Why First Solar Stands Out Among Its Peers: Does It Belong in Your Portfolio?

First Solar (NASDAQ: FSLR), Enphase Energy (NASDAQ: ENPH), and SolarEdge Technologies (NASDAQ: SEDG) are the 3 names astir investors scope for erstwhile they privation star exposure. For a retirement-focused capitalist close now, lone 1 of them belongs successful a semipermanent portfolio.

While the manufacture faces a analyzable regulatory scenery successful the United States owed to the sunsetting of cardinal residential taxation credits and caller commercialized tariffs, planetary maturation remains aggressive. In 2026, planetary installed capableness is expected to surpass 1,000 GW, making star PV procreation larger than some upwind and atomic powerfulness for the archetypal time.

First Solar wins this class without contest. The institution closed FY2025 with $9.54 cardinal successful shareholder equity, $2.80 cardinal successful cash, and full liabilities that fell 8.77% twelvemonth implicit year. Operating currency travel reached $2.06 billion, up 68.89% twelvemonth implicit year. The equilibrium expanse is unchangeable and actively strengthening.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

Enphase tells a antithetic story. FY2025 operating currency travel collapsed 73.42% twelvemonth implicit twelvemonth to $136.54 million, and escaped currency travel dropped 80.02% to $95.90 million. Tariffs deed Q4 gross borderline by 5.1 percent points, and Q1 2026 guidance already bakes successful astir different 5 percent points of tariff drag. SolarEdge carries $1.75 cardinal successful full liabilities against lone $427 cardinal successful equity, and shareholder equity dropped 35.07% twelvemonth implicit year. Its operating currency travel lone conscionable turned affirmative successful FY2025 astatine $104.26 million, versus antagonistic $313.32 cardinal successful FY2024.

Winner: First Solar.

First Solar generated $1.53 cardinal successful nett income successful FY2025, up 18.28% twelvemonth implicit year, connected gross of $5.22 billion, up 24.09%. FY2025 EPS came successful astatine $14.21. Q4 nett income unsocial roseate 32.5% twelvemonth implicit twelvemonth to $520.88 million. The institution carries a contracted backlog of 53.7 GW valued astatine $16.4 cardinal arsenic of Q3 2025, providing visibility that neither rival tin match.

Enphase returned to humble profitability successful FY2025 with nett income of $172.13 million, up 67.68% twelvemonth implicit year, but Q4 operating income fell 59.06% twelvemonth implicit twelvemonth to $22.44 cardinal and Q4 nett income dropped 37.72%. SolarEdge posted a full-year nett nonaccomplishment of $405.45 cardinal successful FY2025, with a non-GAAP gross borderline of conscionable 23.3% successful Q4 and GAAP operating losses continuing. A institution losing wealth astatine this standard disqualifies itself from status portfolios.