FIRST SOLAR, INC. (FSLR) Earnings History

FIRST SOLAR, INC. - Q1 2026 EarningsBeat

Filed at: Apr 30, 2026, 4:04 PM EDT|Read from source

EXECUTIVE SUMMARY

First Solar delivered a strong start to 2026, exceeding expectations with record first-quarter revenue and meaningful margin expansion, driven by increased module volume sold to third parties. The company reaffirmed its full-year guidance, highlighting a strengthened competitive position due to its differentiated technology and domestic manufacturing footprint.

POSITIVE HIGHLIGHTS

  • •

    Record first-quarter revenue of $1.04 billion, a 24% increase year-over-year, driven by higher module volume sold to third parties.

    positive
  • •

    Net income per diluted share increased 65% year-over-year to $3.22.

    positive
  • •

    Adjusted EBITDA of $520 million, above the top end of the preview range and a 37% increase year-over-year.

    positive
  • •

    Meaningful margin expansion, with Net Income Margin increasing from 25% to 33% and Adjusted EBITDA Margin increasing from 45% to 50% year-over-year.

    positive
  • •

    Contracted sales backlog of 47.9 GW as of March 31, 2026, indicating strong future demand.

    positive

CONCERNS & RISKS

  • •

    Net cash balance decreased to $2.0 billion from $2.4 billion in the prior quarter, driven by seasonal working-capital needs and capital expenditures.

    attention
  • •

    Inventories increased significantly to $893.9 million from $736.7 million in the prior quarter, and $217.0 million from the prior year, outpacing sales growth.

    attention
  • •

    Net cash used in operating activities was $214.9 million, a significant outflow compared to the prior year's $608.0 million outflow, indicating increased working capital requirements.

    attention
  • •

    Capital expenditures were $118.5 million, contributing to the net cash used in investing activities.

    attention

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Net Income
Quarterly
N/A
N/A
EPS (Diluted)
Quarterly
N/A
N/A
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$3.23
+64.8%
Prior year: $1.96

MARGIN ANALYSIS

Gross Margin
Current Quarter
46.5%
Prior Year
40.8%
YoY Change
+578 bps
Operating Margin
Current Quarter
33.1%
Prior Year
26.2%
YoY Change
+688 bps
Net Margin
Current Quarter
33.2%
Prior Year
24.8%
YoY Change
+838 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

Q2 2026

Volume Sold
3.4—4
Mid-point: 3.7
Section 45X tax credits
330,000,000—400,000,000
Mid-point: 365,000,000
Adjusted EBITDA
400,000,000—500,000,000
Mid-point: 450,000,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-30
Tone
cautious
Hedge density
N/A
Deflection rate
0.0%
View transcript Source Accession: 0001274494-26-000108

CALL GUIDANCE — Q1 2026 2026

MetricValuePeriodSpecificityvs Prior
revenuerecord first quarterQ1 2026directionalNew
revenuerecordQ1 2026directionalNew
adjusted_ebitdaabove the top end of our first quarter preview rangeQ1 2026directionalNew
lifetime_energy_yieldup to 8% morenext 3-5 yearsdirectionalNew
revenueup to $0.6 billioncumulative through 2028directionalNew
revenuemajority anticipated in 2027 and 20282027-2028directionalNew
US_facility_utilizationapproximately 96%Q1 2026pointNew
finishing_facility_production_startsecond half of 2026H2 2026directionalNew
backlog_gigawatts47.9 GWas of March 31, 2026pointNew
backlog_transaction_price$14.4 billionas of March 31, 2026pointNew
volume_soldapproximately 3.8 GWQ1 2026pointNew
gross_bookingsapproximately 1.7 GWQ1 2026pointNew
debookings0.1 GWQ1 2026pointNew
volume_sold_indiaapproximately one gigawattQ1 2026pointNew
average_selling_price_indiaapproximately 20 cents per wattQ1 2026pointNew
domestic_production_commitmentsubstantially committed through 2028through 2028directionalNew
gross_bookings_US0.9 GWQ1 2026pointNew
average_selling_price_USapproximately 34 cents per wattQ1 2026pointNew
net_sales$1 billionQ1 2026pointNew
warehouse_costs_reduction$22 million sequential reductionQ4 2025 to Q1 2026pointNew
operating_expenses$141 millionQ1 2026pointNew
r_and_d_expenses$67 millionQ1 2026pointNew
adjusted_ebitda$520 millionQ1 2026pointNew
adjusted_ebitda_margin60%Q1 2026pointNew
net_income$347 millionQ1 2026pointNew
diluted_eps$3.22Q1 2026pointNew
cash_and_marketable_securities$2.4 billionend of Q1 2026pointNew
net_cash_position$2 billionend of Q1 2026pointNew
net_cash_position_target_range$1.5 to $2 billionend of Q1 2026tight_rangeNew
operating_cash_outflows$250 millionQ1 2026pointNew
capital_expenditures$119 millionQ1 2026pointNew
principal_payment_india_DFC_loan$45 millionQ1 2026pointNew
full_year_2026_guidanceunchangedFY2026directionalNew
volume_sold3.4 to 4 gigawattsQ2 2026tight_rangeNew
adjusted_ebitda400 to 500 millionQ2 2026tight_rangeNew
gross_margin7%Q1 2026pointNew
gross_marginrelatively flatQ2 2026directionalNew
gross_marginstrongerH2 2026directionalNew
gross_bookings_USapproximately 35 cents per wattsince last earnings callpointNew
gross_bookings_US_optionabout another 700 or sonext several quarterspointNew
gross_marginnot materially different to the USQ1 2026directionalNew
under_utilization_costs115 to 155 millionFY2026tight_rangeNew
capacity_decision_pointpolicy clarity around the 232Q2 2026directionalNew
international_backlog_cadence25% for this year2026pointNew
international_backlog_cadencebalance in the out years2027-2028directionalNew
Southeast_Asia_capacity_decisiontethered back to whatever decisions made with 232futuredirectionalNew
Southeast_Asia_capacity_availableslightly less than 2 gigawattsfuturedirectionalNew
demand_for_section_232_outcomemultiple gigawatts of volumefuturedirectionalNew
bookings_post_232_outcomeopportunity to move through and to book that over a multi, you know, a month, you know, period of timeafter 232 outcomedirectionalNew
production_basis_2027around about 19 to 20 and a half GW2027tight_rangeNew
production_basis_2027_midpoint19.7 GW2027pointNew

CAPITAL ALLOCATION — Q1 2026 2026

  • liquiditycontinue

    $2.4 billion · ended the quarter · funded by cash, cash equivalent for cash and marketable securities

  • deleveragingcontinue

    $45 million · this quarter · funded by operating cash

  • m_and_a_fundingnew

    funded by debt offering proceeds

  • deleveragingtarget

    1x to 1.5x · within 24 months after Chart closes · funded by free cash flow generation and proceeds from our ongoing portfolio management actions · Net Debt to Adjusted EBITDA: 1x to 1.5x

Q&A SIGNALS — Q1 2026 2026

Hedge rate
N/A
Concerns retained
0
Forward commits
0

MANAGEMENT COMMENTARY

We delivered a strong start to 2026, with record first-quarter revenue, record sales in India, meaningful margin expansion, and Adjusted EBITDA above the top end of our first quarter preview range.

— FIRST SOLAR, INC., Q1 2026 2026 Earnings Call

Our competitive position continues to strengthen, underpinned by differentiated technology, a domestic manufacturing footprint, and independence from Chinese crystalline silicon supply chains.

— FIRST SOLAR, INC., Q1 2026 2026 Earnings Call

Our 2026 guidance remains unchanged.

— FIRST SOLAR, INC., Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Volume Sold
18.2
GW

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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Analysis

Strip the $1.6B Subsidy and First Solar's 40% Margin Drops to 10%