First Solar's Q2 2025 Earnings Call: Unpacking Contradictions in Pricing Strategy, Tariffs, and Market Dynamics

Pricing strategy and pricing power, impact of tariffs on production costs, booking and pricing strategy, India market strategy and capacity allocation are the key contradictions discussed in First Solar's latest 2025Q2 earnings call.



Revenue Growth and Market Dynamics:
- First Solar reported 3.6 gigawatts of module sales in Q2, exceeding the midpoint of their forecast.
- Earnings per diluted share came in at $3.18, surpassing the high end of their guidance range.
- The growth was driven by strong demand for U.S.-manufactured modules, increased safety and clarity in the policy environment post-OBBBA enactment, and accumulating backlog and bookings following recent policy changes.

Capacity Expansion and Technological Advancements:
- First Solar progressed domestic capacity expansion, with production commencing at the Louisiana site and expected to boost U.S. capacity to over 14 gigawatts by 2026.
- Technological enhancements in CuRe modules and progress in perovskite development are expected to bring improved performance and energy output for future deployments.
- The company's focus on vertical integration and capacity expansion is supported by strong U.S. demand and competitive positioning in the global solar market.

Policy and Trade Uncertainty and Adjustments:
- The recent reconciliation legislation maintained key provisions benefiting First Solar, including restrictions on foreign entities and increased demand catalysts through new tax credits.
- Tariff-related uncertainties persisted, leading to increased underutilization and logistics costs, impacting international Series 6 production.
- First Solar's strategic adjustments and focus on domestic supply chain resilience highlight the company's positioning amid an evolving policy landscape and trade uncertainties.