India led shipment growth for First Solar in Q1 2026, though a higher share of lower-priced deliveries reduced average selling prices
Its margins improved significantly due to Section 45X tax credits and lower freight costs
The company maintains a strong backlog but is cautious on new US bookings amid policy uncertainty
First Solar has confirmed its FY 2026 outlook after reporting a record first quarter with net sales of $1.04 billion. This marks a 26% year-on-year (YoY) increase, driven largely by strong performance in India, where it sold 1 GW out of the total 3.8 GW of modules sold during the quarter.
The Indian demand was mainly from the utility-scale and distributed solar segments. Overall, there was a 31% increase in sales volume, partially offset by a lower average selling price due to a higher proportion of deliveries to India.
As more modules qualified for Section 45X tax credits and freight costs declined, the gross margin rose to 47%. Its global fleet utilization was at 88% during the reporting quarter, with 96% reported for the US fabs and 93% for the India fab. Its Malaysia and Vietnam fabs are lowering production due to low demand for its Series 6 modules produced here.
First Solar’s adjusted EBITDA of $520 million was up 37% YoY, exceeding the guided range of $400 million to $500 million, while adjusted EBITDA margin was 50%. The net income increased by 65% with $347 million (see First Solar Revises 2025 Guidance In Response to Tariffs).
Technology Update
During Q1 2026, First Solar launched the finished Copper Replacement (CuRe) technology module at its Perrysburg, Ohio, fab. It claims this module can offer up to 8% higher lifetime energy yield than crystalline silicon TOPCon with up to a 30-year power warranty.
It booked about 1.7 GW of orders in Q1. About half of the key new orders are for delivery starting in 2029, including for CuRe technology, whose added value will be built directly into a higher base price rather than charged separately.
The US manufacturer is also gearing up to launch a commercial 1 GW perovskite for a full-size Series 6 pilot line launch in 2027.
In response to an analyst question about Tesla’s anticipated plans to enter solar PV manufacturing, First Solar said its potential TOPCon manufacturing in the US could likely infringe on its intellectual property (IP) unless redesigned. This could lead to litigation. Notably, Elon Musk-led Tesla and SpaceX are planning to build 100 GW/year of US solar manufacturing capacity (see Elon Musk Says SpaceX, Tesla Eye 100 GW/Year US Solar Manufacturing).
It stressed that instead of blocking TOPCon’s adoption, First Solar wants to boost domestic manufacturing in the US but seeks fair compensation through licensing, like it did with Talon PV (see North America Solar PV News Snippets).
Outlook
Since the Q4 earnings call, the manufacturer reported 1.4 GW of US bookings at $0.035/W, while demand in India was robust at around $0.020/W.
First Solar’s contracted backlog of 47.9 GW as of March 31, 2026, at an aggregate transaction price of $14.4 billion, with deliveries booked through 2030. In the US, the company says its domestic production is substantially committed through 2028 under existing contracts. This, says the management, provides it with pricing clarity.
Speaking with analysts, the company stressed that it was cautious about adding new US orders until there is more clarity on policy and regulatory issues, especially with regard to the Section 232 tariff decision and Foreign Entity of Concern (FEOC) (see US Launches National Security Investigation Into Polysilicon Imports).
According to management, the US government may be considering a per-W tariff of minimum import price in its Section 232 investigation. A decision is anticipated in Q2 2026.
In Q2 2026, First Solar expects to sell 3.4 GW to 4.0 GW of modules. It expects Section 45X credits of $330 million to $400 million, along with adjusted EBITDA of $400 million to $500 million. The management has retained its FY 2026 forecast (see First Solar 2025 Sales Hit $5.2B, Signs Perovskite Licensing Deal).