Canadian Solar 2025 Q3 Earnings Beats Revenue Expectations, Narrows Losses by 77.4%

Canadian Solar (CSIQ) reported fiscal 2025 Q3 earnings on Nov 13, 2025, with revenue of $1.49 billion, surpassing the Zacks Consensus Estimate by 8.58%, and narrowing losses to $0.07 per share, a 77.4% improvement from 2024 Q3. The company provided guidance for Q4 2025 and 2026, emphasizing U.S. manufacturing expansion and energy storage growth.

Revenue

Canadian Solar’s total revenue declined 1.3% year-over-year to $1.49 billion in Q3 2025, driven by solar modules ($839.42 million), energy storage solutions ($486.03 million), and project development ($29.79 million in EPC and others). Solar power and battery asset sales contributed $39.77 million, while power services and operations generated $19.89 million and $42.62 million, respectively.

Earnings/Net Income

The company narrowed its loss to $0.07 per share in Q3 2025, a 77.4% improvement from $0.31 in 2024 Q3. However, the net loss widened to $21.08 million, up 247.2% from $6.07 million in the prior year, due to operational challenges and capital expenditures. While the EPS loss improved significantly, the net loss expanded.

Post-Earnings Price Action Review

Canadian Solar’s revenue beat expectations and robust energy storage performance position it for growth. The company’s 2.7 GWh record shipments and $3.1 billion backlog in energy storage underscore its strategic edge. U.S. manufacturing progress, including Indiana’s solar cell factory and Kentucky’s battery plant, aligns with long-term goals to enhance cash flow and reduce leverage. Despite a quarterly net loss, a 17.2% gross margin highlights efficient cost management. A $2.2 billion cash position supports future initiatives, but investors should monitor risks like regulatory shifts and market saturation. Holding CSIQ after revenue beats could capitalize on its growth trajectory, though vigilance is needed for short-term volatility.

CEO Commentary

Shawn Qu highlighted 5.1 GW solar module shipments, 2.7 GWh energy storage records, and $1.5B revenue, driven by U.S. manufacturing and Texas plant contributions. He emphasized Indiana’s solar cell factory (Q1 2026) and Kentucky’s battery plant (2026 end), aligning with policy goals. Residential storage profitability in 2025 and expansion into Germany/Australia underscore diversification. Recurrent Energy’s asset sales strategy prioritizes cash recycling and debt reduction. Qu acknowledged macroeconomic challenges but expressed optimism about AI-driven data center demand and solar-plus-storage solutions.

Guidance

Shawn Qu guided Q4 2025 module shipments of 4.6–4.8 GW, energy storage of 2.1–2.3 GWh, and revenue of $1.3B–$1.5B, with a 14–16% gross margin. For 2026, total module shipments of 25–30 GW (1 GW internal) and energy storage of 14–17 GWh are projected. Recurrent Energy will increase project ownership sales in 2026 to enhance cash flow and leverage management, with U.S. manufacturing investments continuing amid policy uncertainties.

Additional News

Canadian Solar secured a 20.7 MW/56 MWh Battery Energy Storage System (BESS) deal in Germany, with shipments starting in March 2026. The company also announced U.S. manufacturing expansions, including a solar cell plant in Indiana (Q1 2026) and a lithium battery facility in Kentucky (end-2026). Additionally, Recurrent Energy’s strategy to increase project ownership sales in 2026 aims to optimize cash recycling and reduce leverage. These moves reinforce the company’s focus on energy storage and U.S. market penetration.