Back to top

Image: Bigstock

First Solar's Expanding Footprint Positions It for Sustained Growth

Read MoreHide Full Article

Key Takeaways

  • FSLR is ramping up manufacturing, reaching 23.5 GW of nameplate capacity with new and expanded facilities.
  • FSLR's booking backlog stands at 54.5 GW through 2030, reflecting strong global demand for its solar modules.
  • FSLR faces tariff and trade risks that could pressure U.S. sales and international manufacturing performance.

First Solar, Inc. (FSLR - Free Report) continues to expand its manufacturing capacity, which is expected to support revenue growth. The company’s growth prospects remain solid in the United States, driven by favorable domestic solar demand trends.

However, this Zacks Rank #3 (Hold) company faces several headwinds, including heightened trade tensions and tariff risks.

Factors Acting in Favor of FSLR

First Solar has been investing heftily in the production ramp-up of its modules to expand its manufacturing capacity. The company manufactured 3.6 gigawatts (GW) in the third quarter of 2025 and sold 5.3 GW of solar modules. Its total installed nameplate production capacity across all its facilities was approximately 23.5 GW as of Sept. 30, 2025. With a strong global footprint, First Solar enjoys a solid presence in the United States, India, Malaysia and Vietnam.

The company recently commenced operations at its fourth and fifth manufacturing facilities in the United States and completed the expansion of its manufacturing footprint at its existing facilities in Ohio. It has added 2.7 GW of gross bookings since the previous earnings call, bringing its total booking backlog to 54.5 GW through 2030, indicating strong demand for FSLR’s products.

FSLR’s 2025 capital expenditure, estimated at $0.9-$1.2 billion, is focused on expanding and modernizing its operations. These investments include the construction of a new manufacturing facility, ongoing research and development initiatives, and upgrades to existing machinery and equipment aimed at enhancing efficiency and performance.

Challenges Faced by FSLR

In 2025, the U.S. imposed new reciprocal tariffs on key trading partners, along with penalties for transshipment, potentially limiting First Solar’s U.S. sales and affecting its international manufacturing operations and financial performance.

Moreover, the United States currently imposes tariffs on various articles imported from China. In February 2025, the U.S. President announced an additional 10% tariff on all imports from China. This 10% tariff was subsequently doubled to 20% in March 2025 and applies in addition to the 25% tariffs under Section 301 and ordinary customs duties and AD/CVDs. The company’s operating results could be adversely impacted if these tariffs were to be terminated or reduced.

FSLR’s Share Price Performance

In the past six months, shares of the company have risen 62.9% compared with the industry’s 57.7% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the same industry are Canadian Solar (CSIQ - Free Report) , Tigo Energy, Inc. (TYGO - Free Report) and FTC Solar (FTCI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CSIQ’s 2025 EPS implies a decline of 121.4% from that recorded in 2024. The Zacks Consensus Estimate for CSIQ’s 2025 sales implies a year-over-year decline of 3.8%. 

The Zacks Consensus Estimate for TYGO’s 2025 EPS calls for an increase of 76% from that recorded in 2024. The Zacks Consensus Estimate for TYGO’s 2025 sales implies a year-over-year increase of 91.9%. 

The Zacks Consensus Estimate for FTCI’s 2025 EPS calls for an increase of 33.6% from that recorded in 2024. The Zacks Consensus Estimate for FTCI’s 2025 sales implies a year-over-year improvement of 108.6%. 

 

Published in