Q1 2025 Earnings: First Solar Revenue Up - Profit Down - Forecast Cut - First Solar Stock Plunges

Tempe, USA – The U.S. solar company First Solar has reported its figures for the first quarter of 2025. While revenue has increased compared to the same quarter last year, net profit has declined. Investors are dissatisfied, and the stock has dropped significantly.

In the first quarter of 2025, First Solar achieved a revenue of $844.57 million. This represents a 6% increase compared to the same quarter last year (Q1 2024: $794.11 million). However, First Solar fell short of analyst expectations, which had been set at an average of $866 million. Additionally, revenue in Q1 2025 is down about 44% compared to the previous quarter (Q4 2024: $1.514 billion). First Solar attributes the decline in revenue to a seasonal reduction in the number of modules sold.

Net profit in the first quarter of 2025 decreased by about 11% to $209.54 million (Q1 2024: $236.62 million). This results in a diluted earnings per share of $1.95 in Q1 2025, compared to $2.20 in the same quarter last year. Analysts had expected an average of $2.54 per share.

In addition to the relatively weak quarterly numbers, First Solar has also disappointed with its outlook for the remainder of the fiscal year. The RENIXX company has cut its annual targets significantly. First Solar now expects revenue to range between $4.5 billion and $5.5 billion (previously: $5.3 billion to $5.8 billion). For earnings per share, the First Solar board now expects a range of $12.50 to $17.50, down from a previous range of $17.00 to $20.00. The expected module sales for the full year have also been reduced to 15.5 to 19.3 GW, down from an earlier forecast of 18 to 20 GW.

To explain the revised forecast, First Solar CEO Mark Widmar cited "near-term challenges presented by the new tariff regime“. Nevertheless, he remains confident that the long-term outlook for solar demand – particularly in the core U.S. market – remains strong, and that First Solar is well-positioned to meet this demand.

First Solar's stock has suffered significant losses this morning. Currently, the stock is down by 12.1%, with a price of €106.88.

Source: IWR Online, 30 Apr 2025