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First Solar Inc (NASDAQ:FSLR) presented its second quarter 2025 earnings results on July 31, highlighting stronger-than-expected performance and an improved outlook for the remainder of the year. Despite the positive results, the stock closed down 2.46% at $174.73 before gaining 2.58% in pre-market trading the following day.
Quarterly Performance Highlights
First Solar reported diluted earnings per share of $3.18 for Q2 2025, exceeding the high end of its previous forecast and beating analyst expectations of $2.66 by 19.55%. Net sales reached $1.097 billion, up from $845 million in Q1 2025 and $1.010 billion in Q2 2024, representing a 29.8% quarter-over-quarter increase and an 8.6% year-over-year improvement.
The company’s gross profit margin improved to 45.6% in Q2 2025 from 40.8% in Q1, though it remained below the 49.4% achieved in Q2 2024. Operating income rose to $362 million from $221 million in the previous quarter.
As shown in the following income statement highlights:
On the operational front, First Solar sold 3.6 GW of modules during the quarter, exceeding the midpoint of its previous forecast. Total (EPA:TTEF) production reached 4.2 GW, with U.S. facilities contributing 2.4 GW and international operations providing 1.8 GW.
The company’s manufacturing expansion continues to progress, with the Alabama factory ramping up and the Louisiana facility beginning its integrated production run, with plant qualification expected in October 2025.
Demand and Bookings
First Solar reported strong demand for its products, with 2.1 GW of new bookings in July 2025 alone, bringing its total backlog to 64.0 GW extending through 2030. This represents a substantial future revenue stream for the company.
The following chart illustrates the company’s expected module volume sold:
The company identified significant additional booking opportunities totaling 83.3 GW, with 20.1 GW classified as mid-to-late stage opportunities. Europe represents the largest potential market with 70.3 GW of total opportunities, followed by India with 12.6 GW and North America with 0.4 GW.
As shown in the breakdown of potential booking opportunities by region:
Market Conditions and Policy Environment
First Solar highlighted unprecedented load growth in the U.S. energy market as a key demand driver. According to FERC forecasts presented by the company, summer peak demand growth has accelerated dramatically from 23 GW in 2022 to 128 GW in 2024, representing a 228% increase.
The company also emphasized the speed advantage of utility-scale solar deployment compared to other energy sources, noting that the 32 GW of U.S. utility-scale solar installed in 2024 is equivalent to 32 nuclear reactors, 53 natural gas power blocks, or 427 small modular reactors (SMRs).
This market context is illustrated in the following slide:
The company also discussed the impact of the One Big Beautiful Bill Act (OBBB), which maintains key provisions of the Inflation Reduction Act while implementing new domestic content requirements. These policy measures are expected to support continued demand for U.S.-manufactured solar products.
Financial Position
First Solar maintained a strong balance sheet with $1.209 billion in cash and marketable securities as of Q2 2025, up from $897 million in Q1 2025 but down from $1.754 billion in Q2 2024. Total assets increased to $12.858 billion, up $741 million quarter-over-quarter and $1.844 billion year-over-year.
The company’s property, plant and equipment grew to $5.723 billion, reflecting ongoing investments in manufacturing capacity. Total stockholders’ equity reached $8.546 billion, an increase of $359 million from the previous quarter.
The following balance sheet highlights provide a detailed view of the company’s financial position:
Updated 2025 Guidance
Based on strong first-half performance and evolving market conditions, First Solar raised its full-year 2025 guidance for net sales to a range of $4.9 billion to $5.7 billion, up from the previous guidance of $4.5 billion to $5.5 billion.
The company narrowed its earnings per diluted share guidance to $13.50 to $16.50, compared to the previous range of $12.50 to $17.50, maintaining the same midpoint. Net cash balance guidance was significantly increased to $1.3 billion to $2.0 billion, up $1.0 billion at the midpoint from the previous forecast.
For the third quarter of 2025, First Solar expects module sales between 5.0 and 6.0 GW, with projected earnings per diluted share between $3.30 and $4.70.
The complete updated guidance is presented in the following slide:
The guidance update incorporates revised assumptions regarding tariffs, with the company now accounting for Section 232 tariffs on aluminum and steel imports into the U.S. at a rate of 50%, as well as indicative tariffs on imports from Malaysia (25%), India (26%), and Vietnam (20%) effective August 1, 2025.
Technology and Sustainability
First Solar reported positive results from its CuRe technology platform, with field data validating enhanced energy profiles and superior degradation rates compared to laboratory testing. The company also noted progress in its perovskite research and development, meeting internal initial stage efficiency, stability, and manufacturing metrics.
On the sustainability front, First Solar published its 2025 Corporate Responsibility Report, highlighting achievements including 5x greater energy ROI compared to China-made crystalline silicon panels, nearly doubled water recycling, and 95% material recovery from recycled panels.
Outlook and Strategic Position
First Solar’s Q2 2025 presentation portrays a company with strong fundamentals and positive momentum despite some challenges. The combination of robust demand, expanding production capacity, technological advancements, and supportive policy environment positions the company well for continued growth.
As summarized in the company’s key highlights:
While the stock’s initial negative reaction to the earnings release may reflect some investor concerns about narrowed EPS guidance or international tariff impacts, the fundamentals presented in the earnings slides suggest a company executing effectively on its strategic plan with substantial long-term growth potential in the rapidly expanding utility-scale solar market.
Full presentation:
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