First Solar Delivers Record Q1 Results with $1B Revenue and Strong Backlog

First Solar Reports Record Q1 Performance Amidst Strong Demand

First Solar (NASDAQ: FSLR) has concluded its first quarter of 2026 with a series of financial milestones that underscore its market position. The company reported record net sales of $1.0 billion, representing a 47% gross margin and an adjusted EBITDA of $520 million. Diluted earnings per share (EPS) reached $3.22, while the firm finished the quarter with a robust net cash position of $2.0 billion.

Financial Highlights and Backlog Strength

Chief Executive Officer Mark Widmar characterized the period as a "strong start to 2026," citing record revenue and significant margin expansion. During the earnings call, Widmar stated the company delivered "record first quarter revenue, record sales in India, meaningful margin expansion, and adjusted EBITDA above the top end of our first quarter preview range."

The company's order book remains exceptionally deep. First Solar ended the quarter with a contracted backlog of 47.9 GW at an aggregate transaction price of $14.4 billion (excluding technology adjustments), with deliveries scheduled through 2030.

During the quarter, the company sold approximately 3.8 GW. Since the prior earnings call, First Solar noted roughly 1.9 GW of gross bookings. This included significant activity in India, where the company sold about 1 GW at an average selling price (ASP) of approximately $0.20 per watt.

Operational Efficiency and Technology Roadmap

First Solar's manufacturing operations continue to show high efficiency. The company produced 4.3 GW of modules during the quarter, with U.S. facilities operating at approximately 96% utilization. A new finishing facility in South Carolina is on track for a production start in the second half of 2026.

Technological advancements remain a core focus. First Solar is advancing its CuRe rollout across Series 6 and 7 modules, which could realize up to $0.6 billion of technology-adjusted revenue. Additionally, the company plans a 1 GW perovskite pilot in 2027 at its Perrysburg facility.

Regarding pricing strategies for new bookings, Widmar noted that the 1.4 GW booked "call to call" averaged $0.35 per watt. He explained a shift in how technology value is captured: "we're transitioning toward pricing CuRe's expected performance attributes directly into the base contract price rather than structuring separate adders." While entitlement adders remain around $0.03, Widmar estimated a blended adder across booked volume of "call it $0.015" due to this strategic shift.

Market Dynamics and Future Outlook

The company's India business is currently operating as a "book-and-bill market at near full capacity." In the U.S., domestic production remains "substantially committed through 2028 under existing contracts," providing pricing clarity. However, management continues to take a "highly selective approach" to incremental U.S. bookings while awaiting policy outcomes regarding Section 232 tariffs and proposed FEOC rulemaking.

Looking ahead, First Solar has maintained its full-year 2026 guidance unchanged. For the second quarter, the company expects volumes sold between 3.4 GW and 4.0 GW and adjusted EBITDA of $400 million to $500 million.

Context

First Solar is a leading U.S.-based solar technology company specializing in thin-film photovoltaic modules using cadmium telluride (CdTe) semiconductor technology. Founded in 1999 and headquartered in Tempe, Arizona, the company provides both components and integrated solar power solutions for utility-scale projects.

Takeaway

First Solar's Q1 results highlight a company capitalizing on strong domestic and international demand while successfully navigating complex trade policies. With a massive backlog of $14.4 billion and record margins driven by tax benefits and operational efficiency, the firm is well-positioned to leverage its CuRe technology for future revenue growth.