First Solar Posts Record Q1 Revenue as CURE Technology Launch Drives Margin Strength

Transcript intelligence

What changed

Compared to the prior quarter (Q4 2025 / FY2025 results), First Solar transitioned from record full-year results (17.5 GW, $5.2B revenue, EPS $14.21) to a strong start in Q1 2026 with record quarterly revenue of $1.04 billion. CURE technology, which was slated to begin production at Ohio's Series 6 line in Q1 2026, has now been launched with quantified upside of up to $600 million in additional revenue from technology adders. The perovskite partnership with Oxford PV evolved into a full IP acquisition, with a 1-GW pilot line planned for 2027 targeting over 20% module efficiency and 70% bifaciality. New commercial relationships announced: a Trina licensing agreement and an India DFC loan partnership. U.S. bookings remained selective, consistent with the prior quarter's cautious stance awaiting trade-policy clarity.

Guidance delta

Full-year 2026 guidance was maintained at $4.9-$5.2 billion in sales, approximately 49.5% gross margin including Section 45X credits, and $2.6-$2.8 billion in adjusted EBITDA. Q2 2026 expectations were set at 3.4-4.0 GW in module sales and $400-$500 million in adjusted EBITDA. Capex outlook remains stable. Management did not raise guidance despite the EPS and revenue beat, signaling ongoing caution around trade policy and international demand timing.

Key takeaways

• Record Q1 revenue of $1.04 billion with EPS of $3.22, beating consensus estimates by 6.3% on EPS and 0.9% on revenue.
• CURE thin-film technology successfully launched, with potential to generate up to $600 million in additional revenue from technology adders.
• Perovskite IP acquired from Oxford PV; a 1-GW pilot line is planned for 2027, targeting over 20% module efficiency.
• India bookings drove strength while U.S. bookings remain selective pending Section 232/301 trade-policy outcomes.
• Full-year 2026 guidance unchanged despite the beat, with Q2 expectations of 3.4-4.0 GW sales and $400-$500 million adjusted EBITDA.
• South Carolina finishing facility advancing, adding domestic content capacity that qualifies for Section 45X tax credits.

Management priorities

• Replicate CURE technology across the Series 6 and 7 fleet through 2028.
• Ramp the South Carolina finishing facility to increase domestic content and Section 45X eligibility.
• Launch the 1-GW perovskite pilot line in 2027 and evaluate scaling paths.
• Maintain a selective U.S. booking strategy while monitoring trade-policy decisions.
• Pursue IP licensing opportunities with companies such as Tesla and Trina.