First Solar Sees Record 2025 Profit, Guides Steady 2026 Sales
First Solar reported record 2025 earnings and set 2026 guidance projecting up to $5.2 billion in sales, underpinned by U.S. manufacturing expansion and federal production tax credits.
First Solar, Inc. posted net sales of $5.2 billion for 2025, up from $4.2 billion in 2024, as third-party module volumes climbed 24% year-on-year. Fourth-quarter sales reached $1.7 billion, modestly higher than the prior quarter on stronger module shipments.
Net income for the year rose to $1.53 billion, or $14.21 per diluted share, compared with $12.02 per share in 2024. In the fourth quarter alone, the company earned $4.84 per diluted share. Operating income for the year increased to nearly $1.6 billion, while gross profit expanded to $2.12 billion.
The U.S.-headquartered thin-film solar manufacturer ended 2025 with a gross cash balance of $2.9 billion and a net cash position of $2.4 billion, up sharply from $1.5 billion at the end of the third quarter. The increase was driven largely by proceeds from the sale of advanced manufacturing production tax credits under Section 45X of the Inflation Reduction Act framework, as well as operating cash flow, partially offset by capital spending on its Louisiana facility.
Adjusted EBITDA for 2025 came in at $2.36 billion, compared with EBITDA of $2.07 billion, reflecting addbacks for foreign exchange impacts, tax credit monetization discounts, start-up costs, and other items.
Looking ahead, First Solar guided 2026 net sales in a range of $4.9 billion to $5.2 billion, with module volumes between 17.0 GW and 18.2 GW. The company expects adjusted EBITDA of $2.6 billion to $2.8 billion and capital expenditures of $800 million to $1.0 billion. Year-end 2026 net cash is projected between $1.7 billion and $2.3 billion.
Gross margin guidance for 2026 is set at $2.4 billion to $2.6 billion, assuming between $2.10 billion and $2.19 billion in Section 45X tax credits and factoring in underutilization costs and production start-up expenses. First-quarter 2026 adjusted EBITDA is forecast at $400 million to $500 million, supported by anticipated tax credit generation of up to $400 million.
The outlook assumes continuity in the current U.S. policy environment, including trade measures and the implementation of the Inflation Reduction Act as amended in 2025. Management flagged the importance of permitting timelines and the ability to monetize tax credits as key variables.
Strategically, 2025 marked a milestone year with the commissioning of a new Louisiana manufacturing plant and a decision to establish an additional facility in South Carolina, reinforcing First Solar’s positioning as the largest U.S.-based photovoltaic manufacturer. Unlike many global competitors reliant on crystalline silicon supply chains centered in Asia, First Solar produces cadmium telluride thin-film modules through a vertically integrated domestic process.
The results come amid persistent global solar module oversupply and pricing pressure, particularly from Chinese manufacturers, while U.S. trade remedies and domestic content incentives continue to reshape supply chains. First Solar’s emphasis on pricing certainty and long-term contracted volumes has differentiated it in a volatile market environment.
With a strengthened balance sheet, rising earnings, and substantial embedded tax credit support, First Solar enters 2026 with financial flexibility as it continues expanding U.S. manufacturing capacity in a policy landscape still largely supportive of domestic clean energy production.
By Charles Kennedy for Oilprice.com
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