First Solar reported strong full-year 2025 results with significant revenue growth and a substantial increase in net income, driven by higher module volumes and the commissioning of new manufacturing facilities. The company provided guidance for 2026 that reflects continued expansion, though it also highlights the impact of tax credits and operational ramp-ups on profitability.
Full year 2025 net sales were $5.2 billion, a 23.6% increase from $4.2 billion in the prior year, driven by a 24% increase in third-party module volume.
positiveFourth quarter net income per diluted share was $4.84, and full year net income per diluted share was $14.21.
positiveGross cash balance increased to $2.9 billion and net cash balance to $2.4 billion at year-end 2025.
positiveThe company announced the commissioning of its new Louisiana factory and plans for a new facility in South Carolina.
positiveInventories increased from $1.08 billion at the end of 2024 to $736.7 million for current assets and $237.5 million for other assets at the end of 2025, indicating a significant build-up of $1.01 billion in total inventories.
attentionFull year 2025 operating expenses were $523.5 million, an increase from $464.6 million in the prior year, driven by higher production start-up costs and R&D.
attentionThe company is not providing GAAP net income guidance due to the inability to predict certain items like Section 45X tax credits, share-based compensation, and other gains/losses, indicating potential volatility in reported earnings.
attention2026 guidance includes significant Section 45X tax credits ($2.1B to $2.19B) and underutilization costs ($115M to $155M), which are key components of the Adjusted EBITDA calculation but not directly tied to core operational performance.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Our growth journey continued into 2025, with the commissioning of our new Louisiana factory and our decision to establish a new facility in South Carolina.
As we navigated a rapidly evolving environment, we maintained a disciplined approach to contracting and remained anchored in our core principle of pricing and delivery certainty, a key differentiator that our customers value.
The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to the impact of public policies such as tariffs, export controls, or other trade remedies and certain factors related to the Inflation Reduction Act of 2022 (the “IRA”) as amended by the One Big Beautiful Bill Act of 2025.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.