- Record Module Sales: Sold 17.5 GW in 2025, 24% YoY increase in net sales to $5.2B.
- Strong Cash Position: Ended year with $2.9B gross cash, $2.4B net cash, up $1.1B YoY.
- Contracted Backlog: 50.1 GW ($15B) as of year-end, driven by 50% reduced gross bookings to 7.4 GW.
- Gross Margin Expansion: 2026 guidance projects 50% gross margin ($2.5–2.6B), up from 41% in 2025.
- Technology Roadmap: CURE deployment to boost lifetime energy yield by 8%, perovskite R&D with $600M adjuster backlog for 2027–2028.
Revenue Growth and Margin Expansion
The company's revenue growth was fueled by a 24% increase in module volume, with net sales reaching $5.2 billion for the full year. Gross margin also expanded, driven by the increased volume and favorable product mix. The company's adjusted EBITDA for the full year was strong, reflecting its operational efficiency.
Contracted Backlog and Future Growth
First Solar ended 2025 with a contracted backlog of 50.1 gigawatts, valued at $15 billion, providing a strong foundation for future growth. The company's guidance for 2026 suggests continued expansion, with net sales expected to be between $4.9 billion and $5.2 billion. Analysts estimate revenue growth of 15.2% for the next year, indicating a positive outlook.
Valuation Metrics
To understand what's priced into First Solar's stock, we can examine its valuation metrics. The company has a P/E Ratio of 17.08, P/B Ratio of 2.74, and P/S Ratio of 5.0. Additionally, its EV/EBITDA is 11.9, and it has a healthy ROIC of 14.15% and ROE of 17.32%. The Net Debt / EBITDA ratio is -1.15, indicating a strong financial position. These metrics suggest that the market has a relatively positive view of the company's prospects.
Operational Highlights and Technological Advancements
First Solar continued to advance its technological capabilities, with significant developments in its CURE and perovskite technologies. The company is investing in a pilot line to produce full-size modules for development purposes and plans to deploy them commercially with customers. This focus on innovation is expected to drive future growth and maintain the company's competitive edge.
India Market and Global Demand
The company is seeing strong demand in the India market, with pricing being lower but still generating high-teens to low-20% gross margin due to lower manufacturing costs. First Solar believes its vertically integrated manufacturing facility will be cost-advantaged, and it has an energy advantage with its CURE technology starting in 2027. Global demand is expected to remain strong, driven by the need for renewable energy sources.