First Solar Sees Record 2025 Profit, Guides Steady 2026 Sales

Core Insights - First Solar reported record earnings for 2025, with net sales reaching $5.2 billion, a 24% increase in third-party module volumes year-on-year, and projected 2026 sales guidance of up to $5.2 billion, supported by U.S. manufacturing expansion and federal production tax credits [1][5] Financial Performance - Net income for 2025 rose to $1.53 billion, or $14.21 per diluted share, compared to $12.02 per share in 2024, with fourth-quarter earnings at $4.84 per diluted share [2] - Operating income for the year increased to nearly $1.6 billion, while gross profit expanded to $2.12 billion [2] - Adjusted EBITDA for 2025 was $2.36 billion, reflecting adjustments for foreign exchange impacts and other items [4] Cash Position - The company ended 2025 with a gross cash balance of $2.9 billion and a net cash position of $2.4 billion, significantly up from $1.5 billion at the end of the third quarter, driven by tax credit sales and operating cash flow [3] 2026 Guidance - First Solar projects 2026 net sales between $4.9 billion and $5.2 billion, with module volumes expected between 17.0 GW and 18.2 GW, and adjusted EBITDA forecasted at $2.6 billion to $2.8 billion [5] - Capital expenditures are anticipated to be between $800 million and $1.0 billion, with year-end 2026 net cash projected between $1.7 billion and $2.3 billion [5] Gross Margin and Tax Credits - Gross margin guidance for 2026 is set at $2.4 billion to $2.6 billion, factoring in Section 45X tax credits and production start-up expenses [6] - First-quarter 2026 adjusted EBITDA is forecasted at $400 million to $500 million, supported by anticipated tax credit generation of up to $400 million [6] Strategic Developments - 2025 marked a milestone with the commissioning of a new manufacturing plant in Louisiana and plans for an additional facility in South Carolina, reinforcing First Solar's position as the largest U.S.-based photovoltaic manufacturer [8] - The company utilizes a vertically integrated domestic process to produce cadmium telluride thin-film modules, differentiating itself from competitors reliant on Asian crystalline silicon supply chains [8]