FSLR FIRST SOLAR, INC.
First Solar designs and manufactures photovoltaic (PV) solar modules using proprietary thin-film cadmium telluride (CdTe) semiconductor technology, rather than conventional crystalline silicon. It is the world's largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere, with manufacturing facilities in the United States, Malaysia, Vietnam, and India.
How the business makes money
First Solar generates revenue by manufacturing and selling PV solar modules to third-party customers, primarily utility-scale and project developer buyers, using a fully integrated, continuous manufacturing process that avoids reliance on Chinese crystalline silicon supply chains. Net sales for the quarter ended June 30, 2026 were $1.06 billion, with gross profit margin of 57.3%, boosted by expected IEEPA tariff refunds and Section 45X advanced manufacturing production credits under the IRC. The company sold 3.7 GW and produced 4.3 GW of modules in the quarter, and its revenue and profitability are described as subject to variability based on government incentive programs, tax credits, and trade policy.
Revenue reported to the SEC
| Fiscal year | Revenue (USD) |
|---|---|
| FY2021 | 2.9B |
| FY2022 | 2.6B |
| FY2023 | 3.3B |
| FY2024 | 4.2B |
| FY2025 | 5.2B |
What the filings support
First Solar is the only U.S.-headquartered company among the world's largest solar manufacturers and is the largest PV solar module manufacturer in the Western Hemisphere.
Its CdTe thin-film technology uses approximately 2% to 3% of the semiconductor material required by conventional crystalline silicon modules and offers a superior temperature coefficient, better spectral response in humid climates, better partial shading response, and immunity to cell cracking.
The company has invested over $2 billion in cumulative R&D over the last 20 years and has sold more than 93 GW of modules worldwide, reflecting a long manufacturing track record.
Gross margin expanded significantly (to 57.3% from 45.6% year-over-year for the quarter) aided by Section 45X production tax credits and expected IEEPA tariff refunds, and modules typically carry a limited power output warranty of up to 30 years.
The company is expanding U.S. manufacturing capacity with a sixth domestic facility under construction in South Carolina, following recent commencement of its fifth U.S. facility, supporting domestic supply chain localization.
Risks the company discloses
Net sales for the quarter ended June 30, 2026 decreased 3.7% year-over-year primarily due to customer contract terminations.
The company has reduced production of Series 6 modules at its international manufacturing facilities due to a European market captured by Chinese solar modules priced near or below manufacturing costs, an Indian market effectively closed to Southeast Asian products, a general Southeast Asian supply-demand imbalance, and tariffs on modules imported into the United States.
The solar industry is characterized by intense pricing competition at the module and system levels, which could constrain First Solar's ability to sustain meaningful and consistent profitability if competitors bid aggressively low prices or operate at minimal or negative margins.
The company believes manufacturers of solar cells and modules, particularly those in China, have significant excess installed production capacity relative to global demand, which could lead to periods of structural supply-demand imbalance and pricing volatility.
Demand for data-center-driven electric load growth that could support solar demand may be adversely affected by local community opposition to data center permitting and construction, and data centers may instead source energy from competing sources such as on- or off-grid natural gas.
Could not verify
- Specific customer concentration figures (e.g., percentage of revenue from top customers) were not provided in the supplied text.
- Details of the customer contract terminations that reduced net sales in the quarter were not specified.
- The exact dollar amount or terms of the IEEPA tariff refunds and amounts payable to customers were not quantified in the supplied text.
- Segment-level revenue breakdown (if any) was not included in the supplied text.
- Specific competitor names and their pricing levels were not detailed beyond general references to Chinese manufacturers.
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