First Solar Boosts Annual Sales Forecast, Citing Higher Prices from New Tariffs

Sophia Reyes · August 1, 2025 1:02 PM

First Solar, the U.S.-based solar panel manufacturer, raised its sales outlook for the year on Thursday, anticipating increased product prices driven by recent tariffs on imported solar panels.

It was one of the best-performing stocks in the S&P 500 on Friday.

Following the announcement, shares of the Tempe, Arizona company jumped over 4% in after-hours trading.

The solar sector, which has faced sluggish demand and elevated interest rates, is now adjusting to the potential effects of U.S. President Donald Trump’s renewable energy policies and planned tariffs on most solar imports.

Although the sweeping tax and spending legislation known as the “One Big, Beautiful Bill Act” (OBBBA) aims to phase out solar and wind tax credits by 2028, the newly imposed tariffs are expected to strengthen the market position for domestic solar manufacturers.

“In our view, the recent policy and trade developments have, on balance, strengthened First Solar’s relative position in the solar manufacturing industry,” CEO Mark Widmar said. “In addition, we believe that on a fundamental basis, with its cost-competitive energy and faster time to power profile, the case for utility-scale solar generation is compelling regardless of the policy environment, which places First Solar, a utility-scale leader, in a position of strength.”

Shares jumped over 5% in recent trading to move into positive territory for the year.

Earlier this month, First Solar joined other U.S. solar producers in petitioning the Commerce Department to enforce tariffs on imports from Indonesia, India, and Laos to safeguard their investments and better compete against Chinese manufacturers.

Additionally, the industry stands to benefit from growing demand as corporations and governments push for cleaner energy sources amid climate change concerns.

First Solar now projects 2025 net sales between $4.9 billion and $5.7 billion, up from its prior forecast of $4.5 billion to $5.5 billion. Analysts had estimated average net sales of $5.07 billion for the year, according to LSEG data.