First Solar, Inc. Announces Third Quarter 2026 Financial Results, Updates
First Solar, Inc. Announces Third Quarter 2026 Financial Results, Updates Guidance, and Announces $500 Million Share Repurchase Program
First Solar board of directors authorizes $500 million share repurchase program • Contracted sales backlog of 44.0 GW as of September 30, 2026
– First Solar, Inc. (Nasdaq: FSLR) (the “Company”), America’s leading PV solar technology and manufacturing company, today announced financial results for the third quarter ended September 30, 2026 and updated its 2026 guidance.
Net sales were $1.23 billion for the third quarter of 2026, a 23% decrease compared to the third quarter of 2025, driven primarily by a decrease in the volume of modules sold to third parties.
The Company reported third quarter net income of $571 million, or $5.30 per diluted share, compared to $456 million, or $4.24 per diluted share, in the third quarter of 2025. Adjusted EBITDA was $744 million compared to $671 million in the third quarter of 2025.
Net cash balance decreased to $1.5 billion as of September 30, 2026 from $2.4 billion as of December 31, 2025, driven by working-capital needs and capital expenditures primarily for our U.S. facilities, partially offset by Section 45X cash receipts and IEEPA tariff refunds received.
“Section 232 represents a structural change in how the United States approaches solar manufacturing,” said Mark Widmar, Chief Executive Officer. “As a technology company and the only fully-integrated utility-scale solar manufacturer without dependency on the Chinese crystalline silicon supply chain, we believe we are structurally positioned to benefit from this environment.”
Additionally, the Company’s board of directors authorized a share repurchase program of up to $500 million, effective immediately. This authorization reflects confidence in the long-term value of the business while preserving our disciplined approach to capital allocation and ability to continue investing in technology development and growth. The timing and amount of share repurchases will be determined by the Company based on its evaluation of market conditions and other factors. The share repurchase authorization has no expiration date, does not obligate the Company to acquire any particular amount of shares, and may be suspended or discontinued at any time.
1 See “Non-GAAP Financial Measures” for additional information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, which is the most directly comparable GAAP measure. 1
Prior Current Volume 17.0GW to 18.2GW 16.0GW to 17.0GW Sold Net $4.9B to $5.2B $4.6B to $4.9B Sales Gross $2.4B to $2.6B Unchang… Profit… Operat… $610M to $635M Unchang… Expens… Adjust… $2.6B to $2.8B $2.55B to $2.75B EBITDA… Capital $0.8B to $1.0B $0.6B to $0.8B Expend… Net Cash $1.7B to $2.3B Unchang… Balanc…
1. Assumes $2.07 billion to $2.19 billion of Section 45X tax credits and underutilization costs of $110 million to $120 million.
3. Adjusted EBITDA reflects addbacks of approximately $201 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. Net Cash is defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at December 31, 2026. Expected debt excludes factoring arrangements with recourse.
From a fourth quarter earnings cadence perspective, we anticipate our module sales to be between 4.3 GW and 5.3 GW, including 3.4 GW to 4.3 GW from our U.S. manufacturing operations. These factors are expected to result in forecasted fourth quarter Adjusted EBITDA between $643 million and $843 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 third 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.
First Solar has scheduled a conference call for today, October 29, 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. 2
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.
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; the impact of public policies such as tariffs, export controls or other trade remedies; and expectations regarding our share repurchase program. 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 3
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.
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 1,576,003 $ 2,803,514 Marketable securities 48,072 51,849 Accounts receivable trade, net 1,591,024 1,294,040 Government grants receivable, net 286,938 499,592 Inventories 1,138,584 736,734 Other current assets 667,284 643,103 Total current assets 5,307,905 6,028,832 Property, plant and equipment, net 5,633,874 5,675,794 Deferred tax assets, net 221,229 194,672 Restricted marketable securities 202,497 217,172 Government grants receivable 1,587,950 125,607 Goodwill 29,803 31,095 Intangible assets, net 61,364 51,007 Inventories 174,897 237,462 Other assets 800,497 759,669 Total assets $ 14,020,016 $ 13,321,310 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 338,201 $ 405,775 Income taxes payable 54,285 7,490 Accrued expenses 430,079 519,414 Current portion of debt 107,668 215,979 Deferred revenue 1,006,089 1,014,386 Other current liabilities 128,345 91,058 Total current liabilities 2,064,667 2,254,102 Accrued solar module collection and 145,907 146,017 recycling liability Long-term debt — 282,593 Deferred revenue 591,384 805,018 Other liabilities 337,325 295,587 Total liabilities 3,139,283 3,783,317 Commitments and contingencies Stockholders’ equity: Common stock, $0.001 par value per share; 500,000,000 shares authorized; 107,481,115 and 107,309,794 shares issued and outstanding at September 107 107 30, 2026 and December 31, 2025, respectively Additional paid-in capital 2,924,156 2,902,013 Accumulated earnings 8,131,590 6,791,339 Accumulated other comprehensive loss -175,120 -155,466 Total stockholders’ equity 10,880,733 9,537,993 Total liabilities and stockholders’ $ 14,020,016 $ 13,321,310 equity
Nine Months Ended Cash flows from September 30, operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,340,251 $ 1,007,346 Adjustments to reconcile net income to cash (used in) provided by operating activities: Depreciation and 443,266 380,529 amortization Share-based 22,904 16,713 compensation Deferred income taxes -37,466 26,477 Other, net 43,196 36,274 Changes in operating assets and liabilities: Accounts receivable, -290,973 -196,967 trade Inventories -348,993 -679 Government grants -1,285,786 -442,010 receivable Other assets 15,328 -150,159 Income tax receivable 56,711 -44,684 and payable Accounts payable and -147,210 -164,194 accrued expenses Deferred revenue -220,745 262,877 Other liabilities 6,803 83,689 Net cash (used in) provided by operating -402,714 815,212 activities Cash flows from investing activities: Purchases of property, plant and -434,662 -698,148 equipment Purchases of marketable securities and -1,824,044 -1,307,656 restricted marketable securities Proceeds from sales and maturities of 1,824,833 1,424,918 marketable securities Other investing 5,806 2,952 activities Net cash used in -428,067 -577,934 investing activities Cash flows from financing activities: Proceeds from borrowings under debt 339,960 309,047 arrangements, net of issuance costs Repayment of debt -732,121 -357,515 Proceeds from other — 487,323 borrowings Repayment of other — -298,407 borrowings Payments of tax withholdings for -945 -15,479 restricted shares Other financing -874 -527 activities Net cash (used in) provided by financing -393,980 124,442 activities Effect of exchange rate changes on cash, cash equivalents, 3,670 2,021 restricted cash, and restricted cash equivalents Net (decrease) increase in cash, cash equivalents, restricted -1,221,091 363,741 cash, and restricted cash equivalents Cash, cash equivalents, restricted cash, and restricted cash 2,814,031 1,638,223 equivalents, beginning of the period Cash, cash equivalents, restricted cash, and restricted cash $ 1,592,940 $ 2,001,964 equivalents, end of the period Supplemental disclosure of noncash investing and financing activities: Property, plant and equipment $ 128,461 $ 222,115 acquisitions funded by liabilities Proceeds to be received from asset-based $ 111,681 $ 149,775 government grants
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 U.S. generally accepted accounting principles (“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:
1. Foreign currency (loss), net: Refers to the net effect of gains and losses resulting from holding assets and liabilities and conducting transactions denominated in currencies other than our subsidiaries’ functional currencies. Foreign currency is excluded because the timing of such currency‑related impacts is uncertain and may obscure underlying operating performance and trends.
2. Other expense, net: Primarily comprises miscellaneous items and financing fees, such as gains/losses on investments or other discrete non‑operating items. These amounts are generally driven by market factors, financing and investment decisions, or one‑time transactions rather than core operations and can be volatile across periods.
3. Share‑based compensation: Is a non‑cash charge reflecting the grant‑date fair value of equity awards recognized over vesting periods. We exclude it because it is significantly influenced by equity program design and stock price volatility, limiting comparability across companies and periods.
4. Section 45X tax credit discounts: When we sell Section 45X tax credits, the cash proceeds received may be less than the notional credit amount due to market pricing, counterparty terms, and payment timing. Economically, this shortfall is akin to a financing cost — the cost of converting a future cash benefit into earlier liquidity — rather than a reflection of underlying manufacturing performance. We therefore exclude these transfer discounts from Adjusted EBITDA to improve comparability across periods and to separate core operating results from financing/monetization decisions.
5. Underutilization (unallocated fixed production overhead): If our plant utilization is abnormally low, the portion of our indirect manufacturing costs related to the abnormal utilization level is expensed as incurred rather than absorbed into inventory. We exclude these costs because they are sensitive to timing, production curtailments, and transitory disruptions.
6. Production start‑up: Consists of costs associated with operating a production line before it is qualified for commercial production, including the cost of raw materials for solar modules run through the production line during the qualification phase, employee compensation for individuals supporting production start-up activities, and applicable facility related costs. Production start-up expense also includes costs related to the selection of a new site and implementation costs for manufacturing process improvements to the extent we cannot capitalize these expenditures. We exclude these costs because they are driven by discrete expansion and launch activities and are not reflective of our ordinary operating performance. These costs are typically incurred over a defined ramp‑up period, can vary significantly based on the timing and scale of new expansions, and may not be indicative of our run‑rate cost structure once a facility or initiative reaches normal utilization levels .
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. 8
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):
• it does not reflect any income tax expenses we may incur or payments we may be required to make; and
• it does not reflect the impact of capacity ramps, start-ups, and discrete charges resulting from certain matters that we believe may not be indicative of our ongoing operations.
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.
September Three Months September 30, 30, Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income and net $ 571,063 46% $ 455,943 29% income margin(1) Interest -24,151 -23,308 income Interest 2,390 14,121 expense, net Income tax (benefit) -5,034 4,402 expense Depreciation and 148,028 132,273 amortization EBITDA and EBITDA 692,296 56% 583,431 37% Margin(1) Foreign currency -90 8,903 (gain) loss, net Other 1,930 6,034 expense, net Share-based 9,078 7,319 compensation Section 45X tax credit — 15,652 discounts Underutiliz… excluding depreciation 9,997 22,456 and amortization Production start-up, excluding 30,791 27,669 depreciation and amortization Adjusted EBITDA and Adjusted $ 744,002 60% $ 671,464 42% EBITDA Margin(1)
1. Net sales were $1.23 billion and $1.59 billion for the three months ended September 30, 2026 and 2025, respectively. 9
1. Net sales were $3.33 billion and $3.54 billion for the nine months ended September 30, 2026 and 2025, respectively. 10
Full text with the tables
EXHIBIT 99.1
News Release
First Solar, Inc. Announces Third Quarter 2026 Financial Results, Updates
Guidance, and Announces $500 Million Share Repurchase Program
•
Net sales of $1.23 billion, a decrease of 23% year-over-year
•
Net income per diluted share of $5.30, an increase of 25% year-over-year
•
Adjusted EBITDA
1
of $744 million, an increase of 11% year-over-year
•
Gross cash balance of $1.6 billion and net cash balance of $1.5 billion
•
First Solar board of directors authorizes $500 million share repurchase program
• Contracted sales backlog of 44.0 GW as of September 30, 2026
PHOENIX, Arizona, October 29, 2026
– First Solar, Inc. (Nasdaq: FSLR) (the “Company”), America’s leading PV solar
technology and manufacturing company, today announced financial results for the
third quarter ended September 30, 2026 and updated its 2026 guidance.
Net sales were $1.23 billion for the third quarter of 2026, a 23% decrease
compared to the third quarter of 2025, driven primarily by a decrease in the
volume of modules sold to third parties.
The Company reported third quarter net income of $571 million, or $5.30 per
diluted share, compared to $456 million, or $4.24 per diluted share, in the
third quarter of 2025. Adjusted EBITDA was $744 million compared to $671 million
in the third quarter of 2025.
Net cash balance decreased to $1.5 billion as of September 30, 2026 from $2.4
billion as of December 31, 2025, driven by working-capital needs and capital
expenditures primarily for our U.S. facilities, partially offset by Section 45X
cash receipts and IEEPA tariff refunds received.
“Section 232 represents a structural change in how the United States approaches
solar manufacturing,” said Mark Widmar, Chief Executive Officer. “As a
technology company and the only fully-integrated utility-scale solar
manufacturer without dependency on the Chinese crystalline silicon supply chain,
we believe we are structurally positioned to benefit from this environment.”
Additionally, the Company’s board of directors authorized a share repurchase
program of up to $500 million, effective immediately. This authorization
reflects confidence in the long-term value of the business while preserving our
disciplined approach to capital allocation and ability to continue investing in
technology development and growth. The timing and amount of share repurchases
will be determined by the Company based on its evaluation of market conditions
and other factors. The share repurchase authorization has no expiration date,
does not obligate the Company to acquire any particular amount of shares, and
may be suspended or discontinued at any time.
——————————
1 See “Non-GAAP Financial Measures” for additional information on Adjusted
EBITDA and a reconciliation of Adjusted EBITDA to net income, which is the most
directly comparable GAAP measure.
1
www.firstsolar.com
Our updated 2026 guidance is summarized below:
Prior Current
Volume 17.0GW to 18.2GW 16.0GW to 17.0GW
Sold
Net $4.9B to $5.2B $4.6B to $4.9B
Sales
Gross $2.4B to $2.6B Unchang…
Profit…
Operat… $610M to $635M Unchang…
Expens…
Adjust… $2.6B to $2.8B $2.55B to $2.75B
EBITDA…
Capital $0.8B to $1.0B $0.6B to $0.8B
Expend…
Net
Cash $1.7B to $2.3B Unchang…
Balanc…
——————————
1. Assumes $2.07 billion to $2.19 billion of Section 45X tax credits and
underutilization costs of $110 million to $120 million.
2. Assumes $80 million to $90 million of production start-up expense.
3. Adjusted EBITDA reflects addbacks of approximately $201 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. Net Cash is defined as cash, cash equivalents, restricted cash, restricted
cash equivalents, and marketable securities, less expected debt at December 31,
2026. Expected debt excludes factoring arrangements with recourse.
From a fourth quarter earnings cadence perspective, we anticipate our module
sales to be between 4.3 GW and 5.3 GW, including 3.4 GW to 4.3 GW from our U.S.
manufacturing operations. These factors are expected to result in forecasted
fourth quarter Adjusted EBITDA between $643 million and $843 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 third 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, October 29, 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.
2
www.firstsolar.com
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; the impact of
public policies such as tariffs, export controls or other trade remedies; and
expectations regarding our share repurchase program. 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
3
www.firstsolar.com
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.
Contacts
First Solar Investors First Solar Media
investor@firstsolar.com media@firstsolar.com
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FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 1,576,003 $ 2,803,514
Marketable securities 48,072 51,849
Accounts receivable trade, net 1,591,024 1,294,040
Government grants receivable, net 286,938 499,592
Inventories 1,138,584 736,734
Other current assets 667,284 643,103
Total current assets 5,307,905 6,028,832
Property, plant and equipment, net 5,633,874 5,675,794
Deferred tax assets, net 221,229 194,672
Restricted marketable securities 202,497 217,172
Government grants receivable 1,587,950 125,607
Goodwill 29,803 31,095
Intangible assets, net 61,364 51,007
Inventories 174,897 237,462
Other assets 800,497 759,669
Total assets $ 14,020,016 $ 13,321,310
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 338,201 $ 405,775
Income taxes payable 54,285 7,490
Accrued expenses 430,079 519,414
Current portion of debt 107,668 215,979
Deferred revenue 1,006,089 1,014,386
Other current liabilities 128,345 91,058
Total current liabilities 2,064,667 2,254,102
Accrued solar module collection and 145,907 146,017
recycling liability
Long-term debt — 282,593
Deferred revenue 591,384 805,018
Other liabilities 337,325 295,587
Total liabilities 3,139,283 3,783,317
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value per
share; 500,000,000 shares authorized;
107,481,115 and 107,309,794 shares
issued and outstanding at September 107 107
30,
2026 and December 31, 2025,
respectively
Additional paid-in capital 2,924,156 2,902,013
Accumulated earnings 8,131,590 6,791,339
Accumulated other comprehensive loss -175,120 -155,466
Total stockholders’ equity 10,880,733 9,537,993
Total liabilities and stockholders’ $ 14,020,016 $ 13,321,310
equity
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FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Septem… Septem… Nine Septem… Septemb…
Months 30, 30, Months 30, 30,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 1,230,… $ 1,594,… $ 3,331,… $ 3,536,5…
sales
Cost
of 517,876 984,111 1,527,… 2,081,5…
sales
Gross 713,060 610,745 1,804,… 1,454,9…
profit
Opera…
expen…
Selli…
gener… 65,326 47,324 182,604 153,078
and
admin…
Resea…
and 67,223 60,592 210,410 167,468
devel…
Produ… 34,403 36,734 69,384 85,506
start…
Total
opera… 166,952 144,650 462,398 406,052
expen…
Opera… 546,108 466,095 1,341,… 1,048,9…
income
Forei…
curre…
gain 90 -8,903 -22,961 -30,224
(loss…
net
Inter… 24,151 23,308 82,933 54,273
income
Inter…
expen… -2,390 -14,121 -15,568 -32,830
net
Other
expen… -1,930 -6,034 -6,461 -10,594
net
Income
before 566,029 460,345 1,379,… 1,029,5…
taxes
Income
tax 5,034 -4,402 -39,489 -22,225
benef…
(expe…
Net $ 571,063 $ 455,943 $ 1,340,… $ 1,007,3…
income
Net
income
per
share:
Basic $ 5.31 $ 4.25 $ 12.48 $ 9.40
Dilut… $ 5.30 $ 4.24 $ 12.45 $ 9.37
Weigh…
number
of
shares
used
in per
share
calcu…
Basic 107,472 107,264 107,430 107,211
Dilut… 107,702 107,538 107,666 107,492
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FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
Cash flows from September 30,
operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,340,251 $ 1,007,346
Adjustments to
reconcile net income to
cash (used in) provided
by operating
activities:
Depreciation and 443,266 380,529
amortization
Share-based 22,904 16,713
compensation
Deferred income taxes -37,466 26,477
Other, net 43,196 36,274
Changes in operating
assets and
liabilities:
Accounts receivable, -290,973 -196,967
trade
Inventories -348,993 -679
Government grants -1,285,786 -442,010
receivable
Other assets 15,328 -150,159
Income tax receivable 56,711 -44,684
and payable
Accounts payable and -147,210 -164,194
accrued expenses
Deferred revenue -220,745 262,877
Other liabilities 6,803 83,689
Net cash (used in)
provided by operating -402,714 815,212
activities
Cash flows from
investing activities:
Purchases of property,
plant and -434,662 -698,148
equipment
Purchases of marketable
securities and -1,824,044 -1,307,656
restricted marketable
securities
Proceeds from sales and
maturities of 1,824,833 1,424,918
marketable securities
Other investing 5,806 2,952
activities
Net cash used in -428,067 -577,934
investing activities
Cash flows from
financing activities:
Proceeds from
borrowings under debt 339,960 309,047
arrangements, net of
issuance costs
Repayment of debt -732,121 -357,515
Proceeds from other — 487,323
borrowings
Repayment of other — -298,407
borrowings
Payments of tax
withholdings for -945 -15,479
restricted shares
Other financing -874 -527
activities
Net cash (used in)
provided by financing -393,980 124,442
activities
Effect of exchange rate
changes on cash,
cash equivalents, 3,670 2,021
restricted cash, and
restricted cash
equivalents
Net (decrease) increase
in cash, cash
equivalents, restricted -1,221,091 363,741
cash, and
restricted cash
equivalents
Cash, cash equivalents,
restricted cash,
and restricted cash 2,814,031 1,638,223
equivalents,
beginning of the period
Cash, cash equivalents,
restricted cash,
and restricted cash $ 1,592,940 $ 2,001,964
equivalents, end of
the period
Supplemental disclosure
of noncash
investing and financing
activities:
Property, plant and
equipment $ 128,461 $ 222,115
acquisitions funded by
liabilities
Proceeds to be received
from asset-based $ 111,681 $ 149,775
government grants
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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 U.S.
generally accepted accounting principles (“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:
1. Foreign currency (loss), net: Refers to the net effect of gains and losses
resulting from holding assets and liabilities and conducting transactions
denominated in currencies other than our subsidiaries’ functional currencies.
Foreign currency is excluded because the timing of such currency‑related impacts
is uncertain and may obscure underlying operating performance and trends.
2. Other expense, net: Primarily comprises miscellaneous items and financing
fees, such as gains/losses on investments or other discrete non‑operating items.
These amounts are generally driven by market factors, financing and investment
decisions, or one‑time transactions rather than core operations and can be
volatile across periods.
3. Share‑based compensation: Is a non‑cash charge reflecting the grant‑date fair
value of equity awards recognized over vesting periods. We exclude it because it
is significantly influenced by equity program design and stock price volatility,
limiting comparability across companies and periods.
4. Section 45X tax credit discounts: When we sell Section 45X tax credits, the
cash proceeds received may be less than the notional credit amount due to market
pricing, counterparty terms, and payment timing. Economically, this shortfall is
akin to a financing cost — the cost of converting a future cash benefit into
earlier liquidity — rather than a reflection of underlying manufacturing
performance. We therefore exclude these transfer discounts from Adjusted EBITDA
to improve comparability across periods and to separate core operating results
from financing/monetization decisions.
5. Underutilization (unallocated fixed production overhead): If our plant
utilization is abnormally low, the portion of our indirect manufacturing costs
related to the abnormal utilization level is expensed as incurred rather than
absorbed into inventory. We exclude these costs because they are sensitive to
timing, production curtailments, and transitory disruptions.
6. Production start‑up: Consists of costs associated with operating a production
line before it is qualified for commercial production, including the cost of raw
materials for solar modules run through the production line during the
qualification phase, employee compensation for individuals supporting production
start-up activities, and applicable facility related costs. Production start-up
expense also includes costs related to the selection of a new site and
implementation costs for manufacturing process improvements to the extent we
cannot capitalize these expenditures. We exclude these costs because they are
driven by discrete expansion and launch activities and are not reflective of our
ordinary operating performance. These costs are typically incurred over a
defined ramp‑up period, can vary significantly based on the timing and scale of
new expansions, and may not be indicative of our run‑rate cost structure once a
facility or initiative reaches normal utilization levels .
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.
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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):
• it does not reflect all of our cash expenditures;
• it does not reflect changes in our working capital needs;
• it does not reflect the discount on the sale of our Section 45X credits;
• it does not reflect the interest expense on our indebtedness;
• it does not reflect any income tax expenses we may incur or payments we may be
required to make; and
• it does not reflect the impact of capacity ramps, start-ups, and discrete
charges resulting from certain matters that we believe may not be indicative of
our ongoing operations.
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)
September
Three Months September 30, 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income
and net $ 571,063 46% $ 455,943 29%
income
margin(1)
Interest -24,151 -23,308
income
Interest 2,390 14,121
expense, net
Income tax
(benefit) -5,034 4,402
expense
Depreciation
and 148,028 132,273
amortization
EBITDA and
EBITDA 692,296 56% 583,431 37%
Margin(1)
Foreign
currency -90 8,903
(gain) loss,
net
Other 1,930 6,034
expense, net
Share-based 9,078 7,319
compensation
Section 45X
tax credit — 15,652
discounts
Underutiliz…
excluding
depreciation 9,997 22,456
and
amortization
Production
start-up,
excluding 30,791 27,669
depreciation
and
amortization
Adjusted
EBITDA and
Adjusted $ 744,002 60% $ 671,464 42%
EBITDA
Margin(1)
——————————
1. Net sales were $1.23 billion and $1.59 billion for the three months ended
September 30, 2026 and 2025, respectively.
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September
Nine Months September 30, 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income
and net $ 1,340,251 40% $ 1,007,346 28%
income
margin(1)
Interest -82,933 -54,273
income
Interest 15,568 32,830
expense, net
Income tax 39,489 22,225
expense
Depreciation
and 443,266 380,529
amortization
EBITDA and
EBITDA 1,755,641 53% 1,388,657 39%
Margin(1)
Foreign
currency 22,961 30,224
loss, net
Other 6,461 10,594
expense, net
Share-based 22,904 16,713
compensation
Section 45X
tax credit — 44,639
discounts
Underutiliz…
excluding
depreciation 36,891 43,691
and
amortization
Production
start-up,
excluding 62,586 76,215
depreciation
and
amortization
Adjusted
EBITDA and
Adjusted $ 1,907,444 57% $ 1,610,733 46%
EBITDA
Margin(1)
——————————
1. Net sales were $3.33 billion and $3.54 billion for the nine months ended
September 30, 2026 and 2025, respectively.
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