First Solar Beats Q2 Earnings Estimates, Raises '25 Sales Guidance

First Solar, Inc. (FSLR) reported second-quarter 2025 earnings of $3.18 per share, which were down 2.2% from the prior-year quarter’s figure of $3.25. The bottom line, however, surpassed the Zacks Consensus Estimate of $2.68 per share by 18.7%.

The year-over-year decline in the bottom line can be attributed to higher operating expenses incurred in the second quarter of 2025 compared with the prior-year quarter.

FSLR’s Sales Update

First Solar’s second-quarter net sales were $1.10 billion, which beat the Zacks Consensus Estimate of $1.03 billion by 6.6%. The top line also improved 8.6% from the year-ago quarter’s $1.01 billion, driven by an increase in the volume of modules sold to third parties.

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote

Operational Highlights of FSLR

In the second quarter, the company’s gross profit was $499.9 million, which rose 0.2% from $498.9 million in the year-ago quarter.

Total operating expenses rose 9.4% year over year to $138.2 million.

FSLR reported an operating income of $361.6 million compared with $372.5 million in the year-ago quarter.

Financial Performance of First Solar

First Solar had $1.12 billion in cash and cash equivalents as of June 30, 2025, down from $1.62 billion as of Dec. 31, 2024.

The long-term debt totaled $328 million as of the same date compared with $373.4 million as of Dec. 31, 2024.

The net cash used in operating activities amounted to $458.4 million during the first six months of 2025 against cash generated from operating activities of $460.7 million during the first six months of 2024.

First Solar’s 2025 Guidance

First Solar has updated its 2025 guidance. FSLR now expects to generate earnings in the range of $13.50-$16.50 per share, narrower than the earlier guided range of $12.50-$17.50. The Zacks Consensus Estimate for earnings is pegged at $14.81 per share, which lies below the mid-point of the company’s newly guided range.

FSLR now expects to record sales in the range of $4.90-$5.70 billion, higher than its earlier guided range of $4.50-$5.50 billion. The Zacks Consensus Estimate for sales is pegged at $4.98 billion, which lies below the midpoint of the company’s updated guidance.

First Solar now expects gross profit to be in the band of $2.05-$2.35 billion, narrower than the previous guided range of $1.96-$2.47 billion. Its operating income is now anticipated to be in the $1.53-$1.87 billion range compared with the earlier guidance of $1.45-$2.00 billion.

The company currently expects module shipments to be in the band of 16.7-19.3 gigawatts (GW) compared with the prior guidance of 15.5-19.3 GW.

FSLR’s Zacks Rank

First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Recent Solar Release

Enphase Energy, Inc. (ENPH) reported second-quarter 2025 adjusted earnings of 69 cents per share, which increased 60.5% from 43 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 11.3%.

Enphase Energy’s second-quarter revenues of $363.2 million surpassed the Zacks Consensus Estimate of $357 million by 1.9%. The top line also increased 19.7% from the prior-year quarter’s reported figure of $303.5 million.

Upcoming Solar Releases

SolarEdge Technologies (SEDG) is scheduled to report its second-quarter 2025 results on Aug. 7, before market open.

The Zacks Consensus Estimate for sales is pegged at $273.7 million, which indicates a 3.1% improvement from the year-ago quarter’s figure. The consensus estimate for loss is pinned at 82 cents per share.

Canadian Solar (CSIQ) is scheduled to report its second-quarter 2025 results on Aug. 21, before market open.

The Zacks Consensus Estimate for sales is pegged at $1.92 billion, which indicates a 17.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at $1.14 per share, which indicates massive year-over-year growth of 5600%.

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This article originally published on Zacks Investment Research (zacks.com).

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