First Solar, Inc. Q2 FY26 Earnings Analysis

- Full-year 2026 guidance remains unchanged with strong commitment to reshoring and scaling domestic manufacturing. - Q2 volumes expected between 3.4 and 4 gigawatts, with adjusted EBITDA forecasted at $400 million to $500 million. - Sales growth supported by 31% volume increase in Q1, totaling record $1 billion net sales, driven by higher demand particularly in India and U.S. - The U.S. domestic production contracts are substantially committed through 2028, providing pricing clarity. - Momentum in bookings with 1.7 gigawatts gross bookings in Q1, including strong demand in India (~1 GW sold domestically at $0.20/watt) and U.S. (0.9 GW at ~$0.34/watt). - Incremental volumes expected to be beneficial to gross margin in the latter half of the year. - Longer-term growth aided by development and launch of new technologies like CuRe and perovskite pilot line. - Continued evaluation of Southeast Asia capacity and impact of trade policies on future sales dynamics.

- Full year 2026 guidance remains unchanged with expected adjusted EBITDA between $400 million to $500 million in Q2. - First quarter adjusted EBITDA was $520 million, exceeding top-end guidance. - Strong bookings: 1.4 GW U.S. bookings at ~$0.35/W, with half volume extending into 2029, indicating momentum into outer years. - CuRe technology rollout across Series 6 and 7 lines expected to add up to $0.6 billion in additional revenue from technology adjusters, mainly in 2027-2028. - South Carolina finishing facility production starts H2 2026, expected to optimize costs and contribute to revenues. - Growth constrained by policy uncertainties (e.g., Section 232 tariffs), but domestic manufacturing scale and technology roadmap support positive outlook. - Continued selective approach to U.S. bookings pending regulatory clarity, but strong demand in India and U.S. - EBITDA margin guidance stable with improvement expected in H2 driven by volume growth and operating leverage.

- Capital expenditures were $119 million in the quarter, primarily for the South Carolina finishing facility (Page 3). - The company plans to launch a 1 gigawatt perovskite pilot line in 2027 at the Perrysburg facility, leveraging existing back-end capabilities (Pages 8, 11). - The pilot line is for development to validate perovskite technology performance and durability, not yet a high-volume manufacturing line (Page 8). - Ongoing investments also include R&D ($67 million in the quarter) focused on perovskite development and CuRe launch work (Page 3). - The CuRe first Series 6 facility will launch in India early next year, enhancing efficiency and energy attributes (Page 6). - The South Carolina facility investment supports semi-finished product finishing, increasing domestic manufacturing capacity and content (Pages 3, 10).

- There is no explicit mention of any current or planned new fundraising through debt or equity in the provided transcript. - The company ended the quarter with $2.4 billion in cash, cash equivalents, restricted cash, and marketable securities, and a net cash position of $2 billion, which is at the high end of their targeted net cash range ($1.5 billion to $2 billion). - They completed a scheduled $45 million principal payment on their India DFC loan, indicating ongoing debt servicing but no new debt issuance was mentioned. - Capital expenditures were $119 million, primarily for the South Carolina finishing facility, funded presumably from existing resources. - No references to equity raises or new debt financing plans were discussed during the call.

- Contracted backlog as of March 31, 2026: 47.9 gigawatts at an aggregate transaction price of $14.4 billion (exclusive of technology adjusters) with deliveries through 2030. - First quarter 2026 gross bookings: approximately 1.7 gigawatts. - Debookings in Q1: 0.1 gigawatts. - India bookings: 1 gigawatt sold domestically at ~$0.20 per watt. - U.S. bookings: 0.9 gigawatts at approximately $0.34 per watt. - Since last earnings call, 1.4 gigawatts booked at average ASP of $0.35 per watt; includes a 700 MW option related to a development acquisition in progress. - Focus remains highly selective on incremental U.S. bookings, awaiting key policy and regulatory outcomes, especially on pending Section 232 tariff decision and FEOC rulemaking.