Canadian Solar Beats Q1 Guidance Despite Industry Headwinds

Canadian Solar Beats Q1 Guidance Despite Industry Headwinds

Canadian Solar reported better-than-expected first-quarter results for 2025, buoyed by strong module shipments and a record pipeline in energy storage, even as the company posted a net loss due to trade-related costs and declining margins.

The company shipped 6.9 GW of solar modules during Q1, up 9.4% year-on-year and exceeding guidance of 6.4–6.7 GW. Revenues stood at $1.2 billion, matching the high end of forecasts, while gross margin reached 11.7%, beating expectations.

CEO Dr. Shawn Qu acknowledged continued pressure from low module prices and geopolitical uncertainty, but praised Canadian Solar’s “disciplined execution” across business segments. The company is prioritizing profitability over volume and accelerating growth in its energy storage division.

Net loss attributable to shareholders was $34 million, or $0.69 per diluted share, compared to net income of $34 million in Q4 2024. Adjusted net loss stood at $60 million.

Recurrent Energy, Canadian Solar’s project development arm, ended the quarter with 27 GWp of solar and 76 GWh of battery storage pipeline. It secured a $415 million credit facility to support its transition to an independent power producer (IPP) model.

Meanwhile, CSI Solar, the manufacturing arm, maintained profitability and further reduced production costs. Its e-STORAGE segment reported a record 91 GWh pipeline and a $3.2 billion contracted backlog, despite soft Q1 storage shipments.

Looking ahead, Canadian Solar expects Q2 revenues between $1.9 billion and $2.1 billion, with gross margin rising to 23–25%. Full-year revenue is forecasted between $6.1 billion and $7.1 billion.

Recent highlights include the launch of new high-efficiency TOPCon modules, the unveiling of SolBank 3.0 Plus at Intersolar Europe, and new project wins in Chile and Australia.