First Solar Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did FSLR Beat Earnings? Q4 2025 Results
First Solar delivered a mixed fourth quarter for 2025, posting revenue of $1.68 billion, up 11.2% year-over-year and ahead of the $1.58 billion consensus by 6.29%, while earnings per share of $4.84 fell short of the $5.15 estimate by 6.02%. The top-line strength was driven primarily by higher module volumes, with full-year net sales climbing to $5.22 billion from $4.21 billion in 2024, supported by a 24% increase in third-party module shipments. Operating income for the quarter reached $547.92 million, reflecting improved gross margins and robust throughput from its expanding U.S. manufacturing footprint, including the newly commissioned Louisiana facility. Still, growing investor scrutiny over a shrinking order backlog and the eventual phase-out of Section 45X tax credits between 2030 and 2033 has added pressure to the stock, with analysts at Barclays and Freedom Capital cutting price targets following the results. Looking ahead, First Solar guided 2026 net sales of $4.90 billion to $5.20 billion, with <a href="https://247wallst.com/investing/2026/01/08/supreme-court-showdown-2-stocks-poised-for-a-trump-tariff-triumph/">the current U.S. policy environment</a> remaining a key assumption underpinning its outlook.
- 24% increase in third-party module volume drove full year 2025 net sales growth
- Increased volume of modules sold drove Q4 sequential revenue increase
- Section 45X advanced manufacturing production tax credit sales boosted cash position
- Strong operating cash flows contributed to net cash balance improvement
“Our growth journey continued into 2025, with the commissioning of our new Louisiana factory and our decision to establish a new facility in South Carolina.”
First Solar CEO, on the earnings call
Forward Guidance & Outlook
For 2026, First Solar guided net sales of $4.9 billion to $5.2 billion, with volume sold of 17.0 GW to 18.2 GW. Gross margin is expected at $2.4 billion to $2.6 billion, and Adjusted EBITDA at $2.6 billion to $2.8 billion (reflecting approximately $213 million of addbacks for share-based compensation, Section 45X tax credit discounts, underutilization, and production start-up expenses). Operating expenses are guided at $610 million to $635 million. Capital expenditures are expected at $0.8 billion to $1.0 billion, with year-end net cash of $1.7 billion to $2.3 billion. The guidance assumes $2.10 billion to $2.19 billion of Section 45X tax credits, underutilization costs of $115 million to $155 million, and production start-up expense of $110 million to $120 million. For Q1 2026, module sales are expected between 3.4 GW and 4.0 GW, with Section 45X tax credits between $330 million and $400 million, resulting in Q1 Adjusted EBITDA of $400 million to $500 million. The outlook assumes the current U.S. policy environment persists, including implications of the IRA as amended by the One Big Beautiful Bill Act of 2025.
FSLR YoY Financials
Figures from SEC filings and company reports. Not investment advice.