Thin-film module manufacturer First Solar kicked off 2026 with a bang, hitting a record $1.04 billion in first-quarter revenue. While the company is bracing for a seasonal dip in profitability next quarter, it remains confident enough to hold steady on its full-year financial guidance.
Gross margins expanded to 47%, a six-percentage-point increase over the previous year. This performance was underpinned by a 31% surge in module volumes sold to third parties, totaling 3.8 GW, alongside $418 million in Section 45X tax credits.
Operational efficiencies also contributed to the bottom line, with sales freight costs dropping to 1.7 cents per watt, roughly half of last year’s levels, and a $22 million sequential reduction in warehouse expenses.
On the technology front, the successful launch of Copper Replacement (CuRe) technology at the Perrysburg, Ohio facility is expected to unlock significant value within the company’s 47.9 GW contracted backlog. Management estimates that CuRe could provide up to 8% more lifetime energy yield compared to TOPCon modules, potentially realizing an additional $600 million in revenue from technology adjusters embedded in existing contracts.
First Solar is also shifting its commercial strategy by embedding these technology premiums directly into a higher base ASP for new bookings, a move that simplified recent negotiations for deliveries slated for 2029 and beyond.
U.S. booking activity remained disciplined as the industry awaits a potential Section 232 decision on polysilicon derivatives, which could serve as a major pricing catalyst in the second half of the year.
Since the February earnings call, the company secured 1.4 GW of U.S. utility-scale bookings at an average selling price of 35 cents per watt. Meanwhile, India has emerged as a high-volume engine, accounting for 1 GW of sales this quarter at approximately 20 cents per watt, utilizing the company’s vertically integrated domestic capacity in that market.
Production reached 4.3 GW for the quarter, with U.S. facilities operating at 96% utilization and contributing 3 GW to the total. The company continues to strategically manage lower utilization at its international sites in Malaysia and Vietnam to mitigate trade risks and prioritize higher-value domestic output. Operating expenses for the period were $141 million, including $67 million dedicated to R&D for CuRe and the upcoming 1 GW perovskite pilot line scheduled for 2027.
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