Executive Summary

Q3 delivered record shipments and a clean beat on revenue and EPS vs. consensus: $1.595B revenue vs. $1.571B* and $4.24 EPS vs. $4.22*, while gross margin compressed to ~38% on lower U.S.-made mix and underutilization tied to Southeast Asia curtailments and an Alabama glass disruption .
Guidance narrowed for FY25: net sales to $4.95–$5.20B, EPS to $14.00–$15.00 (low end raised, high end cut), with OpEx raised and CapEx reduced; management quantified headwinds from BP contract terminations (~6.6 GW), glass supply shocks, and relocation/start-up tied to a new 3.7 GW U.S. finishing line .
Bookings/debookings mixed: 2.7 GW gross bookings at $0.309/W base ASP since last call, but ~6.9 GW debookings, largely from BP affiliates; backlog ended Q3 at 53.7 GW ($16.4B value) .
Liquidity strengthened: gross cash $2.0B, net cash $1.5B; executed up to $775M in 45X credit transfers to bolster near-term liquidity .
Potential stock catalysts: U.S. policy/tariff outcomes (Section 232, FIAC), rebooking of BP volume at higher ASPs (~$0.36–$0.365/W with adders discussed), and Louisiana ramp/new U.S. finishing capacity improving mix and margins into 2026–2027 .

What Went Well and What Went Wrong

What Went Well

Record quarterly shipments and top-line execution: 5.3 GW sold drove net sales to $1.595B, up $0.5B Q/Q; diluted EPS rose to $4.24 from $3.18 in Q2 .
Strengthened liquidity and tax credit monetization: gross cash reached $2.0B (net cash $1.5B); two 45X transfer agreements totaling up to $775M underscore credit market liquidity and near-term funding for tech roadmaps and expansion .
Proactive U.S. capacity strategy: announced 3.7 GW U.S. finishing line to onshore Series 6 finishing, aiming to improve gross margin via tariff/logistics savings and qualify for domestic content/45X benefits; Louisiana ramp ahead of schedule .

Management quote: “We continue to differentiate ourselves by offering pricing and delivery certainty… enabling us to respond effectively to evolving demand drivers and reinforce our leadership.” — CEO Mark Widmar .
“Despite some near-term headwinds… we delivered a record 5.3 GW of module sales… EPS $4.24 per share.” — CFO Alex Bradley .

What Went Wrong

Guidance narrowed with lower high ends: revenue, gross margin, operating income and EPS ranges tightened; EPS high end reduced, driven by BP terminations, Alabama glass shortfalls (~0.2 GW), Southeast Asia underutilization, and finishing line costs .
Margin pressure: GM fell to ~38% vs. ~46% in Q2 on lower U.S.-made mix (reduced 45X credits capture) and higher underutilization from curtailed international output and Alabama glass disruption .
Contract debookings/backlog decline: ~6.9 GW debookings (6.6 GW BP) drove backlog to 53.7 GW ($16.4B) from prior disclosures; recognized $81M termination revenue (incl. $61M BP deposit), but risk of further underutilization into 2026 cited .

Financial Results

Headline P&L vs. Prior Year/Quarter and vs. Estimates

Metric	Q3 2024	Q2 2025	Q3 2025 (Actual)	Q3 2025 Consensus*
Revenue ($USD Millions)	$887.7	$1,097.2	$1,594.9	$1,571.0*
Gross Profit ($USD Millions)	$445.3	$499.9	$610.7	—
Gross Margin (%)	50.2%	45.6%	38.3%	—
Operating Income ($USD Millions)	$322.0	$361.6	$466.1	—
Operating Margin (%)	36.3%	33.0%	29.2%	—
Net Income ($USD Millions)	$313.0	$341.9	$455.9	—
Diluted EPS ($)	$2.91	$3.18	$4.24	$4.2185*
EBITDA ($USD Millions)	—	—	$604.2†	$617.1*

†Management cited $49M ramp/underutilization and $37M start-up expense in OI; EBITDA shown as consensus/”actual” context only; GAAP bridge not separately provided .

Revenue beat by ~$24M; EPS beat by ~$0.02; EBITDA slightly below consensus (context from management items) .
YoY: revenue up ~79.6%, EPS up ~46%; Q/Q: revenue up ~45.4%, EPS up ~33.3% .

KPIs and Operating Metrics

KPI	Q3 2024	Q2 2025	Q3 2025
Modules Sold (GW)	—	—	5.3
Modules Produced (GW)	—	—	3.6 (2.5 GW U.S.; 1.1 GW Intl.)
Gross Bookings Since Last Call (GW; base ASP)	—	—	2.7 @ $0.309/W; subset 0.4 GW Series 7 @ $0.29/W
Debookings Since Last Call (GW)	—	—	~6.9 (incl. 6.6 GW BP affiliates)
Backlog (GW; $ Value)	—	—	53.7 GW; $16.4B
Gross Cash ($B)	—	$1.12B (end Q2)	$2.0B
Net Cash ($B)	—	$0.6B	$1.5B
45X Transfers Announced	—	$312M sold for $296M proceeds (Q2)	Up to $775M executed (fixed $600M at $573M; variable up to $175M)

Notes: Q2 cash numbers reflect press release balances; Q3 cash/credit transfer data per management commentary and 8‑K exhibit .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2025	$4.90B–$5.70B	$4.95B–$5.20B	Narrowed; high end ↓, low end ↑
Gross Margin (Dollars)	FY 2025	$2.05B–$2.35B	$2.10B–$2.20B	Narrowed; midpoint ↓
Operating Expenses	FY 2025	$480M–$520M	$515M–$535M	Raised
Operating Income	FY 2025	$1.53B–$1.87B	$1.56B–$1.68B	Narrowed; midpoint ↓
EPS (Diluted)	FY 2025	$13.50–$16.50	$14.00–$15.00	Narrowed; high end ↓, low end ↑
Net Cash Balance	FY 2025	$1.3B–$2.0B	$1.6B–$2.1B	Raised
Capital Expenditures	FY 2025	$1.0B–$1.5B	$0.9B–$1.2B	Lowered
Volume Sold	FY 2025	16.7–19.3 GW	16.7–17.4 GW	Lowered

Drivers: U.S. finishing line costs ($330M total; $26M CapEx and $2M startup in 2025), BP terminations offset by partial termination payments, and Alabama glass constraints reducing ~0.2 GW production and 45X capture; also redirection of India product reduced U.S. volume .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025 & Q1 2025)	Current Period (Q3 2025)	Trend
Tariffs/Policy (Section 232, FIAC)	Q1 cut FY25 ranges to reflect new tariffs; Q2 said policy and trade developments “strengthened” relative position, maintained mid-point EPS cadence	Cited CIT ruling on duty suspension, ITC preliminary AD/CVD on India/Indonesia/Laos, CBP action, pending Section 232 & FIAC guidance; sees mounting headwinds for c‑Si imports enhancing First Solar value	Increasingly favorable policy backdrop for domestic suppliers
Capacity Expansion	Q1 emphasized Louisiana CapEx and longer-dated demand	Announced 3.7 GW U.S. finishing line (start late 2026, ramp 1H27); Louisiana ramp ahead of schedule	Scaling U.S. footprint; mix benefits expected over time
45X Monetization	Q1 guided Q2 45X $310–$350M; Q2 sold $312M credits for $296M proceeds	Executed up to $775M in 45X transfers (fixed $600M at $573M; variable up to $175M)	Ongoing liquidity lever; validates credit market
Backlog/Bookings	Q1: expected backlog 66.3 GW; Q2: expected 64.0 GW	Backlog 53.7 GW ($16.4B) after ~6.9 GW debookings (6.6 GW BP); 2.7 GW new bookings at $0.309/W	Backlog decreases on BP; management patient on pricing
Supply Chain	Not highlighted in Q1/Q2 press releases	Alabama glass shortage reduced Q3 output by ~0.2 GW; now resolved	Temporary headwind; corrective actions implemented
Product Quality/Warranty	Not highlighted in Q1/Q2	Series 7 pre‑2025 issues: warranty accrual raised to $65M; 0.6 GW potentially impacted inventory	Contained; reserves updated

Management Commentary

Strategic posture: “We’ve further strengthened our position through the commissioning of our fifth U.S. manufacturing facility… While trade and policy developments have introduced new challenges… we offer pricing and delivery certainty” — CEO Mark Widmar .
U.S. finishing line economics: “3.7 GW… expected to improve the gross margin profile by reducing tariff charges and logistics costs… provide domestic content points… and qualify for 45X module assembly tax credits” — Prepared remarks .
Bookings/pricing discipline: “We will continue to be very patient… If you look at [a recent] deal… base price plus adders gets a little north of $0.36… $0.365 [per watt]” — CEO Q&A .
Warranty update: “Estimated future losses $50–$90M; recorded $65M liability… ~0.6 GW potentially impacted Series 7 inventory” — CFO .
Liquidity: “Two 45X tax credit transfer agreements totaling up to $775M… highlight the liquidity of the 45X credit market” — CFO .

Q&A Highlights

BP termination and rebooking pricing: Management aims to rebook at ~mid‑$0.36/W with adders, contingent on tariff/FIAC outcomes; contracts are fixed‑price and do not reopen for Section 232 outcomes .
U.S. finishing line CapEx and scope: ~$330M direct spend ($260M CapEx; ~$70M expensed services); ~10% of CapEx in 2025; evaluating whether to add more lines after 232/FIAC clarity .
Contract firmness: BP contracts had no termination-for-convenience clause; deposits recognized ($61M) and LCs pulled; remaining claims to be litigated; majority of prior terminations historically paid .
Backlog risk: Management acknowledged European O&G and some utilities reevaluating renewables, but sees fundamentals and policy supportive; does not see another BP‑scale event as high risk near-term .
International underabsorption: Using international front‑end capacity to feed U.S. finishing mitigates absorption; exploring bilateral deals for remaining volumes; ~6 GW of contracted backlog for international Series 6 remains .

Estimates Context

Metric	Q3 2025 Actual	Q3 2025 Consensus*	Surprise
Revenue ($USD Millions)	$1,594.9	$1,571.0*	+$23.9M
Primary EPS (Diluted, $)	$4.24	$4.2185*	+$0.02
EBITDA ($USD Millions)	—	$617.1*	Slight below; mgmt cited mix/underutilization

Outlook touchpoints: Q4 2025 revenue* $1,586.6M and EPS* $5.22 per S&P Global consensus, as of the latest pull [GetEstimates].
*Values retrieved from S&P Global.

Key Takeaways for Investors

Print-through beat despite margin headwinds: revenue/EPS modestly ahead of consensus, bolstered by record shipments; near-term margins weighed by international mix, underutilization, and a transient glass issue .
Guidance credible and de-risked: narrowed ranges reflect quantified headwinds (BP, glass, finishing line costs) and visibility on 45X monetization; net cash guide raised .
Policy as a tailwind: CIT/ITC actions and pending Section 232/FIAC likely enhance pricing power and mix benefits for U.S.-made CdTe; patient rebooking strategy targets ~$0.36–$0.365/W with adders .
Capacity actions support medium-term margin expansion: Louisiana ramp ahead; 3.7 GW U.S. finishing line expected to reduce tariffs/logistics and improve domestic content value from late 2026/1H27 .
Backlog quality over quantity: While backlog fell to 53.7 GW post‑BP, management emphasized enforceable contracts and active recovery; watch rebooking cadence and pricing into 2026–2029 .
Liquidity optionality intact: $2.0B gross cash, $1.5B net cash and further 45X monetization provide flexibility for R&D, capacity, and potential capital returns if accretive opportunities lag .
Watch items: Section 232 outcomes, FIAC guidance timing, Southeast Asia utilization path, and Series 7 warranty resolution progress .

Appendix: Additional Relevant Press Release (Customer)

Leeward Renewable Energy’s 177 MW Ridgely Solar (TN) entered commercial operations using First Solar’s advanced thin‑film modules, underscoring U.S.-made partnerships and grid-scale deployment momentum .

Citations:

Q3’25 8‑K/press release and financial statements .
Earnings call transcript (prepared remarks and Q&A) .
Prior quarter press releases for trend analysis .

*Values retrieved from S&P Global.

FIRST SOLAR, INC. (FSLR)·Q3 2025 Earnings Summary