Why You Need To Pay Attention To First Solar Stock

At First Solar (FSLR), one part of the business stands out: the solar panels it has already agreed to sell to U.S. customers who want American-made content. That may be what the stock’s buyers are betting on. You may think of First Solar as just another solar stock in a slump, and the shares did lose 27.8% over the past twelve months while the S&P 500 returned 17.4%. Yet the company earned more in its latest four reported quarters than in the four before. That is the contradiction. So, how much of First Solar’s future sales are already signed?

First Solar Has $13.6 Billion Of Orders Already Signed

These signed orders are substantial. Management said on the July 30 call that First Solar ended June with 45.1 gigawatts of panels under contract. Those orders are worth $13.6 billion, or about 2.5 times the $5.38 billion of revenue the company reported over the past twelve months.

Most of that backlog is tied to where the panels are made. About 41 gigawatts of the total comes with some form of domestic content requirement, so those buyers need panels with U.S.-made content. Management also said its fully integrated U.S. factories remain substantially committed through 2028.

First Solar as a whole is already earning well. The company recorded a 32.5% net margin over the past twelve months, its highest in ten years.

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Is First Solar Still Winning Higher-Priced American Orders?

Yes, so far. Management said on July 30 that First Solar booked about 1.9 gigawatts of new U.S. orders between its two most recent calls. Those U.S. orders arrived at about $0.36 per watt, compared with about $0.20 per watt for its bookings in India during the first half of 2026.

Higher U.S. prices matter for a stock that looks cheap relative to its profits. First Solar trades at 10.6 times earnings, compared with 22.9 for the S&P 500. This price appears to treat today’s profits as unlikely to last.

The backlog provides an answer to that doubt for orders already signed, but not for new ones. Management said the policy environment continues to influence near-term customer activity. On the same call, management could not say when a decision would come in a pending trade investigation into polysilicon.

What Could Go Wrong For First Solar?

Customers ending contracts is one risk, and some did a year ago. Management said First Solar’s sales fell about 4% from a year earlier in fiscal Q2 2026, mainly because a year earlier the company had recorded revenue from customers ending their contracts.

Cash and costs are another pressure. Cash flowed out during the first half. First Solar’s operations used $360 million of cash in the first half of 2026, which was less than the $458 million used in the first half of 2025. Over the past twelve months, though, operations brought in $2.16 billion. Costs are rising as well. Management described a challenging environment of rising commodity costs and said the company carries about $30 million a quarter in costs from underused factories.

If more customers end their contracts, the backlog shrinks. If new U.S. orders slow down, that backlog is not refilled. So far, First Solar is earning well and has 45.1 gigawatts of signed orders. New U.S. orders still arrive at higher prices than in India, even as trade policy stays unsettled. First Solar’s backlog and its new U.S. bookings are the numbers to watch in its next report, expected on or around October 29, 2026.

Is Too Much Of Your Wealth Riding On One Stock?

A stock like First Solar can look very different depending on which part of the business you watch. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax.

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