What's Happening?
First Solar, a U.S. manufacturer of cadmium telluride thin-film solar modules, reported net sales of $1.7 billion for the fourth quarter of 2025, contributing to a full-year total of $5.2 billion. The company attributed its growth to a 24% increase in third-party
module volume and a record production of 16.1GW of solar PV modules. Most production is concentrated in the U.S., with significant contributions from India and other regions. First Solar is navigating potential Section 122 tariffs, which could increase costs for imported components and finished modules. The company plans to expand U.S. production capacity, aiming for up to 16.1GW by 2027.
Why It's Important?
First Solar's financial performance underscores its resilience and adaptability in a challenging policy environment. The company's strategic focus on U.S. manufacturing aligns with national priorities to boost domestic production and reduce reliance on imports. The potential imposition of tariffs highlights the ongoing trade tensions and their impact on the solar industry. First Solar's expansion plans and increased production capacity position it to meet growing demand for renewable energy solutions, supporting the transition to a more sustainable energy future.
What's Next?
First Solar anticipates a stable 2026, with projected module production between 17GW and 18.2GW. The company is focused on expanding its U.S. manufacturing footprint, with new facilities in Louisiana and South Carolina. These efforts aim to enhance production capabilities and support long-term growth. The company will continue to monitor policy developments and adjust its strategies accordingly to maintain its competitive edge in the global solar market.
