First Solar Reports Q3 Drop in Sales, Lowers Full-Year Revenue Forecast

First Solar, Inc. announced its financial results for Q3 2024, revealing net sales of $0.9 billion, down by $0.1 billion from the previous quarter. This decrease was largely due to lower sales volume and a $50 million product warranty reserve charge, partially mitigated by termination payments from customers in the U.S. and India.

The company posted Q3 earnings of $2.91 per diluted share, a drop from $3.25 in Q2. The cash balance declined from $1.2 billion in Q2 to $0.7 billion, driven by capital expenses for new factories in Alabama and Louisiana and an increase in working capital requirements.

CEO Mark Widmar acknowledged challenges in the solar manufacturing sector, stating, “We remain focused on balancing growth, profitability, and liquidity as we navigate industry volatility and political uncertainty.”

First Solar revised its 2024 financial guidance. Expected net sales were adjusted from $4.4–$4.6 billion to $4.1–$4.25 billion. Earnings per share guidance now ranges from $13.00 to $13.50, down from the previous high of $14.00. Projected gross margins and operating income were also slightly lowered, while capital expenditure estimates dropped to $1.55–$1.65 billion from $1.8–$2.0 billion.

The company anticipates total 2024 volume sold between 14.2–14.6 GW, down from the prior range of 15.6–16.3 GW. First Solar’s total sales backlog stands at 73.3 GW, with 0.4 GW booked since the last earnings call.