Canadian Solar 2025 Q2 Earnings Mixed Results as Net Income Surges 63.3%

Canadian Solar (CSIQ) reported its fiscal 2025 Q2 earnings on Aug 21st, 2025, showing revenue growth and margin expansion but a shift to a net loss per share. The company narrowed its full-year guidance amid project sales delays and trade uncertainties, while management highlighted strong solar module shipments and gross margins.

Revenue
Canadian Solar reported total revenue of $1.69 billion in 2025 Q2, a 3.6% increase from $1.64 billion in 2024 Q2. The segment revenue breakdown included solar modules at $1.02 billion, battery energy storage solutions at $432.40 million, and EPC and others at $61.61 million. Solar power and battery energy storage asset sales contributed $48.09 million, while electricity and operations revenue amounted to $36.88 million.

Earnings/Net Income
The company swung to a net loss of $0.08 per share in 2025 Q2, down from a profit of $0.02 per share in 2024 Q2. However, net income reached $44.77 million, a 63.3% increase compared to $27.42 million in 2024 Q2. Despite this, the EPS result reflects a significant deterioration in profitability.

Price Action
The stock price of Canadian Solar fell 1.75% on the latest trading day, 11.09% over the past week, and 22.85% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Canadian Solar shares after a revenue raise quarter-over-quarter and holding for 30 days performed poorly. Over three years, it returned -67.11%, far below the 53.84% benchmark return. With an excess return of -120.95% and a CAGR of -31.84%, the strategy faced substantial losses, while its maximum drawdown of 0% highlighted its inability to capitalize on upswings.

CEO Commentary
CEO Xiaohua Qu emphasized strong business performance, including 7.9 gigawatts of module shipments near the high end of guidance and a 29.8% gross margin. Challenges such as delayed storage shipments due to tariffs and nonrecurring expenses led to a $0.08 net loss per share. Qu highlighted cautious optimism amid policy uncertainty and reiterated the company’s commitment to the U.S. market, focusing on domestic manufacturing and project development.

Guidance
For Q3 2025, the company expects 5–5.3 gigawatts of module shipments and 2.1–2.3 gigawatt hours of storage shipments, with revenue between $1.3 billion and $1.5 billion and a gross margin of 14%–16%. Full-year 2025 guidance includes 25–27 gigawatts of module shipments, 7–9 gigawatt hours of storage, and revenue between $5.6 billion and $6.3 billion. The company anticipates rising manufacturing costs and a focus on reducing leverage.

Additional News
Canadian Solar announced the completion of large-scale fire testing for its SolBank 3.0 energy storage system, meeting key fire safety standards. In July 2025, the company’s residential energy storage system, EP Cube, won the Red Dot Award 2025, recognizing its design excellence. Additionally, the 1,200 MWh Papago Storage facility in Arizona reached commercial operation, dispatching energy to Arizona Public Service. On July 17, 2025, Canadian Solar closed project financing and tax equity for Blue Moon Solar in Kentucky, with U.S. Bank providing $260 million in funding.