First Solar (FSLR) Q3 2026 Earnings Call: Q&A Summary

Q: Why is there no urgency for developers to book 2029 volumes, and would First Solar change strategy to cut prices to secure that volume?

A: Mark Widmar explained that developers are currently focused on near-term project execution, interconnection challenges, and local opposition, while also waiting for clarity on Section 232 and FIAT guidance. Alex Bradley added that the company is not desperate to book 2029 volumes and prefers project-specific deals over frameworks, which naturally provides shorter-term visibility.

Q: Can you provide a preview of where conversations are landing for deals that started after the Section 232 announcement?

A: Mark Widmar stated that the company has increased pricing in negotiations since the announcement. He noted that price discovery is ongoing as customers evaluate options and seek board approvals, so it will take time for this volume to be executed.

Q: What is the outlook for pricing in the next quarter, and how does it compare to crystalline silicon pricing?

A: Mark Widmar noted that pricing varies by product type, with international modules at the low end and domestic Series 7 at the high end. Alex Bradley added that while crystalline silicon pricing is a benchmark for the next 12 to 24 months, it is not a reliable benchmark for the 2029-2030 timeframe.

Q: How effective has the government been in blocking importers, and what are the thoughts on potential Minimum Import Price increases?

A: Mark Widmar acknowledged the government's aggressive enforcement efforts, noting that while some importers have been blocked, others continue to take risks. He emphasized that the strategic intent of the administration is to foster U.S. manufacturing and energy independence.

Q: Is the sales force equipped to manage a shift toward a spot market-like strategy, and what is the pricing range being targeted?

A: Mark Widmar stated the sales team is capable of managing the shift to project-specific structures. Alex Bradley explained that moving away from framework agreements reduces inventory and working capital costs, providing better operational efficiency.

Q: What is the plan for the $1.9 billion in government grant receivables, and what is the liquidity outlook for the secondhand market?

A: Alex Bradley noted that the company is in discussions regarding potential sales of these credits but is balancing that against the option of filing for refundability to avoid discounts. He mentioned that interest in these credits has picked up significantly toward the end of the year.

Q: How far in advance are projects booked, and will there be enough visibility to decide the future of the Malaysia facility by the first half of 2027?

A: Mark Widmar explained that project-specific bookings can happen 18 months to 2 years before delivery. Alex Bradley confirmed that the company will have sufficient visibility by the first half of 2027 to make a decision on the Malaysia facility, which is currently running at low throughput.

Q: Is there a pricing construct for Series 7 relative to crystalline silicon, and is new U.S. capacity from other suppliers impacting the lack of urgency to book 2029?

A: Mark Widmar clarified that Series 7 is advantaged against PERC technology but disadvantaged relative to Topcon. He argued that customers are wary of new U.S. capacity that may not be truly free of Chinese supply chain dependencies.

Q: Is there a risk regarding potential import exclusions, and can you comment on the Swift Current lawsuit?

A: Mark Widmar stated that exclusions will be determined on a case-by-case basis by the government, with a focus on limiting their duration. Regarding the lawsuit, he declined to comment on specifics but noted the company will file a response shortly and stands by its limited liability warranty obligations.