First Solar (NASDAQ:FSLR) used its fourth-quarter and full-year 2025 earnings call to outline record shipment volumes, an expanding U.S. manufacturing footprint, and a 2026 outlook shaped by ongoing trade, regulatory, and policy uncertainty. Management emphasized that it has remained selective on contracting while prioritizing “contract certainty” in pricing and delivery amid shifting tariffs, pending investigations, and customer schedule changes.
2025 results: record module sales and strong liquidity
Chief Executive Officer Mark Widmar said the company delivered record sales of 17.5 gigawatts (GW) of modules in 2025. Net sales were $5.2 billion, at the top end of guidance and up 24% year over year, while full-year diluted EPS was $14.21. The company ended the year with $2.9 billion of gross cash and $2.4 billion of net cash, both above its guidance range.
Full-year 2025 gross margin was 41%, down from 44% in 2024. Bradley attributed the decline primarily to tariff costs and tariff-driven warehousing expenses tied to a back-weighted revenue profile, detention and demurrage, and underutilization from curtailment at international Series 6 facilities. He said these headwinds were partially offset by $1.6 billion of Section 45X tax credits recognized in 2025, up from $1.0 billion in 2024.
Backlog and bookings: selective contracting amid debookings
As of December 31, 2025, contracted backlog totaled 50.1 GW, valued at $15.0 billion. The company reported full-year 2025 gross bookings of 7.4 GW and debookings of 8.3 GW, with debookings “primarily due to our termination of contract as a result of contract breaches by customers,” resulting in net debookings of 0.9 GW.
Widmar said that since the prior earnings call, the company secured 2.3 GW of gross bookings (excluding domestic India volume and 0.1 GW of low-bin inventory clearance). He highlighted 1.0 GW booked in the U.S. utility-scale market at an ASP of $0.364 per watt, inclusive of adjusters.
In Q&A, Widmar said the value of the adders in that $0.364 per watt was about $0.025 to $0.03. He also noted that not all of the booked volume included the adder, and that pricing would differ for “straight up” international deals, which he said could be “closer to $0.30,” reflecting lower domestic content value.
Bradley also reiterated that backlog ASP reflects a base ASP and that a portion of backlog includes pricing adjusters tied to technology and manufacturing milestones. At year-end, 23.2 GW of contracted volume included such adjusters, which management estimated could generate up to an additional $0.6 billion (about $0.03 per watt), with the majority expected to be recognized in 2027 and 2028.
Technology and manufacturing: CuRe rollout, perovskites, and U.S. expansion
On manufacturing, Widmar said the company initiated commercial production in Louisiana, its fifth U.S. factory, and announced plans to add a South Carolina facility to “onshore the finishing of Series 6 modules initiated at our international factories.” Management expects production from South Carolina to begin in Q4 2026 and run through the first half of 2027.
Widmar provided updates on two technology pillars:
- CuRe (CdTe-based): After limited commercial production from Q4 2024 to Q1 2025 and initial customer deliveries in the first half of 2025, Widmar said CuRe demonstrated expected energy advantages in lab and field testing, including temperature coefficient, degradation rate, and improved bifaciality. The company expects a disciplined factory-by-factory conversion rollout, starting with Ohio, with the Ohio lead line expected to be permanently converted in Q1.
- Perovskites: The company launched a perovskite development line at its Perrysburg campus and reached full in-line processing in Q3 2025. It initiated sourcing for a Series 6 form factor perovskite pilot line expected to reach operational readiness in early 2027. Widmar said additional work remains before scaling.
Widmar also said the company entered into an agreement with Oxford PV for a non-exclusive license to Oxford PV’s issued and pending perovskite patent applications, which management believes will improve freedom to develop, manufacture, and sell crystalline silicon-free perovskite modules across U.S. markets.
Policy, tariffs, and IP: trade actions and TOPCon enforcement
Widmar described the policy and trade environment as complex but “on balance” net favorable for a U.S.-based manufacturer, while he said risks are building for crystalline silicon supply chains tied to China. He cited potential catalysts including tighter trade enforcement, pending Section 232 actions, expanding FEOC restrictions, and intellectual property enforcement.
He noted the administration’s withdrawal of an appeal in Auxin litigation related to retroactive AD/CVD tariff collection and pointed to interim Treasury guidance signaling intent to address FEOC “gamesmanship.” He also highlighted Commerce’s preliminary countervailing duty determinations in the Solar IV AD/CVD investigation, citing preliminary CVD rates of approximately 81% (Laos), 126% (India), and 104% (Indonesia), with preliminary anti-dumping rates expected in April and final aggregate rates expected by the end of September.
On IP, Widmar said the company filed a petition at the U.S. International Trade Commission against “10 groups of foreign-headquartered manufacturers” it believes infringe one of its U.S. TOPCon patents, separate from district court actions against affiliates of Adani, Canadian Solar, and JinkoSolar. He said an ITC investigation, if instituted, would likely be decided in about 18 months and could result in exclusion orders and cease-and-desist orders.
2026 guidance: EBITDA focus, margins supported by 45X credits
For 2026, Bradley guided to net sales of $4.9 billion to $5.2 billion and said the company will shift to guiding on adjusted EBITDA going forward, citing better comparability given underutilization, startup costs, and potential tax noise (including “Pillar Two”). Full-year 2026 adjusted EBITDA is forecast at $2.6 billion to $2.8 billion, with first-quarter adjusted EBITDA expected to be $400 million to $500 million on module sales of 3.4 GW to 4.0 GW and Section 45X credits of $330 million to $400 million.
Gross margin is expected to be $2.5 billion to $2.6 billion, or about 49.5%, including $2.1 billion to $2.19 billion of Section 45X credits and $115 million to $155 million of ramp and underutilization costs. Expected 2026 capex is $0.8 billion to $1.0 billion.
Operationally, the company expects to sell 17.0 GW to 18.2 GW in 2026, above forecast production of 16.5 GW to 17.5 GW, reflecting planned inventory reduction. It forecast a U.S. ASP recognized of approximately $0.308 per watt and a global ASP recognized of about $0.287 per watt. Bradley said limited CuRe-related ASP upside is expected in 2026 due to contractual notification timing.
Management’s tariff assumptions include an estimated net tariff cost impact across bill of materials and finished goods imports of $155 million to $175 million, and $125 million to $135 million net of expected contractual recoveries. The company also expects warehousing costs of roughly $200 million in 2026, down from 2025, with a goal of reducing to around $100 million annually beginning in 2027.
On liquidity and capital structure, Bradley said First Solar entered a new $1.5 billion senior unsecured revolving credit facility and intends to fund 2026 capex with cash on hand and operating cash flow. The company expects to end 2026 with gross and net cash balances between $1.7 billion and $2.3 billion and plans to repay its India credit facility with the U.S. International Development Finance Corporation by June 30, 2026.
About First Solar (NASDAQ:FSLR)
First Solar, Inc (NASDAQ: FSLR) is a United States–based solar technology company best known for designing and manufacturing thin‑film photovoltaic (PV) modules that use cadmium telluride (CdTe) semiconductor technology. The company supplies PV modules and delivers integrated solar power solutions for utility‑scale projects, positioning itself as a provider of both components and complete solar energy systems rather than solely a parts supplier. First Solar was founded in 1999 and is headquartered in Tempe, Arizona.
Beyond module manufacturing, First Solar offers a range of project services including development support, engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) for large-scale solar installations.
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