12:11 PM EDT, 08/05/2025 (MT Newswires) -- (Adds analyst comments and updates shares)

5N Plus ( FPLSF ) , a global producer of specialty semiconductors and performance materials, on Tuesday entered into a new and expanded supply agreement with First Solar ( FSLR ) .

The deal comes after the company over the Canada holiday weekend said its earnings and revenue rose in the second quarter, beating estimates, and increased its annual adjusted EBITDA guidance.

On the agreement with First Solar ( FSLR ), 5N Plus ( FPLSF ) cited revised terms to the contract period underway for 2025-2026 to reflect increased semiconductor compound volume commitments, as well the terms for the subsequent contract period covering 2027 to 2028, also reflecting increased volumes.

Under the new contract terms, 5N Plus ( FPLSF ) will lift its production and delivery of cadmium telluride (CdTe) by 33% for the 2025-2026 period compared to initial levels, and by an additional 25% for the subsequent term (2027-2028 period). The company said these "specialty semiconductors materials" are used by First Solar ( FSLR ) for the manufacture of thin-film photovoltaic (PV) solar modules integrated to its semiconductor stack.

Starting in 2026, the company will also begin to produce and deliver Cadmium Selenide (CdSe) to First Solar ( FSLR ), another critical material utilized in First Solar's ( FSLR ) PV solar panel manufacturing.

For its second-quarter, 5N Plus ( FPLSF ) reported net earnings of US$15.2 million, compared to US$4.8 million in the corresponding year-ago quarter.

The company posted earnings per share of US$0.17 per share in the second quarter, compared to US$0.05 per share in the year-ago quarter. Consensus estimate compiled by FactSet for EPS was US$0.10 per share.

Second-quarter revenue rose by 28% to US$95.3 million from US$74.6 million in the year-ago quarter and beat consensus estimate compiled by FactSet of US$86.4 million.

"Our performance this quarter and year to date marks several new all-time highs for 5N+, including record quarterly Adjusted gross margin, and record quarterly and first-half Adjusted EBITDA," said Chief Executive Officer Gervais Jacques. "In addition, we generated our strongest first-half revenues in a decade."

The company increased its adjusted EBITDA guidance for 2025 to a range of US$65 million to US$70 million from a range of US$55 million to US$60 million.

"As we head into the second half of the year, we are not only well-positioned to deliver on our now increased Adjusted EBITDA guidance ambitions for 2025, but to build on this momentum going into 2026," added the CEO. "Thanks to our competitive advantages and expanded capacity, we will continue to solidify our status as the strategic partner of choice outside of China, able to capture growing demand for our high-purity advanced materials in an evolving geopolitical landscape."

National Bank of Canada on Monday maintained its outperform rating and C$11.25 price target on the shares of 5N Plus ( FPLSF ).

"To us, we think it's more likely VNP generate EBITDA of (US)$70 mln to (US)$80 mln in 2025, with 'momentum going into 2026'," said analyst Michael Doumet, adding the bank thinks VNP remains well-positioned to sustain its accelerated growth into 2026, as businesses "increasingly look" for dependable suppliers outside of China.

The company's shares were last seen up $1.96 to $14.43 on the Toronto Stock Exchange.

Price: 14.48, Change: +2.01, Percent Change: +16.12