0001274494false00012744942024-07-302024-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

July 30, 2024
Date of Report (Date of earliest event reported)

FIRST SOLAR, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3315620-4623678
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)

350 West Washington Street, Suite 600
Tempe, Arizona 85288
(Address of principal executive offices, including zip code)

(602) 414-9300
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stock, $0.001 par valueFSLRThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.    Results of Operations and Financial Condition

On July 30, 2024, First Solar, Inc. is issuing a press release and holding a conference call regarding its financial results for the second quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

The information in this Form 8-K and in Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.    Financial Statements and Exhibits

(d) Exhibits.
Exhibit NumberDescription
104
Cover Page Interactive Data File (embedded within the Inline XBRL Document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FIRST SOLAR, INC.
Date: July 30, 2024By:/s/ JASON DYMBORT
Name:Jason Dymbort
Title:General Counsel & Secretary

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EXHIBIT 99.1
fslr_logox2021a.jpg
News Release

First Solar, Inc. Announces Second Quarter 2024 Financial Results
•Net sales of $1.0 billion
•Net income per diluted share of $3.25
•Net cash balance of $1.2 billion
•Maintain full-year 2024 guidance
•YTD net bookings of 3.6 GW; 0.9 GW since first quarter earnings call with an average selling price of 31.6 cents per watt, excluding adjusters and India domestic sales
•Expected sales backlog of 75.9 GW

TEMPE, Ariz., July 30, 2024 – First Solar, Inc. (Nasdaq: FSLR) (the “Company”) today announced financial results for the second quarter ended June 30, 2024.

Net sales for the second quarter were $1.0 billion, an increase of $0.2 billion from the prior quarter. The increase was primarily driven by an increase in the volume of modules sold and an increase in the average selling price per watt of our modules.

The Company 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.

Cash, 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 prior quarter. The decrease was primarily a result of capital expenditures associated with our new U.S. factories in Alabama and Louisiana along with the repayment of working capital loans in India, partially offset by increased operating cash flows from our 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”.

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Our 2024 guidance remains unchanged. The complete 2024 guidance is as follows:

PriorCurrent
Net Sales (1)
$4.4B to $4.6B
Unchanged
Gross Margin (1) (2)
$2.0B to $2.1B
Unchanged
Operating Expenses (1) (3)
$455M to $485M
Unchanged
Operating Income (1) (4)
$1.5B to $1.6B
Unchanged
Earnings per Diluted Share (1)
$13.00 to $14.00
Unchanged
Net Cash Balance (5)
$0.6B to $0.9B
Unchanged
Capital Expenditures
$1.8B to $2.0B
Unchanged
Volume Sold (1)
15.6GW to 16.3GW
Unchanged
——————————
(1)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. 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 the remainder of the year, this results in a forecasted earnings per share profile of approximately 40% in the third quarter of the year and 60% in the fourth quarter.
(2)Assumes $40 million to $60 million of ramp costs and $1.0 billion to $1.05 billion of Section 45X tax credits
(3)Assumes $70 million to $80 million of production start-up expense
(4)Assumes $110 million to $140 million of production start-up expense and ramp costs, and $1.0 billion to $1.05 billion of Section 45X tax credits
(5)Defined as cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt at the end of 2024

The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to certain factors related to the Inflation Reduction Act of 2022 (the “IRA”). Among other things, such factors include (i) the total Section 45X tax credit and (ii) the timing and ability to monetize such credit. Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s second quarter 2024 financial results, 2024 guidance, and financial outlook.

Conference Call Details

First Solar has scheduled a conference call for today, July 30, 2024, at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com. A replay of the webcast will be available on the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for 30 days.

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at research and development labs in California and Ohio, the Company’s advanced thin film photovoltaic (“PV”) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

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For First Solar Investors

This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand for our technology; increased research and development investment; new domestic and international capacity coming online; production and delivery of our modules; our financial guidance for 2024, including future financial results, net sales, gross margin, operating expenses, operating income, earnings per diluted share, net cash balance, capital expenditures, expected earnings cadence, volume sold, shipments, bookings, products and our business and financial objectives for 2024; the availability of benefits under certain production linked incentive programs, and the impact of the IRA including the total advanced manufacturing production credit available to us under Section 45X of the Internal Revenue Code. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” “contingent” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the reduction, elimination, expiration or introduction of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; the passage of legislation intended to encourage renewable energy investments through tax credits, such as the IRA; the impact of the IRA on our expected results of operations in future periods, which may be affected by technical guidance, regulations, subsequent amendments or interpretations of the law; interest rate fluctuations and both our and our customers’ ability to secure financing; changes in the exchange rates between the functional currencies of our subsidiaries and other currencies in which assets and liabilities are denominated; our ability to execute on our long-term strategic plans; the loss of any of our large customers, or the ability of our customers and counterparties to perform under their contracts with us; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; our ability to incorporate technology improvements into our manufacturing process, including the production of bifacial solar modules and the implementation of our Copper Replacement (“CuRe”) program; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects arising from and results of pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program or otherwise as required by laws and regulations; supply chain disruptions; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cybersecurity incidents including breaches or outages of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to construct new production facilities to support new product lines in line with anticipated timing; evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social and governance matters; our ability to avoid manufacturing interruptions, including during the ramp of our manufacturing facilities; our ability to attract and retain key executive officers and associates; the severity and duration of public health threats, including the potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of
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Operations” of our most recent Annual Report on Form 10-K, as supplemented by our other filings with the Securities and Exchange Commission.

Contacts

First Solar Investors                             First Solar Media
investor@firstsolar.com                            media@firstsolar.com

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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30,
2024		December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents$1,702,913 $1,946,994 
Marketable securities37,430 155,495 
Accounts receivable trade, net647,565 660,776 
Government grants receivable, net6,034 659,745 
Inventories1,027,872 819,899 
Other current assets527,109 391,900 
Total current assets3,948,923 4,634,809 
Property, plant and equipment, net5,139,000 4,397,285 
Deferred tax assets, net201,801 142,819 
Restricted marketable securities200,243 198,310 
Government grants receivable607,086 152,208 
Goodwill28,834 29,687 
Intangible assets, net59,267 64,511 
Inventories273,977 266,899 
Other assets555,124 478,604 
Total assets$11,014,255 $10,365,132 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$230,894 $207,178 
Income taxes payable81,172 22,134 
Accrued expenses540,126 524,829 
Current portion of debt140,175 96,238 
Deferred revenue689,468 413,579 
Other current liabilities90,794 42,200 
Total current liabilities1,772,629 1,306,158 
Accrued solar module collection and recycling liability134,803 135,123 
Long-term debt418,725 464,068 
Deferred revenue1,258,880 1,591,604 
Other liabilities173,821 180,710 
Total liabilities3,758,858 3,677,663 
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 107,045,972 and 106,847,475 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively107 107 
Additional paid-in capital2,886,569 2,890,427 
Accumulated earnings4,557,038 3,971,066 
Accumulated other comprehensive loss(188,317)(174,131)
Total stockholders’ equity7,255,397 6,687,469 
Total liabilities and stockholders’ equity$11,014,255 $10,365,132 

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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
Net sales$1,010,482 $794,108 $810,673 $1,804,590 $1,358,959 
Cost of sales511,593 448,105 500,253 959,698 936,488 
Gross profit498,889 346,003 310,420 844,892 422,471 
Operating expenses:
Selling, general and administrative46,560 45,827 46,328 92,387 90,356 
Research and development51,937 42,742 36,745 94,679 67,255 
Production start-up27,451 15,408 23,377 42,859 42,871 
Litigation loss430 — 35,590 430 35,590 
Total operating expenses126,378 103,977 142,040 230,355 236,072 
Gain on sales of businesses, net— 1,115 135 1,115 118 
Operating income372,511 243,141 168,515 615,652 186,517 
Foreign currency loss, net(9,649)(2,858)(4,652)(12,507)(10,599)
Interest income24,599 27,245 25,026 51,844 50,848 
Interest expense, net(9,765)(9,210)(1,415)(18,975)(2,163)
Other (expense) income, net(565)(2,799)997 (3,364)(459)
Income before taxes377,131 255,519 188,471 632,650 224,144 
Income tax expense(27,775)(18,903)(17,892)(46,678)(11,004)
Net income$349,356 $236,616 $170,579 $585,972 $213,140 
Net income per share:
Basic$3.26 $2.21 $1.60 $5.48 $2.00 
Diluted$3.25 $2.20 $1.59 $5.45 $1.99 
Weighted-average number of shares used in per share calculations:
Basic107,042 106,910 106,827 107,011 106,791 
Diluted107,525 107,407 107,278 107,502 107,256 

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FIRST SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Six Months Ended
June 30,
20242023
Cash flows from operating activities:
Net income$585,972 $213,140 
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation, amortization and accretion187,921 140,560 
Share-based compensation15,191 15,011 
Deferred income taxes(58,399)(42,607)
Gain on sales of businesses, net(1,115)(118)
Other, net1,650 (8,843)
Changes in operating assets and liabilities:
Accounts receivable, trade
29,613 (177,591)
Inventories(215,493)(131,625)
Government grants receivable205,528 (225,121)
Other assets(168,363)(96,617)
Income tax receivable and payable3,774 (20,090)
Accounts payable and accrued expenses(113,255)(42,994)
Deferred revenue(12,499)211,721 
Other liabilities212 40,898 
Net cash provided by (used in) operating activities
460,737 (124,276)
Cash flows from investing activities:
Purchases of property, plant and equipment(778,618)(753,656)
Purchases of marketable securities and restricted marketable securities(1,113,826)(2,492,495)
Proceeds from sales and maturities of marketable securities1,224,167 2,538,069 
Acquisitions, net of cash acquired— (35,540)
Other investing activities(7,697)— 
Net cash used in investing activities
(675,974)(743,622)
Cash flows from financing activities:
Proceeds from borrowings under debt arrangements, net of issuance costs110,395 246,825 
Repayment of debt(111,375)— 
Payments of tax withholdings for restricted shares(19,148)(30,247)
Contingent consideration payment and other financing activities(7,527)— 
Net cash (used in) provided by financing activities
(27,655)216,578 
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents(5,600)2,454 
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents(248,492)(648,866)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period1,965,069 1,493,462 
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period$1,716,577 $844,596 
Supplemental disclosure of noncash investing and financing activities:
Property, plant and equipment acquisitions funded by liabilities$402,263 $183,482 
Proceeds to be received from asset-based government grants$158,908 $— 
Acquisitions funded by liabilities and contingent consideration$11,000 $18,686 
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v3.24.2
Document and Entity Information Document
Jul. 30, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 30, 2024
Entity Registrant Name FIRST SOLAR, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-33156
Entity Tax Identification Number 20-4623678
Entity Address, Address Line One 350 West Washington Street, Suite 600
Entity Address, City or Town Tempe
Entity Address, State or Province AZ
Entity Address, Postal Zip Code 85288
City Area Code 602
Local Phone Number 414-9300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $0.001 par value
Trading Symbol FSLR
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001274494
Amendment Flag false
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