Q2 Results: First Solar Sees 24.6% Rise In Sales

US solar module manufacturer, First Solar, recently released the latest financial results for the second quarter ending June 30, 2024, in which the company made a net sales of $1.0 billion. In this quarter, the company saw an increase in sales by $0.2 billion from the previous quarter.

First Solar in its second quarter reported more than doubled profit, as the think solar film maker benefited from the stable demand for its products. The company attributed this increase to the rise in the volume of modules sold and the average selling price per watt of First Solar’s modules. First Solar reported second-quarter net income per diluted share of $3.25, compared to net income per diluted share of $2.20 in the first quarter of 2024.

First Solar reported an increase in net sales which rose by 24.6% to $1.01 billion driven by an increase in the volume of modules sold and an uptick in the selling price. This increase can also be associated with an increase in US utilities, and infrastructure investments. The recent growth in the company’s sales can also be associated with an increase in power consumption in the US which is projected to move upwards in 2024 and 2025. This surge is also driven by strong demand from data centers and electric vehicles, according to the US Energy Information Administration (EIA).

The company said, “First Solar cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less debt at the end of the second quarter, decreased to $1.2 billion from $1.4 billion at the end of the previous quarter. The decrease was primarily due to capital expenditures associated with new US factories in Alabama and Louisiana, along with the repayment of working capital loans in India, partially offset by increased operating cash flows from the modules business.”

“We are pleased with our financial and operational execution through the first half of this year as we continue to deliver on our commitments,” said Mark Widmar, CEO of First Solar. “Our balanced approach to growth, profitability, and liquidity, combined with multiple technological and business model points of differentiation, is enabling us to deliver value for both our customers and our shareholders.”

The company stated, “Our 2024 guidance remains unchanged from a second-half earnings cadence perspective. We anticipate our net sales and cost of sales profile, excluding the advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code (Section 45X tax credit), to be approximately 40% in the third quarter and 60% in the fourth quarter.”

The company mentioned in its results, “We forecast Section 45X tax credits of approximately $240 million in the third quarter and $335 million in the fourth quarter. With an operating expense profile roughly evenly split across all quarters.”