First Solar Reports Robust Q2 2024 Results with Strong Revenue Growth and Increased Profitability

First Solar, Inc. has released its financial results for the second quarter. The company reported net sales of $1.0 billion for the quarter, marking an increase of $0.2 billion from the previous quarter. This growth was driven by higher sales volumes and an increase in the average selling price per watt of its solar modules.

The company’s net income per diluted share rose to $3.25 in the second quarter, up from $2.20 in the first quarter of 2024. Despite this positive financial performance, cash, cash equivalents, restricted cash, and marketable securities, net of debt, decreased to $1.2 billion from $1.4 billion at the end of the previous quarter. This decline was attributed to capital expenditures for new U.S. factories in Alabama and Louisiana and the repayment of working capital loans in India. However, this was partially offset by increased operating cash flows from the module business.

Mark Widmar, CEO of First Solar, commented, “We are pleased with our financial and operational execution through the first half of this year as we continue to deliver on our commitments. Our balanced approach to growth, profitability, and liquidity, combined with multiple technological and business model points of differentiation, is enabling us to deliver value for both our customers and our shareholders.”

Looking ahead to the second half of 2024, First Solar projects its net sales and cost of sales, excluding the benefits from the Section 45X tax credit, to be approximately 40% in the third quarter and 60% in the fourth quarter. The company expects Section 45X tax credits to total around $240 million in the third quarter and $335 million in the fourth quarter. Operating expenses are anticipated to be evenly distributed throughout the remainder of the year, leading to a forecasted earnings per share profile of roughly 40% in Q3 and 60% in Q4.

Additional guidance includes:

• Ramp costs projected between $40 million and $60 million, with Section 45X tax credits estimated at $1.0 billion to $1.05 billion.
• Production start-up expenses estimated between $70 million and $80 million.
• Combined production start-up expenses and ramp costs forecasted at $110 million to $140 million, with Section 45X tax credits also estimated between $1.0 billion and $1.05 billion.

The company defines its financial position as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, net of expected debt at the end of 2024.

These forward-looking statements are based on various assumptions and estimates, including factors related to the Inflation Reduction Act of 2022 (IRA), such as the total amount of Section 45X tax credits and the timing and ability to monetize these credits. Investors are advised to listen to the conference call and review the related materials for a more comprehensive understanding of First Solar’s Q2 2024 financial results, 2024 guidance, and financial outlook.