First Solar has lowered its full-year 2026 financial and module shipment expectations following weaker quarterly sales
It continues to report a substantial contracted module backlog, with business activity across the US and India
Investment in manufacturing capacity and technology development remains part of its 2026 spending plans
US solar PV manufacturer First Solar has lowered its 2026 revenue and module shipment forecasts after Q3 sales fell due to lower module sales, even as net income and adjusted EBITDA rose from a year earlier.
First Solar reported net sales of $1.23 billion in Q3 2026, down 23% from $1.6 billion in the same period last year. Its net income, however, increased 25% to $571 million, compared with $456 million in Q3 2025 (see High Module Sales Improve First Solar’s Q3 2025 Revenues).
The manufacturer’s adjusted EBITDA rose 11% year-on-year (YoY) to $744 million from $671 million. It reported a gross margin of 58%, up 20 percentage points from the previous year, while its adjusted EBITDA margin reached 60%. The company attributed the higher margins to a more favorable mix of US-made modules eligible for Section 45X manufacturing tax credits, lower freight costs, and reduced underutilization, tariffs, and duties.
During the reporting quarter, First Solar shipped 3.9 GW of modules from its US operations and 0.2 GW from India. Its global manufacturing fleet utilization stood at 87%, with US facilities operating at 98% and Indian facilities at 87%.
The company has reduced its full-year 2026 module shipment forecast to 16 GW to 17 GW, down from earlier guidance of 17 GW to 18.2 GW. It also lowered its net sales outlook to $4.6 billion to $4.9 billion from $4.9 billion to $5.2 billion.
First Solar now expects adjusted EBITDA of $2.55 billion and $2.75 billion, against its previous forecast of $2.6 billion to $2.8 billion.
For the fourth quarter of 2026, it expects to sell 4.3 GW to 5.3 GW of modules, including 3.4 GW to 4.3 GW from its US manufacturing operations. It forecasts adjusted EBITDA of $643 million to $843 million for the quarter.
Despite the lower shipment outlook, First Solar reported a contracted sales backlog of 44 GW, valued at approximately $13.5 billion, as of September 30, 2026. The backlog extends through 2030, shared the management. Its YTD (October 29, 2026) gross bookings in India totaled 1.3 GW, with an average selling price (ASP) of approximately $0.20/watt.
Its US bookings, excluding India, reached 1.4 GW since its July 30 earnings call, at an ASP of approximately $36 cents/watt, including price adjustments.
The company also reported that production had started at Phase 1 of its South Carolina facility, which will have 3.4 GW annual capacity upon completion of phase II by mid-2027. Phase I brings the final production stages of Series 6 modules, initially manufactured at First Solar’s international facilities, to the US. Phase II will add production of modules featuring its proprietary Copper Replacement (CuRe) technology. Its Series 7 CuRe deployment is progressing in India. First Solar's manufacturing nameplate capacity stood at 22.1 GW.
First Solar has allocated $600 million to $800 million for capital expenditure in 2026. This includes approximately $300 million for capacity expansion, including its sixth US manufacturing facility, and another $300 million for technology development and research and development.
The company expects to spend approximately $120 million on perovskite-related research and development during the year. First Solar has entered into a perovskite patent licensing deal with CubicPV to advance its perovskite technology (see First Solar & CubicPV Announce Perovskite Patent Deal).
Separately, First Solar's board has authorized a share repurchase program of up to $500 million, effective immediately.
Commenting on the US policy environment, CEO Mark Widmar said, “Section 232 represents a structural change in how the United States approaches solar manufacturing.” The US government has restricted imports of polysilicon ahead of the December 4, 2026 deadline, when a 15% minimum import price tariff takes effect (see US Commerce To Curb Polysilicon Stockpiling Under Section 232).
He added that the company believes its position as a fully integrated, utility-scale solar manufacturer, without dependence on the Chinese crystalline silicon supply chain, puts it in a position to benefit from the changing environment.