US module manufacturer First Solar has reported net sales of US$1.06 billion for the second quarter of 2026, a 4% year-on-year decrease, while reaffirming its full-year 2026 guidance on the back of record module sales volumes and a contracted sales backlog of 45.1GW.
The company, which produces Cadmium Telluride (CdTe) thin-film solar modules, said lower quarterly revenue was primarily driven by reduced revenue associated with customer contract terminations, partially offset by an increase in the volume of modules sold to third parties.
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First Solar ended the quarter with a gross and net cash balance of US$1.7 billion, down from US$2.4 billion at the end of 2025. The company attributed the decline to seasonal working capital requirements and capital expenditure, primarily related to its South Carolina finishing facility with a nameplate manufacturing capacity to 17.7GW.
The company said it delivered record second-quarter and first-half module sales volumes, while cumulative module sales surpassed 100GW globally. Its contracted sales backlog stood at 45.1GW as of 30 June 2026, extending through 2030.
Despite the quarterly revenue decline, First Solar left its full-year 2026 guidance unchanged. The company continues to expect module sales volumes of 17.0GW to 18.2GW, with net sales of US$4.9 billion to US$5.2 billion.
For the third quarter, First Solar expects module sales of 3.9GW to 4.5GW, including 3.2GW to 3.7GW from its US manufacturing operations. The company forecasts third quarter adjusted EBITDA of US$625 million to US$775 million.
The company said its outlook assumes the current US policy environment remains unchanged, including the impacts of tariffs, export controls, trade remedies and provisions related to the Inflation Reduction Act of 2022, as amended by the “One Big Beautiful Bill” Act of 2025. Guidance also assumes permitting processes and timelines remain consistent with historical levels.
First Solar has been at the centre of various legal proceedings in recent months. In March, the US International Trade Commission (ITC) launched an investigation into certain TOPCon solar products following a complaint by the US thin-film module manufacturer alleging infringement of its intellectual property rights. Last month, the company was also hit with a class action lawsuit alleging it made misleading statements about its resilience to changing US tariff policy.
