First Solar Inc

Q1 results strong; margins expand mainly from freight/tax mix - Revenue: $1.0B, +24% YoY (driven by +31% volume, partly offset by lower ASP mix from higher India deliveries). - Gross margin: 47% and expanded ~6 pp YoY. - Adjusted EBITDA: $520M (above Q1 preview high end $400–$500M), 50% EBITDA margin. - EPS (diluted): $3.22, +65% YoY; net income $347M.

Guidance unchanged for 2026; Q2 looks flat-to-stable margin despite cost tailwinds - Full-year 2026 guidance: unchanged. - Q2 outlook: 3.4–4.0 GW volumes sold and $400–$500M adjusted EBITDA. - Margin expectation: guided to remain around 7% full-year (ex-IRA benefit referenced by management); Q2 implies flattish margins because: - Malaysia/Vietnam utilization is expected lower in Q2 → underutilization charges headwind. - Tariff assumptions remain important; incremental benefit depends on whether additional tariffs are avoided/replaced.

Bookings/backlog: strong demand but selectively priced due to US policy uncertainty - Contracted backlog: 47.9 GW with aggregate transaction price $14.4B (deliveries through 2030, excluding technology adjusters). - In Q1, company sold ~3.8 GW; gross bookings ~1.7 GW; debookings 0.1 GW. - US utility-scale focus: ~1.4 GW booked since last call into key US market at ~$0.35/W inclusive of adjusters (management noted this is call-to-call; pricing discipline ongoing). - Management is selective on incremental US bookings pending: - Section 232 polysilicon derivatives decision and - FEOC rulemaking.