U.S.-based module manufacturer First Solar reported a revenue of $1.04 billion in the first quarter (Q1) of 2026, rising 24% year-over-year (YoY).

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $520 million, increasing 37% YoY from $379 million.

Profit after tax (PAT) for the quarter was $347 million, up 65% from $210 million in the same quarter last year.

Earnings per share (EPS) came in at $3.22, compared to $1.95 in Q1 2025, beating analyst expectations by $0.39.

First Solar attributed its performance to differentiated technology, its domestic manufacturing footprint, and independence from Chinese crystalline silicon supply chains.

First Solar’s net sales in Q4 2025 rose 11.1% YoY to $1.68 billion from $1.51 billion.

Business Updates

First Solar sold approximately 3.8 GW of solar modules during Q1 and reported gross bookings of roughly 1.7 GW and de-bookings of 0.1 GW. Its contracted sales backlog stood at 47.9 GW as of March 31, 2026. The company said its U.S. domestic production was substantially committed through 2028 under existing contracts.

Alexander Bradley, Chief Financial Officer at First Solar, said, “We continue to take a highly selective approach to incremental U.S. bookings as we await the outcomes from current policy and regulatory matters, in particular, the pending 232 polysilicon derivatives tariff decision and proposed Foreign Entity of Concern (FEOC) rulemaking. During the first quarter, our gross bookings of 0.9 GW were at an average selling price of approximately $0.34/W inclusive of applicable adjusters.”

Last December, a Crux survey suggested the U.S. clean energy market is moving quickly on FEOC compliance, but many firms still don’t feel ready for what is in store for 2026. In an October 2025 survey of 50 developers, manufacturers, and other market participants, more than 90% said they had already begun some combination of ownership reviews, contract audits, and supply chain mapping, yet only 38% described themselves as fully prepared for 2026.

The company highlighted continued uncertainty about the proposed Section 232 tariffs on polysilicon derivatives, with a final decision expected in Q2. The lack of clarity led to deferred customer commitments, with multiple-gigawatt procurement decisions awaiting policy visibility.

The investigation outcome is also expected to determine the utilization of approximately 1.8 GW to 2 GW of Southeast Asian module capacity, including potential U.S. finishing or capacity rationalization.

First Solar said it has already factored the implications of the Section 232 investigation results into its cost assumptions.

The company added that its net sales were driven by a 31% increase in volume, partially offset by a lower average sales price. This reflects a higher proportion of deliveries in India. Its gross margin in Q1 was 47%, increasing 6 percentage points YoY. This growth was primarily supported by a higher volume of modules qualifying for Section 45X tax benefits and significantly lower sales freight costs, including lower detention and demurrage.

First Solar has an international backlog of roughly 5 GW of its S6 solar modules. These shipments will be spread across 2026, 2027, and 2028.

In Q1, First Solar sold approximately 1 GW of solar modules in India at an average selling price of approximately $0.2/W. The company plans to launch its copper reduction (CuRe) technology in the country, beginning next year. It said the CuRe technology will improve performance, including efficiency, durability, and energy generation, helping the company stay competitive in the country’s market.

First Solar has had a manufacturing capacity of 7 GW in Malaysia and Vietnam. The company expects half of this capacity to shift to the U.S. to support its South Carolina finishing line. South Carolina will produce thin-film cadmium telluride modules. This product was started in Vietnam and Malaysia, and will be finished in South Carolina.

However, nearly half of the remaining capacity is expected to be unavailable, as backend equipment is being relocated to the U.S. to support a perovskite pilot line scheduled for 2027. This shift is likely to reduce overall manufacturing throughput at the Southeast Asian facilities.

First Solar plans to launch a pilot perovskite line in 2027. The pilot line has a planned capacity of up to 1 GW and will be established at its Perrysburg facility in Ohio.

The company claims that manufacturers in the U.S. using TOPCon solar technology may be infringing its intellectual property.

The U.S. International Trade Commission initiated a Section 337 investigation in March 2026, targeting respondents that account for a significant share of the top 10 solar modules imported into the country. First Solar expects an initial determination within approximately 11 months, followed by a final decision in approximately 15 months.

Commenting on its India strategy, First Solar stated that its operational presence in the country aligns with its focus on energy security and supply chain independence. The company said the existing Approved List of Models and Manufacturers (ALMM), the expansion of ALMM to include solar cells, and the domestic content requirement are currently favorable for vertically integrated manufacturers like itself.

On India’s policies, First Solar noted that India’s solar policy is still evolving. This includes the possible regulations mandating higher efficiency standards and manufacturers to produce solar wafers locally by 2028. The company expects such changes to benefit manufacturers with integrated operations.

First Solar is also in discussions with the Ministry of New and Renewable Energy to emphasize that overall energy output matters more than efficiency ratings alone.

Outlook

First Solar expects its revenue to range from $4.9 billion to $5.2 billion in 2026.

It projects operating expenses of $610 million to $635 million and adjusted EBITDA of $2.6 billion to $2.8 billion.

First Solar forecasts its 2026 capital expenditures to range between $0.8 billion and $1 billion, and its net cash balance to range between $1.7 billion and $2.3 billion.

The 2026 outlook calculations include $2.1 billion to $2.19 billion in Section 45X tax credits, along with underutilization costs of $115 million to $155 million.

The company also expects to incur $110 million to $120 million in production start-up expenses.

Adjusted EBITDA includes approximately $217 million in addbacks, primarily related to share-based compensation, Section 45X tax credit discounts, underutilization, and production start-up costs.

First Solar expects to generate between $330 million and $400 million in Section 45X tax credits in Q2. These are projected to contribute to an adjusted EBITDA ranging from $400 million to $500 million for the quarter.

The company expects to sell 17 GW to 18.2 GW of solar modules in 2026.

In India, the company expects module production largely to remain domestic.