Can First Solar's Manufacturing Expansion Drive Long-Term Growth?

First Solar’s FSLR long-term growth story is increasingly being driven by manufacturing expansion. Its aggressive investment in domestic manufacturing capacity is strengthening its competitive position as utility-scale solar deployment accelerates across the United States.

The company continues to expand production across its manufacturing facilities in Ohio, Alabama and Louisiana, increasing its ability to supply American-made solar modules. During 2026, FSLR expects capital expenditures to be between $0.8 billion and $1.0 billion. These investments include the construction of a new manufacturing facility, ongoing research and development initiatives, and upgrades to existing machinery and equipment aimed at enhancing efficiency and performance.

The company has added 1.9 gigawatts (GW) of gross bookings since the previous earnings call, bringing its total booking backlog to 47.9 GW extending through 2030. This robust backlog indicates strong demand for FSLR’s products while reinforcing its capacity expansion strategy, providing greater revenue visibility and stability in the years ahead.

Rising electricity consumption from data centers, advanced manufacturing facilities and broader electrification trends continue to increase the need for utility-scale solar generation. 

The company's differentiated cadmium telluride (CdTe) technology further strengthens its competitive position. Compared with conventional crystalline silicon modules, CdTe technology performs well in high-temperature environments and reduces dependence on polysilicon-based supply chains. 

Although changes in trade policy, project timing and interest rates may create periodic volatility, FSLR’s manufacturing expansion, contracted backlog and technology leadership provide multiple drivers for sustainable long-term growth. As domestic solar deployment continues to accelerate, the company appears well positioned to benefit from increasing demand for U.S.-manufactured renewable energy equipment.

Solar Companies Investing in Manufacturing Expansion

Several solar companies are also expanding manufacturing capabilities to capitalize on growing renewable energy demand.

Enphase Energy ENPH continues to invest in domestic manufacturing partnerships while expanding its residential solar and energy storage ecosystem.

Nextpower NXT is benefiting from accelerating utility-scale solar deployment through growing demand for its integrated energy technology platform, including advanced solar tracking systems, electrical balance-of-system solutions and power conversion technologies.

FSLR’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates an increase of 23.93% and 38%, respectively, year over year.

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FSLR Stock Trading at a Discount

First Solar is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 11.13X compared with the industry average of 18.51X.

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FSLR Stock Price Performance

In the past three months, the company’s shares have risen 26.1% compared with the industry’s 11.4% growth.

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FSLR’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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This article originally published on Zacks Investment Research (zacks.com).

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