First Solar (FSLR) – A U.S. Solar Leader With a $16B Backlog and Big Profit Rebound
First Solar (FSLR) currently trades around $242, and while the stock has pulled back from its highs, the fundamentals behind it are getting stronger by the quarter. For investors tracking the buildout of clean energy infrastructure, this is a name worth watching closely.
What makes First Solar unique is that it’s the only U.S.-headquartered solar panel manufacturer, and it doesn’t rely on Chinese supply chains. Its vertically integrated, thin-film technology is not only efficient—it’s strategically positioned. That matters as energy infrastructure becomes a national security issue and as tariffs and supply bottlenecks remain top of mind.
Fundamentals are accelerating fast. In the most recent quarter, the company sold 5.3 gigawatts (GW) of solar modules, bringing in $1.6 billion in revenue, a $500 million sequential jump. Its contracted backlog now stands at $16.4 billion, representing 54.5 GW of output locked in through 2030. That’s a massive level of demand visibility.
Capacity is also scaling. First Solar opened a new facility in Louisiana that adds 3.7 GW of annual production, bringing total capacity to roughly 24 GW per year. With clean energy projects ramping globally, the timing looks spot on.
But what’s really catching attention is the margin story. Gross margins have jumped from just 2.7% in FY2022 to 44.2% in FY2024, a major profitability inflection. The company is guiding for 50% EPS growth in the year ahead, with expected volume sold between 16.7 and 17.4 GW—translating to about $5 billion in projected revenue.
Technically, the stock is in a digestion phase after a strong run in 2025. It’s trading below its 50-day moving average and hasn’t yet regained momentum. But if it stabilizes and reclaims that level with conviction—or retests support around its 200-day average near $200—it could offer a better entry point.
In the meantime, the fundamentals already tell a clear story: a profitable, strategically positioned company with billions in booked demand, expanding capacity, and pricing power in a critical sector. Keep this one on your list—it could be setting up for a strong breakout once buyers step back in.
