First Solar Sales Rise $0.5 Bn QoQ, Plans FEOC-Compliant 3.7 GW US Expansion

First Solar, the leading US solar manufacturer specialising in its own proprietary thin cell modules, in its third quarter ending September 30, 2025, reported net sales of $1.6 billion, indicating a $0.5 billion increase from the previous quarter. The rise in sales was primarily driven by a higher volume of modules sold to third parties. According to the company’s 2025 guidance, First Solar achieved net sales of $1.6 billion, with a record volume of 5.3 GW sold. The company reported a gross cash balance of $2.0 billion and a net cash balance of $1.5 billion.

In the same quarter, First Solar recorded a net income of $4.24 per diluted share, up from $3.18 per diluted share in the second quarter of 2025. Its cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities (less debt) increased to $1.5 billion, up from $0.6 billion in the prior quarter. The increase was mainly due to higher cash receipts from module sales, including advance payments for future sales, and favorable working capital changes.

Gross Bookings

The company reported 2.7 GW of gross bookings since its last earnings call, with an average selling price of 30.9 cents per watt, excluding contract pricing adjustments. As of September 30, 2025, First Solar held a contracted sales backlog of 53.7 GW, valued at $16.4 billion which less compared to the 68.5 GW backlog as of December 2024. 

The company estimates a 68.2% market opportunity in North America, 10.6% in India, and 4% in Europe.

First Solar is also expected to add a new 3.7 GW module finishing line in the United States in Q4 2026, ramping up production through 1H 2027. 

“As a result of our disciplined approach to balancing growth, liquidity, and profitability, we’ve further strengthened our position through the commissioning of our fifth U.S. manufacturing facility, enhancing our liquidity and delivering record sales,” said Mark Widmar, Chief Executive Officer. “While trade and policy developments have introduced new challenges for many in our industry, we continue to differentiate ourselves by offering pricing and delivery certainty, enabling us to respond effectively to evolving demand drivers and reinforce our leadership.”

Navigating Tariff Barriers in India

In the last quarter, First Solar outlined its efforts to navigate potential tariff scenarios, customer negotiations, and regulatory developments, including Section 232 actions, FEOC restrictions, and AD/CVD investigations.

Byron Jeffers, VP, Treasurer & Head of Investor Relations, explained that at one point the company managed two possible tariff regimes — a continuation of a 10% universal tariff, or the adoption of reciprocal tariffs initially set at 26% for India, 24% for Malaysia, and 46% for Vietnam, later amended to 50%, 19%, and 20%, respectively.

Jeffers added that while outlining updates to the 2025 guidance range, the company incorporated the cascading impact of third-quarter operational and financial results. “Our net sales guidance is now projected at $4.95 billion to $5.20 billion, reflecting a downward revision of approximately 0.5 GW from the top end of our prior guidance,” he said.

He attributed this adjustment to reduced international sales volumes due to customer terminations, partially offset by termination payments. He also noted a 5 GW reduction in assumed domestic India sales, following the midyear redirection of Indian products from the U.S. market to the domestic “book and bill” market, driven by high import tariffs in the U.S.

U.S.-Manufactured Volumes to See a Drop

Jeffers further explained that U.S.-manufactured volumes sold are expected to decline by 2 GW at the high end of the guidance range, due to Q3 glass supply constraints at the Alabama facility, partially offset by a 0.1 GW increase in supply from the Louisiana factory.

In summary, the upper end of EPS guidance has been reduced by $1.50 per diluted share. This includes:

• $0.60 per share impact from Alabama facility supply chain issues (underutilization and lower volumes).

• $0.60 per share reduction due to BP affiliate contract terminations (offset by termination payments).

• $0.30 per share combined impact of reduced India sales, higher startup and finishing line costs, and warranty expenses (partially offset by non-BP termination payments and lower tax expense).

Capital expenditures for 2025 are now expected between $0.9 billion and $1.2 billion, while the year-end 2025 net cash balance is projected to range from $1.6 billion to $2.1 billion.