MONTGOMERY, Ala. - First Solar, Inc. (NASDAQ:FSLR) has recently inaugurated a new $1.1 billion solar manufacturing facility in Lawrence County, Alabama. The site is expected to generate over 800 jobs and add 3.5 gigawatts (GW) of solar manufacturing capacity in the United States.
The Alabama facility is part of First Solar's expansion, which includes three operational factories in Ohio and a forthcoming facility in Louisiana. The company's U.S. manufacturing capacity is projected to reach nearly 11 GW, with a global capacity exceeding 21 GW once fully operational. By the end of 2026, First Solar aims to have over 14 GW of annual nameplate capacity in the U.S. and 25 GW worldwide.
Mark Widmar, CEO of First Solar, emphasized the significance of the facility for America’s energy strategy, noting that it employs American workers and utilizes a domestic supply chain. The Series 7 modules produced at the Lawrence County site incorporate locally-sourced steel and are part of a fully integrated production process.
First Solar stands out as the only major solar manufacturer headquartered in the U.S. that does not operate in China. Their domestic manufacturing investments exceed $4 billion.
A study by the University of Louisiana at Lafayette suggests that First Solar's growth to 14 GW in U.S. capacity by 2026 could support approximately 30,060 jobs nationwide, contributing $2.8 billion in annual labor income. The study also estimates that each direct job at First Solar could support an additional 7.3 jobs across the country.
Local officials in Alabama have welcomed the facility's inauguration, highlighting its economic impact and contribution to the state's leadership in clean energy.
This news is based on a press release statement from First Solar, Inc.
In other recent news, First Solar Inc (NASDAQ:FSLR). has been the subject of multiple analyst reviews and reported strong Q2 2024 earnings. Truist Securities initiated a Buy rating on First Solar, emphasizing the company's competitive position due to ongoing research and development efforts. The firm also noted First Solar's substantial contracted backlog, which is seen as a strategic advantage. Meanwhile, Baird reiterated its Outperform rating on the company, highlighting potential catalysts such as the early launch of First Solar's CuRe technology and capacity expansion.
Jefferies initiated coverage with a Buy rating, citing First Solar's strong position within the solar sector and its significant contracted capacity through 2027. On the other hand, William Blair initiated coverage with a Market Perform rating, recognizing First Solar's capacity to increase production and its competitive low-cost thin-film technology.
In terms of earnings, First Solar reported an increase in net sales to $1 billion, a rise in gross margin to 49%, and an operating income of $373 million for Q2 2024. The company also expanded its production facilities in Ohio and Alabama, with upcoming operations in Louisiana. These are the recent developments shaping First Solar's market standing.
InvestingPro Insights
First Solar, Inc. (NASDAQ:FSLR) has not only made significant strides in expanding its manufacturing capacity but also presents an interesting financial profile according to InvestingPro data. The company boasts a robust market capitalization of $25.87 billion, reflecting investor confidence and its substantial role in the solar industry. With a price-to-earnings (P/E) ratio of 21.57, First Solar is valued above the industry average, which may be indicative of the market's high expectations for its future earnings potential.
InvestingPro Tips highlight that First Solar holds more cash than debt on its balance sheet, suggesting a strong financial position that could support its ambitious expansion plans. Furthermore, analysts anticipate sales growth in the current year, aligning with the company's strategic investments in U.S. manufacturing capacity.
Additional data from InvestingPro reveals a notable revenue growth of 25.88% over the last twelve months as of Q2 2024, demonstrating First Solar's ability to increase its sales amidst a competitive market. The company's gross profit margin stands at an impressive 45.78%, underscoring its operational efficiency and potential for profitability.
For readers interested in deeper financial analysis, InvestingPro offers more tips on First Solar, including insights on earnings revisions, liquidity, profitability, and stock performance. There are 9 additional InvestingPro Tips available that could provide further context on the company's financial health and market outlook.
First Solar's recent inauguration of the Alabama facility, coupled with its strong financial metrics, paints a picture of a company that is not only expanding its physical presence but also strengthening its financial foundation.
For those looking to delve deeper into First Solar's financial position and future prospects, additional insights can be found at InvestingPro's dedicated page for First Solar: https://www.investing.com/pro/FSLR.
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