First Solar Reports 6% Revenue Growth to $844.6 Million in Q1 2025

First Solar, Inc. reported its financial results for the first quarter of 2025, revealing a net sales increase of 6% to $844.6 million, compared to $794.1 million in the same period of 2024. The growth was primarily driven by an 8% rise in the volume of solar modules sold. However, the company's gross profit margin decreased to 40.8%, down from 43.6% a year earlier, attributed to higher costs associated with sales freight, a greater proportion of U.S.-produced modules, and increased storage costs. Operating income also fell to $221.2 million from $243.1 million in the prior year, reflecting the impact of these cost pressures.

In terms of operational metrics, First Solar produced 4.0 gigawatts (GW) of solar modules during the quarter and sold 2.9 GW. The company has a total installed nameplate production capacity of approximately 21 GW across its facilities. As of March 31, 2025, First Solar had 107,244,479 shares of common stock outstanding. The company continues to expand its manufacturing capabilities, with plans for a fifth facility in the U.S. expected to commence operations in the second half of 2025.

The financial report also highlighted significant changes in cash flow, with net cash used in operating activities amounting to $608 million, a stark contrast to the $268 million provided in the same quarter last year. This shift was primarily due to lower cash receipts from module sales and increased payments to suppliers. Additionally, cash, cash equivalents, and marketable securities decreased to $890.8 million from $1.8 billion at the end of 2024, reflecting ongoing capital expenditures and operational costs.

Looking ahead, First Solar remains optimistic about its growth trajectory, bolstered by government incentives such as the advanced manufacturing production credit under Section 45X of the Internal Revenue Code. The company anticipates that these incentives will enhance demand for its U.S.-manufactured modules and support its financial performance in the coming quarters. However, it also faces challenges from fluctuating market conditions, including potential tariffs and trade policies that could impact its operations and profitability.