First Solar, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter of 2026 were $1.23 billion, a 23% decrease year-over-year compared to $1.59 billion in Q3 2025, driven by a decrease in module volume sold to third parties.
• Net income for the quarter was $571 million ($5.30 per diluted share), an increase of 25% year-over-year compared to $456 million ($4.24 per diluted share) in Q3 2025.
• Adjusted EBITDA was $744 million, an 11% increase year-over-year compared to $671 million in Q3 2025.
• Gross profit for the quarter was $713 million, compared to $611 million in Q3 2025.
• Total operating expenses were $167 million, compared to $145 million in Q3 2025.
• Net cash balance decreased to $1.5 billion as of September 30, 2026, from $2.4 billion as of December 31, 2025, driven by working-capital needs and capital expenditures for U.S. facilities, partially offset by Section 45X cash receipts and IEEPA tariff refunds.
• Gross cash balance was $1.6 billion as of September 30, 2026.
• For the nine months ended September 30, 2026, net sales were $3.33 billion compared to $3.54 billion in the prior year period.
• For the nine months ended September 30, 2026, net income was $1.34 billion compared to $1.01 billion in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $1.91 billion, compared to $1.61 billion in the prior year period.
• Deferred revenue totaled $1.60 billion as of September 30, 2026 ($1.01 billion current, $591 million long-term), compared to $1.82 billion as of December 31, 2025.
• Current portion of debt was $108 million as of September 30, 2026, compared to $216 million as of December 31, 2025; long-term debt was $0 as of September 30, 2026, compared to $283 million as of December 31, 2025.

Guidance and Future Outlook:

• Updated 2026 guidance for volume sold is 16.0 GW to 17.0 GW (prior guidance: 17.0 GW to 18.2 GW).
• Updated 2026 guidance for net sales is $4.6 billion to $4.9 billion (prior guidance: $4.9 billion to $5.2 billion).
• 2026 guidance for gross profit remains unchanged.
• 2026 guidance for operating expenses remains unchanged.
• Updated 2026 guidance for Adjusted EBITDA is $2.55 billion to $2.75 billion (prior guidance: $2.6 billion to $2.8 billion).
• Updated 2026 guidance for capital expenditures is $0.6 billion to $0.8 billion (prior guidance: $0.8 billion to $1.0 billion).
• 2026 guidance for net cash balance remains unchanged.
• Fourth quarter 2026 module sales are anticipated to be between 4.3 GW and 5.3 GW, including 3.4 GW to 4.3 GW from U.S. manufacturing operations.
• Forecasted fourth quarter 2026 Adjusted EBITDA is between $643 million and $843 million.
• Guidance assumes the current U.S. policy environment persists, including the Inflation Reduction Act as amended by the One Big Beautiful Bill Act of 2025, and that permitting processes remain consistent with historical levels.
• The company is not providing forward-looking guidance for GAAP net income or a quantitative reconciliation of Adjusted EBITDA guidance to GAAP net income due to uncertainty regarding share-based compensation, Section 45X tax credit discounts, contingencies, and income tax accounting.

Business Segments and Product Lines:

• The Company is the only fully-integrated utility-scale solar manufacturer without dependency on the Chinese crystalline silicon supply chain.
• The Company utilizes advanced thin film PV technology developed at R&D labs in California and Ohio.
• PV solar modules are produced using a fully integrated, continuous process.
• Contracted sales backlog was 44.0 GW as of September 30, 2026.

Market and Competitive Landscape:

• First Solar is identified as America's leading PV solar technology and manufacturing company.
• The Company is the only U.S.-headquartered company among the world's largest solar manufacturers.
• Management views Section 232 as a structural change in how the United States approaches solar manufacturing, positioning the Company to benefit from this environment.

Risks and Challenges:

• Forward-looking statements are subject to assumptions regarding public policies, tariffs, export controls, trade remedies, freight costs, and the IRA.
• Risks include structural imbalances in global supply and demand, competitive position, modification or expiration of government subsidies, interest rate fluctuations, and customer contract terminations.
• Risks include the ability to execute on technology and cost reduction roadmaps, module performance, raw material supply and pricing, and manufacturing interruptions.
• Risks include cybersecurity incidents, intellectual property protection, and environmental compliance.

Management Commentary and Tone:

• Mark Widmar, Chief Executive Officer, stated that Section 232 represents a structural change in U.S. solar manufacturing and that the Company is structurally positioned to benefit as the only fully-integrated utility-scale manufacturer without dependency on the Chinese crystalline silicon supply chain.
• The board's authorization of the share repurchase program reflects confidence in the long-term value of the business while preserving a disciplined approach to capital allocation.

Other Key Points:

• The First Solar board of directors authorized a share repurchase program of up to $500 million, effective immediately.
• The share repurchase authorization has no expiration date, does not obligate the Company to acquire any particular amount of shares, and may be suspended or discontinued at any time.
• A conference call to discuss the results was scheduled for October 29, 2026, at 4:30 p.m. ET.
• The Company reported a net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents of $1.22 billion for the nine months ended September 30, 2026.
• Cash flows from operating activities were $(403) million for the nine months ended September 30, 2026, compared to $815 million in the prior year period.
• Cash flows from investing activities were $(428) million for the nine months ended September 30, 2026, compared to $(578) million in the prior year period.
• Cash flows from financing activities were $(394) million for the nine months ended September 30, 2026, compared to $124 million in the prior year period.