Canadian Solar Inc. reported third‑quarter 2025 revenue of $1.49 billion, a 1 % year‑over‑year decline but a $0.06 billion beat on the consensus estimate of $1.43 billion. Gross profit reached $256 million, giving a gross margin of 17.2 %, down from 29.8 % in the second quarter but up from 16.4 % in the same quarter of 2024. GAAP net income was $9 million, translating to a loss of $0.07 per diluted share, while the adjusted loss was $26 million or $0.58 per share, a $0.50 per share improvement over the consensus loss of $1.08.
The quarter’s performance was driven by a record 2.7 GWh of energy‑storage deliveries, the highest in the company’s history, and a high mix of module shipments to profitable North American markets. Production at the Mesquite, Texas factory ramped up, contributing both volume and margin. Module shipments, however, fell year‑over‑year, reflecting a strategic shift toward higher‑margin markets and the broader slowdown in the solar‑module segment.
The sequential drop in gross margin is largely attributable to the absence of a one‑time profit release from a sales‑type leasing transaction in Q2, which had inflated that quarter’s margin. The year‑over‑year improvement reflects the stronger contribution from the energy‑storage business, which has higher gross margins than the module segment. Operating expenses fell to $222 million, a $156 million reduction from Q2, driven by the normalization of one‑time items and disciplined cost management.
Management guided for Q4 revenue of $1.3‑$1.5 billion and a gross margin of 14‑16 %, signaling continued margin pressure but confidence in revenue stability. Full‑year 2026 revenue is projected at $5.65‑$6.30 billion, with module shipments of 25‑30 GW and storage shipments of 14‑17 GWh. Cash reserves stood at $2.2 billion, providing a solid liquidity cushion for ongoing U.S. manufacturing and storage investments.
"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," said Dr. Shawn Qu, Chairman and CEO. CFO Xinbo Zhu added, "Operating expenses normalized with the absence of one‑time items, resulting in net income attributable to shareholders of $9 million and a cash position of $2.2 billion.", underscoring the company’s focus on profitable markets and disciplined working‑capital management.
Investors reacted positively to the earnings, citing the revenue beat and the robust energy‑storage performance as key drivers. The strong backlog in the e‑STORAGE division, valued at $3.1 billion as of October 31, 2025, reinforces confidence in future revenue visibility.
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