Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 2 of last 6 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
First Solar's record backlog and strong U.S. bookings underscore sustained demand for domestically manufactured solar modules, a critical component of AI-driven data center power needs. The company's ability to secure long-term contracts with hyperscalers like Google reinforces the importance of supply chain certainty in the AI infrastructure buildout. Management's disciplined approach to bookings and capacity decisions, pending trade policy clarity, will shape the pace of U.S. solar deployment.
First Solar delivered record second-quarter and first-half sales volume, with net sales exceeding $1 billion and gross margin expanding to ~57%. The company surpassed 100 GW of cumulative module sales globally. U.S. gross bookings totaled 1.9 GW at an ASP of ~$0.36/W, and the company initiated its first CuRe contract adjuster notifications. Net income rose ~24% YoY to $423 million, and adjusted EBITDA of $644 million beat the preview range. The company ended the quarter with $1.7 billion net cash and completed prepayment of its India DFC loan.
Management reaffirmed full-year 2026 guidance, now assuming a net tariff impact of $60–80 million, including the IEPA recovery and Section 301 tariffs in H2. They expect Q3 volumes of 3.9–4.5 GW and adjusted EBITDA of $625–775 million. The South Carolina finishing facility's first phase remains on track for H2 2026 production, with the second phase now expected in mid-2027 to incorporate CuRe technology. Management emphasized continued discipline on bookings, prioritizing pricing and contract quality over volume, and noted increased customer engagement as policy clarity improves. They are holding a decision on the ~1.8 GW of fully finished international capacity pending the Section 232 outcome, and expect to evaluate it shortly after a decision.
“We also surpassed an important milestone for First Solar exceeding 100 gigawatts of cumulative module sales globally.”
on Milestone
“We also initiated our first customer notifications related to contract CuRe adjusters during the quarter. An important milestone are beginning to translate CuRe's performance benefits from potential adjusters into backlog value and future revenue realization.”
on CuRe Adjusters
“We are still optimistic that the outcome will be constructive And, you know, we have used it as a reason to be disciplined, and we will see what happens once it is finally announced.”
on Section 232 Outlook
How much of the 1.9 GW U.S. gross bookings came from the Google/Steel River project? How are you seeing interest from hyperscalers? And what are your latest thoughts on Section 232 timing and pricing?
Mark noted the Steel River project was already in backlog, and highlighted three recently announced projects totaling ~5 GW, half tied to Google. He said there is 'insatiable demand' from hyperscalers. On Section 232, he said it's still evolving but they are optimistic for a constructive outcome, and noted ~2 GW in July bookings, ~2 GW in contracts subject to CP, and ~2 GW in active conversations.
If waivers or quotas are granted for certain domestic cell producers under Section 232, could that mute price upside? And would you bring Southeast Asia volume into the U.S. as finished or unfinished product?
Mark said any modifications could dilute the strategic intent, and they are not advocating for waivers. Alex added that history with Section 201 bifacial exemption shows how carve-outs can undermine the provision. On Southeast Asia, Alex said they could bring fully finished product or semi-finished WIP, but the key is running factories at close to full capacity; a new U.S. finishing line is possible but less likely.
How did Safe Harbor play into the latest quarter, and what are the permutations and timeline for the remaining Southeast Asia capacity?
Alex said they are waiting for the 232 outcome and would evaluate shortly after, but not necessarily an immediate action plan. Mark noted most bookings were in July, outside the safe harbor date, and that the June court ruling on the 5% CapEx rule came too late to matter. He also highlighted FEOC requirements positioning them well for 2029-2030 demand.