PVTIME – First Solar, a leading solar energy firm, has announced record financial results for the first quarter of 2026. Net sales reached $1.04 billion, marking a 26% year-on-year increase. Supported by the Section 45X tax credit and robust demand from India, the company’s net profit increased by 65% year-on-year, and it reaffirmed its full-year performance targets. Total shipments for the quarter amounted to 3.8GW, of which 1GW was attributed to the Indian market.
The company’s robust growth is underpinned by increased shipments and optimised cost structures. Although expanded Indian orders led to a slight reduction in the average selling price, the company’s gross margin climbed to 47% thanks to the Section 45X production tax credit under the US Inflation Reduction Act, as well as lower shipping costs. Adjusted EBITDA reached $520 million, representing a 37% year-on-year increase and surpassing the projected range of $400 million to $500 million.
First Solar’s Ohio facility has started producing modules with copper replacement (CuRe) technology, which the company claims deliver an 8% lifecycle energy gain compared to crystalline silicon TOPCon modules and come with a 30-year warranty. The company is also preparing to launch a 1GW perovskite Series 6 pilot production line in 2027. US factories are operating at 96% capacity, while Indian facilities are operating at 93%. Production in Malaysia and Vietnam has been scaled back due to reduced Series 6 demand.
In response to market competition, First Solar confirmed that domestically produced TOPCon technology would likely infringe its intellectual property rights without a redesign. However, it stressed that its focus is on fair compensation via licensing rather than blocking adoption. The company currently holds an order backlog of 47.9GW, valued at $14.4 billion, with deliveries extending to 2030.
Despite achieving strong results, the firm is exercising caution regarding new orders from the US due to policy uncertainties, including the Section 232 tariff investigation and the Foreign Entity of Concern provisions. A US government ruling on Section 232 is expected in Q2 of 2026, which could result in the introduction of per-watt import tariffs. Projections for Q2 include shipments of 3.4–4.0GW and Section 45X tax credits of $330–$400 million.
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