First Solar reported strong first quarter 2026 performance with sales of $1.04 billion, rising 24 percent year-over-year, driven primarily by higher module shipment volumes to third-party customers.
Net income of First Solar increased to $347 million, with earnings per share of $3.22, up 65 percent, while Adjusted EBITDA reached $520 million, highlighting improved operating leverage and margin expansion.
From a shipment and modules perspective, growth was led by increased module volumes, reinforcing First Solar’s utility-scale project focus. The company expects second quarter module sales between 3.4 GW and 4.0 GW, supporting full-year volume guidance of 17.0 GW to 18.2 GW. A contracted sales backlog of 47.9 GW provides strong revenue visibility and long-term shipment stability.
In terms of revenue mix and business model, First Solar continues to generate the majority of its revenue from module sales, with performance supported by its differentiated thin-film technology and limited exposure to crystalline silicon supply chains. This structural advantage helps stabilize average selling prices (ASP) and margins, particularly amid global supply volatility.
On profitability and ASP dynamics, margin expansion in Q1 reflects favorable pricing environment, scale efficiencies, and contribution from high-value markets such as India, where the company reported record sales. Gross profit guidance for 2026 remains robust at $2.4 billion to $2.6 billion, supported by Section 45X tax credits of $2.10 billion to $2.19 billion, reinforcing earnings visibility.
From a production and capacity standpoint, First Solar is expanding its domestic manufacturing footprint, with capital expenditure of $0.8 billion to $1.0 billion directed toward capacity expansion, including the South Carolina finishing facility. This aligns with its strategy to localize production and benefit from policy incentives in the United States.
Strategically, the company is leveraging its technology differentiation, domestic manufacturing base, and policy support to strengthen its competitive position globally. Its independence from Chinese crystalline silicon supply chains provides resilience in pricing and supply continuity.
Looking ahead, First Solar reaffirmed its full-year 2026 outlook, projecting net sales of $4.9 billion to $5.2 billion and Adjusted EBITDA of $2.6 billion to $2.8 billion. With strong backlog visibility, stable ASP trends, and continued production scaling, the company remains well positioned to capitalize on growing global demand for utility-scale solar solutions.
BABURAJAN KIZHAKEDATH
