Financial Data and Key Metrics Changes - The company recorded 3.6 gigawatts of module sales in Q2 2025, exceeding the midpoint of previous forecasts [4] - Q2 earnings per diluted share reached $3.18, above the high end of guidance [4] - Gross margin for the quarter improved to 46%, up from 41% in Q1 [36] - Total balance of cash, cash equivalents, and marketable securities increased to $1.2 billion, up by approximately $300 million from the prior quarter [41] Business Line Data and Key Metrics Changes - Manufacturing output was 4.2 gigawatts in Q2, with 2.4 gigawatts from U.S. facilities and 1.8 gigawatts from international facilities [4][5] - The contracted backlog at the end of Q2 stood at 61.9 gigawatts, valued at $18.5 billion [29] - The company recognized 6.5 gigawatts in sales through Q2, with 0.9 gigawatts of gross bookings recorded in the first half of the year [28] Market Data and Key Metrics Changes - The company noted a strong demand for U.S. manufactured products, despite facing an under allocation of Series six production from Malaysia and Vietnam [32] - The total pipeline of mid to late-stage booking opportunities remains strong at 83.3 gigawatts [34] Company Strategy and Development Direction - The company is focused on expanding its U.S. manufacturing capacity, with projections to boost nameplate capacity to over 14 gigawatts by 2026 [5][6] - The recent reconciliation legislation is expected to strengthen the company's position by limiting foreign competition, particularly from Chinese manufacturers [10][11] - The company aims to leverage its vertical integration and proprietary technology to enhance resource efficiency and energy return on investment [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the utility-scale solar industry, citing increasing electricity demand and the role of solar generation [26] - The company anticipates challenges from ongoing trade policy uncertainty, particularly regarding tariffs, but remains optimistic about its strategic position [56][57] Other Important Information - The company published its annual corporate responsibility report, highlighting efforts in resource efficiency and waste reduction [9] - The SEC concluded its inquiry into the company without recommending enforcement action [38] Q&A Session Summary Question: What is the current run rate for bookings? - Management noted that the bookings in July reflected a mix of factors, including safe harbor strategies and customer needs for certainty in supply chains [60][63] Question: What percentage of the backlog could be at risk due to potential changes in safe harbor language? - Management clarified that the executive order should not impact the legacy section 48 and section 45 ITC and PTC, which are safe harbor through 2028 [69][70] Question: Why hasn't the company tapped into its 2027 and beyond U.S. Series seven capacity? - Management indicated that pricing levels are being evaluated, and the company is being selective in its commitments to ensure full entitlement for products [75][78]

Financial Data and Key Metrics Changes - The company recorded 3.6 gigawatts of module sales in Q2 2025, exceeding the midpoint of previous forecasts [4] - Q2 earnings per diluted share were $3.18, surpassing the high end of guidance [4] - Gross margin for the quarter increased to 46%, up from 41% in Q1 [38] Business Line Data and Key Metrics Changes - Manufacturing output was 4.2 gigawatts in Q2, with 2.4 gigawatts from U.S. facilities and 1.8 gigawatts from international facilities [4][5] - The company recognized 6.5 gigawatts in sales through Q2, with a contracted backlog of 68.5 gigawatts valued at $20.5 billion as of December 31, 2024 [30] Market Data and Key Metrics Changes - The company experienced a net debooking of 0.2 gigawatts through June 30, 2025, primarily due to contract terminations [31] - The total pipeline of mid to late-stage booking opportunities remains strong at 83.3 gigawatts [36] Company Strategy and Development Direction - The company is focused on expanding U.S. manufacturing capacity, aiming for over 14 gigawatts by 2026 [5] - The recent reconciliation legislation is expected to strengthen the company's position by limiting foreign competition, particularly from Chinese manufacturers [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for U.S. energy demand and the company's leadership in solar manufacturing [57][58] - The company anticipates challenges due to ongoing trade policy uncertainty, particularly regarding tariffs [56] Other Important Information - The company published its annual corporate responsibility report, highlighting efforts in resource efficiency and waste reduction [8][9] - The SEC concluded its inquiry into the company without recommending enforcement action [42] Q&A Session Summary Question: What is the current run rate for bookings and pricing power? - Management noted that the bookings in July reflected a mix of factors, including safe harbor strategies and customer needs for certainty in supply chains [60][63] Question: What percentage of the backlog could be at risk due to potential changes in safe harbor language? - Management clarified that the executive order should not impact the legacy section 48 and section 45 contracts, which are safe harbor until 2028 [69][72] Question: Why has the company not tapped into 2027 and beyond U.S. Series seven capacity? - Management indicated that pricing levels are being evaluated, and they are strategically managing inventory to reduce costs associated with warehousing [76][80]

Financial Performance - Q2 2025 diluted EPS was $3.18, exceeding the high end of the previous earnings call forecast[6, 29] - Q2 2025 gross cash was $1.2 billion and net cash was $0.6 billion[29] - Net sales for Q2 2025 reached $1097 million, a $87 million increase year-over-year[23] Module Production and Sales - 3.6 GW of modules were sold in Q2 2025, surpassing the midpoint of the previous earnings call forecast[6] - Total production reached 4.2 GW, with 2.4 GW in the U S and 1.8 GW internationally[6] - The company booked 2.1 GW in July 2025, contributing to a total bookings backlog of 64.0 GW extending through 2030[30] Market and Policy Environment - The company anticipates the implementation of revised tariffs effective August 1, 2025[30] - Total booking opportunities amount to 83.3 GW, with 20.1 GW in the mid-to-late stage[30] - The company assumes the sale of 2025 Section 45X tax credits from nearly all U S facilities[30] 2025 Guidance - The company expects module sales to be between 5.0 and 6.0 GW in the third quarter[27] - The company forecasts advanced manufacturing production tax credit to be between $390 million and $425 million in the third quarter[27] - The company forecasts third quarter earnings per diluted share between $3.30 and $4.70[27]

Financial Performance - Net sales for Q2 2025 increased by 9% to $1.1 billion, driven by a 5.7% increase in module sales volume and $40.4 million from contract terminations[113] - Net sales for the three months ended June 30, 2025, increased by $86.7 million (8.6%) to $1,097.2 million compared to the same period in 2024, driven by a 5.7% increase in module sales volume and $40.4 million from customer contract terminations[137] - Gross profit for the three months ended June 30, 2025, was $499.9 million, representing a gross margin of 45.6%, down from 49.4% in the same period of 2024[143] - Net income for the three months ended June 30, 2025, was 31.2% of net sales, down from 34.6% in the same period of 2024[134] - Cost of sales for the three months ended June 30, 2025, rose by $85.7 million (16.8%) to $597.3 million, increasing 3.8 percentage points as a percentage of net sales to 54.4%[140] - The increase in cost of sales for the six months ended June 30, 2025, was $137.8 million (14.4%), with costs driven by higher freight and production costs[141] Manufacturing and Capacity - Total installed production capacity is approximately 21 GW, with 4.2 GW produced and 3.6 GW sold in Q2 2025[113] - The company expects to achieve over 25 GW of annual manufacturing capacity by 2026 with the completion of a fifth facility in Q3 2025[112] - The company is expanding manufacturing capacity by approximately 4 GW, including a new facility in the U.S.[133] - The company commenced operations at its fourth manufacturing facility in the U.S. and plans to complete its fifth facility by Q3 2025, with an expected investment of approximately $0.4 billion[171] Research and Development - The company is focusing on R&D for bifacial modules and a commercially scalable perovskite product to enhance competitiveness[120] - The company is developing perovskite thin-film technology, which has the potential to significantly increase efficiency and reduce costs of PV solar modules[124] - Research and development expenses for the three months ended June 30, 2025, increased by $2.6 million (4.9%) to $54.5 million, mainly due to higher depreciation expenses from investments in R&D facilities[148] - The CuRe program achieved a world record CdTe research cell conversion efficiency of 23.1% in May 2024, certified by the U.S. Department of Energy's National Renewable Energy Laboratory[124] Market and Competition - The solar industry is experiencing intense pricing competition, but U.S. module prices have remained stable due to rising domestic demand[118] - The company anticipates continued structural imbalances in global supply and demand for PV solar modules, potentially leading to pricing volatility[116] - Recent government policies in the U.S. have imposed tariffs on solar products from various countries, affecting the competitive landscape[129] Financial Position and Cash Flow - As of June 30, 2025, the company had $1.2 billion in cash, cash equivalents, and marketable securities, down from $1.8 billion as of December 31, 2024, primarily due to lower cash receipts and increased payments[168] - The company believes its cash flows and available credit facilities will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[167] - For the six months ended June 30, 2025, net cash used in operating activities was $(458,405) thousand, compared to $460,737 thousand in 2024[176] - Net cash used in investing activities decreased to $(350,203) thousand in 2025 from $(675,974) thousand in 2024[176] - Net cash provided by financing activities increased to $346,999 thousand in 2025, primarily due to secured borrowings[179] Tax Credits and Incentives - The company has entered an agreement to sell $311.9 million of Section 45X tax credits for $296.3 million in cash, recognizing a loss of $15.6 million in Q2 2025[113] - In December 2024, the company sold $857.2 million of Section 45X tax credits for $818.6 million in cash proceeds, with initial cash proceeds of $616.0 million received in December 2024[170] - The company expects to qualify for a credit of approximately $0.17 per watt for each solar module produced in the U.S. under the advanced manufacturing production credit, which is expected to provide significant funding through 2032[170] Operational Challenges - Manufacturing issues affecting certain Series 7 modules may lead to increased warranty claims and impact average selling prices[132] - The company is closely monitoring logistics costs and may adjust shipping plans to mitigate these expenses[130] - The increase in cash used in operating activities was driven by lower cash receipts from module sales and higher payments to suppliers[177] - The company plans to mitigate risks related to raw material procurement through long-term supply agreements[173] Other Financial Metrics - Selling, general and administrative expenses increased by $6.0 million (13.0%) to $52.6 million for the three months ended June 30, 2025, primarily due to higher expected credit losses and legal costs[146] - Interest income for the three months ended June 30, 2025, decreased by 50.8% to $12,100 thousand from $24,599 thousand in 2024, and for the six months, it decreased by 40.3% from $51,844 thousand to $30,965 thousand[155] - Interest expense, net for the three months ended June 30, 2025, was $9,184 thousand, a slight decrease of 5.9% from $9,765 thousand in 2024, and for the six months, it was consistent at $18,709 thousand compared to $18,975 thousand in 2024[157] - Other expense, net for the three months ended June 30, 2025, was $2,628 thousand, a significant increase of 365.1% from $565 thousand in 2024, and for the six months, it increased by 35.6% from $3,364 thousand to $4,560 thousand[159] - Income tax expense for the three months ended June 30, 2025, was $10,299 thousand, a decrease of 62.9% from $27,775 thousand in 2024, and for the six months, it decreased by 61.8% from $46,678 thousand to $17,823 thousand[161]

EXHIBIT 99.1 News Release First Solar, Inc. Announces Second Quarter 2025 Financial Results and Updates Guidance TEMPE, Arizona, July 31, 2025 – First Solar, Inc. (Nasdaq: FSLR) (the "Company") today announced financial results for the second quarter ended June 30, 2025, and updated its 2025 guidance. Net sales for the second quarter were $1.1 billion, an increase of $0.3 billion from the prior quarter. The increase in net sales was primarily due to an increase in the volume of modules sold to third parties ...

Core Insights - Global investments in clean energy are increasing, with solar power emerging as a rapidly growing electricity source, creating opportunities for companies like First Solar (FSLR) and Canadian Solar (CSIQ) [1] Group 1: First Solar (FSLR) - Recent achievements include the commencement of operations at a fourth manufacturing facility in the U.S. and plans for a fifth facility, targeting over 25 gigawatts (GW) annual production capacity by the end of 2026 [4][11] - As of March 2025, FSLR signed contracts to deliver 66.1 GW of modules valued at $19.8 billion, ensuring a stable income stream through 2030 [5] - Financial stability is highlighted by cash and cash equivalents totaling $891 million, with long-term debt at $328 million and current debt at $197 million, indicating a strong solvency position [6] - Challenges include concerns over increased production capacity among solar manufacturers, particularly in China, which could lead to oversupply and price drops [7] - Manufacturing defects in Series 7 modules could impact near-term performance, with estimated costs ranging from $56 million to $100 million [8] Group 2: Canadian Solar (CSIQ) - Recent achievements include securing $260 million in financing for the Blue Moon Solar project in Kentucky and bringing the Papago Storage facility online with 1200 megawatt-hours (MWh) of battery storage capacity [9][10] - Financial stability is weaker, with cash and cash equivalents totaling $2.02 billion, while current debt is $2.92 billion and long-term debt is $3.22 billion, indicating a weak solvency position [13] - Challenges include pressure from global oversupply, leading to a net loss of $34 million in Q1 2025, and ongoing trade tensions that may raise costs due to new U.S. tariffs [14][15] Group 3: Comparative Analysis - The Zacks Consensus Estimate for FSLR indicates an 18.5% improvement in sales and a 23.2% increase in earnings per share (EPS) for 2025 [16] - In contrast, CSIQ's sales are expected to improve by only 4.3%, with a projected loss per share of $1.74, indicating a deterioration from the previous year [17] - Stock price performance shows FSLR down 18%, outperforming CSIQ, which is down 25.1% over the past year [19] - Valuation metrics indicate FSLR trading at a forward sales multiple of 3.46X, while CSIQ is at 0.11X, suggesting a more attractive valuation for Canadian Solar despite its challenges [20] Group 4: Final Assessment - First Solar shows better near-term prospects due to financial stability and robust earnings generation opportunities compared to Canadian Solar, which faces more significant challenges [23]

Core Viewpoint - First Solar, Inc. is expected to report second-quarter 2025 results on July 31, 2025, after market close, with a negative earnings surprise of 22.00% in the last quarter and a four-quarter average negative earnings surprise of 6.94% [1] Factors Impacting Results - Global solar energy demand is steadily improving, driven by increasing energy consumption, declining installation costs, and heightened clean energy awareness, which is expected to boost sales volume for First Solar's products [2] - Solid revenue growth expectations are supported by a high mix of modules sold from U.S. factories that qualify for Section 45X tax credits, likely enhancing quarterly earnings growth [3] - However, lower capacity utilization and throughput at Malaysia and Vietnam factories, due to anticipated reduced demand for modules from newly imposed U.S. tariffs, may negatively impact revenues and earnings [4] - A shift in sales mix is anticipated, with more modules directed to the lower-priced Indian market instead of the U.S., which may also hurt top and bottom-line performance [5] - High module production costs in the U.S. and underutilization charges from lower-than-full production capacity in Asia are likely to affect overall bottom-line performance [6] Q2 Estimates - The Zacks Consensus Estimate for FSLR's second-quarter sales is $1.03 billion, indicating year-over-year growth of 1.9% [7] - The consensus estimate for earnings per share is $2.68, reflecting a year-over-year decline of 17.5% [7] Earnings Prediction Model - The current model does not predict an earnings beat for First Solar, with an Earnings ESP of -5.23% and a Zacks Rank of 3 (Hold) [8][10] Summary of Revenue Influences - Q2 revenues may rise due to strong solar demand and increased sales of U.S.-made modules, while new tariffs likely reduced Southeast Asia output, shifting module sales to lower-priced markets like India [9] - Higher U.S. production costs and factory underuse in Asia may weigh on FSLR's Q2 earnings performance [9]

First Solar (FSLR) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On t ...

Core Insights - The article emphasizes the effectiveness of the Zacks Rank system in identifying winning stocks through earnings estimates and revisions [1] - Value investing is highlighted as a popular and successful strategy across various market conditions, focusing on undervalued stocks [2] - Zacks has introduced the Style Scores system to identify stocks with specific traits, particularly those with high grades in the Value category [3] Company Analysis: First Solar (FSLR) - First Solar (FSLR) is currently rated with a Zacks Rank of 2 (Buy) and has an A grade for Value, indicating strong investment potential [4] - FSLR's Forward P/E ratio stands at 9.13, significantly lower than the industry average of 15.56, suggesting it may be undervalued [4] - The stock's Forward P/E has fluctuated between a high of 14.16 and a low of 5.80 over the past year, with a median of 9.30 [4] - FSLR's PEG ratio is 0.27, compared to the industry average of 0.70, indicating favorable growth expectations relative to its valuation [5] - The PEG ratio has ranged from a high of 0.33 to a low of 0.15 in the past 52 weeks, with a median of 0.23 [5] - FSLR's P/CF ratio is 10.96, which is attractive compared to the industry average of 11.48, further supporting its undervaluation [6] - The P/CF ratio has varied between 17.64 and 7.50 over the past year, with a median of 11.62 [6] - Overall, these metrics suggest that FSLR is likely undervalued and presents a strong investment opportunity based on its earnings outlook [7]

In the latest close session, First Solar (FSLR) was up +1.33% at $175.85. The stock exceeded the S&P 500, which registered a loss of 0.01% for the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.05%. Heading into today, shares of the largest U.S. solar company had gained 20.79% over the past month, outpacing the Oils-Energy sector's loss of 1.27% and the S&P 500's gain of 5.37%.Investors will be eagerly watching for the performance of First Solar in its upcoming earnings disclo ...