second quarter 2026
Filed Jul 30, 2026First Solar, Inc. Announces Second Quarter 2026 Financial Results and Reaffirms Guidance
Second-quarter net sales decreased 4% year-over-year, but net income per diluted share increased 23%, Adjusted EBITDA increased versus the prior-year period, and the Company reaffirmed its 2026 guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $1.06 billion | – | a decrease of 4% |
| Net incomeGAAP | $423 million | – | – |
| Net income per diluted shareGAAP | $3.92 per diluted share | – | an increase of 23% |
| Adjusted EBITDAnon-GAAP | $644 million | – | – |
| Net cash balanceother | $1.7 billion | – | – |
| Contracted sales backlogother | 45.1 GW | – | – |
2026 outlook
- Revenue$4.9B to $5.2B
- Operating expenses$610M to $635M
- NoteVolume Sold: 17.0GW to 18.2GW
- NoteGross Profit: $2.4B to $2.6B
- NoteAdjusted EBITDA: $2.6B to $2.8B
- NoteCapital Expenditures: $0.8B to $1.0B
- NoteNet Cash Balance: $1.7B to $2.3B
- NoteGross Profit assumes $2.10 billion to $2.19 billion of Section 45X tax credits and underutilization costs of $115 million to $135 million.
- NoteOperating Expenses assumes $90 million to $100 million of production start-up expense.
- NoteAdjusted EBITDA reflects addbacks of approximately $225 million for share-based compensation, Section 45X tax credit discounts, underutilization, and production start-up expenses.
- NoteThird quarter module sales: 3.9 GW to 4.5 GW, including 3.2 GW to 3.7 GW from U.S. manufacturing operations.
- NoteThird quarter Adjusted EBITDA: $625 million to $775 million.
What drove it
- Net sales decreased primarily because of lower revenue associated with customer contract terminations.
- The revenue decline was partially offset by an increase in the volume of modules sold to third parties.
- The Company reported record second-quarter and first-half sales volume.
- The Company surpassed 100 GW of cumulative module sales globally.
- Contracted backlog was approximately 45.1 GW extending through 2030.
- The Company cited demand for its differentiated technology platform, domestic manufacturing footprint and delivery certainty.
Concerns
- Revenue associated with customer contract terminations was lower.
- Net cash balance declined because of seasonal working-capital needs and capital expenditures.
- The outlook assumes the current U.S. policy environment persists and permitting processes and timelines remain consistent with historical levels.
- Guidance is subject to assumptions regarding tariffs, export controls or other trade remedies, freight-related costs, and factors related to the Inflation Reduction Act of 2022, as amended by the One Big Beautiful Bill Act of 2025.
What to watch
- Third-quarter module sales forecast of 3.9 GW to 4.5 GW, including 3.2 GW to 3.7 GW from U.S. manufacturing operations.
- Third-quarter Adjusted EBITDA forecast of $625 million to $775 million.
- Execution against 2026 volume sold guidance of 17.0GW to 18.2GW.
- The effect of Section 45X tax credits, underutilization costs, and production start-up expense on 2026 results.
- Net cash balance relative to the 2026 guidance range of $1.7B to $2.3B.
Balance sheet and cash flow
- Net cash balance decreased to $1.7 billion as of June 30, 2026 from $2.4 billion as of December 31, 2025.
- The decrease in net cash balance was driven by seasonal working-capital needs and capital expenditures primarily for the South Carolina finishing facility.
Analysis
First Solar reported second-quarter net sales of $1.06 billion, a decrease of 4% compared with the second quarter of 2025. The Company attributed the decline primarily to lower revenue associated with customer contract terminations, partially offset by an increase in modules sold to third parties. Management also described second-quarter and first-half sales volume as record levels, while contracted sales backlog stood at 45.1 GW as of June 30, 2026.
Profitability improved against the prior-year quarter despite the sales decline. Net income was $423 million, compared with $342 million in the second quarter of 2025, and net income per diluted share was $3.92, compared with $3.18 per diluted share. Adjusted EBITDA was $644 million, compared with $560 million in the second quarter of 2025. The filing does not provide reported gross profit, gross margin, operating income, operating expenses, or a detailed reconciliation in the supplied text.
Net cash balance was $1.7 billion as of June 30, 2026, down from $2.4 billion as of December 31, 2025. The Company cited seasonal working-capital needs and capital expenditures primarily for its South Carolina finishing facility as the drivers of the decrease. The release provides no operating cash flow, free cash flow, debt balance, dividend, or share-repurchase figures.
The Company reaffirmed all 2026 guidance ranges, including net sales of $4.9B to $5.2B, gross profit of $2.4B to $2.6B, and Adjusted EBITDA of $2.6B to $2.8B. For the third quarter, it forecast module sales of 3.9 GW to 4.5 GW, including 3.2 GW to 3.7 GW from U.S. manufacturing operations, and Adjusted EBITDA of $625 million to $775 million. The outlook depends on the current U.S. policy environment persisting, continued historical permitting processes and timelines, and assumptions related to trade policy, freight costs, and IRA-related factors.
Management, verbatim
We delivered both record second-quarter and first-half sales volume and improved financial performance relative to the prior year.
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.
Mark Widmar, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter net sales, net income, diluted EPS, Adjusted EBITDA, and net cash balance.
- Reported GAAP gross profit, gross margin, operating income, operating expenses, income tax expense, tax rate, and diluted share count.
- Reported non-GAAP net income, non-GAAP EPS, and gross margin.
- Actual volume sold for the second quarter.
- Segment revenue, segment profitability, and segment comparisons.
- Operating cash flow and free cash flow.
- Gross cash, cash equivalents, marketable securities, restricted cash, restricted cash equivalents, and debt balances.
- Capital-return figures, including share repurchases and dividends.
- Forward guidance for gross margin and tax rate.
- Prior outlook section needed for comparison of reported results with prior guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.