U.S.-based module manufacturer First Solar’s net sales in the fourth quarter (Q4) of 2025 rose 11.1% year-over-year (YoY) to $1.68 billion from $1.51 billion.

Net income grew 32.5% YoY to $520.88 million from $393.12 million, aided by improved sales performance.

Earnings per share (EPS) rose to $4.84 from $3.65 in the same quarter of the previous year but 6.3% below analysts’ estimates.

Apart from higher module sales, the company attributed its performance to a greater U.S. manufacturing mix benefiting from Section 45X tax credits under the Inflation Reduction Act, lower freight costs, and the resolution of prior supply chain disruptions at its Alabama facility.

“We monetized $0.8 billion of 2025 Section 45X tax credits in the fourth quarter and $1.4 billion during the full year. Notably, in January 2026, we also received $118 million for 2024 Section 45X tax credits, where we elected a direct pay option in our 2024 tax return filed in October of 2025,” stated Alexander Bradley, Chief Financial Officer at First Solar.

He added that First Solar’s various benefits were partially offset by ramp and underutilization costs for its Louisiana facility, a higher proportion of sales into the Indian market, and termination amounts recognized in Q3 related to the breach of contracts by British Petroleum affiliates.

In Q3, First Solar’s revenue rose 79.6% YoY to $1.59 billion from $887.67 million.

Full Year 2025

First Solar reported net sales of $5,22 billion in 2025, increasing 24.1% YoY from $4,21 billion.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were $2.07 billion.

Net income stood at $1.53 billion, an 18.3% YoY growth from $1.29 billion.

EPS came in at $14.21, compared to $12.02 in 2024.

2026 Outlook

First Solar expects net sales ranging from $4.9 billion to $5.2 billion in 2026, compared with analyst estimates of $6.1 billion.

It expects a gross margin of $2.5 billion to $2.6 billion (approximately 49.5%). This includes $2.1 billion to $2.19 billion from Section 45X tax credits of the Inflation Reduction Act. Selling, general, and administrative expenses are projected to range from $215 million to $225 million.

The company expects multiple near-term cost pressures.

It expects tariff costs of $155 million to $175 million from tariffs on imported materials and finished products and $115 million to $155 million in expenses due to the underutilization of its Malaysia and Vietnam facilities resulting from the ongoing antidumping (AD)/countervailing duties (CVD) tariffs and potential Section 232 tariffs. The curtailment of operations in Southeast Asia has also resulted in approximately $200 million in elevated warehousing costs.

Most of the benefits to the average selling price from CuRe module-related pricing are expected to materialize only between 2027 and 2028. First Solar continues to rely significantly on glass imports, increasing its expenses. The South Carolina facility is projected to add start-up costs of $110 million to $120 million. The company will also spend approximately $100 million on perovskite research and development (R&D), increasing the total R&D costs to between $285 million and $290 million. These expenses are expected to increase the total operating costs to a range of $610 million to $635 million in 2026.

Mark Widmar, CEO and Director at First Solar, stated that despite significant direct and indirect tariff impacts, the environment remains favorable. “In contrast, in our view, headwinds beyond reciprocal tariffs and commodity cost increases continue to build for the crystalline silicon industry, a combination of tighter trade enforcement, potential retroactive tariffs, pending Section 232 actions, expanding foreign entities of concerns or Foreign Entity of Concern (FEOC) restrictions and greater intellectual property enforcement is increasing cost, timing and compliance risk for developers relying on crystalline silicon products with ties to China.”

With respect to trade, the Trump administration has withdrawn its appeal against the U.S. Court of International Trade ruling and the auction litigation requiring the retroactive collection of previously suspended AD/CVD tariffs.

“If this ruling is maintained, which appears increasingly likely, mounting contingent liabilities for AD/CVD duties associated with this unlawful two-year moratorium could represent an as of yet unrealized material financial impact on those foreign producers that relied on it,” Widmar said.

The company expects its adjusted EBITDA to be between $2.6 billion and $2.8 billion, and its capital expenditure to be between $0.8 billion and $1 billion.

Operational Updates

From October 2025 to date, First Solar secured gross solar module bookings of 2.3 GW. This excludes the domestic India volume and 100 MW of low-bin inventory clearance.

The company booked 1 GW capacity in the U.S. utility-scale market at an average selling price of $0.364/W, inclusive of applicable adjusters.

In 2025, First Solar achieved module sales of 17.5 GW.  It secured 7.4 GW of gross bookings and recorded 8.3 GW of debookings.

First Solar delivered its first CuRe semiconductor modules to customers in the first half (1H) of 2025. It also launched its perovskite development line at the Perrysburg campus, reaching full in-line processing capabilities in Q3.

First Solar supports the Department of Commerce’s preliminary CVD determinations issued as part of the investigation into India, Indonesia, and Laos.

The company said its technology strategy focuses on two thin-film pillars. The first involves executing a phased rollout of its CuRe platform, beginning with the permanent conversion of its Ohio lead line in Q1 to enhance the performance and competitiveness of its Series 6 modules, followed by deployment across its Series 7 fleet.

First Solar said it plans to onshore the finishing of the Series 6 modules, which are currently being produced at its international factories, by adding U.S. finishing capacity with a new facility in South Carolina. Production from the South Carolina facility is expected to begin in Q4 2026 and ramp up through 1H 2027.

The second focus pillar involves developing next-generation thin-film semiconductors capable of commercial-scale deployment in utility-scale applications while potentially expanding into new market segments.

First Solar recently announced a patent licensing agreement with Oxford Photovoltaics that provides it with access to the latter’s issued patents and pending patent applications.

In January this year, the U.S. Patent and Trademark Office director rejected three separate review applications filed by JinkoSolar, Mundra Solar, and Canadian Solar in 2025, seeking to invalidate First Solar’s technology patents, covering methods of manufacturing TOPCon crystalline silicon solar cells.