First Solar lowers 2025 earnings expectations due to tariff challenges

The solar panel manufacturer’s stock declined roughly 10% following the release of its Q1 2025 report.

First Solar released its Q1, 2025 earnings report, meeting expectations of about $844 million in revenue. 

The solar panel manufacturer significantly lowered its expectation for net sales in 2024 to $4.5 billion to $5.5 billion, down from an expected range of $5.3 billion to $5.8 billion. Share prices fell roughly 10% in the trading session following the release.

The new lowered guidance prices in uncertainty created by the new U.S. tariff regime. The tariffs affect First Solar’s manufacturing facilities in India, Malaysia, and Vietnam.

“Despite the near-term challenges presented by the new tariff regime, we believe that the long-term outlook for solar demand, particularly in our core U.S. market, remains strong, and that First Solar remains well-positioned to serve this demand,” said Mark Widmar, chief executive officer, First Solar.

The company reported a total net bookings backlog of 66.3 GW of modules through 2030. It added 0.6 GW of net bookings since the previous quarter’s earnings call.

The company said the “universal” and “reciprocal” tariffs create significant operational uncertainty. It said its contracted backlog of imported products contains tariff risk mitigation provisions. The company is now pivoting its India manufacturing to domestic content and is actively evaluating its 2025 production volumes for Malaysia and Vietnam.

First Solar manufactured 4 GW in Q1, including 2 GW of Series 6 and 2 GW of Series 7 modules, meeting their production expectations. The company produces cadmium telluride thin-film solar panels, differing from the polysilicon panels produced by most suppliers.

The company noted uncertainty remains around the Congressional budget review and the fate of U.S. tax credits, as well as the final determination of antidumping and countervailing duty (AD/CVD) tariffs on Southeast Asian solar providers. First Solar said another short-term risk to its business is that Chinese producers are beginning to relocate capacity, with U.S. trade data showing a surge imports, including from Laos and Indonesia.

Despite the short-term negative impacts, First Solar said the long-term fundamentals supporting its business are strong. U.S. electricity demand is expected to rise 50% by 2050, said the National Electrical Manufacturers Association. First Solar said increased demand and efforts to reshore domestic manufacturing will continue to be fundamental drivers.

First Solar also reached limited commercial-scale production of its CuRe format solar modules, which the company said have among the lowest degradation rates in the industry, reportedly retaining 92% output in year 30 of operation.

First Solar commissioned a new manufacturing facility in Alabama in the second half of 2024 and it said its Louisiana factory planned for the second half of 2025 is on track. The additions bring its total U.S. module assembly nameplate capacity to 14 GW by 2026.