First Solar authorizes buyback of up to $500 million amid lower 2026 outlook
Key Facts
First Solar’s board authorized a program on October 29 to repurchase up to $500 million of its common stock, according to a company filing with the U.S. Securities and Exchange Commission. The decision gives the company the option to return capital to shareholders, but does not require it to buy any shares or spend a specific amount. The company said the authorization reflects confidence in its long-term value, alongside a disciplined approach to capital allocation and continued investment in technology development and growth. The program has no expiration date and may be suspended or discontinued at any time. The decision comes as the company lowered its full-year outlook for sales volume, revenue and adjusted earnings, placing the authorization against a backdrop of weaker operating results than previously expected.
Third-quarter results showed a mixed picture, with profit rising as revenue declined. Net income was $571 million, or $5.30 per diluted share, compared with $456 million and $4.24 per share in the corresponding quarter of 2025. Adjusted EBITDA rose to $744 million from $671 million. By contrast, net sales were $1.23 billion, down 23% year over year. The company attributed the decline in sales mainly to lower volumes of modules sold to third parties, a factor that distinguishes quarterly profit growth from the revenue trend.
For the full year, First Solar lowered its 2026 sales-volume outlook to a range of 16.0 to 17.0 gigawatts, from 17.0 to 18.2 gigawatts previously. It also cut its net sales outlook to $4.6 billion to $4.9 billion, from $4.9 billion to $5.2 billion. Adjusted earnings expectations also fell to $2.55 billion to $2.75 billion, from $2.6 billion to $2.8 billion. These revisions link the buyback authorization to a more cautious operating picture than in the previous outlook, as the company continues to discuss investment and growth. The authorization announcement did not specify how much the company would actually spend on repurchases.
On the demand side, the company recorded about 1.4 gigawatts of additional gross U.S. bookings since its previous earnings call, at an average selling price of about $0.36 per watt, including technology adjustments, according to the call transcript. Most of this volume was under contract or in advanced negotiations, while prices and terms had largely been set before the Section 232 announcement. Chief Executive Mark Widmar said, "Section 232 represents a structural shift in the U.S. approach to solar manufacturing," adding that the company believes it is well positioned to benefit from the new environment. The bookings provide an indicator of sales activity, while the timing of the agreements limits the extent to which they can be viewed as a full response to the trade announcement.
First Solar ended the third quarter with contracts to sell 44.0 gigawatts of modules, with a total contract value of about $13.5 billion, according to its filing. Scheduled deliveries extend through 2030, and the company expects to recognize revenue over this period as ownership of the modules transfers to customers. The backlog provides visibility over several years into deliveries and contracted revenue, without changing the company’s announced 2026 outlook reduction. The difference between the long-term contract horizon and current-year estimates also underscores the importance of distinguishing contracted business from what the company expects to sell and deliver in a single year.
The company expects fourth-quarter module sales of between 4.3 and 5.3 gigawatts, including 3.4 to 4.3 gigawatts from U.S. manufacturing operations. It estimated adjusted EBITDA for the period at between $643 million and $843 million. Looking further ahead operationally, management said it expects to decide on the long-term path for its Malaysia facility in the first half of 2027. The timing of the decision sets a next milestone in assessing the company’s operational footprint, while fourth-quarter figures and the 2026 outlook remain the closest reference points for its performance in the coming period.