First Solar's sales exceed expectations, and the company plans to open a second US factory

First Solar, the largest U.S. solar panel manufacturer, exceeded expectations for third quarter sales on Thursday. This was due to robust demand for their products. Their shares rose more than 5% during extended trading.

Solar-generated electricity has become one of the fastest growing segments in the U.S. Energy Industry, due to the strong demand of corporations and government agencies for cleaner energy sources and climate change. First Solar announced that it would build a 3.7 GW manufacturing plant in the U.S. Production is expected to begin at the end 2026, and increase through the first half 2027.

First Solar will be able to finish the products that were started in its overseas facilities. This will help achieve President Donald Trump’s goal of reducing U.S. dependence on imported goods.

Mark Widmar, CEO of Widmar Group, said in a conference with investors that "this activity places us uniquely at an intersection of many of the Administration's key priority areas, including domestic manufacturing jobs, American energy, energy affordability and being among the generation solutions which enable the U.S. win the artificial-intelligence race against China."

The company posted a profit for the third-quarter of $455.9 millions, or $4.24 a share. This is up from $341.87million, or $3.18 a share, one year ago. First Solar has lowered its sales projection for the current year. First Solar now expects its annual sales in 2025 to range between $4.95 and $5.2 billion, as opposed to the $4.9 to $5.7 billion it had previously forecasted.

On a conference phone, the company explained that "reduced volumes of international sales due to terminations by customers are partially offset by termination payment". According to court documents and executives, the company sued a solar unit of BP in Great Britain last month for breaching contract. First Solar reduced its backlog of modules by 6.6 Gigawatts at a transaction price of $1.9 Billion.

First Solar has also lowered its top and bottom forecast ranges for volume sold from 19,3 GW to 17,4 GW. The low end remains unchanged at 16,7 GW. According to data compiled from LSEG, the company reported net sales for the three-month period ended September 30 of $1.6 billion. This was above analysts' expectations of $1.56 million. Reporting by Dharna Baffna and Nichola Grroom in Los Angeles, and editing by Maju Samuel & Stephen Coates.

(source: Reuters)