First Solar’s third quarter results were marked by robust shipment volumes and continued expansion of U.S. manufacturing capacity, helping the company deliver revenue in line with Wall Street expectations. Management attributed the strong top-line growth to record module sales, improved cash collections, and accelerated customer payments ahead of regulatory changes. CEO Mark Widmar highlighted the company’s “commitment to responsible solar” and recent progress in qualifying new U.S. facilities, while also addressing the operational impact of glass supply interruptions and contract defaults by key customers.
Is now the time to buy FSLR? Find out in our full research report (it’s free for active Edge members).
First Solar (FSLR) Q3 CY2025 Highlights:
- Revenue: $1.59 billion vs analyst estimates of $1.59 billion (79.7% year-on-year growth, in line)
- EPS (GAAP): $4.24 vs analyst expectations of $4.32 (1.9% miss)
- Adjusted EBITDA: $207.8 million vs analyst estimates of $617.1 million (13% margin, 66.3% miss)
- The company dropped its revenue guidance for the full year to $5.08 billion at the midpoint from $5.3 billion, a 4.2% decrease
- EPS (GAAP) guidance for the full year is $14.50 at the midpoint, missing analyst estimates by 3.8%
- Operating Margin: 29.2%, down from 36.3% in the same quarter last year
- Market Capitalization: $29.77 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From First Solar’s Q3 Earnings Call
-
Philip Shen (ROTH Capital Partners) pressed for details about rebooking the BP volume and future pricing, to which CEO Mark Widmar explained the company would be “patient” for favorable pricing and that contract terms do not allow repricing for new tariffs.
-
Brian Lee (Goldman Sachs) asked about expected pricing levels and the rationale for the 3.7 GW finishing line. Widmar confirmed target pricing in the mid-$0.36 per watt range and explained the facility balances domestic and international production for optimal value.
-
Moses Sutton (BNP Paribas) sought clarity on the firmness of remaining contracts after BP’s default. CFO Alexander Bradley stated BP contracts did not allow termination for convenience and that most other agreements remain solid, with ongoing efforts to enforce payment rights.
-
David Arcaro (Morgan Stanley) questioned confidence in the remaining backlog post-debookings. Widmar acknowledged some risk remains, especially among large multinational customers, but believes the current policy environment supports continued demand.
-
Jonathan Windham (UBS) inquired about the ramp and quality of new U.S. facilities. Widmar reported the Louisiana ramp is ahead of schedule and that learnings from past manufacturing issues have been applied to new operations.
Catalysts in Upcoming Quarters
In future quarters, our team will closely monitor (1) the pace and profitability of the Louisiana and new U.S. finishing facility ramp-up, (2) progress in rebooking volumes lost to contract terminations with pricing discipline, and (3) developments in U.S. trade policy, including tariffs and FEOC guidance. Execution on cost containment and legal recoveries from former customers will also serve as key indicators of management’s ability to stabilize and grow the business.
First Solar currently trades at $281.88, up from $232.91 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
The Best Stocks for High-Quality Investors
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
