First Solar Shines with Strong Earnings, Bets Big on US Manufacturing

PHOENIX, AZ – February 24, 2026

First Solar, Inc. (Nasdaq: FSLR) today announced a strong finish to 2025, posting robust financial results and an optimistic forecast for 2026 that underscore the company's aggressive expansion of its American manufacturing base. Fueled by a surge in module sales and significant benefits from U.S. government incentives, the nation's largest solar panel manufacturer is capitalizing on a strategic pivot towards domestic energy independence.

The company reported full-year 2025 net sales of $5.2 billion, a significant jump from $4.2 billion in the prior year, driven by a 24% increase in module sales volume. While the full-year earnings per diluted share of $14.21 slightly missed some analyst estimates, the overall financial picture painted a portrait of a company in a formidable growth phase. The fourth quarter alone generated $1.7 billion in net sales.

This financial strength is underpinned by a swelling cash position, which grew to $2.4 billion at the end of the quarter. The company attributed this increase to strong operating cash flows and proceeds from the sale of advanced manufacturing production tax credits available under Section 45X of the Internal Revenue Code.

“Our growth journey continued into 2025, with the commissioning of our new Louisiana factory and our decision to establish a new facility in South Carolina,” said Mark Widmar, Chief Executive Officer, in the company's announcement. “As we navigated a rapidly evolving environment, we maintained a disciplined approach to contracting and remained anchored in our core principle of pricing and delivery certainty, a key differentiator that our customers value.”

Policy Fuels Production

The impressive financial results are intrinsically linked to a favorable U.S. policy environment. The Inflation Reduction Act (IRA) and its Section 45X tax credits have been a powerful catalyst, providing production-based incentives for components made and sold in the United States. These credits, which can be converted directly to cash or sold to other entities, have provided First Solar with significant liquidity to fund its expansion.

The political landscape was further shaped by the passage of the "One Big Beautiful Bill Act" (OBBBA) in July 2025. While the act maintained the crucial 45X manufacturing credits, it introduced new complexities, including exclusions for businesses with ties to "Foreign Entities of Concern" (FEOC). This legislative shift, aimed at reducing reliance on foreign adversaries, inadvertently plays to First Solar’s core strength: its vertically integrated, non-Chinese supply chain.

While some in the industry have voiced concerns that other provisions in the OBBBA, such as an accelerated phase-out of certain investment tax credits, could dampen solar project development, First Solar appears well-positioned to navigate the new rules. The company's strategic decision to control its entire manufacturing process within the U.S. and allied nations now looks more prescient than ever, insulating it from the supply chain vulnerabilities and geopolitical tensions affecting many of its competitors.

Building an American Solar Empire

With a war chest bolstered by tax incentives and strong sales, First Solar is moving aggressively to expand its physical footprint across the United States. The company recently commissioned its new $1.1 billion factory in Iberia Parish, Louisiana, which began production months ahead of schedule in July 2025. The facility is already adding 3.5 gigawatts (GW) of annual capacity and employing over 700 people, with plans to grow to more than 800.

The expansion doesn't stop there. In November 2025, the company announced plans for another new facility in Gaffney, South Carolina. This plant, representing a $330 million investment, is slated to begin commercial operations in the second half of 2026 and will create over 600 new manufacturing jobs. Once the South Carolina plant is fully ramped in 2027, First Solar's total U.S. annual production capacity is projected to soar to an impressive 17.7 GW.

This domestic manufacturing push is a cornerstone of the company's strategy, allowing it to meet the robust demand for its products while ensuring compliance with the stringent domestic content and FEOC requirements embedded in recent legislation. The company's 2026 guidance reflects this growth, projecting sales volume between 17.0 GW and 18.2 GW and an adjusted EBITDA between $2.6 billion and $2.8 billion.

Technology as a Strategic Moat

Beyond policy and production capacity, First Solar’s foundational advantage lies in its unique technology. The company specializes in Cadmium Telluride (CdTe) thin-film modules, a distinct alternative to the crystalline silicon (c-Si) technology that dominates the global market and is heavily reliant on Chinese supply chains.

While historically viewed as less efficient, modern CdTe technology offers significant performance benefits. First Solar's modules often deliver higher energy yields over a project's lifetime, particularly in the hot, humid climates common in major U.S. solar markets. They are also more durable and less susceptible to certain types of degradation that can affect c-Si panels. Furthermore, the manufacturing process has a significantly lower carbon and water footprint, a key selling point for environmentally conscious buyers.

This technological differentiation creates a strategic moat. As competitors using c-Si technology navigate a market roiled by trade disputes, supply chain disruptions, and the financial struggles of some players like Meyer Burger, which recently scaled back its U.S. plans, First Solar’s stability and supply chain security stand out. The ability to offer a high-performance, responsibly produced, and domestically sourced module provides a powerful competitive edge in the current climate.

By aligning its unique technology with a massive investment in American manufacturing, all while being buoyed by favorable government policy, First Solar has crafted a business model that appears tailor-made for the current moment in the U.S. energy transition.