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First Solar Reports $1.51 Billion Revenue in Q4 2024, Plans Expansion to 25 GW Capacity by 2026

First Solar, a U.S.-based solar module manufacturer, reported $1.51 billion in revenue for Q4 2024, marking a 31% year-over-year (YoY) increase from $1.16 billion. While revenue exceeded analysts' expectations by $33.54 million, earnings per share (EPS) fell short at $3.65, missing estimates by $1.08. Net income stood at $393.12 million, a 12.5% growth from Q4 2023.

Key Business Developments & Expansion

• Manufacturing Capacity Growth: First Solar ended 2024 with 21 GW of global nameplate capacity, a 4 GW increase from 2023, supported by its new Alabama facility and production optimizations in Ohio.
• Upcoming Facilities: A $1.1 billion Louisiana plant is on schedule to begin operations in H2 2025, pushing total capacity beyond 25 GW by 2026.
• Module Production & Sales: The company produced 15.5 GW of modules and sold 14.1 GW in 2024, including 9.6 GW of Series 6 and 5.9 GW of Series 7 modules.
• Backlog & Bookings: First Solar’s backlog stood at 68.5 GW, valued at $20.5 billion ($0.299/W) at the end of 2024, after adding 4.4 GW of net bookings. The potential bookings pipeline remains at 80.3 GW, with 21 GW in mid-to-late-stage discussions.

Financial Performance for Full Year 2024

• Total Revenue: $4.21 billion, a 27% YoY increase from $3.32 billion in 2023.
• EPS: $12.02, up from $7.74 in the previous year.
• Net Income: $1.29 billion, a 55.5% rise from $830.78 million in 2023.
• Average Selling Price (ASP): $0.309/W for U.S. utility-scale projects with potential adjustments to $0.328/W.
• Shipment Delays & Costs: Due to manufacturing issues, $36 million in logistics costs (demurrage, detention, warehousing) were incurred in Q4 2024.

Outlook for 2025

• Revenue Projection: Between $5.3 billion and $5.8 billion.
• Gross Margin: Estimated at $2.45 billion to $2.75 billion.
• Operating Income: $1.95 billion to $2.30 billion.
• EPS Forecast: Between $17 and $20.
• Projected Sales Volume: 18 GW to 20 GW.
• Capex Plans: $1.3 billion to $1.5 billion.
• Net Cash Balance: Expected to be between $0.7 billion and $1.2 billion.

Strategic Focus & Industry Impact

• First Solar is adopting a selective approach to new contracts, focusing on customers with long-term commitments and appreciation for its technology edge.
• Uncertainty in U.S. policy post-elections may influence bookings, but the company's strong contracted backlog offers stability.
• The company continues to strengthen its foothold in India, with 0.6 GW of sales and 1 GW of contract terminations in 2024.