Canadian Solar Inc.(“Canadian Solar” or the “Company”) (NASDAQ: CSIQ) today announced financial results for the thirdquarter ended September30, 2025.
ThirdQuarter Highlights
— Net revenues of $1.5 billion, at the high end of $1.3 billion to $1.5 billion guidance.
— 17.2% gross margin, exceeding guidance of 14% to 16%.
— e-STORAGE achieved record 2.7 GWh in quarterly battery energy storage shipments, above guidance of 2.1 GWh to 2.3 GWh.
— e-STORAGE's contracted backlog increased to $3.1 billion, as of October 31, 2025.
— Phase I of the solar cell factory in Indiana, U.S. is expected to begin production in March 2026.
— Phase I of the lithium battery energy storage factory in Kentucky, U.S. is expected to commence production in December 2026.
Dr. Shawn Qu, Chairman and CEO, commented, “Third quarter revenue was at the high end of guidance, while gross margin exceeded expectations, supported by strong energy storage deliveries and a high mix of module shipments to profitable markets.Demand for energy storage continues to grow, driven by emerging applications such as data centers. We are managing the business with discipline, prioritizing profitability and investing strategically to ensure the resilience of our operations.I am pleased to share that our residential energy storage business is on track to become profitable in 2025. At the same time, we are making strong progress on our manufacturing facilities in the U.S. Construction of our solar cell factory in Indiana and our integrated lithium battery cell, pack, and BESS factory in Kentucky is progressing as planned, with production expected to commence in the first and fourth quarters of 2026, respectively.”
Yan Zhuang, President of Canadian Solar's subsidiary CSI Solar, said, “We delivered a sequentially higher share of module shipments to the profitable North American market. Our Mesquite factory, which has now successfully ramped up, contributed meaningfully to both shipment volume and profitability. In our energy storage business, earlier deliveries to two projects shifted certain volumes from the fourth quarter into the third, resulting in a record quarter of 2.7 GWh in shipments. While our $3.1 billion utility-scale storage backlog provides line of sight to future growth, we also continue to develop our offerings and capabilities in C&I and residential storage, segments which we expect will contribute more meaningfully to profitability next year. Looking ahead, we expect further profitability improvements, as we begin production of solar cells and lithium battery energy storage products in the U.S.”
Ismael Guerrero, CEO of Canadian Solar's subsidiary Recurrent Energy, said, “Profitability improved sequentially, driven by higher margin contributions from this quarter's project sales. These included the profitable sales of an energy storage project in Italy and a hybrid project in Australia. Until our IPP business scales further-expanding electricity sales and power services as recurring revenue streams-near-term profitability will continue to depend primarily on global project sales. Maintaining financial discipline remains our top priority. We will balance the growth of our operating portfolio and selective project ownership sales to prudently manage cash flow and debt levels. Looking ahead to 2026, we expect totip this balance more toward project ownership sales to enhance cash recycling and reduce leverage.”
Xinbo Zhu, Senior VP and CFO, added, “In the third quarter, we achieved revenue of $1.5 billion, at the high end of guidance, and delivered a gross margin of 17.2%, exceeding expectations. Operating expenses normalized with the absence of one-time items, resulting in net income attributable to shareholders of $9 million. With continued discipline in working capital management and prudent pacing of project construction, we ended the quarter with a cash position of $2.2 billion.”
ThirdQuarter 2025 Results
Total module shipments recognized as revenues in Q32025 were 5.1GW, down 35% quarter-over-quarter (“qoq”) and down 39% year-over-year (“yoy”). Of the total, 33MW were shipped to the Company's own utility-scale solar power projects.
Net revenues were $1.5billion in Q32025, down12% sequentially and 1% yoy, mainly due to lower sales of solar modules partially offset by higher sales of battery energy storage systems.
Gross profit was $256million, compared to $505million in Q22025 and $247million in Q32024. Gross margin was 17.2%, compared to 29.8% and 16.4%, respectively. The sequential decrease in gross margin wasprimarily due to the absence ofa release of profit upon sales-type leasing of a U.S. projectin Q2. The yoy increase was driven by a higher contribution from battery energy storage systems, which have delivered a more favorable margin profile than solar modules on a blended basis.
Operating expenses were $222million, down from $378million in Q22025 and $247million in Q32024due to ongoing cost reductions and absence of impairment charges related to certain solar and storage assets, as well as manufacturing assets. Operating expenses represented 14.9% of revenue, compared to 22.3% in Q22025 and 16.4% in Q32024.
Net income attributable to Canadian Solar in accordance with generally accepted accounting principles in the United States of America (“GAAP”) in Q32025 was $9 million, or a net loss of $0.07per diluted share, compared to a net income of $7 million, or a net loss of $0.08 per diluted share, in the Q22025, and net lossof $14million, or $0.31per diluted share, in Q32024. Net loss per diluted share includes the dilutive effect of convertible bonds and Recurrent Energy redeemable preferred shares dividends, as applicable.
Adjusted net loss attributable to Canadian Solar Inc. (non-GAAP) was $26 million, and adjusted loss per share – diluted was $0.58 per share in Q3 2025, compared to an adjusted net loss of $23 million and adjusted loss per share – diluted of $0.53 per share in Q2 2025, and a net lossof $14million or $0.31per share in Q32024. Adjusted net loss attributable to Canadian Solar Inc. and adjusted loss per share – dilutedin Q32025 and Q22025 exclude the recognition of income using hypothetical liquidation at book value (“HLBV”) method. The Company uses the HLBV method to attribute income and loss to its tax equity investors. Please see Recurrent Energy – HLBV for definition and About Non-GAAP Financial Measures for reconciliation to nearest GAAP measures.
Net cash flow used in operating activities in Q32025 was $112 million, driven by changes in working capital, specifically a decrease in inventories during the prior quarter, compared to net cash flow provided by operating activities of $189 million in Q2 2025 and net cash flow used in operating activities of $231 million in Q3 2024.
Total debt, including financing liabilities, was $6.4billion as of September30, 2025, including $2.7billion, $3.5 billion, and $0.2 billion related to CSI Solar, Recurrent Energy, and convertible notes, respectively. Total debt rose from $6.3billion as of June 30, 2025, mainly due to new borrowings for development of projects and operational assets. Total non-recourse debt as of September30, 2025, was $2.0billion.
Business Segments
The Company operates in two reportable segments: CSI Solar, focused on solar modules and battery energy storage manufacturing and products, and Recurrent Energy, focused on utility-scale solar power and battery energy storage project development and operation.
Recurrent Energy
As of September 30, 2025, the Company held a leading position with a total global solar project development pipeline of approximately 25GWp and a battery energy storage project development pipeline of 81GWh.
The business model consists of three key drivers:
— Electricity revenue from operating portfolio to drive stable, diversified cash flows in growth markets with stable currencies, with some project ownership sales to manage cash flow and debt level;
— Asset sales (solar power and battery energy storage) in the rest of the world to drive cash-efficient growth model, as value from project sales will help fund growth in operating assets in stable currency markets; and
— Power services (O&M) through long-term operations and maintenance (“O&M”) contracts, currently with over 14 GW of contracted projects, to drive stable and long-term recurring earnings and synergies with the project development platform.
Project Development Pipeline – Solar
As of September 30, 2025, the Company's total solar project development pipeline was 25.1GWp, including 2.0GWp under construction, 3.4GWp of backlog, and 19.7GWp of projects in advanced and early-stage development, defined as follows:
— Backlog projects are late-stage projects that have passed their risk cliff date and are expected to start construction in the next 1-4 years. A project's risk cliff date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. Typically, this occurs after the project has received all the required environmental and regulatory approvals, and entered into interconnection agreements and offtake contracts, including feed-in tariff (“FIT”) arrangements and power purchase agreements (“PPAs”). A significant majority of backlog projects are contracted (i.e., have secured a PPA or FIT), and the remaining have a reasonable assurance of securing PPAs.
— Advanced pipeline projects are mid-stage projects that have secured or have more than 90% certainty of securing an interconnection agreement.
— Early-stage pipeline projects are early-stage projects controlled by the Company that are in the process of securing interconnection.
While the magnitude of the Company's project development pipeline is an important indicator of potential expanded power generation and battery energy storage capacity as well as potential future revenue growth, the development of projects in its pipeline is inherently uncertain. If the Company does not successfully complete the pipeline projects in a timely manner, it may not realize the anticipated benefits of the projects to the extent anticipated, which could adversely affect its business, financial condition, or results of operations. In addition, the Company's guidance and estimates for its future operating and financial results assume the completion of certain solar projects and battery energy storage projects that are in its pipeline. If the Company is unable to execute on its actionable pipeline, it may miss its guidance, which could adversely affect the market price of its common shares and its business, financial condition, or results of operations.
HLBV
The Company applies the HLBV method to account for its contractual relationships with tax equity investors in U.S. solar energy and battery energy storage projects. This method which allocates income or loss attributable to redeemable noncontrolling interests reflects the changes in the amounts that tax equity investors would hypothetically receive upon liquidation at the beginning and end of each reporting period, after considering any capital transactions, such as contributions or distributions, between the subsidiaries and tax equity investors.
The following table presents the Company's total solar project development pipeline.
Project Development Pipeline – Battery Energy Storage
As of September 30, 2025, the Company's total battery energy storage project development pipeline was 80.6 GWh, including 6.5GWh under construction and in backlog, and 74.1GWh of projects in advanced and early-stage development.
The table below sets forth the Company's total battery energy storage project development pipeline.
CSI Solar
Solar Modules and Solar System Kits
CSI Solar shipped 5.1 GW of solar modules and solar system kits to more than 60 countries in Q3 2025. The top five markets ranked by shipments were the U.S., China, Spain, Pakistan, and South Africa.
CSI Solar's revised manufacturing capacity expansion targets are set forth below.
e-STORAGE: Battery Energy Storage Solutions
As of October 31, 2025, e-STORAGEcontracted backlog, including contracted long-term service agreements, was $3.1billion. These are signed orders with contractual obligations to customers, providing significant earnings visibility over a multi-year period.
The table below sets forth e-STORAGE's manufacturing capacity expansion targets.
Business Outlook
The Company's business outlook is based on management's current views and estimates given factors such as existing market conditions, order book, production capacity, input material prices, foreign exchange fluctuations, the anticipated timing of project sales, and the global economic environment. This outlook is subject to uncertainty with respect to, among other things, customer demand, project construction and sale schedules, product sales prices and costs, supply chain constraints, and geopolitical conflicts. Management's views and estimates are subject to change without notice.
In Q42025, the Company expects total revenue to be in the range of $1.3billion to $1.5billion. Gross margin is expected to be between 14%and 16%. Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 4.6GW to4.8GW. Total battery energy storage shipments by CSI Solar in Q42025 are expected to be in the range of 2.1GWh to 2.3GWh, including approximately 600 MWh to the Company's own projects.
For the full year of 2026, the Company expects CSI Solar's total module shipments to be in the range of 25GW to 30GW, including approximately 1GW to the Company's projects. CSI Solar's total battery energy storage shipments are expected to be in the range of 14GWh to 17GWh.
Dr. Shawn Qu, Chairman and CEO, commented, “We will continue to focus on profitable solar markets and to manage volumes in less profitable regions. In contrast, demand for energy storage remains robust, supported by healthy market fundamentals and growing applications. Our 2026 full year storage outlook reflects strong year-over-year growth, backed by contracted volumes and visibility into customers' development pipelines. We also expect to begin production of solar cells and lithium battery energy storage products in the U.S. next year. Financial prudence remains our top priority. Accordingly, Recurrent Energy will increase project ownership sales in 2026 to recycle capital and manage the overall debt level.”
Recent Developments
Canadian Solar
On September 11, 2025, Canadian Solar announced it was named a Tier 1 PV module supplier and a Tier 1 Battery Energy Storage System supplier in the inaugural 2025 Tier 1 Cleantech Companies list released by S&P Global Commodity Insights. This dual recognition placesCanadian Solaramong the elite global providers excelling in both photovoltaic modules and energy storage solutions.
CSI Solar
On November 12, 2025, Canadian Solar announced it was contracted to provide a fully integrated energy storage solution and turnkey EPC services for the 411 MW / 1,560 MWh Skyview 2 Energy Storage Project in Edwardsburgh Cardinal, Ontario, Canada. Shipments of its SolBank 3.0 solution are expected to begin in February 2026, with commercial operation planned for the second quarter of 2027.
On November 12, 2025, Canadian Solar announced it signed a battery energy storage system supply agreement for a 20.7 MW / 56 MWh DC energy storage project in Lower Saxony, Germany. The agreement also includes a 20-year long-term service agreement.
On October 21, 2025, Canadian Solar announced it achieved commercial operation of the 220 MWh DC Mannum Battery Energy Storage Project in South Australia. e-STORAGE served as the EPC provider for the project, whichis owned by Epic Energy and was developed by Recurrent Energy. The Company has further strengthened its track record in delivering large-scale storage solutions by commissioning the project inAustralia.
On October 1, 2025, Canadian Solar announced it entered into battery storage agreement and long-term services agreements with Aypa Power for the Elora and Hedley battery energy storage projects in Ontario, Canada. Together, the Elora andHedleyprojects will provide 420 MW / 2,122 MWh of new storage capacity toOntario'sgrid. Delivery is scheduled to commence in the first quarter of 2026, with commercial operation expected in the first half of 2027.
On September 8, 2025, Canadian Solar announced the launch of its next-generation Low Carbon modules, which combine the latest wafer innovations with advanced heterojunction (HJT) cell technology. Designed for utility-scale and C&I applications, the new LC modules deliver up to 660 Wp output with module efficiency of up to 24.4%, with deliveries commencing inAugust 2025.
On September 4, 2025, Canadian Solar announced the launch of its next generation modular battery, FlexBank 1.0, at RE+ in Las Vegas. Delivering up to 8.36 MWh energy capacity, FlexBank 1.0 is a scalable energy storage platform for utility-scale applications. The new system is expected to be ready for deployment in 2026.
Recurrent Energy
On October 21, 2025, Canadian Solar announced it closed$825 millionin construction financing and tax equity for its 600 MWh Desert Bloom Storage and 150 MWac Papago Solar facilities. Nord/LB, Mitsubishi UFJ Financial Group, Inc., CoBank, and Siemens Financial Services provided the construction financing, and Wells Fargo provided the tax equity. Desert Bloom Storage and Papago Solar are part of Recurrent Energy's multi-project partnership with Arizona Public Service. Both assets are currently under construction and are expected to begin operations in the first half of 2026.
Conference Call Information
The Company will hold a conference call on Thursday, November 13, 2025, at 8:00 a.m. U.S. Eastern Time (9:00 p.m., Thursday, November 13, 2025, in Hong Kong) to discuss the Company's thirdquarter 2025 results and business outlook. The dial-in phone number for the live audio call is +1-877-300-8521(toll-free from theU.S.), 800 905 945(fromHong Kong), 400120 1203(local dial-in from Mainland China) or +1-412-317-6026from international locations. The conference ID is 10203526. A live webcast of the conference call will also be available on the investor relations section ofCanadian Solar'swebsite atwww.canadiansolar.com.
A replay of the call will be available after the conclusion of the call until11:00 p.m.U.S.Eastern Time onThursday, November 27, 2025(12:00 p.m.November 28, 2025, inHong Kong) and can be accessed by dialing +1-844-512-2921 (toll-free from theU.S.) or +1-412-317-6671 from international locations. The replay pin number is 10203526. A webcast replay will also be available on the investor relations section ofCanadian Solar'satwww.canadiansolar.com
AboutCanadian Solar Inc.
Canadian Solaris one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario, the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 24 years,Canadian Solarhas successfully deliverednearly170GW ofpremium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 16GWhofbattery energy storage solutions to global markets as of September 30, 2025, boasting a $3.1billion contracted backlog as of October 31, 2025. Since entering the project development business in 2010,Canadian Solarhas developed, built, and connected approximately 12GWp of solar power projects and 6 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 25GWp of solar and 81 GWh of battery energy storage capacity in various stages of development. Canadian Solaris one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006.For additional information about the Company, followCanadian SolaronLinkedInor visitwww.canadiansolar.com.
Safe Harbor/Forward-Looking Statements
Certain statements in this press release, including those regarding the Company's expected future shipment volumes, revenues, gross margins, and project sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as “may”, “will”, “expect”, “anticipate”, “future”, “ongoing”, “continue”, “intend”, “plan”, “potential”, “prospect”, “guidance”, “believe”, “estimate”, “is/are likely to” or similar expressions, the negative of these terms, or other comparable terminology. These forward-looking statements include, among other things, our expectations regarding global electricity demand and the adoption of solar and battery energy storage technologies; our growth strategies, future business performance, and financial condition; our transition to a long-term owner and operator of clean energy assets and expansion of project pipelines; our ability to monetize project portfolios, manage supply chain fluctuations, and respond to economic factors such as inflation and interest rates; our outlook on government incentives, trade measures, regulatory developments, and geopolitical risks; our expectations for project timelines, costs, and returns; competitive dynamics in solar and storage markets; our ability to execute supply chain, manufacturing, and operational initiatives; access to capital, debt obligations, and covenant compliance; relationships with key suppliers and customers; technological advancement and product quality; and risks related to intellectual property, litigation, and compliance with environmental and sustainability regulations. Other risks were described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 30, 2025. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.
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FINANCIAL TABLES FOLLOW
The following tables provide unaudited select financial data for the Company's CSI Solar and Recurrent Energy businesses.
The following table summarizes the revenues generated from each product or service.
About Non-GAAP Financial Measures
This press release also contains adjusted net income (loss) attributable to Canadian Solar Inc.and adjusted earnings (loss) per share – diluted that are not determined in accordance with GAAP. These non-GAAP financial measures should not be considered as an alternative to net income (loss) attributable to Canadian Solar Inc. or earnings (loss) per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted net income (loss)attributable to Canadian Solar Inc.and adjusted earnings (loss) per share – diluted exclude from net income (loss) attributable to Canadian Solar Inc. and earnings (loss) per share certain items that the Company does not consider indicative of its ongoing financial performance such as the effects of HLBV method to account for its tax equity arrangements. Management uses these non-GAAP financial measures to facilitate the analysis and communication of the Company's financial performance as compared to its previous financial results. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of the Company's financial performance. These non-GAAP measures may differ from non-GAAP measures used by other companies, and therefore their comparability may be limited.
The table below provides a reconciliation of our GAAP net income (loss) to non-GAAP financial measures.
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