First Solar has revealed its main achievements and financial performance for the second quarter ended June 30, 2024.
First Solar says sales for the second quarter were $1.0 billion, an increase of $0.2 billion from the prior quarter. The growth in sales revenue was primarily driven by an increase in the volume of modules sold and an increase in the average selling price per watt of modules. First Solar has achieved 24 percent increase in the volume of megawatts sold.
Gross margin of First Solar was 49 percent in Q2 vs 44 percent in the first quarter. The increase in gross margin was primarily due to a higher mix of modules sold from U.S. factories, which led to $255 million in the Section 45X tax credits. First Solar has also reduced its warehousing and logistics costs, and production cost.
First Solar reported net income per diluted share of $3.25, compared to net income per diluted share of $2.20 in the first quarter of 2024.
Mark Widmar, CEO of First Solar, said: “Our balanced approach to growth, profitability, and liquidity, combined with multiple technological and business model points of differentiation is enabling us to deliver value for both our customers and our shareholders.”
First Solar is targeting revenue of $4.4 billion – $4.6 billion in revenue. First Solar is aiming to spend $1.8 billion – $2 billion towards Capital expenditure (Capex) in 2024.
First Solar has added 0.9 GW orders during Q2 2024, reaching 3.6 GW for the first-half with an average selling price of 31.6 cents or $0.316 per watt. First Solar says total bookings reached 75.9 GW extending through 2030.
The contracted backlog totaled 78.3 gigawatts, aggregate value reaching $23.3 billion as of December 31, 2023. Through June 30, 2024, First Solar contracted 2.7 gigawatts of incremental volume, reduced bookings by 0.4 gigawatts due to a contract termination by a European customer, and recognized 6.1 gigawatts of volume sold.
First Solar has established a new world record CadTel research cell with a conversion efficiency of 23.1 percent. This achievement certified by the United States Department of Energy’s National Renewable Energy Laboratory was accomplished at the California Technology Center.
First Solar will launch its CuRe program in Q4 to increase energy production in real-world conditions through improved module temperature coefficient, bifacial reality, and degradation rate.
Capital expenditure
First Solar started production of Series 7 modules at its third manufacturing facility in Ohio and its first manufacturing facility in India during 2023.
First Solar is in the process of constructing fourth and fifth manufacturing facilities in the United States, targeting to start operations in the second halves of 2024 and 2025, respectively.
First Solar currently expects remaining investment in these U.S. facilities and upgrades to be approximately $1.4 billion.
IN 2024, First Solar expects to spend between $1.8 billion and $2.0 billion for capital expenditures, including the new facilities, and upgrades to machinery and equipment.
Baburajan Kizhakedath