First Solar has reported higher quarterly net income for Q2 2026 despite a slight decline in revenue
Its manufacturing expansion and technology initiatives continue alongside a contracted backlog of 45.1 GW extending through 2030
The company maintains its full-year 2026 financial and shipment guidance
First Solar, the US-based solar PV technology company, exited Q2 2026 with net sales of $1.06 billion, representing a decline of 4% year-on-year (YoY), even as its adjusted EBITDA rose 15% over the same period to $644 million.
Its net income during the reporting quarter increased to $423 million, up 24% from $324 million the previous year. The gross margin improved 12 percentage points (pp) from Q2 2025 to 57%, thanks to global fleet utilization of 86%. In the US, its capacity utilization was 98%, while in India it was 86%.
The management attributes the annual decline in net sales to certain customer contract terminations. The loss was offset by an increase in the volume of modules sold to third parties, it adds. It produced 4.3 GW of modules during the quarter and sold 3.7 GW in volume, compared to 4.2 GW produced and 3.6 GW sold in Q2 2025, within the guided range (see First Solar Reiterates FY2026 Outlook After Record Q1).
With this, the company says it surpassed 100 GW of cumulative module sales globally. First Solar ended the quarter with 45.1 GW of contracted sales extending through 2030, providing long-term revenue visibility. It booked 1.9 GW of US orders since its previous earnings call at an average selling price of $0.36/W.
First Solar has reaffirmed its full-year 2026 outlook, maintaining net sales guidance of $4.9 billion to $5.2 billion, module sales of 17.0 GW to 18.2 GW, adjusted EBITDA of $2.6 billion to $2.8 billion, and capital expenditures of $800 million to $1.0 billion.
Gross profit of $2.4 billion to $2.6 billion factors in $2.10 billion to $2.19 billion of Section 45X tax credits and underutilization costs of $115 million to $135 million.
For Q3 2026, First Solar expects to sell 3.9 GW to 4.5 GW of modules, including 3.2 GW to 3.7 GW from its US operations, and generate adjusted EBITDA of $625 million to $775 million.
During the quarter, the company continued expanding its manufacturing and technology initiatives. First Solar said it is rolling out its CuRe technology, which is designed to improve module performance, durability, and energy output by replacing copper with other elements.
The company permanently converted one of its Ohio manufacturing facilities to the CuRe technology in H1 2026 and plans to expand it across additional factories in phases.
It also continues to develop perovskite thin-film technology to improve solar module efficiency and lower costs. It is building a dedicated development line in Ohio and expects its perovskite pilot line to be operational in 2027.
First Solar also shared that it has reduced production of its Series 6 modules at its international manufacturing facilities because of market conditions, including an oversupply of low-priced Chinese modules in Europe, weak pricing due to oversupply of Southeast Asian solar modules, the Indian market closed to products from Southeast Asia, and US tariffs on imported modules.
The company said it will continue to focus on its proprietary technology, localized supply chains, research and development, and domestic manufacturing strategy going forward.
