Canadian Solar Q2 Earnings Miss Estimates, Revenues Rise Y/Y

Canadian Solar, Inc. CSIQ reported second-quarter 2025 adjusted loss of 53 cents per share, which missed the Zacks Consensus Estimate of earnings of 76 cents. 

The company reported a GAAP loss of 8 cents per share, deteriorating from the year-ago quarter’s earnings of 2 cents per share.

CSIQ’s Revenues

Canadian Solar reported revenues of $1.69 billion, which lagged the Zacks Consensus Estimate of $1.92 billion by 11.7%. However, the top line rose 3.5% from the year-ago quarter’s $1.64 billion.

This year-over-year increase was driven primarily by higher sales of battery energy storage systems and solar modules.

Operational Update of CSIQ

Solar module shipments in the quarter totaled 7.9 gigawatts (GW), within the company’s guidance of 7.5-8.0 GW. However, the metric fell 4% year over year.

Canadian Solar’s gross margin was 29.8%, which was higher than its guided range of 23-25%. The gross margin climbed 1,260 basis points year over year due to a release of unrealized profit upon sales-type leasing of a U.S. project, higher margin contribution from battery energy storage systems, and the benefit from a U.S. anti-dumping and countervailing duty true-up adjustment.

Total operating expenses were $377.6 million, up 61.1% year over year due to the impairment charges related to certain solar and storage assets, as well as manufacturing assets.

Depreciation and amortization charges totaled $145.8 million, up from $122 million recorded in the year-ago period.

Canadian Solar’s Financial Update

As of June 30, 2025, Canadian Solar’s cash and cash equivalents totaled $1.86 billion, up from $1.70 billion as of Dec. 31, 2024.

Long-term borrowings as of June 30, 2025, were $3.46 billion, up from $2.73 billion as of Dec. 31, 2024.

CSIQ’s 2025 Guidance

For the third quarter of 2025, Canadian Solar expects total module shipments of 5.0-5.3 GW. Total battery energy storage shipments are expected to be 2.1 gigawatt-hours (GWh) to 2.3 GWh, including nearly 250 megawatt-hours to its projects.

Total revenues are expected to be $1.3-$1.5 billion. The Zacks Consensus Estimate for third-quarter sales is pegged at $1.92 billion, higher than the company’s guided range.

The company expects the gross margin between 14% and 16%.

For 2025, the company expects total module shipments to be 25-27 GW, including nearly one GW for its projects. It anticipates total battery energy storage shipments to be 7-9 GWh.

Total revenues are expected to be $5.6-$6.3 billion. The Zacks Consensus Estimate for 2025 sales is pegged at $6.3 billion, which is the higher end of the company’s guided range.

CSIQ’s Zacks Rank

Canadian Solar currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

First Solar, Inc. FSLR reported second-quarter 2025 earnings of $3.18 per share, which were down 2.2% from the prior-year quarter’s figure of $3.25. The bottom line, however, surpassed the Zacks Consensus Estimate of $2.68 per share by 18.7%.

First Solar’s second-quarter net sales were $1.10 billion, which beat the Zacks Consensus Estimate of $1.03 billion by 6.6%. The top line also improved 8.6% from the year-ago quarter’s $1.01 billion. 

Enphase Energy, Inc. ENPH posted second-quarter 2025 adjusted earnings of 69 cents per share, which increased 60.5% from 43 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 11.3%.

Enphase Energy’s second-quarter revenues of $363.2 million surpassed the Zacks Consensus Estimate of $357 million by 1.9%. The top line also increased 19.7% from the prior-year quarter’s reported figure of $303.5 million. 

SolarEdge Technologies, Inc. SEDG registered second-quarter 2025 adjusted loss of 81 cents per share, narrower than the Zacks Consensus Estimate of a loss of 82 cents. The bottom line also improved from the prior-year quarter’s loss of $1.79.

The company’s revenues of $289.4 million surpassed the Zacks Consensus Estimate by 5.7%. The top line also increased 9.1% from the year-ago quarter’s $265.4 million.

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