First Solar (FSLR) Q1 FY26 earnings call: guidance and Q&A

First Solar's CuRe technology launch is complete in Perrysburg, with the first Series 6 line ramping consistent with expectations. This technology is central to the company's strategy, validated by extensive testing data for its bifaciality, advantaged temperature coefficient, and degradation profile. CuRe is anticipated to deliver up to 8% more lifetime specific energy yield than crystalline silicon Topcon. The replication of CuRe across the Series 6 and 7 fleet is scheduled through the first half of 2028, which could support up to $0.6 billion of additional revenue from technology adjusters in the backlog, with the majority expected in 2027 and 2028.

In Q1 FY26, First Solar produced 4.3 gigawatts of modules, with approximately 3 gigawatts originating from U.S. facilities, which operated at approximately 96% utilization. The remaining 1.3 gigawatts came from the international fleet. The South Carolina finishing facility is on track for production start in the second half of 2026, with equipment installation commencing this quarter. This facility is designed to provide finishing capacity for Series 6 modules initiated at international factories, optimizing freight, tariff, and domestic content outcomes while benefiting from Section 45X module assembly tax credits. International facilities in Malaysia and Vietnam continue to operate at significantly reduced utilization due to trade dynamics and lower ASP expectations.

First Solar's competitive position in the United States and India is strengthening, underpinned by its differentiated technology, domestic manufacturing footprint, and independence from Chinese crystalline silicon supply chains. In the U.S., headwinds for crystalline silicon are increasing, including trade remedy enforcement, indications of restricted FEOC regulations, and ongoing intellectual property litigation. Specifically, the U.S. International Trade Commission has instituted a Section 337 investigation, with an initial determination expected within 11 months and a final decision within 15 months. This strategic approach aims to leverage the company's unique attributes in key markets.

The company's presence in India reflects a strategic logic similar to its U.S. manufacturing investment, focusing on energy security and supply chain independence. The policy framework in India, including the existing Approved List of Models and Manufacturers (ALMM) and anticipated implementation of ALMM at the cell level, along with domestic content requirements, currently favors vertically integrated manufacturers like First Solar. Near-term demand is robust, supported by both utility-scale and distributed solar applications, particularly in agricultural land developments where CadTel technology's energy yield in hot, humid conditions provides a meaningful differentiator. In Q1, First Solar sold approximately 1 gigawatt in India at an average selling price of approximately $0.20 per watt.

First Solar is maintaining a highly selective approach to incremental U.S. bookings, awaiting clarity on key policy and regulatory matters. These include the pending Section 232 polysilicon derivatives tariff decision and proposed FEOC rulemaking. Management indicates that engagements with the administration regarding the 232 framework are positive, with proposals for a $0.01 per watt tariff on cells/modules or a minimum import price. The company expects a resolution on the 232 tariff by the end of Q2, though acknowledges potential for delays depending on other events.

First Solar is on track to run a 1 gigawatt perovskite pilot line in 2027. This pilot line will be located in the Perrysburg facility, leveraging existing infrastructure and capabilities. The initial focus for this higher-cost product will be on field validation, customer feedback, and assessing performance, degradation, and bankability under various conditions. The company is evaluating different product constructs, including single junction and tandem, but prioritizes validating the durability and viability of the perovskite layer itself before addressing the complexities of tandem integration.