• CEO Mark Widmar said the U.S. presidential election has created uncertainty for the solar industry.
• Solar companies are facing constraints on access to capital as investors wait to make financing decisions until the policy picture becomes clearer, Widmar said.

First Solar reported second-quarter results Tuesday that beat revenue and earnings expectations, but the solar technology company left its forecast for the year unchanged heading into the U.S. presidential election.

First Solar stock rose more than 1% in extended trading.

Here is what First Solar reported for the second quarter compared to what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $3.25 vs. $2.69 expected
• Revenue: $1.01 billion vs. $941.5 million expected

First Solar booked $1.01 billion in sales, a 24% increase over revenue of $810 million during the same period last year. Net income more than doubled to $349.4 million, or $3.25 per share, from $171 million, or $1.59 per share, a year ago.

CEO Mark Widmar cautioned that solar companies faced growing constraints on access to capital in the second quarter due to uncertainty around the U.S. presidential election.

The potential of Republicans sweeping the White House and Congress has raised concerns that tax credits under the Inflation Reduction Act will be affected, Widmar said.

Investors are waiting to make decisions until they have a clear view of what policy will look like after the election, the CEO said. The uncertainty has also caused developers to evaluate the risk and return of projects, he said. Some oil, gas, power and utility companies are also considering pivoting away from renewables to prioritize fossil fuels, he added.

First Solar reiterated its 2024 forecast, which calls for earnings of $13.00 to $14.00 per share on revenue of $4.4 billion to $4.6 billion in revenue. The company expects volume sold in the range of 15.6 to 16.3 gigawatts, and net cash of $600 million to $900 million.

Revenue, volume sold and net cash will likely come in at the bottom of the guidance range due to the cancellation of a 0.4 gigawatt contract by a European power and utility company, Chief Financial Officer Alexander Bradley said on an earnings call. The customer is obligated to pay a termination fee.

First Solar has added 3.6 gigawatts in net bookings so far in 2024. The company has an expected backlog of 75.9 gigawatts, with orders stretching through 2030, as utilities build out solar on expectations of a significant surge in power demand over the coming years.

Bradley said First Solar would be "highly selective in our approach to new bookings this year" given the uncertainty surrounding the election.

Widmar said utility-scale demand for renewables is expected to continue to grow regardless of the election outcome, due to the build out of data centers, the reshoring of manufacturing and cryptocurrency mining, among other factors.

"Critically, such demand is generally not dependent on policy," Widmar said. "Solar continues to demonstrate that in many U.S. locations, it is the lowest cost source of energy."