First Solar, Inc. Announces Second Quarter 2026 Financial Results and Reaffirms Guidance
PHOENIX--( BUSINESS WIRE)--First Solar, Inc. (Nasdaq: FSLR) (the “Company”), America’s leading PV solar technology and manufacturing company, today announced financial results for the second quarter ended June 30, 2026 and reaffirmed its 2026 guidance.
Net sales were $1.06 billion for the second quarter of 2026, a 4% decrease compared to the second quarter of 2025, driven primarily by lower revenue associated with customer contract terminations, partially offset by an increase in the volume of modules sold to third parties.
The Company reported second quarter net income of $423 million, or $3.92 per diluted share, compared to $342 million, or $3.18 per diluted share, in the second quarter of 2025. Adjusted EBITDA was $644 million compared to $560 million in the second quarter of 2025.
Net cash balance decreased to $1.7 billion as of June 30, 2026 from $2.4 billion as of December 31, 2025, driven by seasonal working-capital needs and capital expenditures primarily for our South Carolina finishing facility.
“We delivered both record second-quarter and first-half sales volume and improved financial performance relative to the prior year,” said Mark Widmar, Chief Executive Officer. “We also surpassed 100 GW of cumulative module sales globally and ended the quarter with approximately 45.1 GW of contracted backlog extending through 2030, demonstrating continued demand for our differentiated technology platform, domestic manufacturing footprint and delivery certainty.”
Our 2026 guidance remains unchanged and is summarized below:
Prior
Current
Volume Sold
17.0GW to 18.2GW
Unchanged
Net Sales
$4.9B to $5.2B
Unchanged
Gross Profit (1)
$2.4B to $2.6B
Unchanged
Operating Expenses (2)
$610M to $635M
Unchanged
Adjusted EBITDA (3)
$2.6B to $2.8B
Unchanged
Capital Expenditures
$0.8B to $1.0B
Unchanged
Net Cash Balance (4)
$1.7B to $2.3B
Unchanged
1.
Assumes $90 million to $100 million of production start-up expense.
3.
Adjusted EBITDA reflects addbacks of approximately $225 million for share-based compensation, Section 45X tax credit discounts, underutilization, and production start-up expenses. See “Non-GAAP Financial Measures” for additional information on Adjusted EBITDA.
4.
Defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at the end of 2026.
From a third quarter earnings cadence perspective, we anticipate our module sales to be between 3.9 GW and 4.5 GW, including 3.2 GW to 3.7 GW from our U.S. manufacturing operations. These factors are expected to result in forecasted third quarter Adjusted EBITDA between $625 million and $775 million.
The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to the impact of public policies such as tariffs, export controls, or other trade remedies, freight-related costs, and certain factors related to the Inflation Reduction Act of 2022 (the “IRA”), as amended by the One Big Beautiful Bill Act of 2025. Our outlook assumes the current U.S. policy environment persists, and in addition, that permitting processes and timelines will remain consistent with historical levels. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s second quarter 2026 financial results, 2026 guidance, and financial outlook.
We are not providing forward-looking guidance for GAAP net income or a quantitative reconciliation of the Adjusted EBITDA guidance range to GAAP net income, the most directly comparable GAAP measure, because we are unable to predict with reasonable certainty the potential occurrence, financial impact or recognition period of significant items, such as share-based compensation, Section 45X tax credit discounts, contingencies and certain other gains or losses, as well as related income tax accounting because such items have not occurred, are out of our control, and/or cannot be reasonably predicted without unreasonable effort. These significant items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. See “Non-GAAP Financial Measures” for more information on Adjusted EBITDA, including identification of significant items that we believe are not indicative of our ongoing operations.
Conference Call Details
First Solar has scheduled a conference call for today, July 30, 2026, at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com. A replay of the webcast will also be available on the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for 30 days.
About First Solar, Inc.
First Solar, Inc. is America's leading photovoltaic (“PV”) solar technology and manufacturing company. The only U.S.-headquartered company among the world's largest solar manufacturers, First Solar is focused on competitively and reliably enabling power generation needs with our advanced, uniquely American thin film PV technology. Developed at research and development (“R&D”) labs in California and Ohio, our technology provides a competitive, high-performance, and responsibly produced alternative to conventional crystalline silicon PV solar modules. Our PV solar modules are produced using a fully integrated, continuous process that does not rely on Chinese crystalline silicon supply chains. For more information, please visit www.firstsolar.com.
For First Solar Investors
This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand for solar technology generally and for our technology specifically, including in the U.S. market, and our positioning to serve such demand; new capacity coming online; our expectations regarding the political and trade environment and its impacts; production and delivery of our modules; our financial guidance for 2026, including future financial results, net sales, gross profit, operating expenses, Adjusted EBITDA, net cash balance, capital expenditures, expected earnings cadence, volume sold, bookings, and expected module shipments; products and our business and financial objectives for 2026; the availability of benefits under certain production linked incentive programs; the impact of the IRA as amended by the One Big Beautiful Bill Act of 2025, including the Section 45X tax credits; our expectations regarding the sale of our Section 45X tax credits; and the impact of public policies such as tariffs, export controls or other trade remedies. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” “contingent,” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments, or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the modification, reduction, elimination, or expiration of government subsidies, economic incentives, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications; the impact of public policies, such as tariffs, export controls, or other trade remedies imposed on solar cells and modules or related raw materials or equipment; interest rate fluctuations and our customers’ ability to secure financing; our ability to execute on our long-term strategic plans, including our ability to secure financing and realize the potential benefits of strategic acquisitions and investments; the loss of any of our large customers, or the inability of our customers and counterparties to perform under their contracts with us, including through terminations by customers of any contract in part or in full; our ability to execute on our solar module technology and cost reduction roadmaps; the performance of our solar modules upon installation; our ability to improve the wattage of our solar modules; our ability to incorporate technology improvements into our manufacturing process, including the implementation of our Copper Replacement (“CuRe”) program; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; general economic and business conditions, including those influenced by U.S., international, and geopolitical events and conflicts; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects arising from and results of pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program or otherwise as required by external laws and regulations; supply chain disruptions; our ability to protect or successfully commercialize our intellectual property; our ability to prevent and/or minimize the impact of cybersecurity incidents or information or security breaches; our continued investments in R&D; the supply and price of key raw materials (including CdTe, tellurium, and tellurium compounds), components, and manufacturing equipment; our ability to construct new production facilities to support new product lines; evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social, and governance matters; our ability to avoid manufacturing interruptions, including during the ramp of new module manufacturing facilities; our ability to attract, train, retain, and successfully integrate key talent into our team; the severity and duration of public health threats, and the potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K, as supplemented by our other filings with the Securities and Exchange Commission.
FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
1,688,279
$
2,803,514
Marketable securities
38,685
51,849
Accounts receivable trade, net
1,476,221
1,294,040
Government grants receivable, net
284,549
499,592
Inventories
1,088,115
736,734
Other current assets
741,366
643,103
Total current assets
5,317,215
6,028,832
Property, plant and equipment, net
5,643,539
5,675,794
Deferred tax assets, net
198,588
194,672
Restricted marketable securities
214,315
217,172
Government grants receivable
978,788
125,607
Goodwill
30,142
31,095
Intangible assets, net
63,372
51,007
Inventories
185,508
237,462
Other assets
757,131
759,669
Total assets
$
13,388,598
$
13,321,310
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
346,334
$
405,775
Income taxes payable
46,590
7,490
Accrued expenses
410,164
519,414
Current portion of debt
37,635
215,979
Deferred revenue
1,179,374
1,014,386
Other current liabilities
91,719
91,058
Total current liabilities
2,111,816
2,254,102
Accrued solar module collection and recycling liability
144,821
146,017
Long-term debt
—
282,593
Deferred revenue
519,486
805,018
Other liabilities
292,137
295,587
Total liabilities
3,068,260
3,783,317
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 107,469,302 and 107,309,794 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
107
107
Additional paid-in capital
2,915,837
2,902,013
Accumulated earnings
7,560,527
6,791,339
Accumulated other comprehensive loss
(156,133
)
(155,466
)
Total stockholders’ equity
10,320,338
9,537,993
Total liabilities and stockholders’ equity
$
13,388,598
$
13,321,310
FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
2026
June 30,
2025
June 30,
2026
June 30,
2025
Net sales
$
1,056,193
$
1,097,170
$
2,100,433
$
1,941,738
Cost of sales
451,189
597,320
1,009,298
1,097,485
Gross profit
605,004
499,850
1,091,135
844,253
Operating expenses:
Selling, general and administrative
51,947
52,590
117,278
105,754
Research and development
76,243
54,487
143,187
106,876
Production start-up
26,428
31,166
34,981
48,772
Total operating expenses
154,618
138,243
295,446
261,402
Operating income
450,386
361,607
795,689
582,851
Foreign currency loss, net
(13,988
)
(9,728
)
(23,051
)
(21,321
)
Interest income
29,920
12,100
58,782
30,965
Interest expense, net
(5,563
)
(9,184
)
(13,178
)
(18,709
)
Other expense, net
(1,378
)
(2,628
)
(4,531
)
(4,560
)
Income before taxes
459,377
352,167
813,711
569,226
Income tax expense
(36,808
)
(10,299
)
(44,523
)
(17,823
)
Net income
$
422,569
$
341,868
$
769,188
$
551,403
Net income per share:
Basic
$
3.93
$
3.19
$
7.16
$
5.14
Diluted
$
3.92
$
3.18
$
7.14
$
5.13
Weighted-average number of shares used in per share calculations:
Basic
107,462
107,245
107,409
107,184
Diluted
107,732
107,518
107,677
107,468
FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended
June 30,
2026
2025
Cash flows from operating activities:
Net income
$
769,188
$
551,403
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization
295,238
248,256
Share-based compensation
13,826
9,394
Deferred income taxes
(11,878
)
5,861
Other, net
39,939
9,438
Changes in operating assets and liabilities:
Accounts receivable, trade
(140,960
)
(417,136
)
Inventories
(305,955
)
(323,781
)
Government grants receivable
(649,315
)
(177,419
)
Other assets
(94,788
)
(106,090
)
Income tax receivable and payable
42,468
(39,698
)
Accounts payable and accrued expenses
(166,070
)
(85,119
)
Deferred revenue
(155,834
)
(186,652
)
Other liabilities
4,374
53,138
Net cash used in operating activities
(359,767
)
(458,405
)
Cash flows from investing activities:
Purchases of property, plant and equipment
(279,849
)
(494,100
)
Purchases of marketable securities and restricted marketable securities
(1,428,591
)
(930,807
)
Proceeds from sales and maturities of marketable securities
1,439,474
1,067,702
Other investing activities
(22,630
)
7,002
Net cash used in investing activities
(291,596
)
(350,203
)
Cash flows from financing activities:
Proceeds from borrowings under debt arrangements, net of issuance costs
209,199
212,273
Repayment of debt
(672,370
)
(244,022
)
Proceeds from other borrowings
—
394,450
Payments of tax withholdings for restricted shares
(194
)
(15,436
)
Other financing activities
(583
)
(266
)
Net cash (used in) provided by financing activities
(463,948
)
346,999
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents
3,812
3,469
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents
(1,111,499
)
(458,140
)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period
2,814,031
1,638,223
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period
$
1,702,532
$
1,180,083
Supplemental disclosure of noncash investing and financing activities:
Property, plant and equipment acquisitions funded by liabilities
$
136,905
$
242,177
Proceeds to be received from asset-based government grants
$
136,596
$
155,336
Non-GAAP Financial Measures
This press release includes earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin, non‑GAAP measures, to provide supplemental information to our GAAP results. These non‑GAAP measures are not prepared in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, net income and net income margin. Investors should review our financial information in its entirety and not rely on any single financial measure.
First Solar’s management uses these non-GAAP financial measures to better understand and compare operating results across periods. Management believes these non-GAAP financial measures reflect First Solar’s ongoing business in a manner that will allow for meaningful period-to-period comparisons and analysis of trends in First Solar’s business. Management also believes that these non-GAAP financial measures provide useful information to investors and others to understand and evaluate First Solar’s operating results and prospects in the same manner as management.
The following are explanations of each of the adjustments that we incorporate into Adjusted EBITDA, as well as the reasons we add back each of these individual items to determine Adjusted EBITDA:
Management believes adjusting our GAAP results for the items described above to determine Adjusted EBITDA is useful to investors in assessing underlying operating performance and comparing period-to-period results, because these items (i) are largely non‑cash, (ii) can vary significantly based on timing of capacity ramps, start‑ups, and discrete events, or (iii) are not reflective of our ongoing operating cost structure.
EBITDA Margin and Adjusted EBITDA Margin are calculated as EBITDA and Adjusted EBITDA, respectively, divided by net sales. The most directly comparable GAAP measure is net income margin, calculated as net income divided by net sales.
Our presentation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin should not be construed as an implication that our actual future results will be unaffected by the items contemplated by the adjustments described above. Our presentation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin has limitations, including (among others):
Other companies in our industry may calculate EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin differently than we do because they do not have standardized definitions, which limits their usefulness as comparative measures in relation to other companies.
FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands)
Three Months Ended
June 30,
2026
June 30,
2025
Net income and net income margin (1)
$
422,569
40
%
$
341,868
31
%
Interest income
(29,920
)
(12,100
)
Interest expense, net
5,563
9,184
Income tax expense
36,808
10,299
Depreciation and amortization
147,845
123,413
EBITDA and EBITDA Margin (1)
582,865
55
%
472,664
43
%
Foreign currency loss, net
13,988
9,728
Other expense, net
1,378
2,628
Share-based compensation
7,045
6,810
Section 45X tax credit discounts
—
28,987
Underutilization, excluding depreciation and amortization
14,574
8,329
Production start-up, excluding depreciation and amortization
23,785
31,050
Adjusted EBITDA and Adjusted EBITDA Margin (1)
$
643,635
61
%
$
560,196
51
%
Net sales were $1.06 billion and $1.10 billion for the three months ended June 30, 2026 and 2025, respectively.
Six Months Ended
June 30,
2026
June 30,
2025
Net income and net income margin (1)
$
769,188
37
%
$
551,403
28
%
Interest income
(58,782
)
(30,965
)
Interest expense, net
13,178
18,709
Income tax expense
44,523
17,823
Depreciation and amortization
295,238
248,256
EBITDA and EBITDA Margin (1)
1,063,345
51
%
805,226
41
%
Foreign currency loss, net
23,051
21,321
Other expense, net
4,531
4,560
Share-based compensation
13,826
9,394
Section 45X tax credit discounts
—
28,987
Underutilization, excluding depreciation and amortization
26,894
21,235
Production start-up, excluding depreciation and amortization
31,795
48,546
Adjusted EBITDA and Adjusted EBITDA Margin (1)
$
1,163,442
55
%
$
939,269
48
%