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First Solar Faces Policy Headwinds but Stays Committed to U.S. Growth

In Q1 2025, U.S. solar manufacturer First Solar earned $844.57 million in revenue, up 6.4% from last year, though profits dropped to $209.53 million. The company’s earnings per share also fell short of expectations, and it has lowered its full-year sales and profit guidance due to new tariffs and policy uncertainties.

CEO Mark Widmar highlighted First Solar’s strong U.S. position as the only fully vertically integrated solar company in the country, benefiting from a vast domestic supply chain and proprietary Cadmium Telluride technology. However, the business is being affected by new trade tariffs—10% universal and higher country-specific ones (e.g., 46% for Vietnam)—which complicate global pricing and strategy.

First Solar plans to shift about half of its India-based production back to the Indian market to avoid these tariffs. Despite challenges, the company is expanding U.S. manufacturing. It ramped up production in Alabama and completed a new Louisiana facility, aiming for over 14 GW of U.S. capacity by 2026.

Updated guidance reflects a cautious outlook, with reduced sales and earnings forecasts. Yet, First Solar remains optimistic due to strong U.S. demand and government support through policies like the Inflation Reduction Act. The company is also pushing for long-term industrial policy support and clean energy incentives.