FSLR · 10-Q · 2026Q3 · Full report

Supply Chain Commitments

FIRST SOLAR, INC. · 2026-10-29 · Importance 40 · Surprise 42 · In source text

First Solar expects to commit significant working capital to raw materials used in module manufacturing and says delays or failures in obtaining materials that meet its quality, quantity, and cost requirements could raise costs or disrupt production. The company has long-term supply agreements for specified minimum volumes of substrate glass for its PV solar modules. Certain agreements can be terminated for payments that aggregate up to approximately $300 million as of September 30, 2026, with those amounts declining over the remaining supply periods. First Solar has also made, and may make, advance payments to strategic suppliers to secure needed raw materials.

Key facts

• As of September 30, 2026, termination payments for certain substrate-glass supply agreements totaled up to approximately $300 million and decline over the remaining supply periods. source
• First Solar has long-term supply agreements for specified minimum volumes of substrate glass for its PV solar modules. source
• First Solar may make advance payments to strategic suppliers to secure raw materials needed for module manufacturing. source
• First Solar employs logistics contract structures that provide additional consideration if logistics-service costs, excluding detention and demurrage, exceed defined thresholds. source
• First Solar may extend shipping lead times, use its U.S. distribution-center network to mitigate logistics costs, and expects manufacturing expansions to bring production closer to customer demand and further reduce ocean-freight exposure. source

Impact estimates