Canadian Solar 2025 Q3 Earnings Revenue Beats Expectations, Net Loss Widens 247%

Canadian Solar (CSIQ) reported Q3 2025 results marked by revenue outperforming expectations while net losses expanded significantly. The company’s $1.49 billion revenue exceeded guidance and analyst forecasts, driven by record energy storage shipments. However, the net loss widened to $21.08 million, a 247.2% increase year-over-year, despite a 77.4% improvement in per-share losses. Management provided in-line Q4 guidance, emphasizing U.S. manufacturing progress and energy storage growth.

Revenue

Canadian Solar’s total revenue decreased by 1.3% year-over-year to $1.49 billion, with solar modules leading the segment at $839.42 million. Battery energy storage solutions contributed $486.03 million, reflecting strong demand, while solar system kits and EPC services added $29.87 million and $29.79 million, respectively. Revenue from electricity and storage operations totaled $42.62 million, and power services accounted for $19.89 million. The company’s diversified revenue streams underscored resilience amid market headwinds.

Earnings/Net Income

The company narrowed its per-share loss to $0.07 in Q3 2025 from $0.31 in Q3 2024, a 77.4% improvement. However, the net loss widened to $21.08 million, a 247.2% increase from the $6.07 million loss in the prior-year period, highlighting ongoing operational challenges despite margin stabilization.

Post-Earnings Price Action Review

Following the earnings release, Canadian Solar’s stock price declined 8.68% in the latest trading day but rebounded with a 7.03% weekly gain and an 82.06% month-to-date surge. The mixed short-term volatility contrasts with the company’s long-term strategic focus on U.S. manufacturing and energy storage expansion.

CEO Commentary

Shawn Qu emphasized progress in U.S. manufacturing, including Indiana’s solar cell factory and Kentucky’s energy storage plant, to align with the One Big Beautiful Bill Act. He highlighted record 5.1 GW solar module shipments and 2.7 GWh energy storage deliveries, driven by North American demand. Challenges included macroeconomic pressures and FEOC compliance adjustments, but Qu expressed confidence in navigating risks through financial discipline and asset sales.

Guidance

For Q4 2025, Canadian Solar expects 4.6–4.8 GW solar module shipments, 2.1–2.3 GWh energy storage shipments, and $1.3–$1.5 billion in revenue, with a 14–16% gross margin. For 2026, the company projects 25–30 GW solar shipments and 14–17 GWh energy storage shipments, prioritizing profitable markets and Recurrent Energy asset sales to manage debt.

Additional News

Canadian Solar secured a 20.7 MW/56 MWh BESS deal in Germany, part of its European expansion, with shipments starting in March 2026. The company also announced plans to launch solar cell production in Indiana by Q1 2026 and a lithium battery factory in Kentucky by year-end. Additionally, it signed a long-term service agreement with Kyon Energy for the German project, reinforcing its strategic focus on international energy storage markets.