First Solar cuts 2026 sales outlook to $4.6B–$4.9B
First Solar lowered its 2026 volume, net sales and Adjusted EBITDA ranges while authorizing a repurchase program with no expiration date.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
First Solar, Inc. reported third-quarter 2026 net sales of $1.23 billion, down 23% year over year. Net income was $571 million versus $456 million, diluted earnings per share were $5.30 versus $4.24, and Adjusted EBITDA was $744 million, up 11% from $671 million. Net cash balance was $1.5 billion as of September 30, 2026, compared with $2.4 billion as of December 31, 2025.
First Solar lowered 2026 guidance for volume sold to 16.0–17.0 GW, net sales to $4.6–$4.9 billion and Adjusted EBITDA to $2.55–$2.75 billion. It anticipates fourth-quarter module sales of 4.3–5.3 GW and Adjusted EBITDA of $643–$843 million. Net cash used in operating activities was $402.714 million for the nine months ended September 30, 2026, versus $815.212 million provided in the same 2025 period.
The board authorized repurchases of up to $500 million of common stock, effective immediately. The program has no expiration date, does not obligate First Solar to purchase shares and may be suspended or discontinued at any time.
2 points · 0 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointDiluted earnings per share increased 25% to $5.30 year over year.
- Moderate pointAdjusted EBITDA increased 11% to $744 million year over year.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.2026 net sales guidance declined to $4.6–$4.9 billion from $4.9–$5.2 billion.
- Moderate pointNet sales declined 23% to $1.23 billion year over year.
Insights
Analyzing...
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $1.23 billion
Net income: $571 million
Diluted earnings per share: $5.30 per diluted share
+5 more
8 metrics
Net sales
$1.23 billion
Third quarter 2026; down 23% year over year
Net income
$571 million
Third quarter 2026; compared with $456 million in third quarter 2025
Diluted earnings per share
$5.30 per diluted share
Third quarter 2026; up 25% year over year
Adjusted EBITDA
$744 million
Third quarter 2026; up 11% year over year
2026 net sales guidance
$4.6 billion to $4.9 billion
Current guidance; prior range was $4.9 billion to $5.2 billion
2026 volume sold guidance
16.0 GW to 17.0 GW
Current guidance; prior range was 17.0 GW to 18.2 GW
2026 Adjusted EBITDA guidance
$2.55 billion to $2.75 billion
Current guidance; prior range was $2.6 billion to $2.8 billion
Common stock repurchase authorization
Up to $500 million
Authorized effective immediately; no expiration date
Key Terms
Adjusted EBITDA, Section 45X tax credits, underutilization, Contracted sales backlog
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $744 million compared to $671 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Section 45X tax credits regulatory
"$2.07 billion to $2.19 billion of Section 45X tax credits"
Section 45X tax credits are U.S. federal tax incentives that pay manufacturers for producing qualifying clean energy and electric vehicle components domestically. For investors, they act like a government rebate that lowers production costs and improves project returns, often changing which factories or suppliers are economically attractive and speeding up investment in certain technologies.
underutilization financial
"Underutilization (unallocated fixed production overhead)"
Contracted sales backlog financial
"Contracted sales backlog of 44.0 GW as of September 30, 2026"
Earnings Snapshot
Net sales: $1.23 billion · Guidance included
Third quarter ended September 30, 2026
Net sales
$1.23 billion
Down 23% year over year
Net income
$571 million
Compared with $456 million in third quarter 2025
Diluted earnings per share
$5.30 per diluted share
Up 25% year over year
Adjusted EBITDA
$744 million
Up 11% year over year
Guidance
2026 guidance: volume sold of 16.0 GW to 17.0 GW, net sales of $4.6 billion to $4.9 billion, and Adjusted EBITDA of $2.55 billion to $2.75 billion.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FSLR's third-quarter 2026 results?
First Solar reported third-quarter 2026 net sales of $1.23 billion, down 23% year over year. Net income was $571 million, diluted earnings per share were $5.30, and Adjusted EBITDA was $744 million; diluted earnings per share rose 25% and Adjusted EBITDA rose 11% year over year.
How much stock can First Solar repurchase under its new program?
The board authorized repurchases of up to $500 million of First Solar common stock, effective immediately. The program has no expiration date, does not obligate the company to purchase shares, and may be suspended or discontinued at any time. Purchases may occur through open-market or privately negotiated transactions, among other methods.
How much of First Solar's fourth-quarter module sales are expected from U.S. operations?
First Solar anticipates 3.4 GW to 4.3 GW of fourth-quarter module sales from its U.S. manufacturing operations. Total fourth-quarter module sales are expected to be 4.3 GW to 5.3 GW, and Adjusted EBITDA is forecast at $643 million to $843 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(602 ) 414-9300
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On October 29, 2026, First Solar, Inc. (the “Company”) is issuing a press release and holding a conference call regarding its financial results for the third quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Form 8-K and in Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01. Other Events
On October 29, 2026, the Company announced that its board of directors authorized the repurchase (the “Repurchase Program”) of up to $500 million of the Company’s outstanding common stock, $0.001 par value (“Common Stock”). The Repurchase Program has no expiration date, may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of Common Stock.
The timing and total amount of share repurchases under the Repurchase Program will be determined by the Company from time to time at its discretion based on its evaluation of business, economic, and market conditions, corporate regulatory requirements, prevailing stock prices, and other considerations. The Company may repurchase shares of Common Stock from time to time through a variety of methods, such as open market purchases, including in reliance upon the safe harbors under Rule 10b-18 and/or Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, privately negotiated transactions, accelerated share repurchase transactions, or by other means, in accordance with applicable securities laws and other restrictions.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Description | |||||||
99.1 | Press Release of First Solar, Inc. dated October 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) | |||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST SOLAR, INC. | |||||||||||
| Date: October 29, 2026 | By: | /s/ JASON DYMBORT | |||||||||
| Name: | Jason Dymbort | ||||||||||
| Title: | General Counsel & Secretary | ||||||||||
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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 EBITDA1 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.
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Our updated 2026 guidance is summarized below:
| Prior | Current | |||||||||||||||||||
| Volume Sold | 17.0GW | to | 18.2GW | 16.0GW | to | 17.0GW | ||||||||||||||
| Net Sales | $4.9B | to | $5.2B | $4.6B | to | $4.9B | ||||||||||||||
Gross Profit(1) | $2.4B | to | $2.6B | Unchanged | ||||||||||||||||
Operating Expenses(2) | $610M | to | $635M | Unchanged | ||||||||||||||||
Adjusted EBITDA(3) | $2.6B | to | $2.8B | $2.55B | to | $2.75B | ||||||||||||||
| Capital Expenditures | $0.8B | to | $1.0B | $0.6B | to | $0.8B | ||||||||||||||
Net Cash Balance(4) | $1.7B | to | $2.3B | Unchanged | ||||||||||||||||
——————————
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.
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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
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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, 2026 | December 31, 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 recycling liability | 145,907 | 146,017 | ||||||||||||
| 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 30, 2026 and December 31, 2025, respectively | 107 | 107 | ||||||||||||
| 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’ equity | $ | 14,020,016 | $ | 13,321,310 | ||||||||||
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FIRST SOLAR, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||
| Net sales | $ | 1,230,936 | $ | 1,594,856 | $ | 3,331,369 | $ | 3,536,594 | |||||||||||||||||||||
| Cost of sales | 517,876 | 984,111 | 1,527,174 | 2,081,596 | |||||||||||||||||||||||||
| Gross profit | 713,060 | 610,745 | 1,804,195 | 1,454,998 | |||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| Selling, general and administrative | 65,326 | 47,324 | 182,604 | 153,078 | |||||||||||||||||||||||||
| Research and development | 67,223 | 60,592 | 210,410 | 167,468 | |||||||||||||||||||||||||
| Production start-up | 34,403 | 36,734 | 69,384 | 85,506 | |||||||||||||||||||||||||
| Total operating expenses | 166,952 | 144,650 | 462,398 | 406,052 | |||||||||||||||||||||||||
| Operating income | 546,108 | 466,095 | 1,341,797 | 1,048,946 | |||||||||||||||||||||||||
| Foreign currency gain (loss), net | 90 | (8,903) | (22,961) | (30,224) | |||||||||||||||||||||||||
| Interest income | 24,151 | 23,308 | 82,933 | 54,273 | |||||||||||||||||||||||||
| Interest expense, net | (2,390) | (14,121) | (15,568) | (32,830) | |||||||||||||||||||||||||
| Other expense, net | (1,930) | (6,034) | (6,461) | (10,594) | |||||||||||||||||||||||||
| Income before taxes | 566,029 | 460,345 | 1,379,740 | 1,029,571 | |||||||||||||||||||||||||
| Income tax benefit (expense) | 5,034 | (4,402) | (39,489) | (22,225) | |||||||||||||||||||||||||
| Net income | $ | 571,063 | $ | 455,943 | $ | 1,340,251 | $ | 1,007,346 | |||||||||||||||||||||
| Net income per share: | |||||||||||||||||||||||||||||
| Basic | $ | 5.31 | $ | 4.25 | $ | 12.48 | $ | 9.40 | |||||||||||||||||||||
| Diluted | $ | 5.30 | $ | 4.24 | $ | 12.45 | $ | 9.37 | |||||||||||||||||||||
Weighted-average number of shares used in per share calculations: | |||||||||||||||||||||||||||||
| Basic | 107,472 | 107,264 | 107,430 | 107,211 | |||||||||||||||||||||||||
| Diluted | 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 September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 1,340,251 | $ | 1,007,346 | ||||||||||
| Adjustments to reconcile net income to cash (used in) provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 443,266 | 380,529 | ||||||||||||
| Share-based compensation | 22,904 | 16,713 | ||||||||||||
| Deferred income taxes | (37,466) | 26,477 | ||||||||||||
| Other, net | 43,196 | 36,274 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable, trade | (290,973) | (196,967) | ||||||||||||
| Inventories | (348,993) | (679) | ||||||||||||
| Government grants receivable | (1,285,786) | (442,010) | ||||||||||||
| Other assets | 15,328 | (150,159) | ||||||||||||
| Income tax receivable and payable | 56,711 | (44,684) | ||||||||||||
| Accounts payable and accrued expenses | (147,210) | (164,194) | ||||||||||||
| Deferred revenue | (220,745) | 262,877 | ||||||||||||
| Other liabilities | 6,803 | 83,689 | ||||||||||||
| Net cash (used in) provided by operating activities | (402,714) | 815,212 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of property, plant and equipment | (434,662) | (698,148) | ||||||||||||
| Purchases of marketable securities and restricted marketable securities | (1,824,044) | (1,307,656) | ||||||||||||
| Proceeds from sales and maturities of marketable securities | 1,824,833 | 1,424,918 | ||||||||||||
| Other investing activities | 5,806 | 2,952 | ||||||||||||
Net cash used in investing activities | (428,067) | (577,934) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from borrowings under debt arrangements, net of issuance costs | 339,960 | 309,047 | ||||||||||||
| Repayment of debt | (732,121) | (357,515) | ||||||||||||
Proceeds from other borrowings | — | 487,323 | ||||||||||||
| Repayment of other borrowings | — | (298,407) | ||||||||||||
| Payments of tax withholdings for restricted shares | (945) | (15,479) | ||||||||||||
| Other financing activities | (874) | (527) | ||||||||||||
Net cash (used in) provided by financing activities | (393,980) | 124,442 | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 3,670 | 2,021 | ||||||||||||
| Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | (1,221,091) | 363,741 | ||||||||||||
| 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 | $ | 1,592,940 | $ | 2,001,964 | ||||||||||
| Supplemental disclosure of noncash investing and financing activities: | ||||||||||||||
| Property, plant and equipment acquisitions funded by liabilities | $ | 128,461 | $ | 222,115 | ||||||||||
| Proceeds to be received from asset-based government grants | $ | 111,681 | $ | 149,775 | ||||||||||
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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)
| Three Months Ended | ||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||
Net income and net income margin(1) | $ | 571,063 | 46% | $ | 455,943 | 29% | ||||||||||||||
| Interest income | (24,151) | (23,308) | ||||||||||||||||||
| Interest expense, net | 2,390 | 14,121 | ||||||||||||||||||
| Income tax (benefit) expense | (5,034) | 4,402 | ||||||||||||||||||
Depreciation and amortization | 148,028 | 132,273 | ||||||||||||||||||
EBITDA and EBITDA Margin(1) | 692,296 | 56% | 583,431 | 37% | ||||||||||||||||
| Foreign currency (gain) loss, net | (90) | 8,903 | ||||||||||||||||||
| Other expense, net | 1,930 | 6,034 | ||||||||||||||||||
| Share-based compensation | 9,078 | 7,319 | ||||||||||||||||||
| Section 45X tax credit discounts | — | 15,652 | ||||||||||||||||||
| Underutilization, excluding depreciation and amortization | 9,997 | 22,456 | ||||||||||||||||||
| Production start-up, excluding depreciation and amortization | 30,791 | 27,669 | ||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin(1) | $ | 744,002 | 60% | $ | 671,464 | 42% | ||||||||||||||
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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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| Nine Months Ended | ||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||
Net income and net income margin(1) | $ | 1,340,251 | 40% | $ | 1,007,346 | 28% | ||||||||||||||
| Interest income | (82,933) | (54,273) | ||||||||||||||||||
| Interest expense, net | 15,568 | 32,830 | ||||||||||||||||||
| Income tax expense | 39,489 | 22,225 | ||||||||||||||||||
Depreciation and amortization | 443,266 | 380,529 | ||||||||||||||||||
EBITDA and EBITDA Margin(1) | 1,755,641 | 53% | 1,388,657 | 39% | ||||||||||||||||
| Foreign currency loss, net | 22,961 | 30,224 | ||||||||||||||||||
| Other expense, net | 6,461 | 10,594 | ||||||||||||||||||
| Share-based compensation | 22,904 | 16,713 | ||||||||||||||||||
| Section 45X tax credit discounts | — | 44,639 | ||||||||||||||||||
| Underutilization, excluding depreciation and amortization | 36,891 | 43,691 | ||||||||||||||||||
| Production start-up, excluding depreciation and amortization | 62,586 | 76,215 | ||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin(1) | $ | 1,907,444 | 57% | $ | 1,610,733 | 46% | ||||||||||||||
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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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