First Solar Inc. reported fourth‑quarter 2025 revenue of $1.68 billion, an 11.3% year‑over‑year increase from $1.51 billion in Q4 2024. Diluted earnings per share were $4.84, falling $0.38 short of the consensus estimate of $5.22. The miss reflects a mix shift toward non‑U.S. modules that do not qualify for Section 45X tax credits, higher tariff and warehousing costs, and ongoing supply‑chain constraints at the Alabama plant.
Full‑year 2025 results showed net sales of $5.20 billion, up 24% from $4.20 billion in 2024, and diluted EPS of $14.21, up from $12.02. Gross margin contracted to 41% from 44% the prior year, largely due to the lower‑margin mix of international modules and increased tariff expenses. The company’s operating leverage remained strong, but the margin squeeze signals pricing pressure in the global market.
For 2026, First Solar guided net sales of $4.90 billion to $5.20 billion, well below analyst expectations of $6.09 billion to $6.12 billion. Adjusted EBITDA was projected at $2.60 billion to $2.80 billion. Management cited a shift to non‑U.S. modules, supply‑chain challenges, and slower international volume as the primary reasons for the downward revision. The guidance indicates a cautious outlook for demand and a continued focus on U.S. manufacturing.
The company highlighted its expanding U.S. capacity, noting that the Louisiana facility began production in July 2025 and was fully commissioned in the second half of 2025. A new plant in South Carolina is slated to start operations in the last quarter of 2026. CEO Mark Widmar said, "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. As we navigated a rapidly evolving environment, we maintained a disciplined approach to contracting and remained anchored in our core principle of pricing and delivery certainty, a key differentiator that our customers value." Chief Manufacturing Officer Kuntal Kumar Verma added, "This is, beyond doubt, one of the most advanced solar manufacturing facilities in the world and it represents the very best of American manufacturing innovation. Along with its sister facilities in Ohio and Alabama, this factory demonstrates how AI can be harnessed to help American factory workers reach their full potential. Our fleet offers proof that AI can help realize productivity gains that allow us to out‑innovate the competition and run our operations smarter, better, and faster."
Investors reacted negatively to the guidance miss, with analysts revising their outlooks and cutting price targets. The market focused on the significant shortfall in 2026 revenue expectations and the implications of the mix shift and supply‑chain constraints for future growth.
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