First Solar, Inc. Reports Strong Q2 2025 Financial Results and Raises Full-Year Guidance
First Solar, Inc. a leading U.S.-based solar technology company, today announced its financial results for the second quarter ended June 30, 2025. The company also updated its financial outlook for the full year, reflecting continued momentum in utility-scale solar demand and the impact of recent U.S. policy and trade developments.
For the second quarter of 2025, First Solar posted net sales of $1.1 billion, marking a significant increase of $300 million compared to the first quarter. This growth was primarily attributed to an increased volume of photovoltaic (PV) solar modules sold to third-party customers. The surge in sales underlines the strong demand for First Solar’s advanced thin-film solar technology, particularly in the utility-scale segment.
The company reported net income per diluted share of $3.18 for Q2 2025, a notable improvement from $1.95 per diluted share in the previous quarter. This increase in profitability was supported by robust operational execution, higher module shipments, and ongoing cost discipline across its manufacturing footprint.
Monetization of Section 45X Tax Credits
During the second quarter, First Solar monetized $312 million worth of Section 45X advanced manufacturing production tax credits, which were generated earlier in 2025. The sale of these credits resulted in cash proceeds of $296 million, though the company recorded a loss of $16 million on the transaction due to pricing differentials. Additionally, the company recognized a $13 million reduction in the carrying value of its remaining credits, reflecting adjustments based on projected sale prices in upcoming quarters.
These Section 45X tax credits, established under the Inflation Reduction Act, are intended to stimulate domestic clean energy manufacturing. First Solar, as one of the few fully U.S.-based solar module producers, stands to benefit significantly from this incentive, which rewards every watt of solar module produced domestically.
As a result of these transactions, First Solar’s liquidity position strengthened considerably. As of June 30, 2025, cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, net of debt, stood at $600 million, up from $400 million at the end of Q1. The increase was largely driven by the proceeds from the Section 45X credit sales.
CEO Commentary and Industry Outlook
Commenting on the company’s performance and positioning, Mark Widmar, Chief Executive Officer of First Solar, expressed confidence in the company’s strategic direction:
“In our view, the recent policy and trade developments have, on balance, strengthened First Solar’s relative position in the solar manufacturing industry,” Widmar stated. “Additionally, we believe that on a fundamental basis, with its cost-competitive energy and faster time-to-power profile, the case for utility-scale solar generation is compelling regardless of the policy environment. This places First Solar, a utility-scale leader, in a position of strength.”
Widmar’s remarks reflect the company’s growing competitive edge as it leverages both its technological leadership in cadmium telluride (CdTe) PV modules and the favorable U.S. policy landscape that supports domestic solar manufacturing.
Third Quarter and Full-Year 2025 Outlook
Looking ahead to the third quarter of 2025, First Solar anticipates module sales volumes to range between 5.0 gigawatts (GW) and 6.0 GW, continuing the strong shipment trend. The company forecasts receiving between $390 million and $425 million in Section 45X tax credits in Q3 alone.
These expectations translate into forecasted Q3 earnings per diluted share in the range of $3.30 to $4.70, depending on the final sales mix, pricing, and tax credit monetization outcomes.
The company also provided a more detailed breakdown of expected costs and credit impacts for the remainder of the year:
- Ramp and underutilization costs are projected to be between $95 million and $180 million.
- Section 45X tax credits are forecasted between $1.575 billion and $1.625 billion for the full year.
- Production start-up expenses are estimated between $65 million and $75 million, as new manufacturing lines continue to ramp.
- When combining production start-up, ramp, and underutilization costs, the total could range from $160 million to $255 million.
Furthermore, the company expects to end 2025 with a robust financial position, projecting cash and cash equivalents (net of debt) to remain solid, bolstered by operational earnings and tax credit monetization.
Conference Call and Webcast
First Solar’s management team will host a conference call to discuss these results on July 31, 2025, at 4:30 p.m. Eastern Time. Investors and analysts are encouraged to access the live webcast and view the supporting materials via the company’s investor relations website at investor.firstsolar.com.
A recording of the webcast will be made available approximately two hours after the call concludes and will remain accessible for 30 days.
