TE Q2 2026 - Preliminary Earnings Alert
Verdict
- Revenue beat: total net sales $250.1m against $206.7m consensus, +21.0%, up 88% year over year.
- EPS miss: GAAP diluted loss of $(0.16) against $(0.11) consensus, 43.5% worse.
- Guidance nudged up without a number change: the 2026 G1_Dallas production range stays 3.1–4.2 GW, but management now expects the higher end and says Q3 and Q4 run rates will exceed Q2's 935 MW.
- The one thing that matters: the entire quarter's profitability is a tariff refund. Adjusted EBITDA of $10.7m includes a $24.4m pre-tax reduction in cost of sales from tariff refunds recognised in the quarter. Strip it and the quarter is roughly $(13.7)m of adjusted EBITDA on record volumes.
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue (total net sales) | $250.1m | $206.7m | Beat +$43.4m | +21.0% |
| EPS (GAAP diluted, net loss attributable to common) | $(0.16) | $(0.11) | Miss -$0.05 | -43.5% |
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Total net sales | $250.1m | $132.8m | +88% |
| Gross profit | $49.1m | $32.8m | +50% |
| Adjusted EBITDA | $10.7m | — | — |
| Operating loss, continuing operations | $(22.8)m | $(31.4)m | improved $8.6m |
| Net loss from continuing operations | $(36.9)m | $(31.2)m | worsened $5.7m |
| Unrestricted cash | $79.1m | $182.5m (Dec-25) | -$103.3m |
G1_Dallas module production was 935 MW in the quarter.
Guidance changes
| Metric | New guidance | Prior guidance | Change |
|---|---|---|---|
| 2026 G1_Dallas production | Higher end of 3.1 – 4.2 GW | 3.1 – 4.2 GW | Range unchanged, expectation raised |
| G2_Austin Phase 1 capex | $510m | $510m (July, incl. 20% contingency) | Reaffirmed |
| G2_Austin first cell production | Q1 2027 | Q1 2027 | Reaffirmed |
Quality of earnings
- Gross margin without the refund is roughly 9.9%, not 19.6%. Gross profit was $49.1m on $250.1m of sales, but $24.4m of that came from tariff refunds credited to cost of sales; a year ago the company earned $32.8m of gross profit on $132.8m of sales at 24.7% with no such credit.
- Revenue nearly doubled while the bottom line got worse. Net sales rose 88% to $250.1m and operating loss narrowed to $(22.8)m from $(31.4)m, yet net loss from continuing operations widened to $(36.9)m from $(31.2)m — the difference is other expense of $(13.4)m against $(5.8)m and a $0.8m tax expense against a $6.0m benefit.
- Cash generation is separate from earnings. The quarter's $39.1m of 2025 Section 45X credit monetisation at $0.93 on the dollar is a balance-sheet event, and 2026 credit sales are only in early-stage negotiation.
Gotchas & watch items
- Unrestricted cash fell to $79.1m from $182.5m at December 31 while convertible notes rose to $329.0m from $153.0m, and the $510m G2_Austin Phase 1 build is still not financed — management describes the July $120m convertible as "a bridge to a comprehensive financing solution".
- Deferred revenue jumped to $150.4m from $56.7m, so a large share of near-term shipments is already prepaid and will not repeat as new cash.
- Tariff refunds are explicitly listed in the company's own risk factors as uncertain, and the $24.4m recognised this quarter is what carried adjusted EBITDA positive.
- Almost all revenue is related-party: $250.1m of the $250.1m total is net sales to related parties, against $66.3m of $132.8m a year ago.
Event: https://web.quartr.com/companies/12564/events/666514/overview Retrieved: 2026-08-12T20:20:00Z Comparison mode: maximal · Scorecard contract: v1 The consensus EPS basis is not disclosed; the company's headline GAAP diluted figure is used, and the continuing-operations loss was $(0.14).