First Solar Surges After Strong Q3 Earnings and New U.S. Factory Announcement

First Solar, the largest U.S.-based solar panel manufacturer, reported stronger-than-expected third-quarter sales, driven by growing demand for clean energy solutions across corporate and government sectors. The company’s shares rose more than 5% in after-hours trading following the announcement, reinforcing investor confidence in the renewable energy leader.

For the third quarter, First Solar posted a profit of $455.9 million, or $4.24 per share, compared with $341.87 million, or $3.18 per share, a year earlier. Net sales climbed to $1.6 billion for the period ending September 30, surpassing analysts’ expectations of $1.56 billion, according to LSEG data. The company attributed the strong results to robust U.S. demand for solar-generated electricity, one of the fastest-growing segments of the nation’s energy industry.

In a move to strengthen domestic manufacturing, First Solar announced plans to build a new 3.7-gigawatt (GW) production facility in the U.S. The plant is expected to begin operations in late 2026 and reach full capacity by mid-2027. This expansion aims to reduce U.S. reliance on foreign-made goods by completing products that start production overseas. CEO Mark Widmar highlighted that the new facility aligns with the administration’s goals of boosting domestic manufacturing, energy independence, and competitiveness in the global artificial intelligence race.

Despite the strong quarterly results, First Solar lowered its 2025 sales outlook to a range of $4.95 billion to $5.2 billion, down from its earlier forecast of up to $5.7 billion. The revision reflects reduced international sales volumes due to customer terminations, though termination payments partly offset the decline. The company also trimmed its forecast for volumes sold, lowering the top end to 17.4 GW from 19.3 GW.

Last month, First Solar filed a lawsuit against BP’s solar division for breach of contract, cutting its backlog by 6.6 GW worth $1.9 billion.