FSLR · First Solar, Inc.

First Solar delivered a robust Q1 2026 with net sales reaching $1.04 billion, up 24% year-over-year, primarily from increased module volumes sold to third parties, including record sales in India. Gross profit expanded to $486 million from $344 million, reflecting meaningful margin improvement as noted by CEO Mark Widmar, who highlighted the company's strengthened competitive position through differentiated thin-film technology, U.S. manufacturing, and independence from Chinese supply chains. Operating income rose to $345 million, with net income of $347 million yielding diluted EPS of $3.22, a 65% increase from Q1 2025. Adjusted EBITDA of $520 million surpassed the top of the prior preview range, underscoring operational strength despite seasonal working capital needs and capex for the South Carolina facility, which drove net cash balance down to $2.0 billion from $2.4 billion at year-end. The company reaffirmed its full-year 2026 guidance unchanged, including net sales of $4.9-5.2 billion, gross profit of $2.4-2.6 billion (factoring $2.10-2.19 billion in Section 45X credits and underutilization costs), and Adjusted EBITDA of $2.6-2.8 billion. Q2 guidance points to 3.4-4.0 GW module sales and Adjusted EBITDA of $400-500 million, supported by $330-400 million in Section 45X credits. A 47.9 GW contracted backlog as of March 31 provides revenue visibility, positioning First Solar favorably amid U.S. policy support like the IRA as amended.