First Solar 2025 Q2 Earnings Meets Expectations, Net Income Declines 2%

First Solar (FSLR) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The total revenue for First Solar increased by 8.6% year-over-year to $1.10 billion in the second quarter, meeting analyst expectations. Despite the revenue growth, net income fell slightly compared to the previous year's quarter. The company's updated guidance reflects confidence with increased net sales expectations. Overall, First Solar's results show a steady performance amidst a changing policy environment, with guidance pointing to continued growth.

Revenue

First Solar's revenue in the second quarter of 2025 rose to $1.10 billion, marking an 8.6% increase from $1.01 billion in the same period of 2024. The module segment was the primary contributor, generating the entire $1.10 billion revenue, reflecting consistent performance across its business units.

Earnings/Net Income

First Solar's earnings per share (EPS) dipped 2.1% to $3.19 in Q2 2025 from $3.26 in Q2 2024, while net income fell to $341.87 million, down 2.1% from $349.36 million the previous year. The EPS decline indicates slightly weaker profit performance.

Post-Earnings Price Action Review

The strategy of purchasing First Solar stock upon earnings beats and holding for 30 days has proven remarkably successful, yielding a 234.48% return and surpassing the benchmark return of 85.57%. This impressive excess return of 148.91% highlights the strategy's effectiveness in capturing gains from bullish earnings surprises. The approach's Sharpe ratio of 0.50, coupled with a maximum drawdown of 0.00%, reflects adept risk management, positioning it as a resilient investment strategy. These metrics underscore the potential for significant returns when leveraging earnings beats, demonstrating First Solar's ability to outperform in favorable scenarios.

CEO Commentary

Mark R. Widmar, CEO of First Solar, expressed optimism regarding the company's performance, highlighting a successful quarter marked by 3.6 gigawatts of module sales and earnings per diluted share of $3.18, exceeding prior guidance. He emphasized the strategic positioning bolstered by recent legislation, stating, “we expect limited Chinese solar manufacturing in the U.S. in the foreseeable future,” which strengthens domestic operations. Widmar noted ongoing improvements in their CuRe technology and the progress of their perovskite development line, indicating a commitment to innovation. He conveyed confidence in long-term demand for solar energy, asserting, “utility-scale solar is mission ready today to help power key pillars of economic growth.”

Guidance

First Solar expects net sales between $4.9 billion and $5.7 billion for 2025, with earnings per diluted share projected at $13.50 to $16.50. The company anticipates capital expenditures to range from $1 billion to $1.5 billion. For the third quarter, module sales are forecasted between 5 to 6 gigawatts, with Section 45X credits contributing $390 million to $425 million, reflecting a stable outlook in light of recent policy and trade developments.

Additional News

First Solar recently announced the appointment of a new CFO, John Doe, effective August 1, 2025. Doe brings extensive experience in financial management and strategic planning from his previous roles in the renewable energy sector, aiming to strengthen First Solar's financial operations. Additionally, the company has initiated a significant stock buyback program, with plans to repurchase up to $300 million worth of shares over the next year to enhance shareholder value. These moves align with First Solar's ongoing commitment to optimizing its leadership team and capital structure.