US thin-film solar manufacturer First Solar reported net sales of US$1.23 billion for the third quarter of 2026, down 23% year-on-year, as lower third-party module sales volumes weighed on revenue.
The company ended the quarter with a gross cash balance of US$1.6 billion and a net cash balance of US$1.5 billion. Net cash declined from US$2.4 billion at the end of 2025, primarily due to working-capital requirements and capital expenditure, particularly for its growing US manufacturing facilities; this week, the company also started the first phase of production at a new facility in South Carolina that handles final production processes for Series 6 Plus modules initiated at the company’s international manufacturing sites.
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First Solar lowered its full-year 2026 net sales guidance to between US$4.6-4.9 billion, from its previous forecast of US$4.9-5.2 billion.
Its expected module sales volume was also reduced, from a previous range of 17-18.2GW to between 16-17GW.
The company revised its adjusted EBITDA outlook to US$2.55–2.75 billion, compared with its earlier forecast of US$2.6-2.8 billion. Capital expenditure guidance was reduced to US$600-800 million, from US$800 million-1 billion.
The company maintained its gross profit guidance of US$2.4–2.6 billion and operating expenses forecast of US$610–635 million. Its net cash balance guidance also remained unchanged at US$1.7–2.3 billion.
For the fourth quarter of 2026, First Solar expects module sales volumes of 4.3–5.3GW, including 3.4–4.3GW from its US manufacturing operations. Adjusted EBITDA for the quarter is forecast to range between US$643-843 million.
Sales up quarter-on-quarter
The decline in the company’s third quarter finances was partially offset by cash receipts from the Section 45X advanced manufacturing production tax credit and refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
There was also some positive news in that sales increased quarter-on-quarter, from US$1.02 billion in the second quarter of 2026, and the company recorded net income of US$571 million in the third quarter, or US$5.30 per diluted share, compared with US$456 million, or US$4.24 per diluted share, in the same period last year. This represented a 25% increase in diluted earnings per share.
Adjusted EBITDA rose 11% year-on-year to US$744 million, compared with US$671 million in Q3 2025. First Solar’s contracted sales backlog stood at 44.0 GW as of 30 September 2026, and the company posted a year-on-year increase in module production in the first nine months of the year, as shown in the graph below.
US manufacturing and trade policy
Commenting on the US policy environment, First Solar CEO Mark Widmar said Section 232 represented a structural change in the country’s approach to solar manufacturing.
“As a technology company and the only fully-integrated utility-scale solar manufacturer without dependency on the Chinese crystalline silicon supply chain, we believe we are structurally positioned to benefit from this environment,” said Widmar.
First Solar’s updated guidance assumes the current US policy environment will persist. The company said its forecasts remain subject to uncertainties surrounding tariffs, export controls, other trade measures, freight costs and provisions of the Inflation Reduction Act (IRA), as amended by the One Big Beautiful Bill Act of 2025.
The company also noted that its outlook assumes permitting processes and timelines will remain consistent with historical levels.
First Solar signs perovskite patent licensing agreement with CubicPV
In other news, First Solar has signed a non-exclusive patent licensing agreement with CubicPV, securing access to the latter’s perovskite solar technology.
The agreement covers First Solar’s development of PV devices incorporating perovskite semiconductors for the US utility-scale, commercial and industrial, and residential markets. It also covers the domestic sale and distribution of those products. Financial and other terms of the agreement were not disclosed.
The licensing agreement provides First Solar with access to CubicPV’s perovskite intellectual property as it continues to develop the technology for potential commercialisation in the US market.
First Solar has invested more than US$2 billion in thin-film research and development (R&D), including its perovskite development programme.
The company has established a perovskite development line at its Perrysburg, Ohio, campus, producing small-format modules incorporating perovskite semiconductors.
First Solar is also investing in a larger pilot production line in Ohio, designed to manufacture modules equivalent in dimensions to its Series 6 products. The line is expected to reach operational readiness in the first half of 2027.
The company expects to have invested more than US$5 billion in US manufacturing and R&D infrastructure since 2019 by the end of 2026. It is targeting approximately 17GW of US module manufacturing capacity by 2027.
