Mark Strouse

Explained the capacity-planning methodology and pledged not to be a bottleneck, but closed with that's all we are going to comment on our capacity.

Confirmed the breadth of validated customers but explicitly declined to split deployments between in-service, booked and contracted.

Sridhar gave a specific duration range and reiterated the 100% product-to-service attach rate underpinning annuity revenue.

The answer covered growth vectors and cost reduction but explicitly declined to provide longer-term margin guidance.

Sridhar refused outright with no explanation, and the analyst withdrew to follow up offline.

Sridhar gave a directional double-digit percentage rather than a figure, and expects it to remain in double digits in 2026.

Sridhar deferred to the FY2026 guidance call and offered only directional inputs: continued double-digit cost down, tight electricity supply, operating discipline.

Scott gave a thorough response: lead times at ~3 years, 10 GW remaining in 2029-2030 combined (down from 10 GW in 2029 alone in January as customers took 2030 slots). 280 new machines installed, 1,800 new workers being added. Productivity gains from investment expected to become visible in Q3.

Strazik argued 2023 was market-driven but 2025 is differentiation-driven through integrated power-gen + electrical equipment solutions. Electrification at ~10% of $150B addressable market with $14B 2026 revenue. First solid-state transformer product completed, potential large order in 2027.

Strazik cited $4B explicit Prolec backlog plus framework agreements with utilities, noted data center mix grew from 10% in 2024 to ~20% in 2025 with further growth expected. Parks added $300M in active capacity expansion programs.

Strazik linked PJM capacity market pricing to incremental services demand and pricing power, noting price-up moves in services are shorter cycle and will translate to income statement in 12-24 months.

Strazik disclosed ~60% of 50GW pipeline is US-based, data center is negligible in the 29GW backlog but about a third of 21GW SRAs, with SRA-to-order conversion expected in H2.

Strazik noted no explicit new orders in six weeks over holidays but emphasized intensifying customer discussions focused on securing premium 2028-2029 slots rather than negotiating price.

Mark explained pricing is based on customer's required domestic content points for ITC bonus. S7 domestic/international blends well. S6 harder with only 3 GW domestic vs 7 GW international. Pure international S6 into U.S. would clear near $0.30.

Mark assessed competitor's plans as captive consumption focused, not utility-scale. Cited massive capital requirements, vertical integration complexity, freedom-to-operate IP challenges, and power availability constraints. Alex added hyperscaler power access is already the binding constraint.

Mark clarified the executive order targets tech-neutral credits (commenced construction, FEOC), not legacy safe harbor. Domestic backlog through 2028 should be unaffected.

Mark confirmed cost per watt produced is close to Analyst Day targets. The $0.04 period cost gap is driven primarily by $250M warehousing costs, which management views as largely transitory.

Aaron described process measured in months involving contracts, insurance, management meetings. Characterized progress as sixth or seventh inning. Already preferred supplier for 2 global co-locators. No showstoppers identified.

Aaron confirmed hyperscaler traction strongest. Conversations extend to 2027-2029 planning. Nine global C&I facilities. Beaver Dam plant ($65-70M, 345k sqft) frees Oshkosh for large MW. 12-month build cycle for new capacity.

Aaron noted steel elevated but reflected in guide. Hedges small. Offset from shipping rates dropping 50% and PEP cost-out program. Would respond with more price if needed.

Aaron explained dual/triple sourcing strategy from COVID lessons, flexibility to shift supply away from tariff-impacted regions. Scale is key competitive advantage.

Legacy projects pushed right due to tariff repricing negotiations. 50-100bp sequential margin pressure in Q3 from this. MCS will improve sequentially in Q4 and YoY in both Q3 and Q4.

No one-timers. Two-thirds from 80/20 traction, rest from positive price/cost. Some volume pull-ahead means sequential step-down in Q3, but still robust YoY expansion.

Duke confirmed expansion beyond the JV, will book generation both in JV settings and independently. Risk-adjusted approach non-negotiable.