Canadian Solar Inc. Q1 FY2026 Earnings Call

Welcome to Canadian Solar's First Quarter 2026 Earnings Conference Call. My name is Melissa, and I will be your operator for today. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Wina Huang, Head of Investor Relations at Canadian Solar. Please go ahead.

Thank you, operator, and welcome, everyone, to Canadian Solar's First Quarter 2026 Conference Call. Please note that today's conference call is accompanied with slides, which are available on Canadian Solar's Investor Relations website within the Events and Presentations section. Joining us today are Dr. Xiaohua Qu, Executive Chairman and CTO; Colin Parkin, Chief Executive Officer; Ismael Arias, CEO of Canadian Solar subsidiary Recurrent Energy; and Xinbo Zhu, Senior Vice President and Chief Financial Officer. All company executives will participate in the Q&A session after management's formal remarks. On this call, Xiaohua will go over some key messages for the quarter. Colin and Ismael will review business highlights for Manufacturing and Recurrent Energy, respectively, and Xinbo will go through the financial results. Colin will conclude the prepared remarks with the business outlook, after which we will have time for questions. Before we begin, I would like to remind listeners that management's prepared remarks today as well as their answers to questions will contain certain 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 of 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 the requirements of SEC Regulation G regarding generally accepted accounting principles or 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 intends 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 provided in accordance with GAAP. And now I would like to turn the call over to Canadian Solar's Executive Chairman and CTO, Dr. Xiaohua Qu. Xiaohua, please go ahead.

Thank you, Wina, and thank you all for joining our first quarter 2026 earnings call. Beginning on Slide Three, we started the year with strong momentum. We recognized revenue of 2.5 gigawatts of solar modules and 2.1 gigawatt hours of energy storage solutions, both of which exceeded our guidance range. Revenue totaled $1.1 billion, reaching the high end of our expectations. Gross margin of 25.1% outperformed our forecast, aided by the accrual of tariff refunds. Profitability was impacted by elevated non-logistics operating expenses, foreign exchange losses and tax expense accruals related to the tariff refund. This led to a net loss attributable to shareholders of $32 million or $0.71 per diluted share. The solar downturn has lasted longer than expected. Against this backdrop, we have consistently made the right strategic decisions. We have repositioned our solar module business to focus on key attractive markets, culminating in the formation of CS PowerTech, which is now leading our efforts in the domestic reshoring of manufacturing in the United States. At the same time, we have strategically dialed back volumes in less profitable markets, maintaining a steadfast profit-first strategy. Furthermore, energy storage represents a pioneering strategic move for us. Through this business, we have transformed from a pure PV module manufacturer into an integrated energy solutions provider. The boom in Artificial Intelligence has also provided new clarity. As the world chases digital breakthroughs, our core foundation is still physical power infrastructure. With rising global geopolitical friction and the push for energy independence, nations are increasingly seeking self-sufficient, reliable, local energy solutions. Renewable energy paired with energy storage has become an inevitable imperative. Turning to Slide Four. Our journey from our founding in Ontario, Canada to our current position as a global leader in integrated clean energy is a testament to our enduring resilience. We have consistently evolved, and today we are navigating a pivotal shift from volume-driven expansion to value-driven leadership. This evolution calls for strategic succession, and I am proud to transition the Chief Executive Officer role to Colin Parkin. Colin is a veteran of the company and the renewable energy industry. He previously served as President of Canadian Solar and was pivotal in establishing our first-mover advantage in the energy storage sector as President of e-STORAGE. This transition follows a thoughtful long-term succession planning process approved unanimously by the Board of Directors. I will transition to the role of Executive Chairman and Chief Technology Officer, focusing on our technology roadmap and long-term R&D strategy. We are working closely with Colin to execute this transition. With that, I will now turn the call over to Colin.

Thank you, Xiaohua. It is an honor to take over the Chief Executive role, and I look forward to Xiaohua's continued guidance as we navigate our next phase of growth. Beginning on Slide Five, as Xiaohua highlighted, the first pillar of our global strategy is U.S. manufacturing. Since our last update, we have achieved critical milestones in reshoring the renewable energy supply chain. Phase I of our flagship solar cell factory in Jeffersonville, Indiana produced its first trial HJT solar cell at the end of March. With a nameplate capacity of 2.1 gigawatts peak, it will be the first and only commercial operational HJT solar cell facility in the United States once it ramps up over the next two quarters. In response to strong customer demand, we are increasing our domestic solar cell capacity beyond the originally planned 5 gigawatts peak. We expect to begin trial production for Phase II at the beginning of next year. This expansion will add 4.2 gigawatts peak of capacity, bringing our total U.S. solar cell nameplate capacity to 6.3 gigawatts peak and making us the largest crystalline silicon solar cell manufacturer in the country. Parallel to this is the expansion of our successful solar module factory in Mesquite, Texas. This facility reached full ramp last year, and we are currently expanding capacity at the existing site. By the second half of this year, we expect nameplate capacity to double to 10 gigawatts peak, allowing us to fulfill all future U.S. volumes from this Texas facility. Now let's walk through this quarter's manufacturing numbers. Turning to Slide Six. In the first quarter of 2026, we delivered 2.5 gigawatts of solar modules globally. We maintained a disciplined approach, strategically managing volumes in response to elevated feedstock costs, including silver, to mitigate losses. Our domestic manufacturing in the U.S. contributed robust margins as we maintained an optimized geographic mix of volumes. Storage shipments recognized as revenue reached 2.1 gigawatt hours, slightly above guidance, supported by steady construction progress across multiple customer sites. Revenue for the Manufacturing segment reached $950 million, and our gross margin was 29.1%. The sequential 1,460 basis point increase was driven by healthy energy storage volumes and the tariff refund. With unit shipping costs holding steady and disciplined management of operating expenses, we achieved operating income of $127 million. Now referring to Slide Seven regarding e-STORAGE. We shipped 2.6 gigawatt hours of energy storage solutions this quarter, including 500 megawatt hours to internal and external projects under execution, recognizing revenue on 2.1 gigawatt hours of volume. We are now delivering to a diversified global customer base within a single quarter what we delivered in a full year just a few years ago. We have also significantly advanced our manufacturing capabilities. For example, our internal production of lithium iron phosphate prismatic cells is proving to be a distinct advantage in today's market as we have now achieved a cost basis below the market price of third-party cells. This strategic vertical integration provides an economic buffer during cyclical fluctuations while equipping us with the proprietary technical expertise necessary to drive further innovation. To support our global momentum and markets, we are also expanding capacity at our integrated Battery Energy Storage System and battery cell factory in Southeast Asia. We plan to double both our battery cell and SolBank capacities to ensure strong coverage of annual volumes with internally sourced compliant solutions. The new production lines are currently being constructed and will come online in the first half of 2027. As we focus on maintaining our stellar execution track record, we are also balancing growth and profitability. As of May 8, our contracted backlog totaled $3.5 billion, including 34 gigawatt hours of operating projects under long-term service agreements. As we continue to scale our storage business, these recurring revenue streams will also increase. Finally, we continue to actively pursue opportunities within both front-of-the-meter and behind-the-meter data center applications. While most commercialized demand today is manifesting through front-of-the-meter contracts, we are seeing steady industry progress in the planning, permitting and technical development required for future behind-the-meter opportunities. As this market gradually matures, we remain closely aligned with the key stakeholders driving these opportunities forward. Now let me hand the call over to Ismael, who will provide an overview of Recurrent Energy, Canadian Solar's global project development business.

Thank you, Colin. Beginning with Slide Eight. We generated $139 million in revenue in the first quarter. Revenue improved sequentially, primarily driven by the sale of the Fort Duncan project. However, the overall contribution of this project sale was offset by related tax equity arrangements, as we had recognized tax equity gains when the project was placed in service. Fort Duncan is a milestone. It is the first stand-alone BESS project in our portfolio that was financed with non-recourse project finance and had no capacity contract in place. We have now successfully monetized and sold the asset profitably, demonstrating that we can also achieve profitable sales for these merchant market project types. With relatively muted project sales this quarter and ongoing platform operating costs, we posted an operating loss of $60 million. As we continue to monetize more operating and under-construction assets, the P&L impact may not be optimal in the near term. However, this strategy remains necessary to delever our balance sheet and recycle capital. Turning to Slide Nine. As of March 31, 2026, we have secured interconnections for 7 gigawatts of solar and 14 gigawatt hours of storage globally, excluding projects already in operation. Our total project pipeline is comprised of 24 gigawatts of solar and 81 gigawatt hours of energy storage. Our focus in 2026 is to reduce debt and mature our pipeline. Our pipeline is one of the largest in the industry with a focus on the most stable geographic markets. Our strategy will also allow us to reduce operating expenses by concentrating on fewer geographies within our core footprint. We are now focused on unlocking the value of the existing pipeline as it matures. At the same time, we see the rising global energy demand trend and growing appetite for these projects. Our O&M platform continues to grow steadily and holds a contracted portfolio of 15 gigawatts, of which 11.2 gigawatts are already operational. The remainder is currently under construction and will join our managed project portfolio over the coming quarters. Now let me hand the call over to Xinbo, who will go through our financial results in more detail.

Thank you, Ismael. Beginning with Slide Ten. In the first quarter, we recognized revenue on 2.5 gigawatts of modules and 2.1 gigawatt hours of energy storage solutions, both slightly above guidance. As a result, revenue reached $1.1 billion at the high end of our forecast. Gross margin of 25.1% strongly exceeded guidance. It increased both sequentially and year-over-year due to the accrual of tariff refunds, which contributed 860 basis points. Without this one-time benefit, our gross margin still exceeded guidance on strong storage volumes and a healthy geographic mix of solar module volumes. Operating expenses increased 5% sequentially as lower freight costs were offset by the absence of one-time gains recorded in the previous quarter. Net interest expense in the first quarter was $36 million, down from $39 million in the first quarter of 2025. Cost of debt was lower following refinancings in the project development business. Net foreign exchange loss was $29 million, driven by appreciation in the Chinese yuan and the weakness in the U.S. dollar. Total net loss attributable to Canadian Solar was $32 million or $0.71 per diluted share. Now let's turn to cash flow and the balance sheet on Slide Eleven. Net cash flow used in operating activities during the first quarter of 2026 was $209 million. This outflow was primarily driven by increased inventories associated with the U.S. Solar and Storage business. Total assets grew to $15.5 billion, driven by increased inventories to support the U.S. solar and storage business as well as U.S. manufacturing investments. In the first quarter, we invested $173 million in capital expenditures, primarily towards U.S. manufacturing initiatives. We expect 2026 CapEx to total around $1.3 billion. We ended the quarter with a cash balance of $1.9 billion and total debt of $6.8 billion. Total debt increased mainly due to new convertible notes issued to support U.S. manufacturing. Now let me turn the call back to Colin, who will conclude with our guidance and business outlook.

Thank you, Xinbo. Turning to Slide Twelve. For the second quarter of 2026, we expect to recognize revenue on 3.1 to 3.3 gigawatts of solar modules. We expect to deliver between 2.8 and 3.2 gigawatt hours of energy storage solutions, including approximately 400 megawatt hours to internal and external projects under construction. Revenue and profit recognition for volumes delivered to these in-progress projects may be subject to timing lags. Furthermore, our storage guidance range is slightly more conservative and wider due to delays related to ongoing shipping congestion. We project total second quarter revenue to be in the range of $1 billion to $1.2 billion, with gross margin expected to be between 13% and 15%. The broader solar market remains complex as incremental price increases have not yet fully absorbed upstream cost pressures. In the storage business, we expect record volumes in the second half of the year, though margins are projected to normalize, and we remain partially exposed to fluctuations in lithium carbonate pricing. In the face of these challenges, we remain committed to a balanced strategy focused on rigorous execution and continuous innovation. For the full year of 2026, we reiterate our U.S. volume guidance: 6.5 to 7 gigawatts of module shipments and 4.5 to 5.5 gigawatt hours of energy storage shipments. With that, I would like to open the floor for questions. Operator?

Our first question comes from Colin Rusch with Oppenheimer & Company.

Xiaohua, this is actually a question for you on the technology side. And congratulations on getting the battery costs down to where you've gotten them. I'm just curious about the evolution of the battery chemistry, notably around incremental silicon doping for the anode side as well as the form factor and chemistry optimization for data center duty cycles. Can you just talk about how quickly things are changing and how we can see that start to translate into some advantaged pricing over time?

Thanks, Colin. That's a good question. We are working on several fronts for the battery and the battery storage system. You mentioned pre-lithiation, which is a way to introduce additional lithium into the anode so that we can achieve almost no degradation in the first five years and also slow degradation thereafter. It's a good technology and process-wise we are ready to implement it. However, that will increase the cost of the battery because you have to include more lithium. So it becomes a cost balance issue. We propose this technology to our customers; some customers see the benefit, some customers are concerned about the cost because, as you know, lithium carbonate prices have doubled in the past five months. So the technology is ready and we can implement it on any project where the benefit outweighs the cost. Another approach in battery chemistry is sodium-ion. We also have research in this area. Sodium is not subject to the same raw material fluctuations; sodium is abundant, unlike lithium. When lithium carbonate prices reach today's levels, sodium becomes price competitive. Also, sodium can have better low-temperature performance and often requires less thermal management, so you can save that annual thermal management electricity cost. That's another chemistry we are researching. There are a few other technologies we are evaluating. I'm more than willing to go through those with you later in any dedicated conversations, Colin.

Perfect. That's super helpful, Xiaohua. And then on the Recurrent side, given kind of where utility-scale prices are in the U.S., I'm just curious about your ability to renegotiate PPAs or start cutting PPAs at substantially higher prices to support margins? Just curious about that dynamic and potential timing around that.

Yes. I would just make a quick comment here. For mature projects already in operation, the PPA is fixed. The advantage is that the PPA and cash flow are secure and you can do bank financing and non-recourse financing easily. However, it will be difficult to renegotiate a PPA already signed in place. Usually, you would have to pay back your letters of credit or other guarantees that support the PPA if you want to change to a higher PPA. We did one project in the past where we paid the LC, canceled the PPA and renegotiated, but normally we don't do that. On the other hand, we have a large pipeline of mid-stage and early-stage projects for which we have not signed PPAs yet. We can repurpose those for, for example, AIDC-specific applications and therefore drive higher values. So in short, mature operating projects with PPAs give us certainty. Meanwhile, our large pipeline of mid-stage and early-stage projects will help us create more value in the future.

Our next question comes from the line of Philip Shen with ROTH Capital Partners.

I wanted to check in with you guys more on the U.S. cell manufacturing ramp, the cell capacity ramp. You guys have had first cell out. Congratulations on that. When would you expect the commercial shipment of those cells to go into your modules? And when do you think your first U.S. module with U.S. cell is available commercially for your customers?

Philip, it's an interesting question. We have answered that in several places in the press release and in the prepared remarks. We expect somewhere in July, roughly two months from now, to have commercial operation. Then we'll be able to make our own modules with the HJT solar cells and deliver to customers. That process should be fast: if we can have commercial operation in July, probably in August and September we will have the first modules delivered to customers. I would like to caution you: there are still two to three months to go, and this is the first time the industry will produce HJT heterojunction cells in the U.S. It will be a milestone, and it's not an easy task. I just want to caution you about that. However, our expectation is for initial commercial deliveries in Q3.

Great. And then as it relates to your sourcing of third-party cells, can you remind us what countries or places you're sourcing those cells from? And do you have any exposure to Ethiopia? There was that new petition that was filed a couple of days ago or yesterday on a potential new anti-circumvention tariff on cells coming from Ethiopia. And then finally, do you buy any blue wafers at all? Is that, or in your supply chain, do you have exposure to blue wafers?

Thanks, Philip. That's a tricky question, but I'll give you a straightforward answer. We do source outside cells and also import cells from other countries into the United States. We are transitioning to more domestic cell use. As I have mentioned in previous calls, 2026 is a transition year for us. We do not provide geographic distribution of our cell sources during this transition period. However, as far as I know, we are not exposed to the petition you mentioned regarding Ethiopia.

Okay. And then again on blue wafers, do you have any thoughts on that? And is that in your supply chain?

No, there is no so-called blue wafer. Whatever cell is made in a certain country, those cells should go through the necessary solar cell steps. For our factory, we only use so-called green wafer and the cell production process is completed in the country of manufacture.

Great. Okay. And then one last one here. On the IEEPA tariff in the quarter, you guys booked it. Can you talk about the accounting for that? Specifically, do you guys secure cash with that refund? Or is that expected sometime in the future? And if it doesn't come, then what happens to the accounting?

I will let Xinbo supplement, but I'll provide the overview. The IEEPA tariff refund consists of basically three components. One is the refund on tariffs paid on imported solar cells or other manufacturing components. Those refunds were accrued in cost of goods sold, which is standard accounting. There are also refunds related to machines we shipped to the U.S. Those will not go into COGS; I think those will be used to reduce the cost base of our CapEx investment in the U.S., therefore later benefiting depreciation expense of the machines. Some refunds will be recorded in our Canadian Solar subsidiaries because those entities imported materials last year, and some will go to CSIQ entities because they also imported materials earlier this year. In terms of cash flow, I'm glad to report that we have already started to receive IEEPA refunds in cash as of today. So you will see the cash component in Q2 accounting. In Q1, those IEEPA amounts were recorded as receivables. In Q2, you will see actual cash credited to those receivables. I hope I answered the question. Xinbo can supplement.

Yes, not much to add. We received the cash together with interest. So far, we have started to receive tariff refunds along with accrued interest.

As you probably know, those refunds are processed batch by batch. Customs verifies and refunds entries one by one. Therefore, cash flows will come in batches depending on each import entry. We have already started to receive cash; some cash has already arrived in our bank accounts.

Our next question comes from the line of Alan Lau with Jefferies.

So the margin in the first quarter is very solid actually, even taking out the refund of tariff. So I would like to know how much of the module shipment is coming from the U.S. plant? And as you mentioned, the margins from your U.S. manufacturing plant were decent. I'd like to know approximately at what levels is it?

Yes. I think around 30% to 40% of the module shipments came from our U.S. factories. It's more or less the same ratio as before.

Yes. In line with our profit-first strategy, we have been emphasizing our key strategic markets. So you'll see quarter-over-quarter, we've maintained a very healthy mix of North American volumes. This quarter, out of our 2.5 gigawatts, 45% came from North America. So a very healthy mix that supported our module margins.

So basically, all of the shipments to the U.S. are manufactured by the U.S. plant.

All of them, not almost all.

Alan, thanks for your question. We're in a transitional period in the U.S. as we scale our Mesquite module operations and bring online our cell manufacturing in Jeffersonville. There will be a transitional period, but what we can say is with the combination of the 45X manufacturing tax credits, the economies of scale we're building in the U.S., and the fact that we're going to be using the most advanced HJT cell technology in our products as we scale in Q3, Q4 and heavily into 2027, we believe these factors will lead to a strong and robust U.S. profitable business model.

Understood. So actually, the company has already ramped up its HJT cells. I wonder if you are seeing a premium for HJT products versus other products like PERC or TOPCon products in the U.S. market?

Yes, Alan, we haven't commercially delivered HJT cells yet. As I said earlier, we expect to start deliveries in Q3. However, based on contract bookings, we have priced a premium for HJT cells compared to TOPCon cells. Customers have accepted a premium for HJT in the contracts we've signed.

So how much is the premium in terms of U.S. sales?

It's still in process. We just started to book those contracts. As far as I recall, the premium is over 10%, maybe around 10% to 15% for HJT modules versus TOPCon modules. We'll provide better numbers after Q4 when we have actual comparisons for module shipments.

Switching gears to ESS segment. So I would like to know if the margin is around 20% level in the first quarter?

Can you repeat which area you mean?

ESS energy storage, what's the margin for ESS storage in the first quarter?

Alan, one of the things I'd like to point out is that our backlog continues to be very healthy in energy storage, around $3.5 billion in order backlog. We have a reasonably long view on our energy storage pipeline and the associated margins. Everyone recognizes there are continued price pressures, but by diversifying our supply chain and giving ourselves flexibility, we're confident in our pipeline and associated margins. We do acknowledge fluctuations in commodity pricing and lithium pricing, so we are cautious when presenting forecasted numbers with that in mind.

Understood. So would local production of the battery pack help margins going forward?

Yes. Everything we're doing to control our own supply chain is giving us a strategic advantage and better control of logistics, manufacturing costs and project integration. It continues to be our strategy to grow capabilities from lithium cell manufacturing through complete battery systems, including software, technology, power conversion systems, the battery themselves, and supporting that with a strong engineering and execution team. Our long-term service contracts are also valuable, as they provide recurring revenue for our energy storage business.

Understood. Last question: are there any difficulties or challenges in expanding cell capacities given rumors about potential export prohibitions? When you're expanding capacities to 6.3 gigawatts, do you expect challenges in getting the equipment in place?

So far, we don't see that challenge. I know what you are referring to, and I hope that the recent diplomatic engagements will help smooth trade relationships. We haven't seen any restriction for our Phase II equipment deliveries. We haven't started to take deliveries for Phase II yet. As mentioned, Phase I is planned to ramp up in Q3 and Phase II equipment movement will begin around October or November, with ramp up early next year. We signed Phase II equipment contracts early, before any noise around these issues, and we have paid some down payments, which gives us an advantage if restrictions arise. I think potential restrictions would more likely affect future equipment orders, not our already-contracted machines. I do hope diplomatic developments will help clear uncertainties in this area.

Our next question comes from the line of Maheep Mandloi with Mizuho Securities.

Just a question on the guidance. If you could talk about the mix of manufacturing versus Recurrent in Q2, similar to what we saw in Q1? And also for the U.S. or North America exposure, how should we think about the mix in Q2 versus Q1?

Yes, I will let Colin address this question.

Thank you. With respect to the guidance, we are reiterating our U.S. guidance from last quarter. We feel confident in our current execution and don't expect significant downside to the reiterated guidance we provided in our prepared remarks. On the mix between manufacturing and Recurrent, most of our shipments are to third parties; very little is to our Recurrent operations in terms of product shipments. If you'd like more detailed follow-up on the exact mix, we can discuss offline.

Got it. And then just curious on the mix in Q2 versus Q1 as you for the manufacturing versus Recurrent and North America versus rest of the regions? I'll follow up offline on details. But separately, a question on the e-STORAGE business: how much of the backlog is North America for you guys and for CS PowerTech? And are you seeing any interest or orders in the pipeline from data center customers or hyperscalers looking to deploy batteries on site?

About 40% of our energy storage business is in the U.S. right now, and we are seeing demand increase both for front-of-the-meter infrastructure and for behind-the-meter opportunities. We have a diversified global pipeline: significant positions in Canada (over 4.5 gigawatt hours contracted), leading positions in the U.K., growing opportunities in Europe and Japan, and steady activity in Australia. Regarding data centers, we have been working on this for quite a while. Last quarter, we announced a front-of-the-meter infrastructure project of 2.5 gigawatt hours to support data center growth. We have developed focused business development and technology teams to ensure our solutions meet stringent data center technical requirements, particularly for fast response times. We are engaged with data center opportunities and expect this focus to yield results in the coming quarters. While we cannot disclose counterparties now, it is a key part of our program and focus.

That's great. I appreciate the detailed color on the different markets as well. Maybe one last one on guidance for the rest of the year. I know you haven't given Q3, Q4 or full-year guidance beyond what you reiterated, but directionally how should we think about the business with U.S. factories ramping up? Should we look at a cadence similar to last year or something different here? Any color would be helpful.

If we look at the solar side, there has been and continues to be volatility. Our approach has been to focus on profitable business rather than just volume. So we are reserving some flexibility to increase volume opportunistically if the market supports it. We see potential improvement in solar in the second half that we can take advantage of. On storage, our pipeline remains strong and we have indicated that we expect record deliveries in the second half of the year. These projects require sophisticated planning and logistics, and based on our current execution and pipeline we are confident in a strong second half for energy storage barring unexpected events.

Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I'll turn the floor back to management for any final comments.

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. Thank you, everybody.

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