Canadian Solar Inc. reported net revenue of $1.2 billion for the second quarter of 2026, supported by record energy storage shipments that helped offset a sharp decline in solar module volumes.
Revenue for the quarter ended June 30, 2026, came at the top end of the company’s guidance range of $1.0 billion to $1.2 billion. However, gross margin declined to 13.9%, compared with 25.1% in the first quarter of 2026 and 29.8% in the second quarter of 2025.
The company reported a net loss attributable to shareholders of $77 million, or $1.40 per share, as lower margins and project sale delays weighed on profitability.
Energy Storage Shipments Rise 82% Sequentially
Canadian Solar’s energy storage business, e-STORAGE, was a key contributor to the quarter. The division shipped 3.7 GWh of battery energy storage systems, exceeding its guidance of 2.8 GWh to 3.2 GWh.
Storage shipments increased 82% quarter-on-quarter and 73% year-on-year. The company’s contracted e-STORAGE backlog also expanded to $3.5 billion, highlighting continued demand for utility-scale battery storage.
In contrast, solar module shipments stood at 3.1 GW. Although volumes increased 25% from the previous quarter, they declined 60% year-on-year as the company continued to prioritise higher-value strategic markets over lower-margin global volumes.
“We are executing on a multidimensional solar technology roadmap… In the near to midterm, U.S. manufacturing remains at the forefront of our strategy,” said Colin Parkin, Chief Executive Officer of Canadian Solar.
Canadian Solar Expands U.S. Manufacturing Capacity
The company is accelerating its manufacturing expansion in the United States.
Canadian Solar inaugurated Phase I of its Jeffersonville, Indiana, solar cell facility in July, adding 2.1 GWp of capacity. The facility is positioned as the first commercial U.S. manufacturer of advanced heterojunction (HJT) solar cells.
Equipment installation for Phase II is expected to begin by the end of 2026, taking the facility’s total cell manufacturing capacity to 6.3 GWp in the first half of 2027.
Meanwhile, the company’s module manufacturing facility in Mesquite, Texas, remains on track to expand from 5 GWp to 10 GWp of annual nameplate capacity during the second half of 2026.
Together, the facilities are expected to strengthen Canadian Solar subsidiary CS PowerTech’s position as an integrated photovoltaic manufacturing supplier in North America.
Recurrent Energy Project Sales Delayed
Canadian Solar’s project development business, Recurrent Energy, faced pressure from deferred project sales during the quarter. Management expects the delayed transactions to be completed in the third quarter of 2026.
Despite the delays, Recurrent Energy closed $695 million in project financing and tax equity for the 330 MW Cobalt Solar project in California. It also achieved commercial operation at the 150 MWac Carwarp Energy Park in Victoria, Australia, ahead of schedule.
Recurrent Energy currently has a development pipeline of 21.7 GWp of solar projects and 84.1 GWh of battery storage projects. In July, the company appointed Dylan Marx as its new CEO.
Canadian Solar also confirmed that all remaining U.S. patent infringement litigation brought by Maxeon Solar had been dismissed with prejudice.
Q3 Revenue Guidance Set at $1.3–$1.5 Billion
Canadian Solar ended the second quarter with $1.9 billion in cash and total debt of $7.1 billion, compared with $6.8 billion in the previous quarter. The increase in debt was primarily attributed to non-recourse project construction debt drawn by Recurrent Energy.
Operating cash outflow stood at $181 million, mainly due to working capital movements.
For the third quarter of 2026, Canadian Solar expects revenue of $1.3 billion to $1.5 billion, with gross margin projected between 13.5% and 15.5%.
The company expects Q3 solar module shipments of 3.5 GW to 3.8 GW and battery storage shipments of 3.4 GWh to 3.8 GWh.
For the full year, Canadian Solar reiterated its target of supplying 6.5 GW to 7.0 GW of solar modules and 4.5 GWh to 5.5 GWh of energy storage solutions specifically to the U.S. market.
The results underscore Canadian Solar’s growing focus on energy storage and U.S.-based manufacturing as the company navigates weaker solar module demand and margin pressure across the global photovoltaic market.
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