First Solar's Expanding Footprint Positions It for Sustained Growth

Core Insights - First Solar, Inc. (FSLR) is expanding its manufacturing capacity, which is expected to drive revenue growth, particularly in the U.S. due to favorable solar demand trends [2] - The company faces challenges such as heightened trade tensions and tariff risks that could impact its performance [2] Factors Acting in Favor of FSLR - First Solar has invested significantly in ramping up production, manufacturing 3.6 gigawatts (GW) in Q3 2025 and selling 5.3 GW of solar modules, with a total installed nameplate production capacity of approximately 23.5 GW as of September 30, 2025 [3] - The company has recently started operations at its fourth and fifth manufacturing facilities in the U.S. and expanded its existing facilities in Ohio, adding 2.7 GW of gross bookings, resulting in a total booking backlog of 54.5 GW through 2030 [4] - FSLR's 2025 capital expenditure is estimated at $0.9-$1.2 billion, focusing on expanding and modernizing operations, including new facility construction and upgrades to existing machinery [5] Challenges Faced by FSLR - In 2025, the U.S. imposed new reciprocal tariffs on key trading partners, which may limit First Solar's U.S. sales and affect international manufacturing operations [6] - The U.S. currently imposes tariffs on various imports from China, with a 10% tariff announced in February 2025, later increased to 20% in March 2025, in addition to existing tariffs, which could adversely impact the company's operating results [7] FSLR's Share Price Performance - Over the past six months, FSLR's shares have increased by 62.9%, outperforming the industry's growth of 57.7% [8] Summary of Industry Comparisons - Other stocks in the industry with better rankings include Canadian Solar (CSIQ), Tigo Energy, Inc. (TYGO), and FTC Solar (FTCI), each currently holding a Zacks Rank 2 (Buy) [10] - The Zacks Consensus Estimate for CSIQ's 2025 EPS indicates a decline of 121.4% from 2024, while TYGO's EPS is expected to increase by 76% and FTCI's by 33.6% [11]