First Solar Profit Rises Sharply Despite Revenue Decline as Backlog Hits Record 45.1 GW; Shares Gain

Tempe, Arizona (USA) – US solar module maker First Solar posted a sharp rise in profit in the second quarter of 2026 despite lower revenue, while expanding its order backlog to a record level. The company also confirmed its full-year 2026 guidance.

The US solar industry is rapidly expanding domestic manufacturing capacity but remains reliant on imports for upstream production stages such as cell manufacturing. According to industry association SEIA and market research firm Wood Mackenzie, the United States now has around 70 gigawatts of solar module manufacturing capacity — enough to meet most of 2026 demand.

Net Sales Decline, Profit Rises Sharply

First Solar's net sales fell 4 percent year-on-year to USD 1.06 billion in the second quarter of 2026. The company attributed the decline mainly to lower revenue from canceled customer contracts, partly offset by higher module volumes sold to third-party customers. Net income, however, rose from USD 342 million to USD 423 million, with diluted earnings per share increasing from USD 3.18 to USD 3.92, a rise of 23 percent. Adjusted EBITDA increased from USD 560 million to USD 644 million. Cash holdings fell to USD 1.7 billion as of June 30, 2026, down from USD 2.4 billion at the end of 2025, which First Solar attributed to seasonal working capital needs and capital expenditures, primarily for final assembly in South Carolina. First Solar's expansion is part of the broader industry build-out of US manufacturing capacity described by SEIA and Wood Mackenzie.

Record Backlog: 45.1 Gigawatts Through 2030

As of June 30, 2026, First Solar held a contracted order backlog of 45.1 gigawatts extending through 2030. The company also achieved record sales volumes in both the second quarter and first half of the year, and improved its financial performance compared with the prior year. “We surpassed 100 gigawatts of cumulative module sales worldwide, a testament to the sustained demand for our differentiated technology platform, domestic manufacturing and supply assurance,” said Mark Widmar, CEO of First Solar.

2026 Guidance Confirmed, Third-Quarter Outlook Issued

First Solar confirmed its unchanged guidance for 2026, continuing to expect sales volumes of 17.0 to 18.2 gigawatts, net sales of USD 4.9 billion to USD 5.2 billion, and adjusted EBITDA of USD 2.6 billion to USD 2.8 billion. Capital expenditures are expected to range between USD 0.8 billion and USD 1.0 billion, with year-end net cash balance projected at USD 1.7 billion to USD 2.3 billion. For the third quarter of 2026, First Solar expects module sales of 3.9 to 4.5 gigawatts, including 3.2 to 3.7 gigawatts from its own US manufacturing, along with adjusted EBITDA between USD 625 million and USD 775 million. The company noted that its guidance depends on the continuation of current US trade and tax policy as well as permitting procedures remaining at historical levels.

First Solar Shares Gain

First Solar shares rose 2.3 percent to EUR 178.60 on July 30, 2026, the day the quarterly results were published. Over a one-year period, however, the stock remains down a steep 21.1 percent, while the RENIXX World gained 9.0 percent over the same period.

Source: IWR Online, 31 Jul 2026