U.S.-based solar module manufacturer First Solar reported a revenue of $1.1 billion in the second quarter (Q2) of 2025, an 8.6% year-over-year (YoY) increase from $1.01 billion.

The company beat analyst expectations for revenue by 8.58%.

First Solar has attributed the revenue growth to an increase in module sales to third parties.

The rise in revenue was partially offset by a change in Section 45X credit valuation under the Inflation Reduction Act. First Solar sold $312 million of Section 45X tax credits generated during 2025 for cash proceeds of $296 million and recognized a loss of $16 million on the transaction.

It said that the rise in revenue was also partially offset by increased detention and demurrage charges, as well as higher core costs associated with a sales mix weighted towards U.S.-produced modules.

The company recognized a $13 million reduction to the carrying value of the remaining credits generated through the second quarter based on expected sales of the credits to third parties.

Its net profit in Q2 2025 stood at $341.87, a 2.1% drop from $349.36 in the same quarter of the previous year.

The company’s earnings per share (EPS) came in at $3.18 in Q2 2025 compared to $3.25 in Q2 2024, beating analyst expectations by $0.50.

First Solar said it produced 4.2 GW of modules in Q2, with 2.4 GW of modules made from its U.S. facilities and 1.8 GW of modules from its international facilities.

1H Results

In the first half (1H) of 2025, First Solar reported a revenue of $1.94 billion, a 7.5% jump from $1.8 billion in 1H of 2024.

Its net profit stood at $551.4 million, a 5.8% YoY drop from $585.97 million.

EPS came in at $5.13 compared to an EPS of $5.45 in the same quarter of the previous year.

First Solar announced that it is ramping up capacity additions in its Alabama facility.

It said that the equipment installation and commissioning at its Louisiana site are completed. “We have begun the integrated production run and expect to complete plant qualification in October. Once fully ramped, this facility is projected to boost our U.S. nameplate manufacturing capacity to over 14 GW by 2026, “said Mark R. Widmar, CEO and Director at First Solar.

First Solar said the new reconciliation legislation has been more beneficial for the solar industry than the passage of the Inflation Reduction Act (IRA) of 2022.

It stated that the new law addresses one of the biggest loopholes under the IRA, and it will make it difficult for Chinese-linked companies to benefit from U.S. subsidies or incentives under the IRA.

Widmar added that the provisions in the reconciliation legislation relating to the new technology-neutral investment and production tax credits potentially incentivize near-term demand for new bookings with deliveries through the end of this decade.

First Solar hopes that by leveraging existing overseas capital assets and its skilled workforce for front-end production, combined with new back-end factories in the U.S., it could enable additional near-term foreign entity of concern-free supply for the U.S. market.

The company added that the reconciliation legislation could also improve the gross margin profile of its sales by reducing tariff charges and logistics costs associated with importing finished modules.

Widmar said the imposition of antidumping and countervailing duties (AD/CVD) has been effective in addressing illegal trade practices.

He added that imports of cells and modules from Cambodia, Malaysia, Thailand, and Vietnam, which were subject to the Solar 3 AD/CVD case, significantly decreased in the January through May 2025 period as compared to the equivalent period in 2024.

Widmar said that the Department of Commerce’s decision to initiate a Section 232 investigation into the imports of polysilicon and its derivatives could also implicate downstream pricing for products such as wafers, cells, or modules. He added that it could create uncertainty for those relying on Chinese-tied crystalline silicon procurement.

Guidance 2025

First Solar has forecasted net sales guidance to be between $4.9 billion and $5.7 billion. These sales would include an unchanged range of U.S.-manufactured volume and India-manufactured volumes sold.

The company said it has revised its guidance to incorporate the previously announced reciprocal tariff rate of 26% for India and does not incorporate the President’s recent announcement of a 25% rate. It also does not include the unquantified penalty for India’s purchase of military equipment and energy from Russia.

First Solar’s volume sold outlook for U.S.-manufactured modules remains unchanged at 9.5 GW to 9.8 GW. Its forecast for sales from the India manufacturing entity remains unchanged as well. It has forecasted international module sales of 7.2 GW to 9.5 GW, with total module sales ranging from 16.7 GW to 19.3 GW.

It added that the production and investment tax credits, which support projects safe harbored by the end of 2024 and require commissioning by year-end 2028, remained unchanged by the new legislation.

In Q1 2025, First Solar a revenue of $844.57 million in Q1 2025, a 6.4% YoY increase from $794.11 million. The revenue was in line with analysts’ expectations. The company lowered its sales guidance for the remainder of 2025 due to new tariffs and ongoing policy uncertainties. The company’s EPS came in at $1.95 compared to $2.20 in the same quarter the previous year. The EPS missed expectations by $0.52.