10-K 0001274494-26-000021 (2026-02-24) vs 10-K 0001274494-25-000010 (2025-02-25)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 18,166 |
15.0% |
| MD&A | Item 7 | 10,906 |
36.2% |
| Legal Proceedings | Item 3, via Note 14 – Commitments and Contingencies | 2,216 |
36.3% |
| Accounting Policies | 10-K text, Note 2 – Summary of Significant Accounting Policies | 5,083 |
10.8% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 288 words changed in this paragraph; it is 32% similar to last year's version.
•India. The ALMM was introduced in 2021 as •United States. In April 2024, the American Alliance for Solar Manufacturing Trade Committee, which includes First Solar, filed a non-tariff barrier set of AD/CVD petitions with the USDOC and the USITC to incentivize domestic manufacturing of PV modules by approving the list of models impose duties on certain unfairly traded solar products from Cambodia, Malaysia, Thailand, and manufacturers who can participate in certain solar development projects. The ALMM is approved Vietnam. Following final affirmative determinations by the MNRE, USDOC and any modifications USITC that identified final subsidy rates of 534.67% to 3,403.96% for Cambodia, 14.64% to 168.8% for Malaysia, 263.74% to 799.55% for Thailand, and 68.15% to 542.64% for Vietnam, AD/CVD orders, including the ALMM assessment of countervailing duties and its application may affect future investments in suspension of liquidation of such products, were issued on June 9, 2025. On July 17, 2025, the Alliance for American Solar Manufacturing and Trade filed another set of AD/CVD petitions with the USDOC and the USITC to impose duties on unfairly traded crystalline silicon solar module manufacturing in India. For example, in December 2024, products from India, Indonesia, and Laos. In addition to a range of alleged illegal subsidies, the ALMM was amended petitioners identified dumping margins of 213.96% for India, 89.65% for Indonesia, and 245.79 to require nearly all solar development projects to use PV modules that contain domestically manufactured solar cells, which is expected to be effective 249.09% for such projects completed on or after June 2026. Laos. For more information about the ALMM, this development, see Item 1A. “Risk Factors – The modification, reduction, elimination, or expiration of government subsidies, economic incentives, eligibility limitations, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications, or the impact of other public policies, such as tariffs or other trade remedies imposed on solar cells and modules or related raw materials or equipment, have, and in the future could, negatively impact demand and/or price levels for our solar modules and limit our growth or lead to a reduction in our net sales or increase our costs, thereby adversely impacting our operating results.”
Source: Item 7, 10-K 0001274494-26-000021 vs Item 7, 10-K 0001274494-25-000010
Legal Proceedings 247 words changed in this paragraph; it is 33% similar to last year's version.
We have During the year ended December 31, 2024, we identified manufacturing issues affecting certain Series 7 modules manufactured in 2023 and 2024 that may cause the modules to experience premature power loss once installed in the field. The ultimate loss Subsequently, we will incur for identified the causes of these manufacturing issues will depend and compiled and evaluated data on the extent of the premature power loss that is experienced in relation to the obligations under our limited product warranties, as well as any potential additional commitments we expected impact such issues may make to remediate the affected modules. Based have on currently available information and certain assumptions and estimates, we believe a reasonable estimate of the aggregate losses related to these manufacturing issues will range from approximately $ 56 million to $ 100 million. At this time, no individual amount within that range is a better estimate than any other amount. Accordingly, as of December 31, 2024, we increased our product warranty liability by the low end of the range, which we recorded as a reduction to revenue. The estimated range set forth above was based on our evaluation of the currently available information, performance, including select collecting samples of module performance data from several locations, locations. During the year ended December 31, 2025, we settled certain of our obligations related to these issues and continued to engage in settlement discussions with various additional customers. Based on such settlement experience, the estimated number of affected modules, and projections of probable costs to remediate the issues. As additional information becomes available to us, our issues, we believe a reasonable estimate of the aggregate potential future losses related will range from approximately $ 35 million to these manufacturing issues may change, and any change in estimate may also result in a change to our product warranty liability. $ 75 million.
Source: Item 3, via Note 14 – Commitments and Contingencies, 10-K 0001274494-26-000021 vs Item 3, via Note 14 – Commitments and Contingencies, 10-K 0001274494-25-000010
Risk Factors 224 words changed in this paragraph; it is 40% similar to last year's version.
•United States — Antidumping and Countervailing Duties on Certain Traded Solar Products. In April 2024, the American Alliance for Solar Manufacturing Trade Committee, which includes First Solar, filed a set of AD/CVD petitions with the USDOC and the USITC U.S. International Trade Commission (“USITC”) to impose duties on certain unfairly traded solar products from Cambodia, Malaysia, Thailand, and Vietnam. The investigations could potentially lead On April 21, 2025, the USDOC announced final determinations in the AD/CVD investigations. Final AD/CVD rates ranged from de minimis to over 3,400%, depending on the imposition particular foreign producer. On June 9, 2025, the USITC notified USDOC of its final affirmative determinations in the AD/CVD investigations. AD/CVD orders, including the assessment of AD/CVDs and suspension of liquidation of such products, were issued on June 9, 2025. On July 17, 2025, the Alliance for American Solar Manufacturing and Trade filed another set of AD/CVD orders petitions with the USDOC and the USITC to impose duties on such unfairly traded crystalline silicon solar products. products from India, Indonesia, and Laos. In June 2024, August 2025, the USITC issued affirmative preliminary determinations. In October 2024, the USDOC announced preliminary affirmative determinations in the CVD investigations, finding that silicon solar cells and panels from Cambodia, Malaysia, Thailand, and Vietnam are unfairly subsidized at rates ranging from de minimis to nearly 300%, depending on the particular foreign producer. The USDOC has imposed provisional CVDs accordingly. In November 2024, the USDOC announced preliminary affirmative determinations in the AD investigations, providing for certain preliminary dumping rates applicable to solar cells from Cambodia, Malaysia, Thailand, and Vietnam ranging from de minimis to approximately 270%, depending on the particular foreign producer. The USDOC is expected to announce final issue its preliminary countervailing duty determinations in June 2025. February 2026 and preliminary antidumping duty determinations in April 2026.
Source: Item 1A, 10-K 0001274494-26-000021 vs Item 1A, 10-K 0001274494-25-000010
Accounting Policies 124 words changed in this paragraph; it is 45% similar to last year's version.
Government Grants. We account for government assistance that is not subject to the scope of ASC 740 using a grant accounting model, by analogy to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance, and recognize such grants when we have reasonable assurance that we will comply with the grant’s conditions and that the grant will be received. Government grants whose primary condition is the purchase, construction, or acquisition of a long-lived asset are considered asset-based grants and are recognized as a reduction to such asset’s cost basis, which reduces future depreciation. Other government grants not related to long-lived assets are considered income-based grants and are recognized as a reduction to the related cost of activities that generated the benefit. We recognize grants expected to be received directly from a government entity at their stated value. When we expect to transfer grants to a third party, we recognize the grants at, or adjust their carrying value to, the amount expected to be received from the transaction. Proceeds received from asset-based
Source: 10-K text, Note 2 – Summary of Significant Accounting Policies, 10-K 0001274494-26-000021 vs 10-K text, Note 2 – Summary of Significant Accounting Policies, 10-K 0001274494-25-000010
Every change, by type
Sentences and paragraphs of FSLR's Risk Factors and MD&A, 10-K 2026-02-24 against 10-K 2025-02-25.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Application of trade laws may also adversely impact, either directly or indirectly, our operating results; for example, by impacting our customers’ project costs, profitability, and their demand for our modules; or by impacting our own costs or disrupting our manufacturing or supply chains, and consequently negatively impacting demand and/or price levels for our solar modules, reducing our net sales, or affecting potential profitability of fulfilling customer contracts. We are therefore potentially subject to various risks, which include the following:
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•any tariffs that reduce the profitability of contracts, whereby the cost of tariffs exceeds the amount able to be, or willing to be, absorbed by either us or the customer under the provisions of the contract and may lead to us or the customer cancelling such contract, potentially resulting in the reduction of future revenue, the loss of the contractual right to a termination payment from the customer, and potentially the required return of a previously received customer down payment;
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•any reciprocal or other tariffs may place burdens on our customers’ supply chains exclusive of module import costs, including through increased costs of trackers, inverters, transformers, and other imported equipment, which are often heavily dependent on Chinese supply chains. These and other costs could result in an inability for certain projects to generate profitable returns, and may lead to the delay or abandonment of such projects, thereby reducing or removing demand for currently contracted PV module sales; and
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•any reduction in our ability to profitably import modules from our international manufacturing locations as a result of tariffs or other trade laws could lead to us significantly reducing capacity utilization at certain international manufacturing facilities. Such underutilization may lead to potential impairment of certain international equipment and facilities and may also increase our selling costs and reduce our competitiveness in the market, thereby reducing demand for our modules.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•United States — IEEPA Tariffs. In 2025, the U.S. President imposed a series of tariffs on nearly all U.S. trading partners pursuant to the International Emergency Economic Powers Act of 1977 (“IEEPA”). As it pertains to the countries where we manufacture solar modules, IEEPA tariffs applied to Vietnam (20%), India (25%), and Malaysia (19%). In August 2025, the U.S. President had imposed an additional 25% tariff
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
on India over its purchases of Russian oil, resulting in an overall rate of 50%. On February 20, 2026, the U.S. Supreme Court ruled the IEEPA tariffs unlawful. President Trump responded immediately by revoking the IEEPA tariff actions and imposing new global tariffs pursuant to Section 122 of the Trade Act of 1974 (“Section 122”), which provides for tariffs up to 15% for a period of no more than 150 days. The additional, higher tariffs on imports from these countries has increased the costs of our solar modules manufactured in these countries with respect to our U.S. market. Further, such circumstances have and may continue to impact our ability to sell certain modules into the United States and therefore have and may continue to also impact the operational status of certain of our international manufacturing facilities. As a result, our operating results have and may continue to be adversely impacted by these tariffs.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•United States — Port Fees on Certain Chinese Vessel Operators and Chinese Vessel Owners. On April 17, 2025, the Office of the U.S. Trade Representative published a notice of final action based on an investigation under Section 301 of the Trade Act of 1974 into China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance. The action imposes new port fees on Chinese vessel operators and/or Chinese vessel owners as well as on non-Chinese operators of Chinese-origin vessels beginning on October 14, 2025. The level of fees is on a sliding scale per net ton or, in the case of non-Chinese operators, the higher of a net ton or container-based fee. Effective November 10, 2025, however, the United States suspended implementation of such action for one year. Once implemented, such fees may impact our logistics services and consequently impact our profitability and results of operations.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
•United States — Potential Tariffs on Processed Critical Minerals and Derivative Products, Polysilicon, Robotics and Industrial Machinery. On April 22, 2025, the U.S. Secretary of Commerce initiated an investigation to determine the effects on the national security of imports of processed critical minerals, as well as their derivative products, under Section 232; on July 1, 2025, the U.S. Secretary of Commerce initiated a Section 232 investigation to determine whether imports of polysilicon and its derivatives impair U.S. national security; and on September 2, 2025, the U.S. Secretary of Commerce initiated an investigation to determine the effects on the national security of imports of robotics and industrial machinery under Section 232. The scope of these investigations is potentially broad and may cover materials and equipment used in solar module manufacturing. These investigations may result in the imposition of tariffs or import restrictions, or may remove barriers on the imports of competitor products and materials, all of which could negatively impact demand and/or price levels for our solar modules and limit our growth, lead to a reduction in our net sales, or increase our costs, thereby adversely impacting our operating results.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
prices or any limitations or disruptions in our supply chain could adversely impact our profitability and long-term growth objectives.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
Our operations involve the use, handling, generation, processing, storage, transportation, and disposal of hazardous materials and are subject to extensive environmental laws and regulations at the national, state, local, and international levels. These environmental laws and regulations include those governing the discharge of pollutants
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedRisk Factors
adequately address privacy and security concerns, even if unfounded, or comply with applicable privacy and data security laws, regulations, and policies, could result in additional fines, costs, and liabilities to us, damage our reputation, inhibit sales, and adversely affect our business.
Read it in 10-K 2026-02-24 at sec.gov ↗
RemovedRisk Factors
•United States — Tariffs on Certain Imported Crystalline Silicon PV Cells and Modules. The United States currently imposes different types of tariffs and/or other trade remedies on certain imported crystalline silicon PV cells and modules from various countries. In February 2022, the previous U.S. President proclaimed a four-year extension of a global safeguard measure imposed pursuant to Section 201 of the Trade Act of 1974 that provides for tariffs on imported crystalline silicon solar modules and a tariff-rate quota on imported crystalline silicon solar cells. Thin film solar cell products, such as our CdTe technology, are specifically excluded from the tariffs. The extension measure’s tariff rate was originally set at 14.75%, with annual reductions of 0.25 percentage points over the remainder of its four-year term. The current rate is 14.25%. The extension measure also provides an annual tariff-rate quota, whereby tariffs apply to imported crystalline silicon solar cells above the first 5.0 GW of imports.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
•United States — Antidumping and Countervailing Duties on Certain Imported Crystalline Silicon PV Cells and Modules. The United States currently imposes antidumping and countervailing duties (“AD/CVDs”) on certain imported crystalline silicon PV cells and modules from China and Taiwan. Such AD/CVDs can
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
•United States — Antidumping and Countervailing Duties on Certain Imported Aluminum Extrusions. In October 2023, a coalition of U.S. aluminum extruders and a labor union filed AD/CVD petitions with the USDOC and the U.S. International Trade Commission (“USITC”) related to aluminum extrusions from 15 countries. We import certain items that are within the scope of the investigations. The USDOC issued preliminary and final antidumping determinations in May and September 2024, respectively, both of which found that our Malaysian supplier of aluminum extrusions was not dumping. The USITC issued a negative preliminary determination on the Dominican Republic in November 2023 and negative final determinations on the remaining 14 countries in October 2024, terminating the investigations with no application of AD/CVD. The Petitioners appealed the USITC’s negative determinations. Our operating results could be adversely impacted if pending litigation challenges result in a modification of the rulings.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
products will not occur. Any such exposure could result in future third-party claims against us, damage to our reputation, and heightened regulatory scrutiny, which could limit or impair our ability to sell and distribute our products. The occurrence of future events such as these could have a material adverse effect on our business, financial condition, and results of operations.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
enforcing the rule effective September 4, 2024 onward, and the U.S. FTC has appealed this order. However, this order does not prevent the U.S. FTC from addressing non-competition provisions on a case-by-case basis. It is uncertain if the rule will be enforceable or whether the language of the final rule could be further modified.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
From time to time, we have been and may be subject to disputes and litigation, with and without merit, that may be costly and which may divert the attention of our management and our resources in general, whether or not any dispute actually proceeds to litigation. The results of complex legal proceedings are difficult to predict. Moreover,
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
Securities Act. Nothing in our Bylaws precludes stockholders that assert claims under the Exchange Act from bringing such claims in any court, subject to applicable law.
Read it in 10-K 2025-02-25 at sec.gov ↗
RewordedRisk Factors
Although module average selling prices in many global markets continue to decline, However, recent module pricing in the United States, our primary market, has been relatively remained stable due, in part, to the rising demand for domestically manufactured modules as a result of the IRA. IRA, energy tax credit eligibility restrictions (including foreign-entity-related limitations) as amended by the OBBBA, and tariffs on modules imported into the United States.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Although we have implemented policies, procedures, and, in certain cases, contractual arrangements designed to facilitate compliance with applicable privacy and data security laws and standards, any inability or perceived inability to adequately address privacy and security concerns, even if unfounded, or comply with applicable privacy and data security laws, regulations, and policies, could result in additional fines, costs, and liabilities to us, damage our reputation, inhibit sales, and adversely affect our business.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
For example, we commenced a limited commercial production run of modules employing our copper replacement (“CuRe”) CuRe technology in late 2024 2024, and beginning in the first quarter of 2026, we intend to begin permanently convert one of our Ohio facilities to CuRe, followed by a phased replication of the technology across certain manufacturing facilities within our fleet in the first quarter of 2026. fleet.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
In December 2024, September 2025, the ALMM was amended to MNRE released draft amendments that would require nearly all solar development projects to use PV modules that contain domestically manufactured solar cells, wafers, which is expected to be effective for such projects completed on or after June 2026. 2028; the proposed list was released at that time, which included First Solar as an approved manufacturer.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
These contract terminations or amendments breaches and renegotiations have and may continue to reduce the volume of modules to be sold under the contract, adjust relevant contracts, postpone delivery schedules, and/or otherwise decrease the expected revenue we realize under these contracts and could significantly reduce our net sales and and, correspondingly, negatively impact impact, potentially significantly, our results of operations.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
In April 2024, the American Alliance for Solar Manufacturing International Trade Committee, which includes First Solar, filed a set of AD/CVD petitions with the USDOC and the USITC Commission (“USITC”) to impose duties on certain unfairly traded solar products from Cambodia, Malaysia, Thailand, and Vietnam.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
For example, certain Certain government agencies and regulators are considering rules requiring the disclosure of certain ESG matters, and California enacted new environmental we may be subject to those disclosure laws in October 2023 that will generally require additional disclosure and reporting by 2026. requirements.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Although we carry business interruption insurance coverage and typically have provisions in our contracts that protect us in certain events, our coverage may not be adequate to compensate us for all losses that may occur as a direct or indirect result of weather events or natural disasters.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
In April 2024, On July 17, 2025, the American Alliance for American Solar Manufacturing and Trade Committee, which includes First Solar, filed a another set of AD/CVD petitions with the USDOC and the USITC to impose duties on certain unfairly traded crystalline silicon solar products from Cambodia, Malaysia, Thailand, India, Indonesia, and Vietnam. Laos.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
As these legislative changes develop rules are implemented and expand, applied to our operating results, our effective tax rate and tax liabilities may be materially affected. affected, including as a result of the geographic mix and profitability of our operations.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
Based on currently available information information, various settlement agreements with customers, and certain assumptions and estimates, we believe a reasonable estimate of the aggregate losses related to these manufacturing issues will range from approximately $56 million to $100 million.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedRisk Factors
The new California laws, For example, in California, the Climate Corporate Data Accountability Act, and the Climate-Related Financial Risk Act each impose additional climate-related reporting requirements on large companies conducting business in the state of California. California, and we expect we will be subject to these new laws.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
Additionally, certain module manufacturers have introduced n-type mono-crystalline modules, such as tunnel oxide passivated contact (“TOPCon”) modules, which are expected to may provide certain improvements to module efficiency, temperature coefficient, and bifacial performance, and claim to provide certain degradation advantages compared to other mono-crystalline modules.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
Exporters of tellurium and related products may be are generally required to obtain a license from the Chinese Ministry of Commerce, which may be difficult, costly, and time-consuming, and our suppliers may not be successful in obtaining necessary export licenses in a timely manner or at all.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
Based on the current form factor of our modules, we expect to believe we qualify for a credit of approximately 17 cents per watt for each module produced in the United States and sold to a third party.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
While we believe that these factors and procedures are sufficient to protect our associates, end users, and the general public from adverse health effects that may arise from cadmium exposure, we cannot ensure that human or environmental exposure to cadmium or cadmium compounds used in our products will not occur.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesRisk Factors
Investor advocacy groups, certain institutional investors, investment funds and other influential investors are may also increasingly be focused on ESG practices and in recent years have placed increasing importance on the non-financial impacts of their investments.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•During 2025, we terminated various master supply agreements with BP Solar Holding LLC and its affiliate Lightsource Renewable Energy Trading, LLC due to the customers’ failure to cure several breaches of their contractual obligations. These terminations triggered certain contractual termination payment provisions amounting to $384.6 million, of which we recognized $61.0 million as revenue for advance payments previously received from the customer. In September 2025, we filed a complaint with the Supreme Court of the State of New York seeking relief and demanding payment from these customers for the remaining termination payments along with certain other receivables for solar modules previously delivered.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•Perovskite. We continue to research and develop our thin-film semiconductor technology, with a focus on the use of perovskite thin films. Perovskites have the potential to significantly increase the efficiency and reduce the cost of PV solar modules either through single-junction or potentially multi-junction devices. Supported by the associates at our California and European Technology Centers, we continue to advance our work on improving both the efficiency and stability of this technology in developing a commercially scalable perovskite product. Our investment in this technology also includes the construction of a dedicated perovskite development line at our Ohio facility.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
reducing by a degradation factor every year thereafter throughout the limited power output warranty period of up to 30 years.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
•China. In February 2025, China announced that it would tighten export controls for five key minerals, including products containing tellurium, which is one of the main components of our CdTe modules. Although tellurium and products containing tellurium are sourced globally, China is a major global producer of tellurium and products containing tellurium. Exporters of tellurium and related products are generally required to obtain a license from the Chinese Ministry of Commerce. In October 2025, China expanded its rare earths export controls, adding new minerals to its restricted list and requiring foreign entities to obtain a license to export any products containing over 0.1% of rare earths from China or manufactured using China’s extraction, refining, magnet-making, or recycling technology. In November 2025, China announced it would delay imposition of the October 2025 export controls for one year. In February 2026, the U.S. President announced the creation of an approximately $12 billion stockpile of
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
While our contracts with customers typically have certain firm purchase commitments and may require our customers to make payments to us if a contract is terminated in certain circumstances, those contract terms have in the past and may in the future be breached by our customers or subject to renegotiation. Among other things, these contract breaches and renegotiations have reduced, and may continue to reduce, the volume of modules sold under the relevant contracts and/or the extent of anticipated price adjustments for future module technology improvements, thereby reducing future sales of solar modules. Furthermore, our ability to subsequently resell solar modules sold under terminated and/or renegotiated contracts may be constrained by the project lead times of our customers, their required module specifications, or other factors. For example, on September 30, 2025, First Solar filed a complaint in the Supreme Court of the State of New York asserting that BP Solar Holding LLC and its affiliate Lightsource Renewable Energy Trading, LLC breached their contractual obligations with First Solar, having entered into various master supply agreements to purchase solar modules from First Solar and then refusing to pay the amounts owed under the purchase orders. For more information about this development, see Part I. Item 3. “Legal Proceedings.”
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
Foreign currency loss for the year ended December 31, 2025 increased compared to the prior year primarily due to differences between our economic hedge positions and the underlying currency exposures and higher costs associated with hedging activities related to our subsidiaries in India.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
Interest expense, net during 2025 increased compared to 2024 primarily due to factoring certain trade receivables with recourse, which were accounted for as secured borrowings.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
effects of tax law associated with the IRA, partially offset by a lower relative benefit from the long-term tax holiday in Malaysia and higher pretax income in the current year.
Read it in 10-K 2026-02-24 at sec.gov ↗
AddedMD&A
periods). Additionally, for certain strategic suppliers, we have made, and may in the future be required to make, certain advance payments to secure the raw materials necessary for our module manufacturing.
Read it in 10-K 2026-02-24 at sec.gov ↗
RemovedMD&A
•In May 2024, we achieved a new world record CdTe research cell conversion efficiency of 23.1%, which was certified by the U.S. Department of Energy’s National Renewable Energy Laboratory.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•In July 2024, our dedicated R&D innovation center in Ohio was formally commissioned. This R&D facility features a high-volume manufacturing scale production pilot line, which is expected to enable the production of full-sized prototypes of thin film and tandem PV modules, supporting the implementation of our technology roadmap.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•Multi-junction. We continue to evaluate opportunities to develop and leverage other solar cell technologies in multi-junction applications that combine our thin film PV technology with another high efficiency PV semiconductor, with each layer optimized for a different range of the solar spectrum. We believe such applications, which are expected to utilize at least one thin-film semiconductor, have the potential to significantly increase the efficiency of PV modules beyond the limits of traditional single-junction devices. Our acquisition of Evolar is expected to accelerate the development of high efficiency multi-junction devices by integrating Evolar’s expertise with First Solar’s existing R&D capabilities.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
generation resources. Accordingly, future retirements of aging energy generation resources represent a significant increase in the potential market for solar energy.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
•India. In March 2023, the government of India allocated financial incentives under the PLI scheme to certain PV module manufacturers, including First Solar. The PLI scheme is expected to provide aggregate funding of INR 185 billion ($2.2 billion), of which INR 11.8 billion ($138 million) was allocated to First Solar, to promote the manufacturing of high efficiency solar modules in India and to reduce India’s dependency on foreign imports of solar modules. Under the PLI scheme, manufacturers were selected through a competitive bid process and may be entitled to receive certain cash incentives over a five-year period following the commissioning of their manufacturing facilities. Among other things, such incentives are subject to attaining certain minimum thresholds for module efficiency and temperature coefficient and require that a certain proportion of raw materials be sourced from the domestic market. Such conditions will be evaluated on a quarterly basis from 2026 through 2031. At this time, it is uncertain to what extent we may qualify for such incentives.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
cells and modules or related raw materials or equipment, could negatively impact demand and/or price levels for our solar modules and limit our growth or lead to a reduction in our net sales or increase our costs, thereby adversely impacting our operating results.”
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
The increase in cost of sales was also driven by a $7.8 million increase in our residual business operations cost of sales primarily due to a favorable prior period settlement with a former supplier, which resulted in an $8.4 million benefit to cost of sales.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
During 2022, we completed the sales of our Japan project development business and our Japan O&M operations to PAG Real Assets (“PAG”) and the sales of certain other international O&M operations to a subsidiary of Clairvest Group, Inc. (“Clairvest”). In 2023, we recognized certain post-closing adjustments and earnouts associated with the prior sale of our Japan project development business. In 2024, there was no significant activity related to gains on sales of businesses. See Note 4. “Sales of Businesses” to our consolidated financial statements for further information related to these transactions.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Interest expense, net during 2024 increased compared to 2023 primarily due to additional borrowing under various arrangements in India and higher capitalized interest balances in the prior year related to the construction of our manufacturing plant in India.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Other (expense) income, net is primarily comprised of miscellaneous items and realized gains and losses on the sale of marketable securities and restricted marketable securities.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Other expense, net decreased in 2024 compared to 2023 primarily due to the impairment of a strategic investment in 2023.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Given the inherent limitations of sampling combined with the variability of module performance at different field installation sites, no individual amount within the range represented a better estimate than any other amount. Accordingly, as of December 31, 2024, we increased our product warranty liability by the low end of the range, which we recorded as a reduction to revenue. The ultimate loss we will incur for these manufacturing issues will depend on the extent of the premature power loss that is experienced in relation to the obligations under our limited product warranties, as well as any potential additional commitments we may make to remediate the affected modules. A 100 basis point decrease in the module performance data relative to nameplate capacity across our estimate of the impacted Series 7 modules would result in an additional $14 million increase in our product warranty liability.
Read it in 10-K 2025-02-25 at sec.gov ↗
RewordedMD&A
“Risk Factors – The modification, reduction, elimination, or expiration of government subsidies, economic incentives, eligibility limitations, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications, or the impact of other public policies, such as tariffs or other trade remedies imposed on solar cells and modules or related raw materials or equipment, have, and in the future could, negatively impact demand and/or price levels for our solar modules and limit our growth or lead to a reduction in our net sales or increase our costs, thereby adversely impacting our operating results.”
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
In addition to these price adjustments, certain of our contracts with customers may include favorable price adjustments associated with sales freight in excess of defined thresholds and/or favorable or unfavorable price adjustments associated with changes to (i) sales freight in excess of defined thresholds, (ii) changes to certain commodity prices, (ii) (iii) the module wattage committed for delivery, and (iii) (iv) the volume of modules sold that meet certain U.S. domestic content requirements. requirements, and (v) changes to certain tariff structures within a defined threshold, among other things.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
The increase in net cash provided by operating activities during 2024 2025 was primarily driven by higher cash receipts from module sales, including advance payments for future sales, higher proceeds from the sale of Section 45X tax credits credits, and higher receipts from factoring of certain trade receivables, partially offset by an increase in higher payments made to suppliers compared to the prior year, and lower cash receipts from module sales in the current year. suppliers.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
The increase in net sales was primarily driven by an increase in the volume of modules sold to third parties and an increase in termination payments associated with certain customer contract terminations in the U.S., India, and Europe, partially offset by a reduction in revenue related to manufacturing issues affecting certain Series 7 modules manufactured in 2023 and 2024. parties.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
Although module average selling prices in many global markets continue to decline, However, recent module pricing in the United States, our primary market, has been relatively remained stable due, in part, to the rising demand for domestically manufactured modules as a result of the IRA. IRA, energy tax credit eligibility restrictions (including foreign-entity-related limitations) as amended by the OBBBA, and tariffs on modules imported into the United States.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
We recently commenced operations at our fourth and fifth manufacturing facility facilities in the United States and are in completed the process expansion of expanding our manufacturing capacity, including the construction of footprint at our fifth manufacturing facility existing facilities in the United States, which is expected to commence operations in the second half of 2025. Ohio.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
For example, Further, in December 2024, September 2025, the ALMM was amended to MNRE released draft amendments that would require nearly all solar development projects to use PV modules that contain domestically manufactured solar cells, wafers, which is expected to be effective for such projects completed on or after June 2026. 2028; the proposed list was released at that time, which included First Solar as an approved manufacturer.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
We recently commenced operations at our fourth manufacturing facility in the United States and are in the process of further expanding our domestic manufacturing capacity, including the construction of our fifth sixth U.S. manufacturing facility in the United States, to onshore final production processes for modules initiated by our international fleet, which is expected to commence operations in the second half of 2025. 2026.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
We continue to evaluate For example, the extent of financial incentives provided by the IRA have significantly increased demand for modules manufactured in the United States, and we expect the benefits made available to us by the IRA, which are expected IRA to favorably impact our liquidity and capital resources in future periods.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
While Although we compete in markets that do not require solar-specific government subsidies or incentive programs, our net sales and profits remain subject to variability based on the availability and size of government subsidies these programs, including tax and economic incentives. production incentives, renewable portfolio standards, and other incentive programs intended to stimulate economies, achieve decarbonization initiatives, and/or establish greater energy independence.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
Additionally, we generally warrant that our solar modules will produce at least 98% of their labeled power output rating during the first year, with the warranty coverage reducing by a degradation factor that is generally between 0.3% and 0.5%, depending on the module series, every year thereafter throughout the limited power output warranty period of up to 30 years.
Read it in 10-K 2026-02-24 at sec.gov ↗
RewordedMD&A
During 2025, 2026, we expect to spend between $1.3 $0.8 billion and $1.5 $1.0 billion for capital expenditures, including the new facilities facility mentioned above, investments in various R&D initiatives, and upgrades to machinery and equipment that we believe will further increase our module wattage and expand capacity and throughput at our facilities. equipment.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesMD&A
Congress present uncertainty as to the continued availability of such certain benefits.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesMD&A
Although we compete in markets that do not require solar-specific government subsidies or incentive programs, such incentives continue to significantly influence the demand for PV solar energy around the world.
Read it in 10-K 2026-02-24 at sec.gov ↗
Quiet changesMD&A
Based on the current form factor of our modules, we expect to believe we qualify for a credit of approximately 17 cents per watt for each module produced in the United States and sold to a third party.
Read it in 10-K 2026-02-24 at sec.gov ↗
