First Solar holds $13.6 billion in signed orders, a figure that stands in sharp contrast to a stock that has fallen 27.8% over the past twelve months. While the S&P 500 returned 17.4% in the same period, the company’s earnings have grown, raising questions about whether the market is undervaluing its domestic manufacturing position. The core of this discrepancy lies in the volume of panels already contracted for delivery to U.S. customers who require American-made content.
Management stated on the July 30 earnings call that the company ended June with 45.1 gigawatts of panels under contract. These orders represent approximately 2.5 times the $5.38 billion in revenue First Solar reported over the past twelve months. The bulk of this backlog is tied to domestic production, with about 41 gigawatts carrying some form of domestic content requirement. The company’s fully integrated U.S. factories remain substantially committed through 2028, securing a long-term production schedule.
The financial performance reflects this secured demand. First Solar recorded a 32.5% net margin over the past twelve months, its highest in ten years. Despite this profitability, the stock trades at a significant discount to the broader market. First Solar’s valuation sits at 10.6 times earnings, compared with 22.9 for the S&P 500, suggesting investors may be pricing in a lack of durability for current profit levels.
New orders continue to arrive at premium prices in the United States. Management reported booking about 1.9 gigawatts of new U.S. orders between its two most recent calls, priced at approximately $0.36 per watt. This compares to about $0.20 per watt for bookings in India during the first half of 2026. The price differential highlights the value of domestic content in a market where policy remains a key driver of customer activity.
Risks remain tied to customer behavior and trade policy. In fiscal Q2 2026, sales fell about 4% from a year earlier, largely because the prior year included revenue from customers ending contracts. Cash flow has also tightened, with operations using $360 million in the first half of 2026, though this was an improvement from the $458 million used in the first half of 2025. Over the past twelve months, operations generated $2.16 billion in cash. Management noted a challenging environment of rising commodity costs and cited about $30 million per quarter in costs from underused factories.
The company faces uncertainty regarding a pending trade investigation into polysilicon, with management unable to specify when a decision will be made. If new U.S. orders slow or more customers terminate contracts, the backlog may shrink faster than it is replenished. Investors will look to the next report, expected on or around October 29, 2026, for updates on these signed orders and new bookings.