First Solar, a US-based thin-film photovoltaics manufacturer, reported a second-quarter net profit of USD 349.4 million (EUR 323 million), more than doubling its net income from the same period last year.
The company's gross profit for the three months increased by 60.7% year-on-year, with the gross margin rising to 49.4% from 38.3%. This growth was primarily due to a higher sales mix of modules that qualify for the Section 45X advanced manufacturing production credit, increased utilization at the company's production facilities, and a contract termination payment from a European customer.
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Net sales for the quarter reached USD 1.01 billion, marking a 25% increase compared to the same period last year. This rise was attributed to a higher volume of modules sold to third parties and an increase in the average selling price per watt of the company's modules.
As of the end of June, First Solar's total installed nameplate production capacity globally was 17.6 GW. During the second quarter, the company produced 3.7 GW of modules and sold 3.4 GW. Year-to-date net bookings amounted to 3.6 GW, with 0.9 GW booked in the second quarter.
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First Solar ended the second quarter of 2024 with USD 1.2 billion in cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less debt. This total was down from USD 1.4 billion at the end of the previous quarter due to capital expenditures for new factories in Alabama and Louisiana and the repayment of working capital loans in India. The decline was partially offset by increased operating cash flows from the solar module 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 CEO Mark Widmar. “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,” he added.
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First Solar reiterated its full-year financial guidance and confirmed its expectations to produce between 15.6 GW and 16 GW of solar modules and sell between 15.6 GW and 16.3 GW.
