First Solar stock trades near recent highs as manufacturing expansion and strong backlog support growth

First Solar stock reflects a growing backlog and expanding US manufacturing footprint, with recent earnings showing higher revenue and improved margins as new facilities ramp up.

First Solar Inc. (ISIN US3364331070) has seen First Solar stock supported by a combination of higher recent revenue, improved profitability, and a growing contracted backlog, while the company continues to expand its US manufacturing footprint to meet demand for its thin film solar modules.

Revenue growth and margin improvement

In its most recently reported quarter in 2024, First Solar Inc. disclosed that revenue rose to around $1.2 billion, compared with roughly $803 million in the same quarter of 2023, highlighting a substantial year on year increase driven by higher module shipments and pricing.

According to the company’s latest annual reporting for fiscal 2023, First Solar generated approximately $3.3 billion in full year net sales, up from about $2.6 billion in 2022, reflecting the ramp up of new capacity and the acceleration in demand for utility scale photovoltaic projects.

Profitability also improved as newer factories reached higher utilization, with operating income in the latest full year exceeding the prior year’s level and gross margin expanding visibly compared with 2022, supported by a richer mix of US based contracts and incentives.

Backlog and manufacturing capacity expansion

First Solar Inc. has repeatedly emphasized that its contracted backlog extends several years ahead, with total expected future module deliveries associated with signed agreements amounting to many gigawatts of capacity, giving management and investors visibility on revenue generation.

The company’s US manufacturing capacity has increased as new facilities were added in states such as Ohio and further expansion projects continue, with nameplate capacity across its global footprint now reaching several tens of gigawatts per year when fully ramped, according to recent investor materials.

Management has communicated in its guidance that capital expenditure remains elevated in 2024 as the group completes construction and equipment installation for additional production lines, but the expectation is that these investments will translate into higher output and stronger earnings over the subsequent years.

Thin film modules and product positioning

First Solar Inc. focuses on cadmium telluride based thin film solar modules, which differ from conventional crystalline silicon panels by offering attractive performance in hot climates and at utility scale, while using a distinct materials and manufacturing approach.

In recent disclosures, the company has highlighted that its latest generation Series modules deliver higher efficiency than earlier products, with incremental gains over prior versions contributing to better energy yield for project developers and improving the levelized cost of electricity.

The firm’s strategy centers on long term supply agreements with large utility and infrastructure customers rather than the rooftop residential market, and this orientation is reflected in its backlog metrics and reported average selling prices per watt in recent years.

First Solar stock and market context

First Solar stock is listed on Nasdaq under the ticker FSLR, and the company is a constituent of major US equity indices that track large capitalization companies in the energy and technology related segments.

As of a recent trading day in mid 2024, the share price was reported in market data sources at a level that placed it within its 52 week range, with the upper end of that range representing a notable premium to levels observed earlier in 2023 when investor confidence in solar manufacturers was more muted.

Market capitalization at that time stood at several billions of US dollars, reflecting expectations for continued revenue growth, improved margins, and a supportive policy environment for domestically produced solar modules.

First Solar Inc. key data

• Company: First Solar Inc.
• ISIN: US3364331070
• Ticker: NASDAQ: FSLR
• Trading venue: Nasdaq
• Sector / Industry: Renewable Energy Equipment / Solar Technology
• Index membership: major US large cap and sector indices