Summary
First Solar, Inc.'s 2021 Form 10-K details a year of robust growth and strategic expansion, driven by increasing demand for its advanced thin-film PV solar modules. The company reported an 8% increase in net sales to $2.9 billion, largely due to higher module volumes sold and the sale of certain projects. Despite a slight decrease in gross profit margin to 25.0%, driven by higher logistics costs and a lower average selling price per watt, the company's operational efficiency and cost reductions helped mitigate these pressures. First Solar is actively expanding its manufacturing capacity, with plans for new facilities in the U.S. and India, reflecting confidence in long-term market growth. Key strategic moves in 2021 included the divestiture of its North American O&M and U.S. project development businesses, which contributed significantly to overall profitability through gains on sales. The company continues to focus on its core thin-film technology, emphasizing its performance advantages, sustainability, and lower levelized cost of electricity. Despite facing intense competition and market pricing pressures, First Solar's differentiated technology, ongoing R&D investment, and solid financial position provide a strong foundation for future growth.
Financial Highlights
55 data points| Revenue | $2.92B |
| Cost of Revenue | $2.19B |
| Gross Profit | $729.95M |
| R&D Expenses | $99.11M |
| SG&A Expenses | $170.32M |
| Operating Expenses | $290.49M |
| Operating Income | $586.75M |
| Interest Expense | $13.11M |
| Net Income | $468.69M |
| EPS (Basic) | $4.41 |
| EPS (Diluted) | $4.38 |
| Shares Outstanding (Basic) | 106.26M |
| Shares Outstanding (Diluted) | 106.92M |
Key Highlights
- 1Net sales increased by 8% to $2.9 billion in 2021, driven by a 48% increase in module volume sold, though average selling price per watt decreased by 10%.
- 2Gross profit margin remained strong at 25.0% in 2021, slightly down from 25.1% in 2020, impacted by increased logistics costs and a lower average selling price per watt.
- 3Manufacturing capacity is expanding, with plans to add 6.6 GWDC through new facilities in the U.S. and India, expected to commence operations in 2023.
- 4The company divested its North American O&M operations and U.S. project development business, resulting in gains of $115.8 million and $31.5 million, respectively.
- 5First Solar continues to lead in thin-film technology, highlighting advantages in temperature coefficient, spectral response, and partial shading.
- 6Significant R&D investment is ongoing to improve module performance and manufacturing efficiency, with a focus on programs like CuRe.
- 7The company reported $1.8 billion in cash, cash equivalents, and marketable securities as of December 31, 2021, indicating strong financial stability.