First Solar increases its annual sales forecast, expecting higher prices due tariffs

First Solar increased its annual sales forecast for Thursday as the U.S. manufacturer of solar panels expects higher prices after additional tariffs against foreign-made products.

After the bell, shares of the Tempe-based Arizona company rose by over 4%.

Solar industry is bracing itself for the impact of U.S. president Donald Trump's policies on renewable energy and his plans to impose a tariff on most imports.

The U.S. tariffs will improve the outlook of solar companies, even though Trump's tax and spending bill, dubbed "One Big, Beautiful Bill Act", aims to phase-out solar and wind tax incentives by 2028.

Mark Widmar, CEO of First Solar, said: "In our opinion, recent policy and trading developments have strengthened First Solar's position relative to the solar manufacturing industry."

First Solar and other U.S. solar panels makers asked the U.S. Commerce Department earlier this month to impose import tariffs to Indonesia, India, and Laos to protect recent investments and to better compete with Chinese competitors.

As corporations and governments adopt cleaner energy sources to combat climate changes, the industry will also benefit from the rising demand for electricity.

First Solar expects its current-year sales to range between $4.9 and $5.7 billion. This is a significant increase from the $4.5 and $5.5 billion it had previously projected.

According to data compiled and analyzed by LSEG, analysts estimated that the company's net sales in 2025 would be $5.07 billion. Reporting by Vallari Shrivastava, Bengaluru. Editing by Leroy Leo.

(source: Reuters)