Canadian Solar Q1 Loss Lower Than Expected, Revenues Fall Y/Y

Canadian Solar, Inc. CSIQ reported a first-quarter 2025 loss of $1.07 per share, narrower than the Zacks Consensus Estimate of a loss of $1.50 per share. The figure, however, deteriorated from the year-ago quarter’s earnings of 19 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CSIQ’s Revenues

Canadian Solar reported revenues of $1.20 billion, which beat the Zacks Consensus Estimate of $1.09 billion by 9.9%. However, the top line declined 10% from the year-ago quarter’s figure of $1.33 billion.

This year-over-year decrease was primarily due to lower sales of battery energy storage systems and solar modules.

Canadian Solar Inc. Price, Consensus and EPS Surprise

Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. Quote

Operational Update of CSIQ

Solar module shipments in the quarter totaled 6.9 gigawatts (GW), outperforming the company’s guidance of 6.4-6.7 GW. The metric also rose 9.4% year over year.

Canadian Solar’s gross margin was 11.7%, which was higher than its guided range of 9-11%. The gross margin, however, declined 730 basis points year over year due to lower sales volumes of battery energy storage systems and trade-related duties.

Total operating expenses were $195.3 million, down 4.1% year over year due to the absence of impairment charges and lower shipping and handling expenses.

Depreciation and amortization charges totaled $143.7 million, up from $110 million recorded in the year-ago period.

Canadian Solar’s Financial Update

As of March 31, 2025, Canadian Solar’s cash and cash equivalents totaled $1.58 billion, down from $1.70 billion as of Dec. 31, 2024.

Long-term borrowings as of March 31, 2025, were $3.02 billion, up from $2.73 billion as of Dec. 31, 2024.

CSIQ’s 2025 Guidance

For the second quarter of 2025, Canadian Solar expects total module shipments to be in the range of 7.5-8.0 GW, including approximately 500 MW of module shipments for its projects.

Total revenues are expected to be in the band of $1.9-$2.1 billion. The Zacks Consensus Estimate for second-quarter sales is pegged at $1.76 billion, lower than the company’s guided range.

The company expects the gross margin to be between 23% and 25%.

Total battery energy storage shipments are expected to be around 800 megawatt-hours.

For full-year 2025, the company now expects total module shipments to be in the range of 25-30 GW, including nearly one GW for its projects. It anticipates total battery energy storage shipments to be in the band of seven-nine GWh.

Total revenues are expected to be in the band of $6.1-$7.1 billion. The Zacks Consensus Estimate for 2025 sales is pegged at $7.4 billion, higher than the company’s guided range.

CSIQ’s Zacks Rank

Canadian Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy, Inc. ENPH reported first-quarter 2025 adjusted earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 71 cents by 4.2%. The company’s revenues of $356.1 million missed the Zacks Consensus Estimate of $362 million by 1.7%.

SolarEdge Technologies, Inc. SEDG reported a first-quarter 2025 adjusted loss of $1.14 per share, narrower than the Zacks Consensus Estimate of a loss of $1.20 per share. The bottom line also improved from the prior-year quarter’s loss of $1.90 per share.

First Solar, Inc. FSLR reported first-quarter 2025 earnings of $1.95 per share, which were down 11.4% from the prior-year quarter’s figure of $2.20. The bottom line also missed the Zacks Consensus Estimate of $2.50 per share by 22%.

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This article originally published on Zacks Investment Research (zacks.com).

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