FSLR
First Solar Inc
Q1 2025 Report
First Solar Inc (FSLR) Q1 2025 Financial Results: Navigating Tariffs and Transformative Technologies...
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Executive Summary
In Q4 2024, First Solar Inc (FSLR) reported net sales of $1.5 billion, marking a significant increase of 70.56% quarter-on-quarter and a 30.68% rise year-on-year. The company's full-year net sales reached $4.2 billion, reflecting a 27% annual growth, driven by robust module sales of 14.1 gigawatts. The earnings call highlighted key fluctuations influenced by warranty charges related to Series 7 module manufacturing issues, which recognized a total expense range of $56 million to $100 million. Despite these challenges, the company ended the year with a substantial contracted backlog of 68.5 gigawatts and a strategic focus on optimizing domestic manufacturing capabilities, positioning itself well in a transitional energy market with increasing electricity demands. Investors are advised to monitor First Solar's capacity expansions and the evolving policy landscape affecting the solar industry.
Key Performance Indicators
Revenue
1.51B
QoQ: 70.56% | YoY:30.68%
Gross Profit
567.66M
37.49% margin
QoQ: 27.48% | YoY:13.07%
Operating Income
456.77M
QoQ: 41.85% | YoY:14.83%
Net Income
393.12M
QoQ: 25.61% | YoY:12.56%
EPS
3.67
QoQ: 25.68% | YoY:12.23%
Revenue Trend
Margin Analysis
Key Insights
- **Q4 2024 Revenue:** $1.5 billion, a 70.56% QoQ increase and 30.68% YoY increase.
- **Full-Year 2024 Revenue:** $4.2 billion, driven by higher module volumes. **Profitability Metrics:**
- **Gross Margin:** 37% in Q4 compared to 50% in Q3, reflecting impacts from warranty issues and production costs.
- **Operating Income:** $457 million in Q4, $1.4 billion for FY 2024; resilient year-on-year performance with a diluted EPS of $12.02. **Cash Flow and Balance Sheet Health:**
- **Net Cash Position:** $1.2 billion at year-end 2024, after capital expenditures primarily for capacity expansions in Alabama and Louisiana.