FIRST SOLAR, INC. Q4 FY2024 earnings call

• Commercial: 2024 saw full year net bookings of 4.4 gigawatts at a base ASP of $0.305 per watt, ending with a backlog of 68.5 gigawatts. Record module sales of 14.1 gigawatts. - Manufacturing: Produced 15.5 gigawatts in 2024, started CuRe module production in Q4, progressed technology roadmap with R&D center and perovskite development line. Global nameplate manufacturing capacity grew to ~21 GW, with Louisiana facility on track to start commercial ops in H2 2025.

In 2024, First Solar had net sales of $4.2 billion, a 27% year-on-year increase. They sold a record 14.1 gigawatts of modules. From a manufacturing perspective, they produced 15.5 gigawatts in 2024, including 9.6 gigawatts of Series 6 modules and 5.9 gigawatts of Series 7 modules. Year-end contracted backlog was 68.5 gigawatts. Revenue contribution: Net sales of $4.2 billion represented a significant portion of the overall financial performance, with module sales being the key segment.

2025 production forecast: 18-19 gigawatts. Module sales forecast: 18-20 gigawatts. EPS guidance range: $17-$20. ASP expected to be ~$0.29 per watt including adders. Growth-related costs expected to impact operating income by ~$110M-$130M, including startup and ramp costs.

• Uncertain policy environment in key markets affecting production allocation. - China's dominance in global solar supply chains and weaponization of subsidies. - Trade issues like Southeast Asia AD CVD case and tariffs. - Warranty risks with potential costs up to $100M. - Tariff impacts on module imports and production costs.

Q: Brian Lee from Goldman Sachs asked about the wider guidance range and safe-harbor potential.

A: Mark Widmar mentioned safe-harbor activity but uncertainty in policy is causing caution. Alex Bradley discussed shipment and revenue guidance tied to uncertainties and international volume.

Q: Philip Shen from ROTH Capital Partners asked about warranty and tariffs.

A: Mark Widmar said Series 7 production issues are corrected, warranty range is $56M-$100M. Tariffs not assumed on First Solar's modules but other adverse impacts considered.

Q: Mark Strouse from JPMorgan asked about cost per watt produced and sold.

A: Mark Widmar and Alex Bradley discussed cost per watt produced tracking close to expectations, with changes in warehousing and commodity costs being key factors.