First Solar’s Q2 Net Income Surges 205% YoY on Increased Module Sales

The company reported net sales of $811 million during the quarter


U.S.-based solar module manufacturer First Solar recorded a net income of $170.58 million in the second quarter (Q2) of 2023, an increase of 205% year-over-year (YoY) compared to $55.81 million.

The surge was primarily driven by the increase in the volume of modules sold during the April to June period, including the commencement of sales of the company’s next-generation Series 7 modules and an increase in the average selling price of modules.

The company reported net sales of $811 million during the quarter, an increase of 36% YoY compared to $621 million.

The company’s operating income in Q2 2023 was $169 million, an increase of 17% compared to $144.83 million during the same period last year.

While addressing the earnings conference call, Mark Widmar, CEO of First Solar, said, “The second quarter of the year continued the steady progress established in the first, as we ramped up production and delivery of our next-generation Series 7 modules, reinforced our leadership in thin film PV with a strategic acquisition, and continued our strong bookings. Moreover, continuing our commitment to sustainable long-term growth, we will invest up to $1.1 billion in building a new, fully vertically integrated manufacturing facility in the United States, our fifth in the country.”

The company recently announced plans for its new 3.5 GW fully integrated manufacturing facility in the U.S. with a $1.1 billion investment. The new facility is anticipated to begin production in the first half of 2026.

1H 2023

The company reported a net income of $213.14 million in the first half (1H) of 2023, compared to $12.55 million during the same period last year.

The company reported net sales of $1.36 billion in 1H 2023, registering a growth of 38% compared to $987.99 million in 1H 2022.

The company’s net operating income grew 114 % YoY to $186.52 million from $87.02 million.

The company also announced during the quarter a limited production run of the first bifacial module panels, utilizing an advanced thin film semiconductor. The module, which is undergoing field and laboratory testing, builds on the track record of First Solar’s successful Series 6 monofacial module platform. The company expects to begin commercial production by Q4 2023.

As of June 30, 2023, First Solar had approximately 13 GW of total installed nameplate module production capacity across all facilities. During 2023, the company expects to produce between 11.7 GW and 12.1 GW and sell between 11.8 GW and 12.3 GW of solar modules.

Recently, the company secured a five-year revolving credit and guarantee facility worth $1 billion. The facility includes up to $250 million for issuing letters of credit.

In May this year, the company acquired Evolar AB, a Sweden-based company focused on perovskite technology, for an initial payment of around $38 million.