First Solar 2025 Q1 Earnings Misses Targets as Net Income Falls 11.4%

First Solar (FSLR) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. The results missed expectations with a decline in net income and EPS. First Solar’s guidance for 2025 remains challenging, especially given the impact of international sales and tariff uncertainties. The company projects net sales between $4.5 billion and $5.5 billion and anticipates EPS ranging from $12.50 to $17.50. This outlook reflects potential tariff impacts and highlights the complexities introduced by recent policy changes.

Revenue

First Solar witnessed a 6.4% increase in total revenue, reaching $844.57 million in Q1 2025 compared to $794.11 million in Q1 2024. The module segment was the primary contributor, accounting for the entire revenue of $844.57 million, showcasing a steady growth trajectory for the company's core operations.

Earnings/Net Income

First Solar experienced an 11.3% decline in earnings per share (EPS), which fell to $1.96 in 2025 Q1 from $2.21 in 2024 Q1. Concurrently, net income dropped by 11.4%, settling at $209.53 million compared to $236.62 million the previous year. This indicates a challenging quarter for the company.

Price Action

The stock price of First Solar edged down 2.47% during the latest trading day, rose by 1.40% over the most recent trading week, and surged 8.40% month-to-date.

Post-Earnings Price Action Review

An analysis of First Solar's post-earnings stock price behavior reveals varied win rates across different metrics. For revenue, net income, and EPS, the 3-day win rates were 48.40%, 43.70%, and 44.87%, respectively. The 10-day win rates were slightly lower for revenue and net income, at 43.70% and 43.10%, while EPS had a higher win rate of 45.60%. Over 30 days, EPS showed the highest win rate at 46.90%, followed by revenue at 45.60% and net income at 44.87%. The maximum return observed was 8.62% over 30 days, with the peak return occurring on day 79 post-earnings report. Overall, these results suggest that earnings report metrics, particularly EPS, have a positive impact on First Solar's stock price in the short term, with the effect being notably stronger for EPS compared to revenue and net income.

CEO Commentary

Mark Widmar, Chief Executive Officer, highlighted that First Solar secured net bookings of 0.6 gigawatts at a base ASP of $0.305 per watt, resulting in a backlog of 66.3 gigawatts. He acknowledged that Q1 earnings per diluted share of $1.95 fell below guidance due to a higher proportion of international sales. Widmar emphasized ongoing manufacturing advancements, including the successful limited production run of CuRe technology, and expressed optimism about First Solar's unique position in the U.S. market, despite challenges posed by recent tariff changes. He noted the importance of maintaining a level playing field against unfair Chinese trade practices and reaffirmed confidence in long-term solar demand.

Guidance

First Solar updated its financial guidance for 2025, projecting net sales between $4.5 billion and $5.5 billion and EPS in the range of $12.50 to $17.50. The company expects capital expenditures to range from $1 billion to $1.5 billion, reflecting potential tariff impacts. The guidance incorporates the assumption of 9.5 to 9.8 gigawatts of U.S. manufactured volumes sold, while international sales may face reductions due to tariff uncertainties. Overall, the guidance reflects the complexities introduced by the new tariff regime and ongoing policy developments.

Additional News

Recently, First Solar has been at the center of significant developments. Notably, the company is ramping up its domestic capacity with the Alabama factory and preparing the Louisiana facility for commercial operations later this year. They are also expanding their presence in the U.S. market amid finalized tariffs on solar imports from Southeast Asia, which could favor First Solar due to its local manufacturing base. Additionally, First Solar has been navigating challenges due to the new tariff regime affecting its international facilities and weighing strategic options like reallocating production or setting up finishing lines in the U.S. This reflects the company's adaptability in response to evolving trade policies.