First Solar shares fall after poor sales forecast amid policy uncertainties
On Wednesday, shares of First 'Solar' fell 12.8% and reached their lowest level since September last year. The company had forecast sales that were below Wall Street estimates due to uncertainty in the U.S. political environment as well as delays with permits under the Trump administration.
According to data compiled and analyzed by LSEG, the solar panel manufacturer said on Tuesday that it expects its 2026 net sales will be between $4.9 billion and $5.2 billion. This compares to an average analyst estimate of $6 billion.
In a Tuesday post-earnings call, executives said that they expect a total impact from tariffs of between $125 and $135 million for this year.
Solar industry is facing tariff pressures, a freeze on major project approvals, and an agenda that is focused on coal, oil, and nuclear energy, diverging from Joe Biden's green policies.
RBC Capital Markets analyst Christopher Dendrinos stated that the 2026 outlook was below expectations for incremental curtailment activities, but views this as a clearing-out event which positions it to recover volume next year, provided no additional tariffs were imposed.
The demand for the company's Series 6 solar modules, which are designed for "utility-scale" solar plants, and manufactured in Malaysia and Vietnam, is still constrained.
It will address this by opening a new U.S. Finishing Line?in South Carolina. Production is expected to start in the fourth quarter. This will?utilize? a portion of the front end from these Southeast Asian Facilities.
Dendrinos said that this would be a net positive, as it will 'lower First Solar’s tariff exposure. However, additional manufacturing capacity may continue to face pressure if tariffs remain.
The company anticipates that the move will improve freight efficiency, reduce the exposure to tariffs and increase the use of local materials which?will boost sales in the U.S. market.
Citi analyst Vikram Bâgri said: "First Solar's story is well known to be one of 2027, with a number of positive catalysts in the pipeline." (Reporting and editing by Vijay Kishore in Bengaluru, Dharna Baffna from Bengaluru)
(source: Reuters)
