 2025, with interest expense of $8.0 million (GAAP) in Q2 2025 adding further strain to net results.

Operationally, the company advanced its expansion strategy through a series of commercial and supply agreements. Most notably, T1 Energy signed an agreement with Corning Incorporated (NYSE:GLW) to purchase solar wafers manufactured in Michigan. This move supports the company's compliance with provisions that limit sourcing from foreign entities of concern and is expected to secure eligibility for Section 45X production tax credits, which reward U.S.-based clean technology manufacturing. The company also secured a 437 megawatt (MW) utility-scale module sales agreement, with deliveries commencing in Q3 2025, bringing its 2025 production plan for the Dallas facility—known as G1_Dallas—toward being fully sold out at a low-end target of 2.6 gigawatts (GW). During Q2 2025, cumulative module production at G1_Dallas surpassed 1 GW, with more than 1.2 GW produced at G1 during 2025 as of August 2025.

T1 Energy made advances on its planned 5 GW Austin facility, G2_Austin, aimed at manufacturing advanced solar cells. Management stated that construction is slated to begin later this year, with the first phase expected to come online by Q4 2026. Financing for this project, requiring roughly $850 million, remains in process as of Q2 2025. The company also accelerated the wind-down of its legacy European operations, initiating steps to re-purpose assets—such as the Giga Arctic site—potentially for use in data center or artificial intelligence infrastructure. The build-down of these units is expected to save up to $20 million in annual expenses by 2026.

Looking ahead: Management guidance and future watchpoints

Management maintained its prior full-year 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of $25 million to $50 million, though it warned that risks are skewed toward the lower end of the range. The company noted that a recent shift to more merchant sales agreements, as well as uncertainties around tariffs, reciprocal trade policies, and shifting customer demand, could add to financial pressure in the coming quarters. Leadership reaffirmed its medium-term ambition for annual run-rate EBITDA of $650 million to $700 million, based on optimized production at both Dallas (G1) and Austin (G2) facilities, though the company described this as a longer-term target rather than imminent reality.

No changes were announced to the company's broader strategic direction, with a continued focus on Section 45X compliance (U.S. tax incentives), securing funding for major capital projects, and scaling domestic manufacturing. TE does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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