Sector: Energy / Solar Technology
What do they do?
First Solar is a leading American manufacturer of solar panels and a global provider of utility-scale PV (photovoltaic) energy solutions. Unlike most of the industry that uses crystalline silicon, First Solar uses advanced thin-film semiconductor technology. They are the largest solar manufacturer headquartered in the U.S. and are unique for having a fully integrated, high-speed manufacturing process that doesn't rely on Chinese supply chains.
What is their best product?
Their flagship product is the Series 7 module:
- Design: Specifically designed for large utility-scale power plants
- Technology: Utilizes proprietary Cadmium Telluride (CdTe) technology, which performs better in high-temperature and humid conditions compared to traditional silicon panels
- Sustainability Edge: Has the lowest carbon and water footprint in the industry and is designed for 90% recyclability at end of life
- Next-Gen: In early 2026, they are rolling out the CuRe program, which replaces copper in the semiconductor to further reduce degradation and increase energy yield
Do they have a competitive advantage?
First Solar has a significant strategic moat:
- Non-Silicon Technology: By using CdTe instead of silicon, they are immune to price volatility and supply chain ethical concerns (forced labor issues) surrounding polysilicon
- Domestic Policy Advantage: As a U.S. manufacturer, they benefit heavily from Inflation Reduction Act (IRA) tax credits, making their panels more cost-competitive in the American market
- Efficiency in Speed: They can turn a sheet of glass into a finished solar panel in about 4.5 hours, compared to days for traditional silicon manufacturers
Does this company have the potential to change the world?
Yes. First Solar is the primary engine for decoupling the Western energy transition from China. By providing a high-volume, "clean" alternative to silicon panels, they allow countries to scale renewable energy without increasing geopolitical dependence. Their industry-leading recycling program also provides a blueprint for a circular energy economy, ensuring that solar panels don't become the next generation's landfill crisis.
Who are their competitors?
First Solar competes primarily with major Chinese "Tier 1" silicon manufacturers:
- JinkoSolar & Trina Solar: The global volume leaders
- Canadian Solar: A major rival in both hardware and project development
- Nextracker: While they make "trackers" rather than panels, they compete for the same utility-scale project budgets
Who are the leaders?
The leadership team is comprised of seasoned finance and energy veterans:
- Mark Widmar (CEO) - Indiana University (B.S. in Business Accounting and MBA). A CPA who previously held leadership roles at NCR and Dell
- Alexander Bradley (CFO) - University of Edinburgh (Master of Arts). Joined First Solar in 2008, previously worked at HSBC in investment banking
- Markus Gloeckler (CTO) - A key scientific leader who has driven the R&D for their Series 6 and Series 7 thin-film advancements
Are the financials strong?
The financials are exceptionally robust as of early 2026:
- Profitability: In 2025, the company delivered a net income of roughly $1.3 billion
- Cash Position: "Fortress balance sheet" with over $1.2 billion in net cash, allowing self-funded factory expansions in Ohio, Alabama, and Louisiana
- Earnings Growth: Analysts forecast a nearly 60% jump in earnings for 2026 as new domestic factories reach full capacity
How is the valuation?
The valuation is currently a point of debate:
- Stock Price: ~$265 (rebounding in early Jan 2026)
- Forward P/E: Approximately 17x - 18x, considered attractive for a high-growth tech manufacturer
- Analyst Outlook: Most maintain an Overweight/Buy rating with price targets near $285, though some caution that the stock has "priced in" much of the IRA subsidy benefit already
Final verdict
First Solar is the premier "safe haven" play in the solar industry. It is a highly profitable, technologically unique company with a massive U.S. policy tailwind. While it faces intense price competition from Chinese silicon, its superior environmental profile and "Made in America" status make it a foundational company for the global energy transition.
This analysis is for informational purposes only and should not be considered financial advice.