First Solar Reports Strong Q2 Earnings Amid Robust Backlog and Tariff Benefits
First Solar reported strong second-quarter financial results for 2026 with net sales reaching $1.06 billion, a year-over-year decline of about 4% primarily due to lower revenue from customer contract terminations in the prior period. However, gross margin expanded significantly to approximately 57%, driven by tariff-related benefits under the International Emergency Economic Powers Act and Section 45X tax credits. The company's net income rose 24% year-over-year to $423 million, with adjusted EBITDA at $644 million—above expectations. First Solar also highlighted a robust contracted backlog of 45.1 GW valued at $13.6 billion and new bookings in the U.S. and India, including about 5 GW tied to hyperscaler projects. Despite these positive results, trade policy remains an uncertainty for future manufacturing decisions as the company advances its South Carolina capacity expansion and perovskite technology development.
Tickers: $FSLR
Topics: financial_results manufacturing_expansion solar_energy