U.S.-based solar module manufacturer First Solar reported a revenue of $1.51 billion in the fourth quarter (Q4) of 2024, a 31% year-over-year (YoY) increase from $1.16 billion. The revenue also beat analysts’ expectations by $33.54 million.

The company’s earnings per share (EPS) came in at $3.65 compared to $3.25 in the same quarter the previous year. The EPS missed expectations by $1.08.

First Solar’s net income for the quarter was $393.12 million, a 12.5% growth compared to $349.24 million in Q4 2023.

Mark Widmar, Chief Executive Officer, First Solar, highlighted that the company ended the year with approximately 21 GW of global nameplate manufacturing capacity. This marks an increase of over 4 GW compared to 2023, driven by the addition of its new facility in Alabama and improvements in throughput optimization at its Ohio plants.

The company’s $1.1 billion Louisiana-based manufacturing facility remains on the construction schedule to begin commercial operations in the second half of 2025. Once fully ramped, this facility is expected to increase First Solar’s global nameplate manufacturing capacity to over 25 GW by 2026.

In 2024, First Solar achieved a record sale of 14.1 GW of modules and produced 15.5 GW of solar modules. This sale included 9.6 GW of Series 6 and 5.9 GW of Series 7 modules.

At the close of 2023, the company’s contracted backlog stood at 78.3 GW, with a total value of $23.3 billion, equating to approximately $0.298/W. Throughout 2024, First Solar reported sales of 14.1 GW and secured an additional 4.4 GW of net bookings. By the end of the year, the contracted backlog was 68.5 GW, with an aggregate value of $20.5 billion, or approximately $0.299/W.

Since the previous earnings call, the company has signed a net 0.4 GW of new contracts, including 0.3 GW in India. Approximately 40 MW of its inventory sold below its minimum backlog requirement through a non-traditional revenue-sharing agreement with a module distributor.

The remaining net bookings included 0.6 GW of sales to the company’s core U.S. utility-scale customer base, with an average selling price (ASP) of $0.305/W, which could rise to $0.314/W depending on the realization of applicable adjusters. These new bookings were partially offset by 0.5 GW of contract terminations.

For the full year 2024, the 4.4 GW of net bookings consisted of approximately 5.1 GW of gross bookings from U.S. utility-scale customers at an ASP of $0.309/W (potentially reaching $0.328/W with adjusters), 0.1 GW of lower-bin module sales through the distributor above, 0.6 GW of domestic sales in India, and 1.4 GW of module agreement terminations. Additionally, India saw 1 GW of contract terminations categorized as “contracts subject to conditions precedent” rather than included in the official backlog, bringing the total module contract terminations for 2024 to 2.4 GW.

A significant portion of First Solar’s backlog includes opportunities to increase base ASP through adjusters, contingent on meeting certain technology milestones at delivery. By the end of Q4 2024, approximately 37.1 GW of contracted volume included these adjusters, which could generate an additional $0.7 billion, or roughly $0.02/W. Most of this potential revenue will be realized between 2026 and 2028. This estimate does not account for possible price adjustments based on final product specifications, bin delivery variations, or aluminum and steel commodity price fluctuations.

First Solar’s total pipeline of potential bookings stands at 80.3 GW, a 1.1 GW decrease from the previous quarter. The mid-to-late-stage bookings pipeline declined by approximately 2.5 GW to 21 GW, comprising 18.5 GW in North America and 2.3 GW in India. Within this pipeline, around 3.9 GW consists of contracts subject to conditions precedent. Notably, signed contracts in India are not recognized as bookings until full security is obtained against the offtake.

Full-year 2024

First Solar reported a revenue of $4.21 billion in 2024, a 27% YoY increase from $3.32 billion.

The company’s EPS came in at $12.02 compared to $7.74 in the same quarter the previous year.

First Solar’s net income for the year was $1.29 billion, an increase of 55.5% compared to $830.78 million in 2023.

Given the uncertainty surrounding the policy environment following the recent U.S. elections, First Solar will continue to leverage its considerable contracted backlog and take a highly selective approach to new bookings this year. The company plans to prioritize forward contracting with customers who value long-term partnerships and recognize the unique advantages of its technology.

Shipment delays, both within the quarter and from Q4 2024 into 2025, were primarily driven by manufacturing challenges. These disruptions resulted in approximately $36 million in additional costs related to demurrage, detention, warehousing, grounding, and other logistics expenses during Q4.

2025 guidance

Net sales are projected to be between $5.3 billion and $5.8 billion, while the gross margin is expected to range from $2.45 billion to $2.75 billion.

Operating expenses are anticipated to be between $470 million and $510 million, leading to an operating income forecast of $1.95 billion to $2.30 billion. EPS is estimated to be in the range of $17 to $20.

The company expects to maintain a net cash balance between $0.7 billion and $1.2 billion. Capital expenditures are projected to fall between $1.3 billion and $1.5 billion, while the volume sold is anticipated to be between 18 GW and 20 GW.