First Solar Inc

Equity Research 30 July 2026 | 11:20PM EDT

First Solar Inc. (FSLR) Another strong quarter as demand remains robust despite continued policy uncertainty; Buy

FSLR 12m Price Target: $310.00 Price: $206.01 Upside: 50.5% BUY Brian Lee, CFA FSLR’s 2Q26 results exceeded expectations on EBITDA and EPS, | Goldman Sachs & Co. LLC driven partially by IEEPA tariff refunds that boosted gross margins. Tyler Bisset, CFA While 3Q26 volumes and EBITDA guidance was slightly softer than | Goldman Sachs & Co. LLC we were anticipating, management reiterated its FY2026 guidance. Importantly, FSLR realized relatively strong demand during the Keshav Choudhary | Goldman Sachs India SPL quarter as well as some improvement in pricing on new bookings ($0.36/w on US bookings vs $0.35/w last quarter), and remains in discussions with multiple GWs of deals that expect to close by the Key Data _____________________________________ Market cap: $22.1bn end of the year. We highlight this robust demand is despite Enterprise value: $20.1bn 3m ADTV: $596.8mn continued uncertainty regarding the ongoing Section 232 United States investigation, which we view as a positive signal to underlying Americas Clean Energy M&A Rank: 3 demand within the utility-scale solar market. We reiterate our Buy GS Forecast __________________________________ rating, with more details on our takeaways from the quarter here 12/25 12/26E 12/27E 12/28E

within. Revenue ($ mn) New Revenue ($ mn) Old 5,219.4 5,219.4 5,115.4 4,996.7 5,834.5 5,834.5 6,704.4 6,704.4 EBITDA ($ mn) 2,126.1 2,547.3 3,174.7 3,783.5 EBIT ($ mn) 1,596.9 1,965.9 2,567.7 3,148.3 Implications EPS ($) New EPS ($) Old n Strong 2Q26 margins support EBITDA and EPS beat. FSLR P/E (X)

reported 2Q26 revenue of $1.06bn, which was within Dividend yield (%) 0.0 0.0 0.0 0.0 Net debt/EBITDA (X) (1.1) (0.8) (0.9) (1.2) GSe/FactSet consensus of $1.10bn/$1.06bn, with shipments of 6/26 9/26E 12/26E 3/27E ~3.7GW in-line with our view of ~3.8GW and guidance of EPS ($) GW-4.0GW. Importantly, gross margins of ~57% increased GS Factor Profile ______________________________ from ~47% in 1Q26 and was above GSe of 41.9% due to the Growth

realization of IEEPA tariff benefits (~8% uplift), higher Financial Returns

45X-eligible mix, and lower freight costs. We note that the Multiple

company operated its US facilities at 98% utilization during the Integrated quarter. As a result of the higher margins, the company reported adj. EBITDA of $644mn, which exceeded our view of $480mn Percentile 20th 40th 60th 80th 100th

and guidance of $400mn-$500mn, as the company realized adj. FSLR relative to Americas Coverage

EBITDA margins of 61% (vs. GSe of 43.7%). Similarly, FSLR FSLR relative to Americas Clean Energy

reported 2Q26 adj. EPS of $3.92, ahead of GSe/consensus of Source: Company data, Goldman Sachs Research estimates. See disclosures for details. $3.23/$2.99.

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Goldman Sachs First Solar Inc. (FSLR)

First Solar Inc. (FSLR) Balance Sheet ($ mn) _______________________________________ BUY Rating since Sep 7, 2022 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 2,803.5 2,056.4 2,835.4 4,588.6 Accounts receivable 1,294.0 2,046.2 2,450.5 2,815.9 Inventory Ratios & Valuation __________________________________________ Other current assets 1,194.5 1,573.3 1,964.1 2,251.1 12/25 12/26E 12/27E 12/28E Total current assets 6,028.8 6,013.0 7,593.0 9,858.3 P/E (X) Net PP&E 5,675.8 5,957.4 6,250.4 6,515.2 EV/EBITDA (X) 8.4 7.9 6.2 4.8 Net intangibles EV/sales (X) 3.4 3.9 3.4 2.7 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) 5.9 (1.2) 3.5 7.8 Other long-term assets 1,585.6 2,398.2 3,172.0 3,613.0 EV/DACF (X) Total assets 13,321.3 14,398.7 17,045.6…