First Solar Reports 79.7% Revenue Growth to $1.6 Billion in Latest Quarter

First Solar, Inc. reported significant financial growth in its latest quarterly results, with net sales for the three months ended September 30, 2025, reaching $1.6 billion, a 79.7% increase from $887.7 million in the same period last year. This surge was primarily driven by a 79.1% rise in the volume of solar modules sold, recovering from previous manufacturing issues that had impacted revenue. For the nine months ending September 30, 2025, net sales also increased by 31.4% to $3.54 billion compared to $2.69 billion in the prior year.

Despite the increase in sales, First Solar's gross profit margin decreased significantly, with gross profit as a percentage of net sales falling to 38.3% from 50.2% year-over-year. The decline was attributed to higher logistics costs, including tariffs and demurrage charges, as well as a lower sales mix of modules qualifying for advanced manufacturing credits. Operating income for the quarter was reported at $466.1 million, up from $322.0 million in the previous year, while net income rose to $455.9 million from $313.0 million, resulting in a diluted net income per share of $4.24, compared to $2.91 in the prior year.

Operationally, First Solar commenced production of its Series 7 modules at a new facility in Louisiana, contributing to a total installed production capacity of approximately 23.5 gigawatts (GW). The company produced 3.6 GW and sold 5.3 GW of solar modules during the quarter. Additionally, First Solar entered into agreements for the sale of Section 45X tax credits, which are expected to provide significant cash inflows, further bolstering its financial position.

The company also reported a notable increase in cash and cash equivalents, totaling $2.0 billion as of September 30, 2025, compared to $1.8 billion at the end of 2024. This increase was driven by higher cash receipts from module sales and factoring of trade receivables. First Solar's total assets grew to $13.46 billion, up from $12.12 billion at the end of the previous fiscal year, reflecting its ongoing investments in manufacturing and operational capacity.

Looking ahead, First Solar remains optimistic about its growth trajectory, driven by increasing demand for solar energy and the expansion of its manufacturing capabilities. The company anticipates continued revenue growth from its contracts, which include future sales of 53.7 GW of solar modules valued at approximately $16.4 billion. However, it also acknowledges potential challenges, including pricing competition and the impact of government policies on the solar market.