FIRST SOLAR, INC. Q1 FY2026 earnings call

Technology strategy anchored in CURE, which is expected to deliver up to 8% more lifetime-specific energy yield. CURE launch is complete in Perrysburg and Series 6 line is ramping. South Carolina finishing facility is on track for production start in second half of 2026. Competitive position in U.S. and India strengthens with differentiated technology, domestic manufacturing footprint. In U.S., headwinds for Chinese silicon continue including trade remedy, regulatory and IP actions. In India, policy framework favors vertically integrated manufacturers like First Solar.

First quarter revenue was record, with record sales in India and meaningful margin expansion. Adjusted EBITDA was above the top end of the first quarter preview range. Produced 4.3 gigawatts of modules in the quarter, with approximately 3 gigawatts from U.S. facilities and 1.3 gigawatts from international fleet. U.S. facilities operated at approximately 96% utilization. International facilities in Malaysia and Vietnam operated at significantly reduced utilization consistent with current trade dynamics.

Full year 2026 guidance remains unchanged. For second quarter, expects volume sold between 3.4 and 4 gigawatts and adjusted EBITDA of $400 to $500 million.

Headwinds for Chinese silicon supply chains including trade remedy enforcement, restrictive regulatory, IP litigation actions. Uncertainty around 232 polysilicon derivatives tariff decision and proposed fiat rulemaking. Proposal in India to increase minimum efficiency of PV modules for manufacturers to be included in ALMS beginning in 2027.

Q: On module gross margins and ASPs.

A: ASP for U.S. bookings has details on call-to-call volumes and adders. Gross margin guide remains, with factors like Malaysia-Vietnam utilization affecting second quarter.

Q: On Southeast Asian capacity and India proposals.

A: Malaysia-Vietnam capacity has decision point on 232. In India, ongoing dialogue on efficiency threshold and wafer domestically manufactured requirement.

Q: On 232 framework and technology.

A: 232 framework has positive feedback, timing uncertain. Perovskite pilot line in 2027 with considerations on cost and product construct.

Q: On booking volumes after 232 and technology transition.

A: Demand waiting for 232 outcome, Series 6 to Series 7 has technical and capacity implications.

Q: On India capacity and bookings composition.

A: India capacity has demand considerations, bookings composition includes U.S. and India volumes.

Q: On capacity after changes and Tesla IP.

A: Capacity details for 2027, Tesla using TopCon may involve IP infringement with potential for commercial IP conversation