First Solar, Inc. Announces Fourth Quarter and Full Year 2024 Financial Results and 2025 Guidance

Rhea-AI Summary

First Solar (FSLR) reported strong financial results for Q4 and full year 2024. Net sales reached $4.2 billion for 2024 (up from $3.3 billion in 2023) and $1.5 billion for Q4, driven by increased module sales. The company achieved net income per diluted share of $12.02 for 2024 and $3.65 for Q4.

The company's net cash balance grew to $1.2 billion by end of Q4, up from $0.7 billion in Q3, primarily due to proceeds from 2024 Section 45X tax credits and module segment operating cash flows. First Solar secured 4.4 GW of net bookings in 2024 with an average selling price of 30.5 cents per watt.

For 2025 guidance, First Solar projects net sales of $5.3-5.8 billion, earnings per diluted share of $17.00-20.00, and year-end net cash balance of $0.7-1.2 billion.

Positive

• Net sales increased 27% YoY to $4.2B in 2024
• Q4 net cash balance grew by $500M to $1.2B
• 4.4 GW new bookings secured in 2024
• 2025 guidance projects significant growth with sales up to $5.8B
• EPS guidance for 2025 shows strong growth at $17.00-20.00

Negative

• Expected decrease in net cash balance for 2025 (guidance $0.7B-1.2B vs current $1.2B)

Insights

Financial Analyst

First Solar delivered impressive Q4 and full-year 2024 results while laying groundwork for substantial growth in 2025. The company reported $4.2 billion in 2024 net sales (27% year-over-year increase) and $1.5 billion for Q4 alone, demonstrating accelerating momentum. Annual earnings reached $12.02 per diluted share, with Q4 contributing $3.65 per share.

The company's financial position strengthened considerably, with net cash increasing to $1.2 billion by year-end. This 71% increase from Q3's $0.7 billion was primarily driven by monetization of Section 45X tax credits under the Inflation Reduction Act (IRA) - a significant competitive advantage for First Solar as a US-based manufacturer.

First Solar's selective booking strategy appears effective, securing 4.4 GW of new orders at premium pricing of 30.5 cents per watt, substantially higher than industry averages. This pricing power reflects the company's differentiated technology and favorable positioning under domestic content requirements.

The company's manufacturing expansion strategy is progressing on schedule, with the Alabama facility now operational and Louisiana construction advancing. These facilities represent critical capacity additions that will drive future revenue growth and benefit from the full IRA incentive package, including the Section 45X production tax credits.

Looking ahead, management's 2025 guidance signals exceptional growth, projecting:

• Net sales of $5.3-5.8 billion (26-38% growth)
• EPS of $17.00-20.00 (41-66% growth)
• Year-end net cash of $0.7-1.2 billion

This projected earnings growth outpacing revenue growth suggests margin expansion and operational leverage, likely enhanced by increasing IRA benefits as new domestic capacity comes online. The guidance reflects management's confidence in execution despite industry-wide challenges.

First Solar's focus on expanding US manufacturing capacity positions it uniquely among solar manufacturers to capitalize on both growing domestic demand and substantial IRA incentives, creating a virtuous cycle of improved economics, capacity expansion, and shareholder returns.

Clean Energy Industry Expert

First Solar's Q4 and full-year 2024 results showcase the company's emergence as the clear leader in U.S. solar manufacturing, strategically positioned at the intersection of energy transition demand and domestic manufacturing policy support. With $4.2 billion in 2024 revenue and $12.02 EPS, First Solar is demonstrating that domestic solar manufacturing can be both technologically advanced and financially viable.

The company's differentiated cadmium telluride (CdTe) thin-film technology represents a critical alternative to the silicon supply chain dominated by Chinese manufacturers. This technological differentiation, combined with domestic manufacturing capacity, allows First Solar to command premium pricing of 30.5 cents per watt - approximately 20-25% higher than industry averages for crystalline silicon modules.

First Solar's strategic capacity expansion is transforming the U.S. solar manufacturing landscape. The commissioned Alabama facility adds 3.5 GW of annual capacity, while the Louisiana facility under construction will contribute another 3.5 GW when completed in late 2025. Combined with existing Ohio facilities, First Solar is on track to exceed 10 GW of domestic manufacturing capacity by 2026 - representing approximately 75% of total U.S. solar module manufacturing capacity.

The financial impact of the Inflation Reduction Act is becoming increasingly visible in First Solar's results. The monetization of Section 45X production tax credits contributed significantly to the $500 million increase in net cash position during Q4. As new facilities ramp production, these benefits will accelerate, potentially contributing $0.90-1.10 per watt in tax credits across the value chain.

Looking ahead, First Solar's 2025 guidance projects exceptional growth with:

• Net sales of $5.3-5.8 billion (26-38% growth)
• EPS of $17.00-20.00 (41-66% growth)

The disproportionate EPS growth reflects improving economies of scale, operational leverage, and increasing IRA tax credit benefits as domestic capacity expands. With 4.4 GW of new bookings in 2024, First Solar maintains a multi-year order backlog that provides revenue visibility through 2026 and beyond.

First Solar's vertically integrated manufacturing model and technology roadmap position it uniquely among solar manufacturers to benefit from both growing clean energy demand and the strategic reshoring of critical supply chains. As the only U.S.-headquartered company among the world's ten largest solar manufacturers, First Solar represents a rare pure-play investment opportunity in domestic renewable energy manufacturing.

Investment Strategist

First Solar's Q4 and full-year 2024 results reveal a company executing exceptionally well at the nexus of industrial policy and energy transition. With $4.2 billion in annual revenue (27% YoY growth) and $12.02 EPS, First Solar has established itself as the premier pure-play investment vehicle for domestic solar manufacturing.

The company's financial trajectory is particularly impressive when viewed through traditional valuation metrics. Based on 2025 guidance midpoints of $5.55 billion in revenue and $18.50 EPS, First Solar trades at approximately 3x forward revenue and 8.3x forward earnings - substantially below both the S&P 500 average and most clean energy peers despite superior growth rates.

Three key strategic elements are driving First Solar's exceptional performance:

• Manufacturing Scale Expansion: The Alabama facility (3.5 GW) is now operational, while the Louisiana facility (3.5 GW) remains on schedule for late 2025 completion. This capacity growth from approximately 6.5 GW in 2023 to over 14 GW by 2026 provides clear revenue visibility.
• IRA Incentive Capture: As a vertically integrated domestic manufacturer, First Solar is uniquely positioned to maximize benefits from the Inflation Reduction Act. The $500 million increase in net cash during Q4 demonstrates the beginning of what will likely be a multi-year tailwind from Section 45X tax credits.
• Premium Market Positioning: The 30.5 cents/watt average selling price (excluding adjusters) represents a 20-25% premium over typical utility-scale solar modules, reflecting technology differentiation and domestic manufacturing advantages.

The company's 4.4 GW of 2024 net bookings, while representing a selective approach to new orders, maintains First Solar's multi-year backlog at approximately 3 years of production. This provides exceptional revenue visibility compared to most industrial companies.

Looking ahead, First Solar's 2025 guidance projects:

• Revenue growth of 26-38% to $5.3-5.8 billion
• EPS growth of 41-66% to $17.00-20.00

The disproportionate EPS growth reflects substantial operational leverage as new facilities reach scale, enhanced by increasing IRA tax credit benefits. With gross margins potentially expanding toward 40% as capacity utilization improves, First Solar demonstrates rare pricing power in the renewable energy sector.

For investors, First Solar represents a compelling combination of growth, value, and policy alignment rarely found in public markets - a domestic manufacturer with technology leadership, expanding margins, and multi-year revenue visibility, trading at valuation multiples typically associated with mature, slow-growth industrials.

• Net sales of $4.2 billion for 2024 and $1.5 billion for the fourth quarter
• Net income per diluted share of $12.02 for 2024 and $3.65 for the fourth quarter
• 2024 year-end net cash balance of $1.2 billion
• 2024 net bookings of 4.4 GW with an average selling price of 30.5 cents per watt, excluding adjusters, India domestic volume, and terminations
• 2025 net sales guidance of $5.3 billion to $5.8 billion
• 2025 earnings per diluted share guidance of $17.00 to $20.00
• 2025 year-end net cash balance guidance of $0.7 billion to $1.2 billion

TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) (the “Company”) today announced financial results for the fourth quarter and year ended December 31, 2024.

Net sales for the fourth quarter were $1.5 billion, an increase of $0.6 billion from the prior quarter. The increase was primarily a result of increased module sales in the fourth quarter. Net sales for the full year 2024 were $4.2 billion compared to $3.3 billion in the prior year. This increase was primarily driven by a higher volume of modules sold to third parties.

The Company reported fourth quarter net income per diluted share of $3.65 and full year net income per diluted share of $12.02.

Cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less debt at the end of the fourth quarter increased to $1.2 billion from $0.7 billion at the end of the prior quarter. The increase was primarily the result of the initial proceeds received from the sale of 2024 Section 45X tax credits and module segment operating cash flows, partially offset by capital expenditures associated with our Alabama and Louisiana facilities.

“In 2024, we continued building the foundations required for our long-term growth strategy,” said Mark Widmar, chief executive officer, First Solar. “Even as we maintained a highly selective approach to bookings, we expanded manufacturing capacity by commissioning our Alabama facility and progressed construction of our new Louisiana facility, established the infrastructure we anticipate will accelerate innovation with a new R&D center in Ohio, and produced and shipped a historic volume of modules.”

The complete 2025 guidance is as follows:

	2025 Guidance (1)
Net Sales	$5.3B to $5.8B
Gross Margin (2)	$2.45B to $2.75B
Operating Expenses (3)	$470M to $510M
Operating Income (4)	$1.95B to $2.30B
Earnings per Diluted Share	$17.00 to $20.00
Net Cash Balance (5)	$0.7B to $1.2B
Capital Expenditures	$1.3B to $1.5B
Volume Sold	18GW to 20GW

——————————

(1)	Expectation of between 2.7 and 3.0 GW of module sales in the first quarter, at a gross margin similar to the full year average, resulting in first quarter Earnings per Diluted Share of between $2.20 and $2.70
(2)	Assumes $50 million to $60 million of ramp and underutilization costs and $1.65 billion to $1.7 billion of Section 45X tax credits
(3)	Assumes $60 million to $70 million of production start-up expense
(4)	Assumes $110 million to $130 million of production start-up expense, and ramp and underutilization costs, and $1.65 billion to $1.7 billion of Section 45X tax credits
(5)	Defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at the end of 2025

The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to certain factors related to the Inflation Reduction Act of 2022 (the “IRA”). Among other things, such factors include (i) the total advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code and (ii) the timing and ability to monetize such credit. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s fourth quarter and full year 2024 financial results, 2025 guidance, and financial outlook.

Conference Call Details

First Solar has scheduled a conference call for today, February 25, 2025, at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com. A replay of the webcast will also be available on the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for 30 days.

About First Solar, Inc.

First Solar, Inc. (Nasdaq: FSLR) is America's leading photovoltaic (“PV”) solar technology and manufacturing company. The only US-headquartered company among the world's largest solar manufacturers, First Solar is focused on competitively and reliably enabling power generation needs with its advanced, uniquely American thin film PV technology. Developed at research and development (“R&D”) labs in California and Ohio, the Company's technology represents the next generation of solar power generation, providing a competitive, high-performance, and responsibly produced alternative to conventional crystalline silicon PV modules. For more information, please visit www.firstsolar.com.

For First Solar Investors

This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand for our technology; increased research and development investment; new capacity coming online; production and delivery of our modules; anticipated claims under our limited product warranty obligations and any related remediation commitments; our financial guidance for 2025, including future financial results, net sales, gross margin, operating expenses, operating income, earnings per diluted share, net cash balance, capital expenditures, expected earnings cadence; volume sold, shipments, bookings, products and our business and financial objectives for 2025; the availability of benefits under certain production linked incentive programs, and the impact of the IRA including the total advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” “contingent” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the reduction, elimination, expiration or introduction of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; the passage of legislation intended to encourage renewable energy investments through tax credits, such as the IRA; the impact of the IRA on our expected results of operations in future periods, which may be affected by technical guidance, regulations, subsequent amendments or interpretations of the law; interest rate fluctuations and both our and our customers’ ability to secure financing; changes in the exchange rates between the functional currencies of our subsidiaries and other currencies in which assets and liabilities are denominated; our ability to execute on our long-term strategic plans; the loss of any of our large customers, or the ability of our customers and counterparties to perform under their contracts with us; our ability to execute on our solar module technology and cost reduction roadmaps; the performance of our solar modules upon installation; our ability to improve the wattage of our solar modules; our ability to incorporate technology improvements into our manufacturing process, including the implementation of our Copper Replacement (“CuRe”) program; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects arising from and results of pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program or otherwise as required by laws and regulations; supply chain disruptions, including demurrage and detention charges; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cybersecurity incidents including breaches or outages of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to construct new production facilities to support new product lines in line with anticipated timing; evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social and governance matters; our ability to avoid manufacturing interruptions; our ability to attract and retain key executive officers and associates; the severity and duration of public health threats, and the potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K, as supplemented by our other filings with the Securities and Exchange Commission.

FIRST SOLAR, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
		December 31,
			2024				2023
ASSETS
Current assets:
Cash and cash equivalents		$	1,621,376			$	1,946,994
Marketable securities			171,583				155,495
Accounts receivable trade, net			1,261,049				660,776
Government grants receivable, net			403,759				659,745
Inventories			1,084,384				819,899
Other current assets			546,882				391,900
Total current assets			5,089,033				4,634,809
Property, plant and equipment, net			5,413,683				4,397,285
Deferred tax assets, net			208,808				142,819
Restricted marketable securities			199,136				198,310
Government grants receivable			157,570				152,208
Goodwill			28,335				29,687
Intangible assets, net			54,654				64,511
Inventories			275,372				266,899
Other assets			697,770				478,604
Total assets		$	12,124,361			$	10,365,132
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	482,190			$	207,178
Income taxes payable			77,363				22,134
Accrued expenses			508,581				524,829
Current portion of debt			236,424				96,238
Deferred revenue			712,000				413,579
Other current liabilities			60,884				42,200
Total current liabilities			2,077,442				1,306,158
Accrued solar module collection and recycling liability			134,394				135,123
Long-term debt			373,354				464,068
Deferred revenue			1,327,825				1,591,604
Other liabilities			233,769				180,710
Total liabilities			4,146,784				3,677,663
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 107,060,281 and 106,847,475 shares issued and outstanding at December 31, 2024 and 2023, respectively			107				107
Additional paid-in capital			2,898,418				2,890,427
Accumulated earnings			5,263,110				3,971,066
Accumulated other comprehensive loss			(184,058	)			(174,131	)
Total stockholders’ equity			7,977,577				6,687,469
Total liabilities and stockholders’ equity		$	12,124,361			$	10,365,132

FIRST SOLAR, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023
Net sales		$	1,514,031			$	887,668			$	1,158,553			$	4,206,289			$	3,318,602
Cost of sales			946,370				442,357				656,520				2,348,425				2,017,923
Gross profit			567,661				445,311				502,033				1,857,864				1,300,679
Operating expenses:
Selling, general and administrative			49,582				46,293				57,094				188,262				197,622
Research and development			46,499				50,197				43,862				191,375				152,307
Production start-up			14,811				26,822				9,847				84,492				64,777
Litigation loss			—				—				—				430				35,590
Total operating expenses			110,892				123,312				110,803				464,559				450,296
Gain on sales of businesses, net			—				—				6,554				1,115				6,883
Operating income			456,769				321,999				397,784				1,394,420				857,266
Foreign currency loss, net			(7,311	)			(5,158	)			(9,947	)			(24,976	)			(21,533	)
Interest income			14,666				22,580				23,565				89,090				97,667
Interest expense, net			(10,887	)			(9,008	)			(7,068	)			(38,870	)			(12,965	)
Other expense, net			(6,891	)			(3,071	)			(27,653	)			(13,326	)			(29,145	)
Income before taxes			446,346				327,342				376,681				1,406,338				891,290
Income tax expense			(53,230	)			(14,386	)			(27,442	)			(114,294	)			(60,513	)
Net income		$	393,116			$	312,956			$	349,239			$	1,292,044			$	830,777
Net income per share:
Basic		$	3.67			$	2.92			$	3.27			$	12.07			$	7.78
Diluted		$	3.65			$	2.91			$	3.25			$	12.02			$	7.74
Weighted-average number of shares used in per share calculations:
Basic			107,058				107,049				106,844				107,015				106,795
Diluted			107,595				107,562				107,558				107,525				107,372

FIRST SOLAR, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
		Years Ended December 31,
			2024				2023				2022
Cash flows from operating activities:
Net income (loss)		$	1,292,044			$	830,777			$	(44,166	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation, amortization, and accretion			423,498				307,994				269,724
Impairments and net losses on disposal of long-lived assets			1,360				1,568				63,338
Share-based compensation			28,104				34,219				28,656
Deferred income taxes			(54,754	)			(60,813	)			(12,799	)
Gain on sales of businesses, net			(1,115	)			(6,883	)			(253,511	)
Liabilities assumed by customers for the sale of systems			—				—				(145,281	)
Gain on debt forgiveness			—				—				(30,201	)
Other, net			11,982				22,062				(1,029	)
Changes in operating assets and liabilities:
Accounts receivable, trade			(505,336	)			(304,183	)			118,724
Inventories			(276,807	)			(205,106	)			16,693
Government grants receivable			270,300				(659,745	)			—
Other assets			(311,363	)			(215,707	)			(86,938	)
Income tax receivable and payable			47,421				8,656				43,592
Accounts payable and accrued expenses			268,731				79,328				5,569
Deferred revenue			698				783,207				912,946
Other liabilities			23,236				(13,114	)			(11,948	)
Net cash provided by operating activities			1,217,999				602,260				873,369
Cash flows from investing activities:
Purchases of property, plant and equipment			(1,526,076	)			(1,386,775	)			(903,605	)
Purchases of marketable securities and restricted marketable securities			(2,516,097	)			(3,612,801	)			(3,375,008	)
Proceeds from sales and maturities of marketable securities			2,491,857				4,563,890				2,646,787
Proceeds from sales of businesses, net of cash and restricted cash sold			—				7,680				442,302
Acquisitions, net of cash acquired			—				(35,739	)			—
Other investing activities			(12,991	)			(9,046	)			(3,050	)
Net cash used in investing activities			(1,563,307	)			(472,791	)			(1,192,574	)
Cash flows from financing activities:
Proceeds from borrowings under debt arrangements, net of issuance costs			258,461				367,983				397,380
Repayment of debt			(205,821	)			—				(75,896	)
Payments of tax withholdings for restricted shares			(20,178	)			(31,130	)			(12,092	)
Contingent consideration payment and other financing activities			(7,613	)			—				—
Net cash provided by financing activities			24,849				336,853				309,392
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents			(6,387	)			5,285				47,438
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents			(326,846	)			471,607				37,625
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period			1,965,069				1,493,462				1,455,837
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period		$	1,638,223			$	1,965,069			$	1,493,462
Supplemental disclosure of noncash investing and financing activities:
Property, plant, and equipment acquisitions funded by liabilities		$	185,618			$	249,455			$	315,961
Proceeds to be received from asset-based government grants		$	171,920			$	152,208			$	—
Acquisitions funded by contingent consideration		$	6,500			$	18,500			$	—

 

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First Solar Investors

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First Solar Media

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Source: First Solar, Inc.

FAQ

What were First Solar's (FSLR) full-year 2024 financial results?

First Solar reported net sales of $4.2 billion and net income per diluted share of $12.02 for full-year 2024.

How much did First Solar (FSLR) book in new orders during 2024?

First Solar secured 4.4 GW of net bookings in 2024 with an average selling price of 30.5 cents per watt.

What is First Solar's (FSLR) revenue guidance for 2025?

First Solar projects net sales between $5.3 billion and $5.8 billion for 2025.

How did First Solar's (FSLR) Q4 2024 net cash position change?

Net cash increased to $1.2 billion from $0.7 billion in Q3, driven by Section 45X tax credit proceeds and module segment operating cash flows.

What is First Solar's (FSLR) earnings per share guidance for 2025?

First Solar expects earnings per diluted share between $17.00 and $20.00 for 2025.