First Solar

First Solar (Nasdaq: FSLR) makes thin-film solar panels (cadmium telluride, or CdTe, instead of silicon) and sells them by the watt to U.S. utility-scale project owners, and a U.S. manufacturing tax credit (Section 45X) sold for cash helps carry the profit. FY2025 (year ended Dec 31, 2025) net sales were $5.22B (+24%) on 17.5 GW of modules sold, with 96% of sales in the United States. Gross profit was $2.12B (40.6% margin, down from 44.2%), operating income $1.60B and net income $1.53B. In 2025 it agreed to sell $1.40B (face value) of 2025 manufacturing credits for $1.34B in cash. At Dec 31, 2025 it had signed contracts to sell 50.1 GW for $15.0B through 2030, and two customers were 11% and 10% of net sales. H1 2026 net sales were $2.10B (+8%) and net income $769.2M, but Q2 net sales fell 3.7% to $1.06B and Q2 gross margin of 57.3% included an $88.6M net benefit from expected tariff refunds; operating cash flow was negative $359.8M in H1 as cash and securities fell from $2.9B to $1.7B, and it paid off its India credit facility in May 2026.

Business Model Canvas
First Solar
Research date: Oct 11, 2026
Evidence-backed · sources in companion brief

Key Partners

  • Glass and chemical suppliers — CdTe, tellurium and substrate glass are single-sourced or limited-source inputs (FACT).
  • Utility and developer customers — Silicon Ranch and NextEra Energy were each 10%+ of modules-business net sales in 2025 (FACT).
  • Tax-credit buyers — 2025 credits sold: $701.9M face for $668.1M (June–July) and $699.7M face for $668.2M (October) (FACT).
  • Trade coalition — the American Alliance for Solar Manufacturing Trade Committee filed duty petitions on imports from Cambodia, Malaysia, Thailand and Vietnam (FACT).
  • Government programs — the Tamil Nadu state granted incentives for the Indian plant; the Treasury pays Section 45X credits that are not sold (FACT).

Key Activities

  • Run the factory line — glass in, finished module out in a few hours; 16.1 GW produced in 2025 (FACT).
  • Expand U.S. capacity — Louisiana started in 2025; South Carolina plant targeted for 2H 2026 (FACT).
  • Research — perovskite line, CuRe program, two CdTe efficiency records (23.1% cell, 19.9% module aperture) (FACT).
  • Sell and collect — per-watt contracts, advance payments, and 45X credit sales (FACT).
  • Protect the technology — patent suit against JinkoSolar filed Feb 25, 2025 in Delaware (FACT).

Key Resources

  • Factories — Ohio, Alabama, Louisiana in the U.S.; Malaysia, Vietnam, India; South Carolina under construction (FACT).
  • Long-lived assets — $5.90B, of which $4.39B in the U.S. (FACT).
  • Technology — CdTe thin film; more than 93 GW sold worldwide (FACT).
  • People — about 7,900 associates at Dec 31, 2025 (FACT).
  • Cash — $2.86B at Dec 31, 2025; $1.73B at Jun 30, 2026 (INFERENCE sum of cash and securities).

Value Propositions

  • Made-in-U.S. modules — 96% of 2025 net sales were in the U.S.; U.S. plants qualify for 45X (FACT).
  • Thin-film performance — better temperature and partial-shade response, no cell cracking (company claim, FACT as stated).
  • Warranty — product warranty up to 12.5 years; power output of at least 98% in year one, up to 30 years (FACT).
  • No Chinese crystalline-silicon supply chain — the company says its process doesn't rely on it (FACT as stated).
  • Recycling — collection and recycling program offered since 2005 (FACT).

Customer Relationships

  • Long contracts — 50.1 GW / $15.0B backlog at Dec 31, 2025; 45.1 GW / $13.6B at Jun 30, 2026 (FACT).
  • Prepayments — deferred revenue $1.82B at Dec 31, 2025 and $1.70B at Jun 30, 2026 (FACT).
  • Price adjustments — 23.2 GW with clauses for technology improvements, up to $0.6B (FACT).
  • Disputes — BP / Lightsource termination: $384.6M payments triggered, $61.0M recognized, suit filed (FACT).
  • Support — warranty claims and module recycling after sale (FACT).

Channels

  • Direct contract sales — to developers, power producers, utilities and corporate buyers (FACT).
  • U.S. — $4,994.7M of net sales in 2025 (FACT).
  • India — $195.6M in 2025 vs $201.7M in 2024 (FACT).
  • Distribution centers — U.S. network used to manage logistics costs (FACT).
  • Freight — logistics costs up $173.1M and warehousing up $130.7M in 2025 (FACT).

Customer Segments

  • Utility-scale developers and independent power producers — the core buyers (FACT).
  • Regulated utilities — own or contract solar to meet load growth (FACT).
  • Corporate energy buyers — including technology companies seeking power for data centers (FACT).
  • Concentration — customers #1 and #2 were 11% and 10% of 2025 net sales (FACT).
  • India — $195.6M in 2025; Europe nearly absent (FACT).

Cost Structure

  • Cost of sales — $3,099.0M, 59.4% of net sales (FACT).
  • Operating expenses — $523.5M: SG&A $203.8M, R&D $233.4M, start-up $86.3M (FACT).
  • Capex — $869.9M in 2025 (2024: $1,526.1M) (FACT).
  • Freight and tariffs — logistics up $173.1M, warehousing up $130.7M, tariffs on imported modules $94.4M (FACT).
  • Warranty — $79.4M liability at Dec 31, 2025; the 10-K also cites a $50M specific liability for the Series 7 issue (FACT).

Revenue Streams

  • Module sales — $5,219.4M FY2025 net sales (+24%); 17.5 GW sold (FACT).
  • Profit — gross profit $2,120.3M (40.6%); net income $1,528.2M (FACT).
  • Manufacturing credit — about 17 cents per watt for U.S.-made modules; $1,401.6M of 2025 credits sold for $1,336.3M cash (FACT / INFERENCE sum).
  • H1 2026 — net sales $2,100.4M (+8%), net income $769.2M (FACT).
  • Q2 2026 — net sales $1,056.2M (−3.7%); margin 57.3% incl. $88.6M net tariff-refund benefit (FACT).
Sources: sec.gov/Archives/edgar · sec.gov/Archives/edgar
Not affiliated with First Solar.
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