First Solar shares fall after weak sales forecast amid policy uncertainties

First Solar shares fell 16.7% on Wednesday in premarket trade after the company predicted annual sales below Wall Street expectations due to uncertainty and delays caused by the Trump administration's U.S. policies.

According to LSEG data, the'solar 'panel manufacturer expects its net sales in 2026 to range between $4.9 and $5.2 billion. This compares to an average analyst estimate of $6 billion.

Solar industry is facing tariff pressures and a halt on major project approvals under the current administration. This is part of a new agenda that focuses on coal, oil, and nuclear energy, diverging from Joe Biden's green policies.

First Solar executives stated in a Tuesday post-earnings conference call that the company anticipates a total impact on tariffs of between $125 and $135 million this year.

RBC Capital Markets analyst Christopher Dendrinos stated that the 2026 outlook was below expectations for incremental curtailment activities, but sees it as a clearing-out event which positions the company 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 plants and manufactured in Malaysia and Vietnam, remains constrained.

First Solar is addressing this issue by opening a new U.S. finishing line in South Carolina. Production will begin in the fourth quarter and will use a portion of these Southeast Asian facilities.

The company anticipates that the move will optimize freight, tariffs, and domestic content in order to?sell incremental products into the U.S. Domestic market.

Citi analyst Vikram Bâgri said: "First Solar is well understood as a story for 2027 with several positive catalysts in the pipeline." (Reporting and editing by Vijay Kishore in Bengaluru, with Pooja menon reporting from Bengaluru)

(source: Reuters)