First Solar Cuts 2026 Sales Outlook and Authorizes $500 Million Buyback as Third-Quarter Sales Fall 23%

First Solar cut its 2026 sales outlook and authorized a $500 million share repurchase program after third-quarter net sales fell 23% even as profit rose 25%, according to the earnings release it filed with an 8-K on Thursday after the market close.

The U.S. solar panel maker now expects 2026 net sales of $4.6 billion to $4.9 billion, down from $4.9 billion to $5.2 billion, and volume sold of 16.0 to 17.0 gigawatts, down from 17.0 to 18.2 gigawatts. It trimmed its adjusted EBITDA outlook to $2.55 billion to $2.75 billion from $2.6 billion to $2.8 billion, while leaving gross profit guidance of $2.4 billion to $2.6 billion unchanged.

Third-quarter net sales were $1.23 billion, compared with $1.59 billion a year earlier, a decline the company attributed primarily to lower volume of modules sold to third parties. Net income rose to $571 million, or $5.30 a diluted share, from $456 million, or $4.24. Adjusted EBITDA increased 11% to $744 million.

Fewer panels, more profit

Profit rose even as revenue fell because cost of sales dropped sharply. Gross profit climbed to $713 million from $611 million, and operating income rose to $546 million from $466 million, according to the company's statement of operations.

Chief Executive Mark Widmar pointed to a shift in trade policy. "Section 232 represents a structural change in how the United States approaches solar manufacturing," he said in the release, adding that as 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."

First Solar reported a contracted sales backlog of 44.0 gigawatts as of Sept. 30.

Cash and capital spending

The net cash balance fell to $1.5 billion as of Sept. 30 from $2.4 billion at the end of 2025, which the company tied to working-capital needs and capital spending, primarily for its U.S. facilities, partly offset by Section 45X tax credit cash receipts and tariff refunds. The gross cash balance was $1.6 billion.

The company lowered its 2026 capital expenditure outlook to $0.6 billion to $0.8 billion from $0.8 billion to $1.0 billion. It kept its year-end net cash guidance at $1.7 billion to $2.3 billion and its operating expense outlook at $610 million to $635 million.

Buyback and fourth-quarter view

The board authorized repurchases of up to $500 million, effective immediately. The program has no expiration date and does not obligate the company to buy any particular amount of stock, First Solar said, adding that the authorization reflects confidence in the long-term value of the business.

For the fourth quarter, First Solar expects module sales of 4.3 to 5.3 gigawatts, including 3.4 to 4.3 gigawatts from its U.S. manufacturing operations, and adjusted EBITDA of $643 million to $843 million. The outlook assumes the current U.S. policy environment persists and that permitting processes stay consistent with historical levels.

By the numbers

• $1.23 billion: third-quarter net sales, down 23%
• $5.30: diluted EPS, up 25% from $4.24
• $744 million: adjusted EBITDA, up 11%
• $4.6 billion to $4.9 billion: lowered 2026 net sales guidance
• $500 million: new share repurchase authorization
• 44.0 gigawatts: contracted backlog at Sept. 30

Sources

1. First Solar Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001274494-26-000211)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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