In a recent announcement, First Solar, Inc., the leading solar energy solutions provider, shared its financial results for the second quarter ending June 30, 2023. The company showcased impressive growth, highlighting significant increases in net sales, net income per diluted share, and net cash balance.
During the second quarter, First Solar recorded net sales of $811 million, representing a substantial $262 million surge compared to the previous quarter. The boost in revenue was primarily attributed to higher module sales, including the successful launch of the Company’s next-generation Series 7 modules, as well as an increase in the average selling price of their modules.
The company also reported noteworthy progress in net income per diluted share, which reached $1.59 during the second quarter, a substantial improvement compared to $0.40 in the first quarter of 2023.
Despite capital expenditures related to manufacturing expansions in Alabama, India, and Ohio, as well as the recent acquisition of Evolar, First Solar maintained a healthy financial position. Their cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, minus debt, amounted to $1.5 billion at the end of the second quarter, demonstrating the company’s solid financial foundation.
CEO Mark Widmar expressed his optimism regarding the company’s current and future prospects, and commented, “With half of 2023 behind us, we continue to see strengthened commercial, operational, and financial foundations, both in 2023 and in the coming years as we continue to grow. The second quarter of the year continued the steady progress established in the first, as we ramped up production and delivery of our next-generation Series 7 modules, reinforced our global leadership in thin film PV with a strategic acquisition, and continued our strong bookings and ASP momentum. Moreover, continuing our commitment to sustainable long-term growth, earlier today we announced that we will invest up to $1.1 billion in building a new, fully vertically integrated, manufacturing facility in the United States, our fifth in the country.”
First Solar’s 2023 guidance has been updated as follows:
|Net Sales||$3.4B to $3.6B||Unchanged|
|Gross Margin (1)||$1.2B to $1.3B||Unchanged|
|Operating Expenses (2)||$415M to $440M||$450M to $475M|
|Operating Income (3)||$745M to $870M||Unchanged|
|Earnings per Diluted Share||$7.00 to $8.00||Unchanged|
|Net Cash Balance (4)||$1.2B to $1.5B||$1.5B to $1.8B|
|Capital Expenditures||$1.9B to $2.1B||$1.7B to $1.9B|
|Volume Sold||11.8GW to 12.3GW||Unchanged|
- Includes $110 million to $130 million of ramp and underutilization costs and $660 million to $710 million of Section 45X tax benefits
- Includes $85 million to $90 million of production start-up expenses and $36 million of litigation losses
- Includes $195 million to $220 million of production start-up expense and ramp and underutilization costs, $36 million of litigation losses, and $660 million to $710 million of Section 45X tax benefits
- Defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at the end of 2023
The company’s guidance figures are forward-looking statements and subject to various assumptions and estimates, including factors related to the Inflation Reduction Act of 2022 (IRA). These factors encompass the total advanced manufacturing production credit available to First Solar under Section 45X of the Internal Revenue Code, as well as the timing and ability to monetize such credit. Investors are encouraged to listen to the conference call and review the accompanying materials for a comprehensive understanding of First Solar’s second-quarter 2023 financial results, 2023 guidance, and financial outlook. With the successful performance in the first half of 2023 and the strategic investments, First Solar remains optimistic about its future in the renewable energy sector.