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Can First Solar's Manufacturing Expansion Drive Long-Term Growth?
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Key Takeaways
First Solar is expanding U.S. manufacturing capacity across Ohio, Alabama and Louisiana facilities.
FSLR added 1.9 GW of bookings, lifting its total backlog to 47.9 GW, extending through 2030.
FSLR expects $0.8-$1.0B in 2026 capital spending for a new plant, R&D and equipment upgrades.
First Solar’s (FSLR - Free Report) long-term growth story is increasingly being driven by manufacturing expansion. Its aggressive investment in domestic manufacturing capacity is strengthening its competitive position as utility-scale solar deployment accelerates across the United States.
The company continues to expand production across its manufacturing facilities in Ohio, Alabama and Louisiana, increasing its ability to supply American-made solar modules. During 2026, FSLR expects capital expenditures to be between $0.8 billion and $1.0 billion. 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.
The company has added 1.9 gigawatts (GW) of gross bookings since the previous earnings call, bringing its total booking backlog to 47.9 GW extending through 2030. This robust backlog indicates strong demand for FSLR’s products while reinforcing its capacity expansion strategy, providing greater revenue visibility and stability in the years ahead.
Rising electricity consumption from data centers, advanced manufacturing facilities and broader electrification trends continue to increase the need for utility-scale solar generation.
The company's differentiated cadmium telluride (CdTe) technology further strengthens its competitive position. Compared with conventional crystalline silicon modules, CdTe technology performs well in high-temperature environments and reduces dependence on polysilicon-based supply chains.
Although changes in trade policy, project timing and interest rates may create periodic volatility, FSLR’s manufacturing expansion, contracted backlog and technology leadership provide multiple drivers for sustainable long-term growth. As domestic solar deployment continues to accelerate, the company appears well positioned to benefit from increasing demand for U.S.-manufactured renewable energy equipment.
Solar Companies Investing in Manufacturing Expansion
Several solar companies are also expanding manufacturing capabilities to capitalize on growing renewable energy demand.
Enphase Energy (ENPH - Free Report) continues to invest in domestic manufacturing partnerships while expanding its residential solar and energy storage ecosystem.
Nextpower (NXT - Free Report) is benefiting from accelerating utility-scale solar deployment through growing demand for its integrated energy technology platform, including advanced solar tracking systems, electrical balance-of-system solutions and power conversion technologies.
FSLR’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates an increase of 23.93% and 38%, respectively, year over year.
Image Source: Zacks Investment Research
FSLR Stock Trading at a Discount
First Solar is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 11.13X compared with the industry average of 18.51X.
Image Source: Zacks Investment Research
FSLR Stock Price Performance
In the past three months, the company’s shares have risen 26.1% compared with the industry’s 11.4% growth.
View the Zacks #1 Rank List
Image: Bigstock
Can First Solar's Manufacturing Expansion Drive Long-Term Growth?
Key Takeaways
First Solar’s (FSLR - Free Report) long-term growth story is increasingly being driven by manufacturing expansion. Its aggressive investment in domestic manufacturing capacity is strengthening its competitive position as utility-scale solar deployment accelerates across the United States.
The company continues to expand production across its manufacturing facilities in Ohio, Alabama and Louisiana, increasing its ability to supply American-made solar modules. During 2026, FSLR expects capital expenditures to be between $0.8 billion and $1.0 billion. 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.
The company has added 1.9 gigawatts (GW) of gross bookings since the previous earnings call, bringing its total booking backlog to 47.9 GW extending through 2030. This robust backlog indicates strong demand for FSLR’s products while reinforcing its capacity expansion strategy, providing greater revenue visibility and stability in the years ahead.
Rising electricity consumption from data centers, advanced manufacturing facilities and broader electrification trends continue to increase the need for utility-scale solar generation.
The company's differentiated cadmium telluride (CdTe) technology further strengthens its competitive position. Compared with conventional crystalline silicon modules, CdTe technology performs well in high-temperature environments and reduces dependence on polysilicon-based supply chains.
Although changes in trade policy, project timing and interest rates may create periodic volatility, FSLR’s manufacturing expansion, contracted backlog and technology leadership provide multiple drivers for sustainable long-term growth. As domestic solar deployment continues to accelerate, the company appears well positioned to benefit from increasing demand for U.S.-manufactured renewable energy equipment.
Solar Companies Investing in Manufacturing Expansion
Several solar companies are also expanding manufacturing capabilities to capitalize on growing renewable energy demand.
Enphase Energy (ENPH - Free Report) continues to invest in domestic manufacturing partnerships while expanding its residential solar and energy storage ecosystem.
Nextpower (NXT - Free Report) is benefiting from accelerating utility-scale solar deployment through growing demand for its integrated energy technology platform, including advanced solar tracking systems, electrical balance-of-system solutions and power conversion technologies.
FSLR’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates an increase of 23.93% and 38%, respectively, year over year.
Image Source: Zacks Investment Research
FSLR Stock Trading at a Discount
First Solar is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 11.13X compared with the industry average of 18.51X.
Image Source: Zacks Investment Research
FSLR Stock Price Performance
In the past three months, the company’s shares have risen 26.1% compared with the industry’s 11.4% growth.
Image Source: Zacks Investment Research
FSLR’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.