First Solar, Inc.

Second-quarter 2026 net sales were approximately $1.06 billion, down approximately 4% year over year, mainly due to lower revenue from customer contract terminations recognized in the prior year period, partly offset by higher module volumes sold. Gross margin was approximately 57%, up about 12 percentage points year over year, helped by an estimated $89 million net IEPA tariff-related benefit, a higher mix of modules qualifying for Section 45X tax credits, and lower logistics costs. Net income was $423 million, up approximately 24% year over year, and adjusted EBITDA was $644 million with a 61% margin. Backlog as of June 30, 2026 was 45.1 GW and $13.6 billion of aggregate transaction value, and the company recorded about 1.9 GW of additional U.S. gross bookings at an average selling price of about $0.36 per watt inclusive of technology adjusters. Full-year 2026 guidance was reaffirmed; the company now assumes a net tariff impact of $60 million to $80 million. For Q3, management expects volumes sold of 3.9 GW to 4.5 GW and adjusted EBITDA of $625 million to $775 million.

Mark Widmar framed the quarter as evidence that First Solar’s reshoring strategy and domestic manufacturing platform are gaining traction, pointing to record second-quarter and first-half sales volume and the milestone of more than 100 GW of cumulative module sales globally. He emphasized that demand remains supported by utility-scale solar fundamentals, hyperscaler/data center needs, electrification, and aging generation assets. His tone was confident but policy-aware, repeatedly stressing pricing discipline, contract quality, and long-term value over short-term booking volume.

Alex Bradley highlighted the hard numbers behind the quarter: $1.06 billion in net sales, 57% gross margin, $423 million in net income, $644 million in adjusted EBITDA, and $1.7 billion of net cash. He said the margin benefit reflected an estimated $89 million net IEPA tariff-related gain, a richer mix of 45X-eligible modules, and lower logistics costs, partially offset by lower termination revenue and higher duties/tariffs. He also noted $360 million of year-to-date operating cash outflows, $280 million of first-half capex, and the full prepayment of the India DFC loan, while reiterating the long-term cash target range of $1.5 billion to $2 billion.

Analysts focused heavily on Section 232 timing, potential waivers/quotas, the outlook for Southeast Asia capacity, hyperscaler demand, and safe-harbor implications. Management said it cannot give conviction on timing for Section 232 but wants the final outcome to match the policy’s strategic intent; it argued waivers or quotas would dilute the purpose of the policy and likely weaken incentives for domestic investment. On Southeast Asia, management said it is waiting for the policy outcome before deciding how to use the remaining roughly 1.8 GW of fully finished capacity, with options including fully finished imports, semi-finished product finished in the U.S., or potentially more U.S. finishing capacity, though the last is described as less likely. On demand, management said bookings momentum remains strong, with some customers waiting on policy clarity and others already booking projects tied to hyperscalers like Google.