First Solar delivered record financial and operational performance for the fourth quarter and full year ended December 31, 2025, supported by higher module shipments, expanding US manufacturing capacity, and strong pricing backed by long term contracts.
Record Revenue and Profitability in 2025
First Solar reported sales of $1.7 billion in the fourth quarter, up $0.1 billion sequentially due to higher module volumes. For the full year 2025, sales surged to a record $5.2 billion, an increase of $1.013 billion compared to 2024.
Net income for 2025 totaled $1.528 billion, translating to diluted earnings per share of $14.21. Fourth quarter diluted EPS came in at $4.84.
Operating income reached $1.597 billion for the year, while gross margin stood at 40.6 percent, highlighting strong cost control and favorable pricing.
Strong Cash Position and Balance Sheet
The company ended Q4 2025 with $2.9 billion in gross cash and $2.4 billion in net cash.
The improvement was largely driven by proceeds from the sale of 2025 advanced manufacturing production tax credits under Section 45X of the Internal Revenue Code, along with solid operating cash flows. Capital expenditures related to the Louisiana facility partially offset these gains.
Property, plant and equipment stood at $5.676 billion at the end of Q4 2025, reflecting an increase of $262 million as the company expanded its manufacturing footprint.
Production Reaches 16.1 GW in 2025
First Solar achieved total annual production of 16.1 GW in 2025, marking a significant milestone.
US production: 10.0 GW
International production: 6.1 GW
By product series:
Series 6: 6.7 GW
Series 7: 9.4 GW
The Louisiana manufacturing facility was commissioned and began commercial production during the year. The company also announced plans to establish a new manufacturing facility in South Carolina, reinforcing its domestic expansion strategy.
The year ended with a total expected module volume backlog of 50.1 GW, providing strong revenue visibility for the coming years.
Pricing Trends and ASP Outlook
Pricing remained resilient due to long term contracted bookings and the advantages of domestic manufacturing.
For 1.0 GW of domestic volume booked since the prior earnings call, the average selling price was 36.4 cents per watt, including applicable adjusters but excluding low bin volume.
For 2026, First Solar expects:
Global ASP of approximately 28.7 cents per watt
US specific ASP of approximately 30.8 cents per watt
Gross margins in 2026 are projected to benefit significantly from $2.10 billion to $2.19 billion in Section 45X tax credits.
2026 Guidance: Volume, Revenue and EBITDA Growth
First Solar issued the following guidance for 2026:
Volume sold: 17.0 GW to 18.2 GW
Net sales: $4.9 billion to $5.2 billion
Gross margin: $2.4 billion to $2.6 billion
Operating expenses: $610 million to $635 million
Adjusted EBITDA: $2.6 billion to $2.8 billion
Capital expenditures: $0.8 billion to $1.0 billion
Net cash balance: $1.7 billion to $2.3 billion
Approximately $400 million of the 2026 capital expenditure budget is allocated to technology and R&D investments, including CuRe replication and Perovskite development.
For the first quarter of 2026, the company expects module sales between 3.4 GW and 4.0 GW, with Section 45X tax credits ranging from $330 million to $400 million. First quarter Adjusted EBITDA is projected between $400 million and $500 million.
Strategic Outlook
Chief Executive Officer Mark Widmar highlighted that First Solar continued its disciplined contracting strategy in a rapidly evolving market, focusing on pricing and delivery certainty as a competitive differentiator.
With record revenue of $5.2 billion, production of 16.1 GW, a 50.1 GW backlog, expanding US manufacturing capacity, and strong Section 45X support, First Solar is positioned for sustained growth and leadership in the US solar manufacturing sector in 2026 and beyond.
BABURAJAN KIZHAKEDATH