New York, February 25, 2026, 18:46 (EST) — Trading after the bell.
- First Solar shares dropped 13.6% Wednesday after the company issued a 2026 sales outlook that came in below expectations.
- The company pointed to tariff expenses and permitting holdups, citing a more challenging U.S. policy environment for customers.
- Next up: traders are watching for follow-through on Thursday, plus any signals on early-quarter shipments and the pace of tax credits.
First Solar, Inc. finished Wednesday’s regular session off 13.6%, settling at $210.12 following a steep slide earlier. After the bell, shares edged lower again, down another 0.17% to $209.77. (Investing)
The selloff throws guidance into sharp relief just as U.S. solar firms juggle unpredictable policy shifts, more trade tension, and a drag from slower federal signoffs. First Solar flagged a $125 million to $135 million tariff impact this year and noted that demand for certain Asia-made products is still tight, even though finishing work will start shifting to South Carolina in the fourth quarter. Citi’s Vikram Bagri described the setup as “a 2027 story”—catalysts are still somewhere down the road. (Reuters)
First Solar, headquartered in Tempe, Arizona, is projecting net sales for 2026 in the range of $4.9 billion to $5.2 billion, with adjusted EBITDA expected somewhere between $2.6 billion and $2.8 billion. Volume sold should land between 17.0 and 18.2 gigawatts, according to its latest earnings release. CEO Mark Widmar pointed to a “disciplined approach to contracting,” emphasizing “pricing and delivery certainty” as the company adapts to changes in its operating environment. (Business Wire)
Executives highlighted project bottlenecks that have delayed deliveries and left some factories running below capacity. The company noted it’s been operating at “a very low utilization rate” in certain locations, holding back until the impact of new tariffs becomes clearer. It also cited “federal permitting approval delays” affecting customers. (Reuters)
The company’s trade disputes picked up another layer. First Solar filed a petition with the U.S. International Trade Commission on Feb. 24, accusing several companies—including Canadian Solar and JinkoSolar—of patent infringement related to imported TOPCon solar products. (SEC)
Adjusted EBITDA—profit before interest, taxes and non-cash expenses—can be volatile, especially when one-time items hit. Here, investors focus on it since margins react fast to shifts in factory use and trading costs each quarter.
Another wildcard: Section 45X—the U.S. advanced manufacturing tax credit. First Solar relies on these credits to fuel cash flow while it adds new capacity. Its own expectations for quarterly timing now act as a short-term constraint on the broader narrative.
But the risks are easy to spot here. Should tariffs expand once more, or if permitting continues to lag as the spring build season approaches, First Solar might see longer periods of curtailment and steeper underutilization costs—conditions the market rarely forgives.
Bouncing off session lows, the stock is attracting buyers who apparently see potential for more gains ahead. What happens in options flows and what analysts are saying over the next 24 hours could shape direction, particularly if firms revisit targets or tariff-related forecasts.
Looking ahead to the next session and into next week, eyes are on whether Thursday’s action extends the selling or shows more stability, plus if management gives further color on tariff mitigation or the South Carolina timeline. The next concrete check comes down to how tightly First Solar sticks to the early-quarter cadence it outlined—and if fresh headlines on policy or permitting end up shifting the demand outlook once more.
