First Solar's Q1 2025: Navigating Tariff Turbulence and Customer Uncertainty

Customer concerns and market uncertainty, impact of tariffs on operations, tariff impact on Southeast Asia volumes, delivery timelines and project viability, capacity expansion and financing strategy are the key contradictions discussed in First Solar's latest 2025Q1 earnings call.



Contracted Backlog and Module Sales:
- First Solar reported a contracted backlog of 66.3 gigawatts as of March 31, 2025, with net sales of 2.9 gigawatts modules in Q1.
- The growth in backlog is attributed to securing new contracts, such as net bookings of 0.6 gigawatts at a base ASP of $0.305 per watt, and sales of 2.9 gigawatts of modules.

Manufacturing and Capacity Expansion:
- The company produced 4 gigawatts of modules in Q1, comprising 2 gigawatts of Series 6 and 2 gigawatts of Series 7 modules.
- The ramp of domestic capacity expansion is ongoing, with the Alabama plant expected to increase U.S. manufacturing capacity to over 14 gigawatts by 2026.

Policy and Trade Developments:
- First Solar faces challenges from new tariff regimes, including a 10% universal tariff and reciprocal tariffs for Malaysia, Vietnam, and India, impacting international manufacturing.
- The company's guidance assumes the current tariff structure, which increases costs and may affect international manufacturing and underutilization expenses.

Financial Performance and Guidance:
- First Solar's Q1 earnings per diluted share were $1.95, below the low end of guidance primarily due to reduced U.S. production and tariff-related uncertainties.
- The company's full year 2025 net sales guidance is 4.5 billion to 5.5 billion, reflecting the impact of new tariffs and reduced international production.