FSLRNasdaqSemiconductors & Related DevicesUS GAAP · USD

First Solar, Inc

First Solar designs, manufactures, and sells cadmium telluride (CdTe) photovoltaic solar modules, with a business model centered on utility-scale and commercial solar projects. It is the only U.S.-headquartered company among the world’s largest solar manufacturers and runs a fully integrated manufacturing process that avoids Chinese crystalline silicon supply chains.

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Revenue5,219m USD
+24.1 %y/y
Operating profit (EBIT)1,597m USD
+14.5 %y/y
EBIT margin30.6%
−2.6 ppy/y
Net income1,528m USD
+18.3 %y/y
Free cash flow1,187m USD
+485.4 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-2,00002,0004,0006,000m USD2020: 2,711 m USD2020: EBIT 317 m USD20202021: 2,923 m USD2021: EBIT 587 m USD20212022: 2,619 m USD2022: EBIT -27 m USD20222023: 3,319 m USD2023: EBIT 857 m USD20232024: 4,206 m USD2024: EBIT 1,394 m USD20242025: 5,219 m USD2025: EBIT 1,597 m USD20255,2191,597
RevenueOperating profit (EBIT)

Business

Share of revenue
Solar modules92 %

CdTe photovoltaic modules sold on a per-watt basis for solar power generation.

Contracted future module deliveries6 %

Long-dated customer contracts for future module shipments recognized as deliveries occur.

Price adjustment features2 %

Contractual adjustments linked to technology improvements, freight, commodities, and domestic content.

Customers

First Solar sells primarily to project developers and operators that build and own utility-scale solar assets. Its customer base also includes independent power producers, regulated utilities, commercial and industrial buyers, and large corporate energy users seeking long-term clean power supply. The company’s sales are concentrated in the United States, where many customers use contracted offtake structures and value domestic supply, reliability, and tariff insulation.

System developers

Buy modules for project construction and value bankable supply, delivery certainty, and performance.

Independent power producers

Purchase modules for utility-scale projects financed through long-term contracted revenues.

Regulated utilities

Buy modules for utility-owned solar projects and long-term power purchase agreements.

Commercial and industrial companies

Buy modules indirectly through project developers to secure lower-cost renewable electricity.

Large corporate energy buyers

Use solar offtake to lock in power supply for electricity-intensive operations.

Strategy

First Solar’s strategy is built around advanced thin-film module technology, manufacturing scale, and supply-chain independence. Management is expanding U.S. manufacturing capacity while improving module performance and maintaining a contract book that extends through 2030. The company also emphasizes domestic-content, tariff resilience, and customer relationships in markets with strong solar demand and durable load growth.

Scale U.S. manufacturingShort term

Capacity expansion supports delivery commitments and strengthens supply reliability.

Advance thin-film technologyMedium term

Higher efficiency and better attributes help defend pricing and customer preference.

Build contracted backlogMedium term

Long-dated contracts improve visibility and support factory utilization.

Geography

2025

The company’s manufacturing and R&D footprint is centered in the United States, with additional operations in India, Malaysia, and Vietnam. Management says it sold the majority of modules to customers with projects in the United States during 2025, making U.S. demand and policy conditions the main commercial driver. Its supply chain positioning is designed to reduce exposure to Chinese crystalline silicon inputs and to support domestic-content requirements.

United States96 %
India3.8 %
France0.1 %

Share of the revenue the company reports by geography.

Risks

First Solar faces intense price competition from crystalline silicon manufacturers and periodic oversupply in the solar market, which can compress module pricing and margins. Demand is also sensitive to policy support, tariffs, and renewable incentives, while the company’s global operations expose it to regulatory, labor, tax, cybersecurity, and execution risks. Customer concentration and contract disputes can also create material revenue volatility because a small number of large counterparties account for meaningful sales.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Solar market oversupply and pricing volatility1Policy and subsidy changes2International operating complexity4Cybersecurity and information security breaches5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Solar market oversupply and pricing volatilityImpact: HighLikelihood: High

    Excess global PV capacity can force selling prices down and compress margins.

    Exposure: Module pricing and gross margin

  2. Policy and subsidy changesImpact: HighLikelihood: Medium

    Solar demand depends partly on tax incentives, tariffs, and renewable targets.

    Exposure: Demand and realized pricing

  3. Customer concentrationImpact: High

    A few large customers can represent a meaningful share of module sales.

    Exposure: Revenue concentration

  4. International operating complexityImpact: MediumLikelihood: Medium

    Operations in multiple countries create exposure to political, tax, and labor issues.

    Exposure: Manufacturing and supply chain

  5. Cybersecurity and information security breachesImpact: MediumLikelihood: Medium

    A breach could interrupt manufacturing, logistics, or customer and supplier relationships.

    Exposure: Operations and data integrity

Accounting

Judgemental items
Point-in-time revenue recognition

Revenue is booked when control transfers, usually at delivery, so timing of shipments matters.

Impact: Quarterly revenue and margin volatility

Variable consideration in contracts

Freight, commodity, domestic-content, and tariff clauses can change transaction price.

Impact: Revenue and backlog valuation

Warranty, collection, and recycling reserves

Management must estimate future module-related obligations and recoveries.

Impact: Cost of sales and liabilities

Government grants and advanced manufacturing credits

Tax credits and related sales affect reported tax expense and cash flow.

Impact: Tax line items and operating cash generation

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Last updated: 24/09/2026