First Solar, Inc. (FSLR) Business Profile

What it does

First Solar designs, manufactures and sells solar modules: panels that convert sunlight into electricity. Its customers include project developers, independent power producers, utilities, industrial companies and large corporate energy buyers. The company focuses on modules for utility-scale projects, principally in the United States and India.

Its modules use a thin layer of cadmium telluride, or CdTe, as the material that absorbs sunlight. This differs from the crystalline silicon technology used in conventional solar modules. First Solar says its modules can produce more energy than conventional modules with the same rated power in certain real-world conditions, including hot or humid climates.

The company operates an integrated manufacturing process: a sheet of glass enters a production line and is turned into a finished module ready for shipment. Its factories are in the United States, India, Malaysia and Vietnam. The process does not rely on Chinese crystalline silicon supply chains.

First Solar also operates a recycling program that recovers materials from its modules for reuse. Its research and development work includes efforts to improve module output, durability and manufacturing efficiency, as well as work on perovskite thin-film technology.

Founded in 1999, First Solar is headquartered in Tempe. Mark R. Widmar is its chief executive officer.

How it makes money

First Solar operates as one business segment and earns sales primarily by manufacturing and selling solar modules. Its Series 6 Plus and larger Series 7 products are glass-based modules containing thin-film semiconductor material. It generally prices modules per watt of rated power, with pricing varying by product and manufacturing location.

Net sales were $5.2 billion in 2025 and approximately $1.2 billion in Q3 2026.

Customers can contract for future deliveries over several years. At December 31, 2025, First Solar had contracts for the future sale of 50.1 GW of modules at an aggregate transaction price of $15.0 billion, which it expected to recognize as revenue through 2030 as control of the modules transferred to customers. That figure excluded certain India contracts for which payment was not fully secured. Contracts can include price adjustments tied to matters such as technology improvements, freight, commodities, domestic content and tariffs. Contract cancellations or renegotiations can also change the revenue ultimately recognized.

First Solar says customer engagements have shifted toward contracts for specific projects and delivery schedules, although it remains open to framework agreements with appropriate protections. Framework agreements can cover projects at different stages of development, making delivery timing harder to plan.

U.S. manufacturing credits also affect the economics of the business. First Solar can sell eligible Section 45X tax credits to third parties and sold credits generated during 2025. Its 2025 gross profit percentage fell to 40.6%, reflecting costs including a greater mix of U.S.-produced modules, warehousing, duties and logistics, partly offset by higher manufacturing credits.

Customers and how it sells

First Solar sells to system developers, independent power producers, utilities, commercial and industrial companies, large corporate energy buyers, and other system owners and operators. These customers develop, own or operate projects that use its modules to generate electricity. Utilities may own solar projects or purchase their output under long-term agreements; corporate buyers also use long-term arrangements to secure electricity from projects.

The United States accounted for 95.7% of revenue in FY2025, or $5.0 billion. India accounted for 3.75%, or $195.6 million. First Solar sold most of its modules to customers with U.S. projects in 2025. Silicon Ranch Corporation and NextEra Energy each accounted for 10% or more of its modules business net sales that year.

The company focuses on markets with substantial solar resources and electricity demand. Its U.S. and Indian operations include local manufacturing, while it also has facilities in Malaysia and Vietnam. First Solar says its India-produced technology is suited to hot and humid conditions, and its India facility serves a market where domestic-manufacturing rules affect project procurement.

For existing multiyear framework agreements, customers’ project schedules can shift delivery requirements. The company has increasingly pursued project-specific contracts with defined delivery schedules.

Suppliers and costs

First Solar’s modules use glass, cadmium telluride, other semiconductor materials, adhesives, frames, junction boxes, wires and connectors. It qualifies suppliers before using their materials and seeks sources near its factories where possible. Some key materials and components come from a single supplier or a limited number of suppliers; the company does not name those suppliers here.

Production is automated and integrates deposition of semiconductor material, formation of cells, assembly and testing. Factories in the United States, India, Malaysia and Vietnam form its manufacturing network. Its South Carolina finishing facility receives semi-finished product from Vietnam.

Manufacturing materials, labor and overhead, as well as freight, storage, duties and tariffs, affect costs. In 2025, a larger share of U.S.-produced modules and higher warehousing, duty and logistics costs contributed to a lower gross profit percentage, partly offset by manufacturing credits.

First Solar has reduced international Series 6 production in response to market and trade conditions. It expects to decide in the first half of 2027 whether its Malaysia facility will operate at full or near-full capacity or shut down production.

Competitive position

First Solar competes primarily with manufacturers of crystalline silicon solar modules, most of which it says are linked to China. Module makers compete principally on selling price per watt, with energy yield, reliability, degradation, warranty terms and customer payment terms also affecting competition. First Solar faces competition from emerging technologies and potential new entrants. No solar-module competitor is identified by name in the supplied business evidence.

Its thin-film technology and integrated manufacturing process distinguish it from conventional crystalline silicon production. The company says its modules can perform better in certain hot, humid and partially shaded conditions, and its process does not depend on Chinese crystalline silicon supply chains. It also invests in research, operates recycling facilities and typically offers power-output warranties for periods of up to 30 years.

Our reading: The technology and manufacturing process provide a meaningful distinction, particularly for customers that value supply-chain sourcing or energy yield in suitable climates, but price competition limits how much that distinction can protect margins.

Our reading: U.S. manufacturing and established supply relationships can support its position where customers seek domestic content, but their value depends in part on policy and eligibility rules. Research, warranties and recycling add to its offering, although the evidence does not establish how much each protects market share.

Growth opportunities

First Solar is expanding U.S. manufacturing and developing technology intended to raise module energy output. The first phase of its South Carolina Series 6 finishing facility began production in Q3 2026. The company expects the second phase to reach commercial launch in mid-2027, after delaying it so CuRe technology could be incorporated at launch.

CuRe replaces copper in the semiconductor structure with other elements intended to improve module performance. First Solar expects its first Series 7 CuRe conversion at its India facility to begin in the first quarter of 2027, followed by replication across the fleet. It plans to use India front-end output to support subsequent U.S. conversions, assuming a supportive trade environment.

The company is also developing perovskite technology. Its Ohio pilot line, designed to produce Series 6-size perovskite modules, is targeted for operational readiness in the first half of 2027. Licensing agreements with CubicPV and Oxford PV provide access to perovskite intellectual property for that work.

First Solar identifies growing electricity demand, including from data centers, as a potential source of solar demand. It says the United States installed over 30 GW of utility-scale solar capacity in 2025. In India, it points to government renewable-energy targets and domestic-manufacturing policies; its installed nameplate production capacity there is 3.2 GW.

At the same time, the company says some customers are prioritizing nearer-term projects while deferring purchases for early-stage projects requiring delivery later in the decade.

Structural risks

• Competition and pricing: Global module supply can exceed demand, reducing selling prices. Competitors may price near or below manufacturing costs or operate with minimal or negative margins for extended periods.
• Policy and trade: Demand and profits vary with tax credits, incentive eligibility, tariffs and other trade measures. First Solar says uncertainty around foreign-entity rules and Section 232 tariffs has made module pricing less clear for customers.
• Customers and project timing: Large customers can terminate, breach or renegotiate contracts. Shifting project schedules can change delivery requirements, and local opposition, permitting, financing and interconnection difficulties can delay projects.
• Manufacturing and technology: Expansion and technology conversions can encounter delays, cost overruns or production problems. Manufacturing issues affecting certain Series 7 modules may lead to lower selling prices, warranty claims or remediation costs.
• Supply chain and costs: Some key inputs have limited sources. China’s export controls on products containing tellurium could affect materials needed for production; freight, tariffs and commodity costs can also affect manufacturing economics.
• Capacity utilization: Balancing factory output with demand is difficult. Idling or adjusting capacity can lead to charges, and First Solar is evaluating whether to operate or shut down production at its Malaysia facility.

Bottom line

Our reading

First Solar is a module manufacturer whose business rests on thin-film technology, U.S. production and contracts for future deliveries. Its domestic footprint and differentiated supply chain matter to customers, but policy and trade rules also shape their value (item1; item7; call_prepared).

The central operating challenge is converting contracted demand and technology improvements into deliveries while managing project delays, factory utilization and competition on price (item7; call_prepared; call_qa).