First Solar Inc
NASDAQ:FSLR
First Solar Inc
First Solar Inc., a stalwart in the renewable energy sector, is renowned for its pioneering approach to photovoltaic technology. Founded in 1999, the company has carved out a unique niche by focusing on the development of thin-film solar modules that leverage cadmium telluride (CdTe) as the primary semiconductor. This distinct technological edge enables First Solar to offer panels that are highly efficient in energy conversion, particularly in hot and humid climates where traditional silicon-based panels might falter. The company operates a vertically integrated business model, handling everything from module manufacturing to the development and maintenance of utility-scale solar power plants. This end-to-end control not only ensures high-quality production standards and cost-effective operations but also allows First Solar to stay at the forefront of technological advancements.
Revenue generation for First Solar is multi-faceted. Primarily, the company earns by selling its advanced solar panels to utilities, commercial and industrial customers, and solar project developers worldwide. Moreover, First Solar capitalizes on its expertise through long-term service agreements, offering operations and maintenance for solar installations that ensure peak performance and longevity. With the global shift towards clean energy and increased legislative support for renewables, First Solar finds itself in a favorable position. Its distinctive technology, commitment to sustainability, and strategic adaptability not only anchor its financial performance but also bolster its reputation as a leader in the clean energy revolution. First Solar's ability to navigate complex market dynamics while maintaining a focus on innovation reflects the robustness of its business model and its commitment to shaping a sustainable energy future.
First Solar Inc., a stalwart in the renewable energy sector, is renowned for its pioneering approach to photovoltaic technology. Founded in 1999, the company has carved out a unique niche by focusing on the development of thin-film solar modules that leverage cadmium telluride (CdTe) as the primary semiconductor. This distinct technological edge enables First Solar to offer panels that are highly efficient in energy conversion, particularly in hot and humid climates where traditional silicon-based panels might falter. The company operates a vertically integrated business model, handling everything from module manufacturing to the development and maintenance of utility-scale solar power plants. This end-to-end control not only ensures high-quality production standards and cost-effective operations but also allows First Solar to stay at the forefront of technological advancements.
Revenue generation for First Solar is multi-faceted. Primarily, the company earns by selling its advanced solar panels to utilities, commercial and industrial customers, and solar project developers worldwide. Moreover, First Solar capitalizes on its expertise through long-term service agreements, offering operations and maintenance for solar installations that ensure peak performance and longevity. With the global shift towards clean energy and increased legislative support for renewables, First Solar finds itself in a favorable position. Its distinctive technology, commitment to sustainability, and strategic adaptability not only anchor its financial performance but also bolster its reputation as a leader in the clean energy revolution. First Solar's ability to navigate complex market dynamics while maintaining a focus on innovation reflects the robustness of its business model and its commitment to shaping a sustainable energy future.
Record Sales: First Solar delivered record sales of 17.5 gigawatts of modules in 2025, reaching $5.2 billion in net sales at the top end of guidance and up 24% year-over-year.
Strong Cash Position: The company ended 2025 with $2.9 billion in gross cash and $2.4 billion in net cash, both above guidance.
Guidance Issued: 2026 net sales are guided between $4.9 billion and $5.2 billion, with adjusted EBITDA expected to be $2.6–2.8 billion.
Gross Margin Outlook: 2026 gross margin is expected between $2.5–2.6 billion (about 49.5%), boosted by substantial Section 45X tax credits.
Selectivity in Bookings: The company is taking a disciplined, selective approach to new contracts amid ongoing policy, trade, and regulatory uncertainty.
Capacity Expansion: U.S. manufacturing is ramping up, with a new South Carolina finishing facility expected to start production in late 2026 and a focus on advanced thin-film and perovskite technologies.
Tariff & Cost Headwinds: Tariffs, warehousing, and underutilization costs continue to pressure margins, especially for international operations running at low utilization.
IP Enforcement: Active enforcement of patents and new legal actions are underway to protect First Solar’s technology and market position.
