First Solar, Inc. (FSLR Quick QuoteFSLR - Free Report) is seeking higher module prices under a changing U.S. trade framework, even as customer procurement decisions slow and near-term sales expectations decline.

On its third-quarter 2026 earnings call, executives outlined more selective contracting, revised full-year guidance and technology investments. Analysts pressed management on bookings timing, post-tariff pricing and cash deployment.

FSLR Seeks Higher Prices Amid Slower Bookings

CEO Mark Widmar said that the Section 232 proclamation strengthened the rationale for domestically manufactured solar modules. Management has raised pricing on new opportunities and early-stage negotiations, but buyers remain in price discovery.

Chief financial officer Alexander Bradley reported a 44-gigawatt backlog worth approximately $13.5 billion before technology adjusters. Recent U.S. gross bookings reached 1.4 gigawatts at roughly 36 cents per watt, with terms largely established before Section 232. Another 4 gigawatts remain subject to customer elections under earlier contracts.

Asked by Guggenheim Securities about newer discussions, Widmar declined to set a post-Section 232 price target. He stressed that U.S.-made Series 7 modules command different economics from imported products.

First Solar Shifts Toward Project-Specific Deals

Widmar said that developers increasingly prioritize near-term projects over procurement for 2029 and later. Financing, permitting obstacles, local opposition and higher battery costs are slowing commitments.

Responding to BNP Paribas, he described a prospective 2-gigawatt agreement disrupted by a state moratorium. CFO Bradley emphasized that the company is not compelled to rush into longer-dated bookings given existing commitments.

In a Goldman Sachs exchange, executives explained why project-specific contracts offer firmer delivery schedules than broad multiyear frameworks. Bradley said that this approach could reduce inventory, storage expenses and working-capital pressure.

FSLR Cuts 2026 Sales and Volume Expectations

First Solar lowered expected 2026 module volumes to 16-17 gigawatts from 17-18.2 gigawatts, and net sales to $4.6-$4.9 billion from $4.9-$5.2 billion. Adjusted EBITDA guidance fell to $2.55-$2.75 billion.

Bradley cited weaker India domestic demand, international Series 6 volumes and U.S. finishing sales. Fully domestic module sales expectations were unchanged. Fourth-quarter adjusted EBITDA is projected at $643 million-$843 million.

Third-quarter earnings of $5.30 a share surpassed the Zacks Consensus Estimate of $4.64, while revenues of $1.23 billion missed the $1.31 billion estimate. Gross margin expanded to approximately 58%, reflecting a richer U.S.-manufactured mix.

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote

First Solar Maps CuRe Rollout and Capacity

Widmar said that the first Series 7 CuRe conversion will begin at the India facility in the first quarter of 2027, ahead of broader U.S. deployment. India finished-module output is projected at 2.2-2.6 gigawatts next year.

The South Carolina finishing plant began its first production phase in the third quarter; its second phase is scheduled for a mid-2027 commercial launch. Management expects the facility to produce 2.2-2.5 gigawatts in 2027.

Meanwhile, the Ohio perovskite pilot line is on track for operational readiness in the first half of 2027. Widmar also flagged a first-half decision on whether Malaysia should run near 1.8 gigawatts annually or cease production.

FSLR Adds Buybacks but Guards Liquidity

Bradley said that the board approved a $500 million share repurchase authorization with no expiration, while maintaining its target net cash range of $1.5-$2 billion. Quarter-end net cash stood at $1.5 billion.

Management continues to prioritize technology development, manufacturing and potential acquisitions. With capital expenditures reduced to $600-$800 million for 2026, the company kept year-end net cash guidance at $1.7-$2.3 billion.

Asked by UBS about government credits, Bradley said that approximately $1.9 billion of grant receivables sat on the balance sheet. The company is weighing credit sales for earlier liquidity against seeking refunds without sale discounts.

First Solar Remains Disciplined on Commitments

Executives presented Section 232 as a longer-term opportunity, not an immediate cure for delayed customer decisions. Their emphasis remains on pricing, enforceable contracts and manufacturing execution.

Management expects sustained U.S. electricity demand from AI infrastructure and industrial growth, while acknowledging uncertain trade-rule implementation and project development timelines. The call reflected a deliberate stance toward those competing forces.

FSLR's Zacks Rank and Style Scores

FSLR carries a Zacks Rank #3 (Hold) at present, a neutral near-term signal. Its Value Score of A indicates comparatively attractive valuation characteristics, while the Growth Score of C is middle-ranked and the Momentum Score of F signals weak price-trend characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The VGM Score of C reflects a mixed combined profile rather than the stronger A or B grades emphasized by the Zacks framework. The Zacks Rank may change as analysts revise earnings estimates following the latest results.