ETFs Spotlighted After First Solar's Disappointing Q4 Results and Lower Sales Outlook

First Solar Shares Drop After Mixed Q4 2025 Report

First Solar Inc. (FSLR) saw its stock tumble by 12.7% in after-hours trading on February 24, 2026, following the release of its fourth-quarter 2025 financial results. The company once again failed to meet analysts’ earnings expectations, and its revenue outlook for 2026 fell short of Wall Street’s projections.

Although FSLR managed to surpass revenue estimates for the quarter, its earnings performance disappointed investors. The weak sales guidance for the coming year, combined with ongoing challenges from U.S. tariff policies, has cast doubt on a near-term rebound for the solar manufacturer.

Despite these setbacks, First Solar remains the largest solar panel producer in the United States. For investors interested in gaining exposure to the company, exchange-traded funds (ETFs) with significant holdings in First Solar may offer a strategic alternative.

Before exploring these ETFs, let’s examine the key figures from First Solar’s latest quarterly report and its cautious outlook for 2026.

Highlights from First Solar’s Q4 2025 Performance

• Fourth-quarter earnings came in 7.3% below the Zacks Consensus Estimate, while revenue exceeded expectations by 7%.
• Both revenue and profit grew by double digits compared to the same period last year, driven primarily by higher sales volumes of solar modules.
• Quarterly gross profit benefited from a greater share of U.S.-made modules qualifying for Section 45X tax credits, lower freight costs due to fewer international shipments, and the resolution of previous supply chain issues at the Alabama facility.
• First Solar ended the quarter with $2.4 billion in net cash, an increase of $900 million from the prior quarter.
• The company projects 2026 revenues between $4.9 billion and $5.2 billion, with the midpoint below the Zacks Consensus Estimate of $5.08 billion. The lower end of this range suggests a 5.8% decline from the previous year.
• First Solar anticipates up to $135 million in direct costs from new tariffs in 2026 and is temporarily idling its Southeast Asian plants to adapt to the shifting trade landscape. Despite these challenges, the company believes its U.S. manufacturing base will be an advantage as competitors relying on Chinese supply chains face greater risks from retroactive tariffs and stricter regulations.

Top ETFs with Significant First Solar Holdings

Invesco Solar ETF (TAN)

• Assets under management: $1.57 billion
• Portfolio: 30 solar energy companies, with First Solar as the fourth-largest holding (6.69%)
• Year-to-date performance: +14.7%
• Expense ratio: 0.70%

Virtus Duff & Phelps Clean Energy ETF (VCLN)

• Net assets: $5.7 million
• Focus: Companies advancing clean energy across utilities, industry, technology, and energy sectors; First Solar is the third-largest holding (5.69%)
• Year-to-date performance: +10.9%
• Expense ratio: 0.59%

iShares Global Clean Energy ETF (ICLN)

• Net assets: $2.14 billion
• Portfolio: 100 companies in solar, wind, and other renewables; First Solar is the third-largest holding (6.06%)
• Year-to-date performance: +11.6%
• Expense ratio: 0.39%

Global X CleanTech ETF (CTEC)

• Net assets: $27.9 million
• Portfolio: 38 companies in renewable energy, energy storage, smart grids, efficiency, and pollution-reducing solutions; First Solar is the seventh-largest holding (4.49%)
• Year-to-date performance: +11.3%
• Expense ratio: 0.50%

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• First Solar, Inc. (FSLR): Free Stock Analysis Report
• Invesco Solar ETF (TAN): ETF Research Reports
• iShares Global Clean Energy ETF (ICLN): ETF Research Reports
• Global X CleanTech ETF (CTEC): ETF Research Reports

For more details, read the original article at Zacks Investment Research.

Zacks Investment Research