Sean will conclude the prepared remarks with the business outlook after which we will have time for questions. Before we begin, I would like remind listeners that management's prepared remarks today as well as their answers to questions will contain forward looking statements. That are subject to risks and uncertainties. The company claims protection under the Safe Harbor for forward looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations. Any projections of the company's future performance represent management's estimates as today. Canadian Solar assumes no obligation to update these projections in the future unless otherwise required by applicable law.

A more detailed discussion of risks and uncertainties can be found in the company's annual report on Form 20 F filed with the Securities and Exchange Commission. Management's prepared remarks will be presented within a row requirements of SEC Regulation G, regarding Generally Accepted Accounting Principles for GAAP. Some financial information presented during the call will be provided on both a GAAP and non GAAP basis. By disclosing certain non GAAP information, management to provide investors with additional information to enable further analysis of the company's performance and underlying trends. Management uses non GAAP measures to better assess operating performance and to establish operational goals. Non GAAP information should not be viewed by investors as a substitute for data prepared in accordance with GAAP. And now I would like to turn the call over to Canadian Solar's Chairman and CEO, [indiscernible] Shawn, please go ahead.

Your line may be muted.

Thank you. You, Winner, and thank you all for joining our first quarter earnings call. Please turn to Slide three. We began the year with a solid performance. Module shipments reached 6.9 gigawatts slightly above our guidance. Revenue totaled $1,200,000,000 at the high end of our range, while gross margin of 11.7% modestly exceeded expectations. Profitability was impacted by lower contributions from storage [indiscernible] recurrence, ongoing transformation, and intercompany eliminations. This resulted in a net loss to shareholders of $34,000,000 or 69¢ per diluted shares. 2025 will face many of the same challenges that define 2024. Well, that While near term headwinds remain we are confident in the long term opportunities and will continue to invest in them. Please turn to Slide four. In the near term, we are tackling challenges that testers pose operationally and financially Structural overcapacity across the solar supply chain has prolonged the market downturn putting pressure on module pricing in almost in most global market. In addition to fierce competition, tariffs and shifting [indiscernible] Are raising costs and squeezing margins. To navigate these challenges, we are maintaining a profit focused approach to our modules business carefully managing volumes, in less profitable markets, leveraging a blended supply chain strategies and offering bundled sales.

Storage continues to be a key differentiator and profit driver. We are also rigorously managing operating expenses and capital expenditures to support our bottom line and cash flow. Recently, we held an internal town hall meeting where I post a question on behalf of the broader renewable energy [indiscernible] Does this industry still have a bright future? My answer is a resounding yes. Global electricity demand is growing at its fastest pace in years, and the rise of AI and other energy intensive applications is widening the energy gap. Solar power clean, affordable, and easy to deploy can quickly meet this demand especially when paired with storage. Canadian Solar has a proven track record of navigating policy shifts and market cycles demonstrating our technological [indiscernible] And resilient in challenging times. While our operating environment continue to evolve, our one constant yes, our commitment to R and D. And leadership through innovation. Please turn to Slide five. Over the past two months, we have announced several new products showcasing our leadership across both solar and energy storage technologies. In solar, we completed our first deployment of Canadian Solar's innovative anti health technology in Australia. This technology protects solar panels from severe weather, reflecting our dedications to delivering durable high performance solutions in even the most demanding environment.

Also introduced our new N type high power top con. Gen two modules for utility scale and the CNI system Built on our latest top con cell technology, These modules deliver a maximum power output of up to 660 watts and a conversion efficiency of up to 24.4%. By advancing our solar technology, we help customers lower their levelized cost of energy and improve project economics reinforcing solar as one of the most cost effective energy generation options. On the storage front, we achieved key milestones in both utility scale and residential offerings. At InterSolar in Munich, officially launched our [indiscernible] three point zero plus. [indiscernible] to the lithium I phosphate battery cell manufacturing process [indiscernible] its performance beyond the already successful Soul Bank three point zero. This solution offers a twenty five year lifespan near zero degradation for the first four years, and up to 12,000 cycles at 95% round trip efficiency. SoBank three point zero plus can significantly reduce our customers' operational costs by boosting overall lifetime energy. Throughout throughput by over 13%. We are also proud that our residential energy storage solution EP Cube, received the prestigious 2025 if Design Award and Gold at the twenty twenty five News Design Awards.

BpCube combines aesthetically pleasing design important to homeowners, with functional advantages [indiscernible] easy installation and flexible capacity options. It continues to gain strong traction in global markets. With that, I will now turn the call over to Yan who will provide more details on our [indiscernible] Ian, please go ahead. Thank you, Sean. Please turn to slide six. In the first quarter of twenty twenty five, module shipments increased by 9.4% year over year, to 6.9 gigawatts. We slightly exceeded module shipment guidance. Driven by incremental shipments to China. As the industry rushed, to complete installations ahead of new policies, taking effect on June. Storage deliveries aligned with guidance totaling 849 megawatt hours. Revenue reached $1,200,000,000 and our gross margin declined by six forty basis points. Quarter over quarter to 13.4%. Primarily due to lower energy storage shipments. While costs rose slightly partly from non refundable VAT changes, in China effective last December. And slightly higher manufacturing costs in Southeast Asia under our blended supply chain strategy.

Average selling prices improved with a higher share of shipments to North America. With shipping costs declining sequentially, due to softening global shipping rates and our rigorous management of our pre renewal expenses. We achieved operating income of $2,000,000 Now turning to e storage. Please refer to page seven. In the first quarter, we recognized revenue from eight forty nine megawatt hours of shipped solutions. The softer performance was due to contract timing. And we expect a much stronger second quarter. Understandably, the ongoing U. S.-China tariff negotiations remain top of mind for all stakeholders. While we cannot predict final outcomes, it is critical to recognize that these U. S. Energy storage projects [indiscernible] for great resilience and energy dispatchability, took years of planning and significant investment. While clarity may take some time, the industry will work together to advance these projects. Like all market participants, we're navigating this uncertainty. For e storage, The US accounts for upwards of one third of our energy storage business. Expected for this year. We are actively engaging with customers to mitigate risks and ensure smooth project execution. [indiscernible] we are well positioned with our global blended manufacturing strategy. Beyond our planned Kentucky storage facility, we have cell manufacturing capabilities and supplier partnerships that will allow us to offer customers flexible options starting in 2026.

Demand for storage is stronger than ever. Not just in The US. But globally. As of March 31, our record pipeline of 91 gigawatt hours including $3,200,000,000 in contracted backlog. Highlights the structural growth potential of energy storage worldwide. For example, we recently secured another major project in Latin America. Please turn to slide eight. [indiscernible] a leading Chilean power generation company, selected eStorage to supply a nine twelve megawatt hour battery energy storage system for their Diago de Almagro SIR project in Chiris. Atacama region. Like many in e storage's global track record, now exceeding 11 gigawatt hours, This project highlights the value of energy storage. It strengthens grid reliability optimizes renewable energy use, and ensures secure continuous power for industrial demand.

Now let me hand the call over to Ismail. Who will provide an overview of recurrent energy. Canadian Solar's global project development business, Yves Mill, please go ahead. Thank you, Jen.

Please turn to slide nine. In the first quarter, we generated $125,000,000 in revenue. Gross margin was 18.6%. Driven by project sales in Latin America. Due to the operating costs of our platform, and the ongoing scaling of our IPP portfolio, we posted an operating loss of $12,000,000 for the quarter. Regarding our business transformation, we remain focused on execution. Currently, we have 1.2 gigawatts peak of solar and 1.4 gigawatt hours of energy storage projects under construction in Europe and The U. S. In January, our 35 megawatt peak Mt. Alto project in Lazio Italy, reached commercial operation. The PV project was contracted with AXPO, with an attractively priced PPA. In addition, Montalto is also one of the first co located PV and BEST projects in the Italian The BEST portion won a fifteen years fixed capacity payment in a public auction. And it is now under construction. In The U. S, we secured tax equity and project finance for Fort Duncan, 200 megawatt hours merchant project merchant storage project, in ERCOT. Texas. This is testament to the strength of our projects and financing teams. As well as the strong support from our capital partners in enabling innovative solutions to drive impact.

Construction for Fort Duncan is complete and under commissioning as we speak. In line with our global growth strategy, we secured a $450,000,000 multi currency credit facility which includes an accordion feature that allows for potential upsizing. This corporate facility provides flexible and scalable financing with disbursement disbursements in U. S. Dollars euros, British sterling, and Australian dollars. Supporting our strategy to expand our IPP portfolio across diverse markets and geographies. Given the uncertain policy environment in The U. S, we are proactively implementing safe safeguards for all major IPP projects. Including safe harboring equipment. While the long term effects of tariffs remain to be seen, we expect very limited impact given recent progress in trade negotiations. Now, please turn to slide 10, for an update on our pipeline. As of 03/31/2025, we have secured interconnections for nine gigawatts of solar and 16 gigawatt hours of storage globally, excluding projects already in operation. Our total project pipeline now stands as at 27 gigawatts of solar, and 76 gigawatt hours of energy storage. While we continue to expand our pipeline, the availability of easy to develop land with relatively cheap interconnections, becoming increasingly scarce. We are now prioritizing our core markets, The U. S. And Europe, while in other regions, we focus primarily on low cost greenfield development.

Now, let me hand the call over to Shimbo, who will go through our financial results in more detail. Tivo, please go ahead.

Thank you, Ismael. Please turn to Slide 11. In the fourth quarter, we shipped 6.9 gigawatts of modules. Slightly above guidance. And deliver eight forty nine megawatt hours of energy storage solutions. In line with expectations. Revenue reached $1,200,000,000 at the high end of our forecast. Gross margin of 11.7% exceeded guidance. The two sixty basis point sequential primarily due to lower energy storage shipments. While the seven and thirty basis point year over year decline was driven by lower module ASPs. Operating expenses decreased 4% year over year. Driven by lower shipping costs Last quarter's results included non recurring impairment charts. Related to certain manufacturing and solar assets. Making the year over year comparison more reflective of our ongoing operational performance.

Net interest expense in the first quarter was $28,000,000 compared to $9,000,000 in the fourth quarter of twenty twenty four. And less than $1,000,000 in the first quarter of twenty nineteen.

The current quarter reflects a more normalized interest expense as prior comparative periods benefited from non recurring interest income items. Net foreign exchange loss was $14,000,000 primarily due to dollar weakness and tariff related pressures. Total net loss was $34,000,000 or $0.69 per diluted share This result included a positive HLBV impact of $26,000,000 or $0.38 per share. From tax equity arrangements tied to certain U. S. Operating projects. Now let's turn to cash flow. And the balance sheet. Please turn to Slide 12. Net cash flow used in operating activities during the first quarter of twenty twenty five was $264,000,000 This outflow was primarily driven by increased inventories and project assets. Total assets grew to $13,900,000,000 driven by investments in project assets and solar power systems. Positioning us for longer term value creation. In the first quarter, we allocated $256,000,000 in capital expenditures primarily toward US manufacturing initiatives. Our full year 2025 CapEx outlook remains unchanged. At around $1,200,000,000 We ended the quarter with a cash balance of $2,000,000,000 and total debt of $5,700,000,000 reflecting borrowings for capacity extension working capital, and the project and operational assets development. Now let me turn the call back to Sean. Who will conclude.

With our guidance. And business outlook.

Yong, please go ahead.

Thank you, Mr.

Bo. Please turn to Slide 13. For the second quarter of twenty twenty five, we anticipate CSS Solar's module shipment will range between 7.5 to eight gigawatts. Including approximately 500 megawatts allocated to our own project. We also expect to deliver between two point four and two point six gigawatts of energy storage solutions during this period.

We project total second quarter revenue to be in the range of $1,900,000,000 to $2,100,000,000 with gross margin expected to be between 2325% The anticipated margin improvement reflects strong energy storage shipment and includes a sizable margin contribution from the deconsolidation of US project. This deconsolidation was released previously eliminated intercompany gross margin on CSI solar components, installed within the project. We continue to operate in an environment marketed by global pricing volatility and evolving policy uncertainty which limits our margin visibility. Based on our recent assessment of market and geopolitical development, we are updating our full year guidance as follows. For the full year of 2025, we update module volume, guidance. To '25 to 30 gigawatts including approximately one gigawatt to our own projects. For energy storage shipment, we provide conditionally we provide conditional guidance between seven to nine gigawatt hours including approximately one gigawatt hour allocated to our own projects. The reduced module volumes primarily reflect our strategic reduction of exposure to a less profitable market while the expected storage adjustment relate to US volumes affected by trade negotiations. As a result of these volume adjustment, we now expect full year revenue to be between 6.1 and 7,100,000,000.0.

Dollars With that, I would now like to open the floor for questions. Operator?

Thank you. We will now be conducting a question and answer session. You may press 2 if you would like to remove your question from the queue. Before pressing the star keys. Our first question is from Colin Rusch with Oppenheimer and Company. Please Thanks so much guys. You know, there's a lot of variable here and Sean obviously you've gone through a variety of policy shifts. One element that love to get a bit more detail on is around the FELC provisions that were released in the budget. I guess, as you guys look at kind of how that might evolve and get solidified in the budget, how how does that impact your plans for U. S. Capacity investment And how should we think about that, some of those elements impacting the variability in your guidance?

Well, thanks, Cody. It's a good question, but also a tough question. Now the new draft of the FEOC, only released two days ago by the House OAS and Means Committee. And it's only the first draft. Believe, it will not look like this. At the final bill, final reconciliation. Bill. So it's hard to comment at this moment. Because, in the next two, three years, there will be we believe there will be change We will also put our opinion and all suggestions to know, through the the relevant representatives and senators. And also to the administration. So I would not comment now because it's only [indiscernible] draft and only the first draft. From the house waste. Mean, [indiscernible] Perfect.

Appreciate the appreciate that answer. And then just shifting gears to the balance sheet. As you move through this year, we've seen some of the long term debt increase assuming that the bulk of that is around projects. How should we think about target ratios for you guys from a cash flow perspective and a leverage perspective?

Yes. Simba, do you want to answer this question? [indiscernible] we are still in the transition of from the project developer to our parcel IPP. So we are continuing to do our projects. And at [indiscernible] [indiscernible] So the average of recurrent will increase a little bit. For sensor solar, we will maintain [indiscernible] To balance the growth and our capital structure. Okay. Thanks, guys. I'll hop back in queue.

Our next question is from Philip Shen ROTH Capital Partners. Please proceed.

Hi, thanks for taking my questions. In terms of the 2025 guidance, you lowered your module shipments by 15%.

And battery shipments, I think, by 30. But the revenue guide only came down 10%. Can you walk us through again, or just walk us through how how revenue is able to be down only 10% Do you expect pricing to go higher? Sorry if I missed some of your explanation. Thanks.

Yeah. Maybe, Wein, you are at at the best position. To answer this question.

Hi, So, I'm trying mentioned, we are maintaining a profit first strategy. Which means that the volume [indiscernible] Whereas for storage, this is our best estimate given the ongoing trade negotiations So this is still very fluid. As you can see, it's pretty wide. Revenue guidance range. [indiscernible] You, guys. And as it relates to the draft House bill, I know Sean you talked about the PHEOC rules and how that might need to be changed, or you expect it to be changed ahead. They also have new rules as it relates to the ITC and PTC If they were to pass, now they're looking to get placement service requirements instead of construction starts. To secure the ITC and PTZ. How would you expect that to impact your installations over the next two years? Do you think there would be modest if limited impacts? On the recurrent business? Or do you think there might be some challenges with that new language. Thank you.

Yeah, Philip, this is also a very good question. The the FEOC is important, and the the ITC schedule is also very important. So we are paying lots of attention to the draft from the committee And as I said, I expect this to change It it looks like it's still far from the final law. However, the ITC does mean a lot. To developers and also to manufacturers. And so and and Canadian Solar are both developers. And manufacturers. Indeed, the ITC will have a impact a significant meaningful impact if it is scaled back. Our calculation shows the one year of ITC credit means several hundred millions of dollars. To Canadian Solar loan. Not to mean not to mention the whole industry. So it's very important. And, we will put in our suggestion and our you know, [indiscernible] But on the other hand, Philip if you remember, there has been talking of ITC phase out several times in the past ten, fifteen years. And I believe ITC was first introduced during President Bush, right?

Time. And then every year, not every [indiscernible] and also the House and Senate, reduced [indiscernible] this ITC So but we will also have been preparing for ATC phase out over time. And for just for recurrence. But I remember recurrence had, like, safe harbor phone modules and other equipment several times in the in the past fifteen years. And every time ITC got extended, So, ITC seems to have good longevity. So we'll see how it looks like this time. But the industry and also recurring plus Canadian Solar, we are prepared to go through another round I believe the solar project and energy storage project You know, the price is very economic. [indiscernible] And also, the electricity demand is high. So whatever the ITC yes. I I think the the industry will adjust eventually will adjust and then continue to grow.

Okay.

Thanks, Sean. [indiscernible] I had a follow-up question on the Q2 margin guide. And you gave some detail around the strength is due to storage and I think, the deconsolidation of The US project. Can can you share a little more color there? What what is the expectation for storage margins these days? Historically, I think you guys have talked about 20 ish percent But is it closer to mid-20s percent or even higher? And just provide a little bit more detail on deconsolidation. Thanks.

Provide comments on the energy storage and margin. And then, Shimbo, you may want to explain the deconsolidation of solar project.

Yeah. Oh, so on the storage side, the q two, storage shipment happened in Q1. So it was before this tariff war. And so margin wise, I can only say it's above 20%. It was pretty healthy and also volume wise, Q2 is going to be much higher. So the guidance is 2.6 to 2.8, 2.4 to two point gigawatt hour. So it's much higher than Q1. Yeah. Let me comment the We have a storage project with fixed rate toll agreement. Covering about 80% of the project lifetime. According to accounting standard, when the projects reach COD. The majority of the risks and controls are transferred. To the counterpart. According to a standard, we need to deconsolidate this project from our balance sheet. And release the intercompany profit [indiscernible] And it's a onetime event. Contributing about five to 6% of gross margin in next quarter. [indiscernible] Thank you. And would you expect this strength what kind of gross margins could we see in q three and four? Thanks.

No, we are not guiding this.

Okay. Appreciate it. Thank you, guys. I'll pass it on.

Our next question is from Brian Lee with Goldman Sachs. Please proceed.

Hey guys, this is Tyler Bissett on for Brian. Thanks for taking our questions. You guys lowered storage volume expectations due to the trade negotiations and [indiscernible] can you provide some details on what sort of tariff assumptions are embedded in your guidance? I know there were some recent negotiations. So just want to confirm what's embedded there. And similarly, you mentioned offering some flex sourcing capabilities. So can you provide some more details on kind of the pricing differentials of leveraging different versus your existing products?

Yeah, Yan, do you want to handle this question? I need the storage Sure. Guidance, new guidance.

Yeah.

I think to the seven to nine gigawatt hour actually covered the different uncertainties already. [indiscernible] So that is [indiscernible] after that. So it can be as low as seven or as high as nine. So that's our assumption.

And any sort of details on just, like, pricing differential from different sourcing capabilities?

Okay. And actually, the storage contract, most of the we all have a change of lot protection. Some of them are like capped pricing and the others we've shared. On tariff. So So even with the different uncertainties, I think the seven to nine gigawatt hour, we continue to have a healthy margin. [indiscernible] [indiscernible] Comment that the sourcing and the flexibility will only help us in 2026. The sourcing for ER, CE, and [indiscernible] [indiscernible] our suppliers start to build and ramp up their capacities outside China. But most of this were only help us in Chinese Chinese six Chinese Chinese five, we have to we have to deliver all the storage project. From China. So the impact does have no. The tariff does have have an impact. And because of that, some of customers ask it to push their project deliver to next year. And when we have this non China battery cell option ready So that accounts for most of the change on the guidance.

Super helpful color. Appreciate that.

And then you discussed some pull forward of demand in China given some policy changes there? Do you have any sort of expectations for shipment growth next year? In China?

Yan, do you want to answer this question?

Yeah. The shipping growth in China?

Yes, so we're still waiting for policy clarification. At provincial level. Which is the action points, right? So before that, the investment decisions in China are mostly on health. So however, from our understanding about the market dynamics, we think it will have a few months of adjustment in China. But after that, once the clarification once we have the policy clarification, this should it should it will not be a disaster. The demand will start to pick up. But however, I think second half will be weak. Next year, we don't really know because there's a lot of uncertainty. We're still waiting for the policy. Clarification. However, we believe that the healthy demand for storage is going to come. Because in the past, we most of the storage demand in China was kind of mandatory on solar. So but since this policy change, policy 133, I think it will be we'll a free trade market. The trading market will actually bring in a real demand for storage. So we anticipate a healthy growth on high quality storage projects. Coming up next year. [indiscernible] Appreciate the color. Thank you.

Thank you.

Our next question is from Allen Lau with Jefferies. Please proceed.

Thanks for taking my question. A follow-up question on the 6% margin contribution from the capitalization of this project. So I would like to know there's a fixed rate agreement covering the project life So based on accounting standard, it we will have to record the the profit. But we'd like to know if it's a one off Just to confirm, is it a one off impact on Q2? [indiscernible] like, how does it amortize over the time, the quarter? From a from accounting perspective, yeah, it's still one off. In time. On Q2.

This year.

Okay. Thank you. Thank you.

That's clear. So Q3 onwards, unless you have other projects, that are deconsolidated. Otherwise, is only one off or two two. Right? Correct. And then next question is would you like to follow-up on US policies?

Because there's a lot of prevalence in the past. One week What would like to check on your viewer because the language is actually saying that at least for the next two years, if a for FEOC is not having the majority stake, then we'll be still able to get 45 x Just to reconfirm, our our company, I c s I q, is actually Canadian owned. And also it's your understanding, it's not an FDIC, or what do you think about Canadian Solar itself is Canadian owned. And also, you know, traded on Nasdaq. So they are common shareholders. From The US US stock market. Canadian Solar holds about 65% of CSI solar. Which is trading Shanghai Stockings. Which is organized under the Chinese corporate law and is trading Shanghai Stock Exchange. And then CSI Solar invested into the facilities in US. Including the module factory in Mesquite, Also, the cell in cell factory in Jeffersonville. [indiscernible] And a and it's storage factory. In Shelbyville, Kentucky. So if the current language in the new draft stay as as yet, then all these three facilities will be impacted. We'll have to change the ownership structure in order to fit whereas the comply with the new [indiscernible] But on the other hand, as you see that, CSIQ, which is a Canadian company, still holds 65%.

It's the controlling shareholder. For CSI Solar. So I suppose that it will be much easier for us to change the structural or maybe to invite some third party investors in order to make all three entities [indiscernible] with the new rules But I also mentioned when I answer the previous question from Philip Chen, that what we what released by the house way and means Committee two days ago was only the first draft. We expect it to go through many changes before it become the law. So there's a question of how fast the reconciliation goes through. Some say July or August recess, and some say it's September.

So we're see. We're not expert in, you know, how the legislature bodies [indiscernible] However, we are sending our comment and opinions. Through our channels. And so I hope the, final bills will consider all this And final bill will I I hope the final bill will truly help to make manufacturing back to get manufacturing, go back to China rather than otherwise. And that's I hope Go back to The US, sorry, Xiao.

Yeah, this is about US. I'm I've been talking about US is about a house, way, and mean. Draft. Of the new requirement. And also I answered your question on [indiscernible] Thank you. So next question is a because I saw on a news mentioning Canadian solar is having a accuracy as I saw. It's having a commitment in Ethiopia So we'd like to know what's your plan there. In terms of modules or study plan for [indiscernible] That's not true. We there would you know, our business development people have you know, trouble around the world. So they travel to Ethiopia. But, we haven't made any [indiscernible] like, like, decision. To any activities in Ethiopia yet. [indiscernible] So there's some probably due diligence but not up to the stage of any commitment yet.

Right. We are developing and exploring options, no. There has we haven't committed anything.

I see. I see. See.

So my last question is about should the guidance, we'd like to know like, the the guidance actually, module guidance has came down.

I would like to know if that main the difference versus last time, is that mainly The US volume?

Yeah.

Should you answer this question? Okay.

So The U. S. Annual volume stays. So we don't have a new update on that.

Okay. So the the shipment to US is pretty much still what we guided before. And this volume reduction reflects the reduction of [indiscernible] sales to other market.

Understood. That's very clear. I'll pass on. Thanks a lot for taking my question.

Our next question is from Praneeth Satish with Wells Fargo. Please proceed.

Thank you. Good morning. Just going back to the FEOC draft legislation, I guess the question here is on your Indiana facilities. Does it make sense to put those on pause? You maintained your CapEx guidance $1,200,000,000 but until you get final clarity on the rules, is there a chance that maybe some of that CapEx comes down, you shift the projects out? Or are you confident that you know, the draft language will change, with the future revisions? Or you see a path here that even if it doesn't change through ownership changes, bringing in third party investors, that you can, comply with the rules.

The Jefferson Jefferson will in Indiana factory, as you mentioned, is in the middle of the building construction, and also the equipment. We're already shipped in the phase or most of the phase one equipment. And and those phase one equipment which is about two gigawatt of capacity, solar cell capacity, Those equipment stay in in in a warehouse. In Indiana right now, waiting for the building to complete. So I will I think phase one of about two gigawatts. You know, the Jeffersonville facility we have announced a proposal, a plan, to reach five gigawatt. We cut into phase one and phase two. So we are quite conservative. Come to actually spending money. So at this moment, phase one, as I said, equipment are almost there. So we will I think we will complete the phase one. Well, and the phase two decision, will probably be made in the summer or after summer, the final decision, And so I hope [indiscernible] this budget reconciliation Well, come to conclusion. Final form. Either before the summer or after summer. So in a way that we are not spending a lot of money on the Jeffersonville you know, other than what we already committed.

And so the schedule is in parallel with the schedule of this budget reconciliation. Process. [indiscernible] if somehow you know, we think the final language will be reasonable. Final language about Feet, OC. Be reasonable. And but also, as you said, are ready to to, change the capital structure once the policy is clear, the language is clear, legal explanation is clear, then we will make our existing capacity to meet with the whatever the new language But we don't want to completely stop we are still continuing with you know, design, some final, like, detailed design of the factory. And also certain civil construction work. Because IRA itself only have a few years of shelf time. Even the previous original IRA already got contains a phase down after 02/1930. And I think by twenty twenty thirty five, right, all the ITC and also the advanced manufacturing. [indiscernible] So called 45 x will stop. So that's the only final time. So only a finite amount of time, limited amount of time. So if we delay too much, the project will become uneconomic. So we'll balance this. You know, we're spending some money to keep the construction and design work going.

And, however, for most of the equipment, other than what we are already shipping, we will probably only be able to make decision. Let's say, in August or September. I hope by that time, this budget reconciliation is already completed.

Okay.

That's that's helpful. And maybe one more on the recurrent business. Here. So at least in The U. S, PPA prices are going up and we're seeing, know, on on the gas side for CCGT, the costs and prices are going up a lot. With data center demand. Is that giving you more headroom on the solar and storage side to increase PPA prices and absorb a lot of the cost increases that we're seeing from all the trade and policy uncertainty? And then are you any more inclined for long term ownership of assets versus monetization, in the current environment?

Yeah. Ismail, this is a question for you.

Thank you, Sean. Thanks for the question. We see the market on a similar way as you do. We are experiencing the same the same things you are referring to? In general, with the capital we have, we have limited capability to hold a certain amount of projects. And we are continuously assessing every time a project reaches the RTB status, whether we should sell it or we should keep it in operation. So how many projects we keep in operation is a decision taken based on the amount of money we have available. And the status of the project and which are better to hold and better to to sell. But the markets remain very attractive. This is what we are seeing both in The US and Europe.

Got it.

Okay. Thank you.

This concludes our question and answer session. I would like to turn the conference back over to management for closing remarks.

Thank you, and thank you for joining us today. And for your continued support. If you have any questions, or would like to set up a call, please contact our investor relations team take care, and have a great day.

This concludes today's conference. You may disconnect your lines at this time and thank you for your participation.