FIRST SOLAR INC (FSLR) Q1 2026 Earnings Call Transcript
Bullish Semiconductors 26.04B USA
Next Earnings
2026-04-27
There is no Profile data available for F3A.SG.
First Solar delivered 2025 results with record module shipments and strong liquidity, while guiding 2026 to a higher EBITDA trajectory supported by U.S. manufacturing, CURE and perovskite advances, and continued policy-driven tailwinds.
⭐ Key Highlights
Record 2025 module shipments
First Solar shipped 17.5 GW of modules in 2025, with net sales of $5.2B and 24% YoY growth.
Backlog and bookings discipline
End-2025 contracted backlog stood at 50.1 GW (~$15B), after 7.4 GW gross bookings and 8.3 GW debookings; management highlighted selective, opportunistic bookings to balance policy risk and cash flow.
U.S. capacity expansion and onshoring
Commenced commercial production in Louisiana and announced finishing capacity in South Carolina to begin 2026, with broader U.S. finishing ramp through 2027.
Advanced thin-film roadmap confirmed
Progress on CdTe-based CURE platform with planned Ohio-to-S7 conversion in 2026 and a perovskite development line with pilot readiness targeted for early 2027.
2026 guidance and financial strength
Guidance for 2026: net sales $4.9–$5.2B and adjusted EBITDA $2.6–$2.8B; 45X tax credits expected to contribute meaningfully; net cash at year-end 2026 targeted at $1.7–$2.3B.
✔Positive Signals
- Record 2025 module shipments of 17.5 GW and net sales of $5.2B
- Strong backlog discipline with 50.1 GW contracted backlog and $15B value
- U.S. capacity expansion: Louisiana production and upcoming South Carolina finishing line
- Progress on CURE deployment and perovskite development, with 2027/2028 upside from adjusters
- Significant liquidity gains including $2.9B cash and new $1.5B revolver
✖Negative Signals
- Tariff costs and warehousing/detention headwinds; 2025 gross margin declined to 41%
- Underutilization of Southeast Asia facilities creating ramp costs and timing risk
- CURE and perovskite scaling face execution and ramp challenges, timing risk
- Uncertainty around FEOC, AD/CVD duties, and broader policy/regulatory environment
- Warranty-related liability with potential loss of $35–$75M (best estimate $50M)
📊Financial Results
- Q4 2025 net sales of $1.7B, up $100M sequentially
- Full-year 2025 net sales $5.2B, up $1.0B YoY; gross margin 41% for 2025 (down from 44% in 2024)
- Full-year 2025 EPS $14.21 (diluted), within guidance; Q4 EPS $4.84
- Year-end cash position $2.9B (gross); net cash $2.4B; CapEx 2025 $870M
🔮Future Guidance
- 2026 net sales guidance: $4.9B–$5.2B; gross margin guidance ~49.5% including $2.1–$2.19B Section 45X credits; ramp/underutilization costs $115–$155M
- 2026 adjusted EBITDA guidance: $2.6B–$2.8B; first-quarter EBITDA $400–$500M
- Capital expenditures 2026: $800M–$1B; ongoing US finishing and Louisiana capacity spend
- End-2026 cash balance target: $1.7B–$2.3B; plan to fully repay India facilities; potential monetization of 45X credits not baked into base guidance
💡Interesting Insights
- Management views domestic content blend as a key driver of ASP; pure international sales could fetch notably lower prices
- Oxford PV perovskite license could unlock new cost and efficiency advantages but requires scaling from lab to high-volume production
Detailed Analysis
AI-generated summary of FIRST SOLAR INC earnings call transcript.
In 2025, First Solar achieved record module shipments (17.5 GW) and $5.2B in net sales (+24% YoY), ending with a contracted backlog of 50.1 GW and $15B value, and a stronger cash position of $2.4B net cash. The company advanced U.S. capacity, launching Louisiana production and planning a U.S. finishing line in South Carolina for 2026, while progressing its CURE CdTe platform and perovskite thin-film program toward higher energy yield and cost-competitiveness. 2026 guidance calls for $4.9–$5.2B in net sales and $2.6–$2.8B in adjusted EBITDA, with $45X tax credits expected to contribute around $2.1–$2.19B of gross credits and a focus on resuming CURE production and U.S. manufacturing, albeit with ongoing tariff and warehousing headwinds. The outlook emphasizes selective bookings, managed inventory, disciplined capital allocation, and potential monetization of 45X credits, while recognizing policy, FEOC, and IP-related uncertainties that could influence demand and margins.
Get Real-Time Earnings Call Alerts for FIRST SOLAR INC
Create a free MarketAlerts account to add FSLR to your watchlist and receive instant AI-powered alerts when new earnings call transcripts, insider trades, and technical signals are detected.
Other MarketAlerts Features
