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Business Insider
12 hours ago
- Business
- Business Insider
Policy Shift Cannot Stop First Solar's (FSLR) Near-Term Momenum
First Solar (FSLR) is one of the most compelling investment opportunities I see right now—and I'm a shareholder for two key reasons. First, the medium-term demand outlook is already well-defined, providing strong visibility. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Second, with recent policy shifts from the 'Big Beautiful Bill,' near-term demand could surge as developers rush to secure projects before tax credits begin phasing out in 2028. I view this as a high-alpha, 12-month cyclical play, with recent volatility being mere noise. The stock has taken a severe 18% hit over the past week. My conviction remains strong—I'm staying bullish on First Solar. Tax Credits Get Phased Out, but First Solar Still Thrives Previously, utility-scale solar projects qualified for a 30% tax credit through 2032, but that timeline has now been significantly accelerated. Starting in 2026, new projects will receive just 60% of the 30% credit (an effective 18%). By 2027, that drops to 20% of the 30% credit (just 6%), and by 2028, the credit is eliminated entirely. That said, developers can still lock in higher credits by starting construction early, and the transferability of tax credits remains intact. Importantly, Section 45X credits remain fully available through 2029, providing a meaningful financial cushion. As a result, two key dynamics emerge. First, near-term demand for First Solar panels is likely to spike, followed by a sharp decline. Next, the 45X cushion could leave First Solar in a stronger short-term position than it was before the policy change. While First Solar stock dropped nearly 20% following the broad solar selloff triggered by the 'Big Beautiful Bill,' that decline was modest compared to residential-focused names like Enphase (ENPH) and Sunrun (RUN), which were hit harder due to the immediate loss of residential solar credits. Looking ahead, some medium-term turbulence is likely to occur. But in the near term, the investment case for First Solar remains strong, and in my view, the current pullback offers an attractive entry point for potential market-leading returns by 2026. 12-Month $290 Price Target in Sight Following the recent sell-off, First Solar is now trading below its 200-week moving average, presenting what I believe is a rare and compelling accumulation opportunity. With the near-term outlook intact—and arguably strengthened by the coming tax credit phase-out in 2027/2028, this sets up what I view as a high-conviction 12-month trade. Yes, solar stocks are notoriously volatile, but with the major impacts of the 'Big Beautiful Bill' now priced in, the focus shifts to execution and sentiment stabilization. It's hard to see what additional policy shocks could further destabilize the sector in the near term. In my bull-case scenario, I project $25 in normalized EPS for Fiscal 2026 and a non-GAAP P/E multiple of 15, implying a potential share price of $375. That said, I'm setting a more conservative take-profit target at $290, reflecting cautious optimism while aiming for a strong return. From current levels around $145, that would represent a 100% gain—a trade setup that's hard to beat in today's market. First Solar May Consolidate the Market in This Climate Stricter Foreign Entities of Concern (FEOC) rules under the 'Big Beautiful Bill' are set to strongly benefit U.S.-based manufacturers like First Solar. Its vertically integrated, China-independent Cadmium Telluride (CdTe) technology gives it a unique edge in meeting domestic content requirements and navigating tighter import restrictions. These policy shifts are likely to lead to industry consolidation, with First Solar emerging stronger as a result. While the path forward may involve volatility, the company's scale, infrastructure, and reputation position it to outlast and outperform smaller, margin-strained competitors. As weaker players exit or downsize, First Solar could gain pricing power and further expand its market share over the medium term. Is First Solar a Good Stock to Buy Now? Wall Street maintains a Strong Buy consensus on First Solar, with 23 Buy ratings, 3 Holds, and zero Sells. The average price target sits at $210, implying a 46% upside over the next 12 months. The most bullish analyst target is $275, which closely aligns with my own independent target of $290. Given the evolving policy landscape, I plan to reassess my position around the $250 level, to trim depending on how market sentiment unfolds in the coming months. The Market Is Nowhere Near Done with First Solar While cyclicality and volatility come with the territory for First Solar—and solar stocks in general—the near-term profit potential remains compelling. Looking further out, it's clear that solar demand isn't going anywhere. Tax incentives may decline, but fossil fuel supplies are finite, and the shift toward renewable energy is inevitable. First Solar is positioning itself now to become America's most dependable solar energy asset, and that long-term vision keeps me bullish. While I'll continue to trade around the cycles like a pro, my core conviction in First Solar's future remains strong.
Business Wire
29-04-2025
- Business
- Business Wire
First Solar, Inc. Announces First Quarter 2025 Financial Results and Revises Guidance to Reflect Expected Impact of Implementation of New Tariffs
TEMPE, Ariz.--(BUSINESS WIRE)--First Solar, Inc. (Nasdaq: FSLR) (the 'Company') today announced financial results for the first quarter ended March 31, 2025, and issued revised guidance to reflect the expected impact of the implementation of new tariffs in April 2025. Net sales for the first quarter were $0.8 billion, a decrease of $0.7 billion from the prior quarter. The decrease in net sales was primarily due to an anticipated seasonal reduction in the volume of modules sold. The Company reported first quarter net income per diluted share of $1.95, compared to net income per diluted share of $3.65 in the fourth quarter of 2024. Cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less debt at the end of the first quarter, decreased to $0.4 billion from $1.2 billion at year end. The decrease was primarily driven by capital expenditures for our Louisiana manufacturing facility, along with reduced operating cash flows attributable to lower cash receipts from module sales and an increase in inventories to meet contracted commitments in the back half of the year. 'Despite the near-term challenges presented by the new tariff regime, we believe that the long-term outlook for solar demand, particularly in our core U.S. market, remains strong, and that First Solar remains well-positioned to serve this demand,' said Mark Widmar, Chief Executive Officer. 'This belief is based on the unique profile of First Solar compared to its peers, as America's largest, and most established solar module manufacturer, and the country's only fully vertically integrated producer, our significant network of domestic supply chain vendors, and our proprietary CadTel-based semiconductor.' Our 2025 guidance has been updated as follows: —————————— (1) From a second quarter earnings cadence perspective, we anticipate our module sales to be between 3.0 and 3.9 GW. We forecast the advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code ('Section 45X tax credit'), to be between $310 million and $350 million in the second quarter. These factors result in forecasted second quarter earnings per diluted share between $2.00 and $3.00. (2) Assumes $95 to $220 million of ramp and underutilization costs and $1.65 to $1.7 billion of Section 45X tax credits. (3) Assumes $60 to $70 million of production start-up expense. (4) Assumes $155 to $290 million of production start-up expense, ramp and underutilization costs, and $1.65 to $1.7 billion of Section 45X tax credits. (5) Defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at the end of 2025. Expand The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to tariffs and other trade remedies, and certain factors related to the Inflation Reduction Act of 2022 (the 'IRA'). Among other things, such factors include (i) the total Section 45X tax credit available to us and (ii) the timing and ability to monetize such credit. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar's first quarter 2025 financial results, 2025 guidance, and financial outlook. Conference Call Details First Solar has scheduled a conference call for today, April 29, 2025, at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at A replay of the webcast will also be available on the Investors section of the Company's website approximately two hours after the conclusion of the call and remain available for 30 days. About First Solar, Inc. First Solar, Inc. (Nasdaq: FSLR) is America's leading photovoltaic ('PV') solar technology and manufacturing company. The only U.S.-headquartered company among the world's largest solar manufacturers, First Solar is focused on competitively and reliably enabling power generation needs with its advanced, uniquely American thin film PV technology. Developed at research and development ('R&D') labs in California and Ohio, the Company's technology represents the next generation of solar power generation, providing a competitive, high-performance, and responsibly produced alternative to conventional crystalline silicon PV modules. For more information, please visit For First Solar Investors This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand for solar technology generally and for our technology specifically, including in the U.S. market, and our positioning to serve such demand; new capacity coming online; production and delivery of our modules; our financial guidance for 2025, including future financial results, net sales, gross margin, operating expenses, operating income, earnings per diluted share, net cash balance, capital expenditures, expected earnings cadence, volume sold, bookings, and expected module shipments; products and our business and financial objectives for 2025; the availability of benefits under certain production linked incentive programs, and the impact of the IRA including the total Section 45X tax credit; and the impact of the implementation of new tariffs in April 2025. These forward-looking statements are often characterized by the use of words such as 'estimate,' 'expect,' 'anticipate,' 'project,' 'plan,' 'intend,' 'seek,' 'believe,' 'forecast,' 'foresee,' 'likely,' 'may,' 'should,' 'goal,' 'target,' 'might,' 'will,' 'could,' 'predict,' 'continue,' 'contingent,' and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments, or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the modification, reduction, elimination, or expiration of government subsidies, economic incentives, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications; the impact of public policies, such as tariffs, export controls, or other trade remedies imposed on solar cells and modules or related raw materials or equipment; the impact of the IRA on our expected results of operations in future periods, which may be affected by technical guidance, regulations, subsequent amendments, or interpretations of the law; interest rate fluctuations and our customers' ability to secure financing; changes in the exchange rates between the functional currencies of our subsidiaries and other currencies in which assets and liabilities are denominated; our ability to execute on our long-term strategic plans, including our ability to secure financing and realize the potential benefits of strategic acquisitions and investments; the loss of any of our large customers, or the ability of our customers and counterparties to perform under their contracts with us; our ability to execute on our solar module technology and cost reduction roadmaps; the performance of our solar modules upon installation; our ability to improve the wattage of our solar modules; our ability to incorporate technology improvements into our manufacturing process, including the implementation of our Copper Replacement ('CuRe') program; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; general economic and business conditions, including those influenced by U.S., international, and geopolitical events and conflicts; environmental responsibility, including with respect to cadmium telluride ('CdTe') and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects arising from and results of pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program or otherwise as required by external laws and regulation; supply chain disruptions, including demurrage and detention charges; our ability to protect or successfully commercialize our intellectual property; our ability to prevent and/or minimize the impact of cybersecurity incidents or information or security breaches; our continued investment in research and development; the supply and price of key raw materials (including CdTe, tellurium, and tellurium compounds), components, and manufacturing equipment; our ability to construct new production facilities to support new product lines in line with anticipated timing; evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social, and governance matters; our ability to avoid manufacturing interruptions, including during the ramp of our Series 7 module manufacturing facilities; our ability to attract, train, retain, and successfully integrate key talent into our team; the severity and duration of public health threats, and the potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' of our most recent Annual Report on Form 10-K, as supplemented by our other filings with the Securities and Exchange Commission. FIRST SOLAR, INC. (In thousands, except share data) (Unaudited) March 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 837,641 $ 1,621,376 Marketable securities 53,119 171,583 Accounts receivable trade, net 1,605,603 1,261,049 Government grants receivable, net 214,385 403,759 Inventories 1,286,120 1,084,384 Other current assets 577,235 546,882 Total current assets 4,574,103 5,089,033 Property, plant and equipment, net 5,638,042 5,413,683 Deferred tax assets, net 204,436 208,808 Restricted marketable securities 210,555 199,136 Government grants receivable 430,277 157,570 Goodwill 29,707 28,335 Intangible assets, net 52,637 54,654 Inventories 276,688 275,372 Other assets 700,220 697,770 Total assets $ 12,116,665 $ 12,124,361 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 427,799 $ 482,190 Income taxes payable 81,609 77,363 Accrued expenses 555,154 508,581 Current portion of debt 197,201 236,424 Deferred revenue 1,041,899 712,000 Other current liabilities 68,050 60,884 Total current liabilities 2,371,712 2,077,442 Accrued solar module collection and recycling liability 137,770 134,394 Long-term debt 327,942 373,354 Deferred revenue 859,409 1,327,825 Other liabilities 232,498 233,769 Total liabilities 3,929,331 4,146,784 Commitments and contingencies Stockholders' equity: Common stock, $0.001 par value per share; 500,000,000 shares authorized; 107,244,215 and 107,060,281 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 107 107 Additional paid-in capital 2,885,650 2,898,418 Accumulated earnings 5,472,645 5,263,110 Accumulated other comprehensive loss (171,068 ) (184,058 ) Total stockholders' equity 8,187,334 7,977,577 Total liabilities and stockholders' equity $ 12,116,665 $ 12,124,361 Expand FIRST SOLAR, INC. (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net sales $ 844,568 $ 1,514,031 $ 794,108 Cost of sales 500,165 946,370 448,105 Gross profit 344,403 567,661 346,003 Operating expenses: Selling, general and administrative 53,164 49,582 45,827 Research and development 52,389 46,499 42,742 Production start-up 17,606 14,811 15,408 Total operating expenses 123,159 110,892 103,977 Gain on sales of businesses, net — — 1,115 Operating income 221,244 456,769 243,141 Foreign currency loss, net (11,593 ) (7,311 ) (2,858 ) Interest income 18,865 14,666 27,245 Interest expense, net (9,525 ) (10,887 ) (9,210 ) Other expense, net (1,932 ) (6,891 ) (2,799 ) Income before taxes 217,059 446,346 255,519 Income tax expense (7,524 ) (53,230 ) (18,903 ) Net income $ 209,535 $ 393,116 $ 236,616 Net income per share: Basic $ 1.96 $ 3.67 $ 2.21 Diluted $ 1.95 $ 3.65 $ 2.20 Weighted-average number of shares used in per share calculations: Basic 107,122 107,058 106,910 Expand FIRST SOLAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income $ 209,535 $ 236,616 Adjustments to reconcile net income to cash (used in) provided by operating activities: Depreciation, amortization and accretion 125,876 90,584 Share-based compensation 2,584 6,791 Deferred income taxes 4,740 (29,033 ) Gain on sales of businesses, net — (1,115 ) Other, net 8,645 (814 ) Changes in operating assets and liabilities: Accounts receivable, trade (306,822 ) 17,499 Inventories (202,781 ) (149,470 ) Government grants receivable (99,118 ) 281,889 Other assets (114,627 ) (89,610 ) Income tax receivable and payable (5,928 ) 26,239 Accounts payable and accrued expenses (145,797 ) (160,939 ) Deferred revenue (91,169 ) 37,978 Other liabilities 6,880 1,108 Net cash (used in) provided by operating activities (607,982 ) 267,723 Cash flows from investing activities: Purchases of property, plant and equipment (205,966 ) (413,456 ) Purchases of marketable securities and restricted marketable securities (389,832 ) (569,446 ) Proceeds from maturities of marketable securities 502,937 416,971 Other investing activities 4,652 (2,697 ) Net cash used in investing activities (88,209 ) (568,628 ) Cash flows from financing activities: Proceeds from borrowings under debt arrangements, net of issuance costs 92,340 105,420 Repayment of debt (176,409 ) (45,771 ) Payments of tax withholdings for restricted shares (15,421 ) (18,952 ) Other financing activities (129 ) — Net cash (used in) provided by financing activities (99,619 ) 40,697 Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents 1,607 (1,938 ) Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents (794,203 ) (262,146 ) Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period 1,638,223 1,965,069 Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period $ 844,020 $ 1,702,923 Supplemental disclosure of noncash investing and financing activities: Property, plant and equipment acquisitions funded by liabilities $ 325,717 $ 445,963 Proceeds to be received from asset-based government grants $ 156,900 $ 154,754 Acquisitions funded by contingent consideration $ 6,500 $ 18,500 Expand
Yahoo
16-04-2025
- Business
- Yahoo
EXIM Bank considers $825m financing for Ivanhoe's Santa Cruz project in US
Ivanhoe Electric has received a letter of interest from the Export-Import Bank of the United States (EXIM Bank) indicating the possibility of providing up to $825m in debt financing for the development of the Santa Cruz Copper Project in Arizona, US. The Santa Cruz Copper Project, with Fluor as the project lead, covers 5,975 acres of private land and includes associated water rights. It is estimated to contain indicated mineral resources of 226.7 million tonnes (mt) grading 1.24% total copper and inferred resources of 149mt grading 1.24% total copper. The proposed financing, with a 15-year repayment period, aligns with EXIM Bank's Make More in America initiative. The initiative, along with the China and Transformational Exports Programme, aims to enhance US competitiveness, bolster supply chains and address strategic vulnerabilities. The Santa Cruz Copper Project qualifies for this initiative as it supports the domestic production of critical minerals, contributing to economic growth and national security, Ivanhoe said. Ivanhoe Electric is evaluating EXIM Bank's expression of interest alongside other financing options for the project. Ivanhoe Electric executive chairman Robert Friedland said: 'Receipt of the Export-Import Bank of the United States' Letter of Interest underscores the importance of our Santa Cruz Copper Project to grow domestic copper production. 'The United States urgently needs more domestically produced copper to support the rapid expansion and rebuilding of its electric transmission and transportation infrastructure, national defence capabilities and technologies of the future. 'Santa Cruz is positioned perfectly to be a source of pure copper cathode to help the US achieve its strategic mission of greater self-reliance on domestic production of critical metals.' The project is also being considered for additional government support programmes such as EXIM Bank's Supply Chain Resilience Initiative and the Section 45X advanced manufacturing production tax credit. These initiatives provide financial tools and tax incentives to strengthen the US' critical mineral supply chains. Should Ivanhoe Electric submit a formal application, EXIM Bank will conduct the necessary due diligence to determine if a final lending commitment is feasible. Ivanhoe plans to complete a preliminary feasibility study for the project by June 2025 with initial construction scheduled to commence in the first half of 2026. In August 2024, Ivanhoe secured 100% ownership of the mineral rights at the Santa Cruz Project after paying the final $10m, as stipulated by an option deal. "EXIM Bank considers $825m financing for Ivanhoe's Santa Cruz project in US" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
26-02-2025
- Business
- Yahoo
First Solar Reports Q4 and Full-Year 2024 Earnings, Shares Surge Over 9%
First Solar (FSLR, Financials) shares rose 9% to $160.84 as of 1:54 p.m. GMT-5 on Wednesday, following the release of its fourth-quarter and full-year 2024 financial results. Warning! GuruFocus has detected 5 Warning Signs with FSLR. The solar company posted an increase in revenue but missed profit expectations while issuing a strong 2025 outlook. First Solar said net sales of $1.5 billion for the fourth quarter, up from $887.7 million in the previous quarter. Comparatively to $3.3 billion in 2023, full-year income came at $4.2 billion. While full-year profits per share came at $12.02, the corporation produced fourth-quarter earnings per diluted share of $3.65 below projections by $1.08. Supported by operating cash flows from its module sector and sales of Section 45X tax credits, First Solar closed 2024 with a net cash position of $1.2 billion. With an average selling price of 30.5 cents per watt, excluding certain changes, the business stated 4.4 gigawatts of net bookings for the year. With profits per diluted share forecast to range from $17 to $20, the company's 2025 projection calls for net revenues between $5.3 billion and $5.8 billion. Forecasts for capital expenditures range from $1.3 billion to $1.5 billion; the year-end net cash position is expected to be between $700 million and $1.2 billion. First Solar increased production capacity, according to Chief Executive Officer Mark Widmar, by building a new plant in Alabama and accelerating the building of another in Louisiana. The firm also opened an Ohio research and development facility. First Solar projects first-quarter module sales between 2.7 gigawatts and 3.0 gigawatts, with profits per diluted share ranging from $2.20 to $2.70. Under Section 45X of the Internal Revenue Code, the company's view projects tax benefits ranging from $1.65 billion to $1.7 billion. This article first appeared on GuruFocus.
Yahoo
26-02-2025
- Business
- Yahoo
First Solar Reports Q4 and Full-Year 2024 Earnings, Shares Surge Over 9%
First Solar (FSLR, Financials) shares rose 9% to $160.84 as of 1:54 p.m. GMT-5 on Wednesday, following the release of its fourth-quarter and full-year 2024 financial results. Warning! GuruFocus has detected 5 Warning Signs with FSLR. The solar company posted an increase in revenue but missed profit expectations while issuing a strong 2025 outlook. First Solar said net sales of $1.5 billion for the fourth quarter, up from $887.7 million in the previous quarter. Comparatively to $3.3 billion in 2023, full-year income came at $4.2 billion. While full-year profits per share came at $12.02, the corporation produced fourth-quarter earnings per diluted share of $3.65 below projections by $1.08. Supported by operating cash flows from its module sector and sales of Section 45X tax credits, First Solar closed 2024 with a net cash position of $1.2 billion. With an average selling price of 30.5 cents per watt, excluding certain changes, the business stated 4.4 gigawatts of net bookings for the year. With profits per diluted share forecast to range from $17 to $20, the company's 2025 projection calls for net revenues between $5.3 billion and $5.8 billion. Forecasts for capital expenditures range from $1.3 billion to $1.5 billion; the year-end net cash position is expected to be between $700 million and $1.2 billion. First Solar increased production capacity, according to Chief Executive Officer Mark Widmar, by building a new plant in Alabama and accelerating the building of another in Louisiana. The firm also opened an Ohio research and development facility. First Solar projects first-quarter module sales between 2.7 gigawatts and 3.0 gigawatts, with profits per diluted share ranging from $2.20 to $2.70. Under Section 45X of the Internal Revenue Code, the company's view projects tax benefits ranging from $1.65 billion to $1.7 billion. This article first appeared on GuruFocus. Sign in to access your portfolio
