FSLR Stock Today: Q4 $1.7B Sales, 2026 Guide, 45X Cash Lift — February 25
First Solar earnings are in focus after Q4 2025 net sales of $1.7 billion and EPS of $4.84. Management issued FSLR 2026 guidance that leans on IRA policy and U.S. manufacturing. The company ended Q4 with $2.4 billion in net cash, helped by monetizing Section 45X credits. With the Louisiana factory commissioned and a South Carolina site planned, ticker FSLR sits at the center of solar stocks today as investors weigh cash generation, margins, and shipment cadence.
Q4 Results: Sales, EPS, and Cash Generation
First Solar earnings featured Q4 2025 net sales of $1.7 billion and EPS of $4.84, reflecting higher U.S. module mix and steady pricing. Management highlighted execution on contracts and disciplined costs. Investors will parse revenue timing, module ASP trends, and delivery schedules to assess durability into 2026, especially as backlogs roll forward and factory ramps change product mix and margin capture across the portfolio.
Net cash reached $2.4 billion at quarter end, supported by monetization of Section 45X credits. This cash gives flexibility for capacity build-outs, working capital, and potential technology upgrades. While 45X is an incentive, sustained free cash flow still depends on on-time shipments, stable input costs, and operating efficiencies. We will watch cash conversion against capex needs as factories scale and order books move from contract to delivery.
2026 Guidance and Capacity Expansion
Management’s FSLR 2026 guidance is framed by the IRA, including expected Section 45X credits and domestic content incentives. The outlook ties shipments and gross margins to U.S. production, contract terms, and ramp progress. Key sensitivities include policy stability, input costs, and mix. Investors should track how IRA timelines, customer delivery windows, and ASPs translate into unit economics across quarters.
The Louisiana facility has been commissioned, and a South Carolina plant is planned. These U.S. sites are central to 2026 shipments, IRA eligibility, and logistics savings. Early ramp quality often drives yield and cost curves, so execution matters. The cadence of tool installs, workforce training, and throughput will shape margins and cash, particularly as newer lines transition from start-up to steady-state.
Market Reaction and Trading Levels
Solar stocks today tend to react most to guidance quality, cash visibility, and policy updates. For First Solar earnings, investors focus on shipment timing, pricing discipline, and factory ramp milestones. Watch commentary on U.S. demand, interconnection timelines, and utility procurement. Contracted backlogs help, but quarterly deliveries and costs drive near-term prints, which can swing sentiment for both FSLR and peers.
For context, traders often monitor RSI near 54.8, ADX at 16.4 indicating a weak trend, and ATR around 12.4 for daily swings. Bollinger levels near 215 to 249 can mark potential support and resistance zones. Money Flow Index near 67.6 suggests active inflows. These are markers, not predictions, and can shift quickly around news or macro moves.
Valuation, Quality, and Street View
Quality remains a key part of the equity case. Recent TTM metrics include gross margin of 40.05%, operating margin of 29.81%, ROE of 16.61%, and debt-to-equity of 0.10. Liquidity is solid with a current ratio of 1.91 and cash ratio of 0.64. These figures support resilience through factory ramps and give room to invest through the cycle.
Street views are constructive: 25 Buy and 5 Hold ratings. Valuation sits near 18.94x TTM EPS, 5.25x sales, and 2.94x book. Our model grade is B+ with a BUY tilt, reflecting growth, balance sheet strength, and forecasts. As always, monitor execution against the 2026 plan and any change to IRA or Section 45X credits.
Final Thoughts
First Solar earnings delivered $1.7 billion in Q4 sales, EPS of $4.84, and net cash of $2.4 billion, aided by Section 45X credits. The story now turns to 2026 guidance quality, where IRA assumptions, shipment cadence, and factory ramps shape margins and cash generation. We think the key watch items are ramp execution in Louisiana, progress in South Carolina, ASP and mix stability, and unit costs as lines scale. On valuation, profitability and a low leverage profile help cushion volatility. For traders, watch technical ranges and volume around updates. For long-term investors, track backlog delivery, cash conversion versus capex, and any policy changes that could affect incentives or demand.
FAQs
What were the key takeaways from First Solar’s Q4 report?
First Solar earnings showed Q4 2025 net sales of $1.7 billion and EPS of $4.84. Net cash ended at $2.4 billion, helped by monetized Section 45X credits. Management issued 2026 guidance tied to IRA assumptions, with focus on U.S. production, shipment timing, and margin support as new factory ramps progress.
What does FSLR 2026 guidance depend on most?
FSLR 2026 guidance depends on consistent U.S. manufacturing ramp, IRA policy stability, shipment timing, and ASP and mix. Section 45X credits and domestic content incentives support margins, but execution on new lines, input costs, and delivery schedules will drive quarterly results and cash generation.
How do Section 45X credits affect First Solar’s cash flow?
Section 45X credits can be monetized, which lifts cash and supports capex and working capital during factory ramps. They improve near-term margins on U.S.-made modules. However, sustainable free cash flow still relies on on-time shipments, stable input costs, and reaching steady-state yields at newer facilities.
What should investors watch in solar stocks today after this report?
Focus on the quality of guidance, cash visibility, and factory ramp milestones. For traders, watch technical levels like the Bollinger range around 215 to 249 and ATR near 12.4 for volatility context. For investors, track backlog conversion, ASP stability, and any changes to IRA or Section 45X credits.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.