Canadian Solar Delivers 7.9 GW Shipments and 29.8% Gross Margin in Q2 2025

Canadian Solar Inc. announced its financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Module shipments: 7.9 GW, up 14% quarter-over-quarter (qoq) and within guidance of 7.5–8.0 GW; down 4% year-over-year (yoy). Of this, 672 MW were shipped to the Company’s own utility-scale projects.
• Gross margin: 29.8%, exceeding guidance of 23–25%.
• Net revenues: $1.7 billion, up 42% qoq and 4% yoy, driven by strong sales of solar modules and battery energy storage systems.
• Gross profit: $505 million, compared to $140 million in Q1 2025 and $282 million in Q2 2024.
• Net income (GAAP): $7 million, or a loss of $0.08 per diluted share, compared to a loss of $34 million in Q1 2025 and income of $4 million in Q2 2024.
• Adjusted net loss (non-GAAP): $23 million, or $0.53 per diluted share, versus an adjusted net loss of $60 million in Q1 2025 and net income of $4 million in Q2 2024.
• Operating expenses: $378 million (22.3% of revenue), up from $195 million in Q1 2025 and $234 million in Q2 2024, mainly due to impairment charges.
• Operating cash flow: $189 million, compared to outflows of $264 million in Q1 2025 and $429 million in Q2 2024.
• Total debt: $6.3 billion as of June 30, 2025, up from $5.7 billion at March 31, 2025, primarily due to project development financing.

Project Development Pipeline
As of June 30, 2025, Canadian Solar’s total solar project pipeline stood at 27.3 GWp, including:

• 2.0 GWp under construction
• 4.2 GWp backlog (late-stage, de-risked projects, most with secured PPAs or FIT contracts)
• 21.1 GWp in advanced and early-stage development

While the pipeline reflects strong growth potential, the Company cautions that successful project completion remains subject to development risks.

Recent Developments

Corporate Sustainability

• On May 29, 2025, Canadian Solar published its 2024 Sustainability Report, aligned with SASB, GRI, and ISSB standards.

CSI Solar (Energy Storage & Modules)

• On July 16, 2025, Canadian Solar’s residential energy storage system EP Cube won the Red Dot Award 2025, adding to earlier honors including the iF Design Award and MUSE Design Award Gold.
• On June 3, 2025, the SolBank 3.0 energy storage system successfully completed Large-Scale Fire Testing, confirming enhanced fire safety for utility-scale applications.

Recurrent Energy (Project Development & Operations)

• On July 17, 2025, Recurrent Energy closed $260 million in financing for the 94 MW Blue Moon Solar project in Kentucky, with U.S. Bank providing tax equity and construction financing; power will be sold to Constellation.
• On July 7, 2025, the 1,200 MWh Papago Storage project in Arizona entered commercial operation, now dispatching energy to Arizona Public Service (APS).

Dr. Shawn Qu, Chairman and CEO, commented, “We delivered a second quarter largely in line with expectations. While revenue came in below guidance due to storage shipments shifting to the second half and delays in certain project sales, gross margin exceeded expectations, driven by a higher mix of North America module shipments and robust storage volumes. Following the surge in installations in China during the first half, we expect demand to normalize as the market adjusts to a new paradigm. We remain focused on navigating the uncertain policy environment with a focus on risk management and sustainable profitability.”

Yan Zhuang, President of Canadian Solar’s subsidiary CSI Solar, said, “In the second quarter, we delivered module shipments near the high end of guidance. Despite tariff headwinds, e-STORAGE achieved one of its strongest quarters. With solar supply chain pricing trending higher and storage margins normalizing, we expect margin pressure in the second half. We remain focused on strategically managing module volumes to less profitable markets and growing our storage volumes globally. Meanwhile, we continue to build emerging profitability drivers such as our residential energy storage systems and bundled sales solutions.”

Ismael Guerrero, CEO of Canadian Solar’s subsidiary Recurrent Energy, said, “Revenue and profitability in the second quarter were sequentially lower, primarily due to lighter project sales. We monetized over 200 MW of projects in Europe and Japan, including our first and profitable sale of a battery energy storage project in Italy, while a project sale in Latin Americashifted to the second half of the year. Overall, we expect our electricity sales revenue to grow steadily, as we enhance the performance of our existing IPP portfolio and advance construction in our target markets, with more meaningful contributions expected next year.”

Xinbo Zhu, Senior VP and CFO, added, “In the second quarter, we delivered $1.7 billion in revenue and a gross margin of 29.8%. Non-recurring operating expenses, including impairments to projects and manufacturing assets, reduced profitability, resulting in net income attributable to shareholders of $7 million, or a net loss of $0.08 per diluted share. We continue to manage cash flow prudently, prioritizing disciplined capital deployment. Operating cash inflow was $189 million, and we ended the quarter with a cash position of $2.3 billion.”