First Solar Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did FSLR Beat Earnings? Q1 2025 Results
First Solar delivered a mixed first quarter, with revenue of $844.57 million edging just ahead of the $844.52 million consensus, up 6.3% year over year, but earnings told a more troubled story: diluted EPS of $1.95 fell short of the $2.47 consensus by 21.01%, weighed down by a sharp seasonal drop in module sales volume from Q4 2024's $1.51 billion revenue pace and a negative operating cash flow of roughly $608 million driven by heavy capital spending and an inventory build. The real headline, however, was the company's dramatic guidance cut triggered by tariffs implemented in April 2025, which CEO Mark Widmar described as a "significant economic headwind," with full-year net sales guidance slashed to $4.50 billion–$5.50 billion from $5.30 billion–$5.80 billion and EPS guidance reduced to $12.50–$17.50 from $17.00–$20.00. Despite the turbulence, <a href="https://247wallst.com/investing/2025/04/22/sp-500-nysearca-spy-live-fslr-nasdaq-fslr-efx-nyse-efx-fly-in-market-bounce/">First Solar shares found footing</a> as Widmar emphasized the company's unique position as America's only fully vertically integrated solar manufacturer, with a 66.3 GW backlog underpinning its long-term demand outlook.
- Anticipated seasonal reduction in volume of modules sold drove Q1 revenue decline
- Capital expenditures for Louisiana manufacturing facility drove cash balance decline
- Inventory build-up to meet contracted commitments in back half of year
- Section 45X advanced manufacturing production credits under the IRA
- Net bookings of 0.7 GW YTD with average selling price of 30.5 cents per watt
“Despite the near-term challenges presented by the new tariff regime, we believe that the long-term outlook for solar demand, particularly in our core U.S. market, remains strong, and that First Solar remains well-positioned to serve this demand.”
First Solar CEO, on the earnings call
Forward Guidance & Outlook
First Solar substantially revised its full-year 2025 guidance downward to reflect the expected impact of new tariffs implemented in April 2025. Net sales guidance was lowered to $4.5B–$5.5B from $5.3B–$5.8B. Earnings per diluted share guidance was cut to $12.50–$17.50 from $17.00–$20.00. Operating income was reduced to $1.45B–$2.00B from $1.95B–$2.30B. Gross margin guidance fell to $1.96B–$2.47B from $2.45B–$2.75B. Operating expenses remained unchanged at $470M–$510M. Net cash balance was lowered to $0.4B–$0.9B from $0.7B–$1.2B. Capital expenditures were reduced to $1.0B–$1.5B from $1.3B–$1.5B. Volume sold guidance declined to 15.5–19.3 GW from 18.0–20.0 GW. For Q2, the company expects module sales of 3.0–3.9 GW, Section 45X tax credits of $310M–$350M, and EPS of $2.00–$3.00. Full-year guidance assumes $95–$220M of ramp and underutilization costs and $1.65–$1.7B of Section 45X tax credits.
FSLR YoY Financials
Figures from SEC filings and company reports. Not investment advice.