Canadian Solar Inc. has reported its financial results for the second quarter ended June 30, 2025. During the quarter, the company shipped 7.9 GW of solar modules recognized as revenue, representing a 14% increase compared to the first quarter of 2025 but a 4% decrease compared to the same period last year. Of this total, 672 MW were shipped to Canadian Solar’s own utility-scale projects. Net revenue for the quarter was $1.7 billion, a 42% sequential increase and a 4% rise year-over-year.

The growth was mainly driven by stronger sales of battery energy storage systems and solar modules. Gross profit reached $505 million, a significant improvement over $140 million in the previous quarter and $282 million in the same quarter of 2024. Gross margin improved to 29.8%, compared to 11.7% in Q1 2025 and 17.2% in Q2 2024. This was supported by the release of unrealized profit from a U.S. sales-type leasing project, higher contributions from battery energy storage systems, and the benefit of a U.S. anti-dumping and countervailing duty adjustment.

Operating expenses rose to $378 million, compared with $195 million in Q1 2025 and $234 million in Q2 2024. The increase was mainly due to impairment charges related to solar, storage, and manufacturing assets. Expenses represented 22.3% of revenue, up from 16.3% and 14.3% in the two comparison periods. Net income attributable to Canadian Solar under U.S. GAAP was $7 million, or a net loss of $0.08 per diluted share. This compared with a net loss of $34 million, or $0.69 per share, in Q1 2025, and net income of $4 million, or $0.02 per share, in Q2 2024. On a non-GAAP basis, the company reported an adjusted net loss of $23 million, or $0.53 per share, compared to an adjusted net loss of $60 million, or $1.07 per share, in the prior quarter, and net income of $4 million, or $0.02 per share, a year earlier.

Cash flow from operating activities was positive at $189 million, supported by working capital improvements, particularly lower inventory levels. This compared with cash outflows of $264 million in Q1 2025 and $429 million in Q2 2024. Total debt as of June 30, 2025, stood at $6.3 billion, up from $5.7 billion at the end of March. This included $2.5 billion at CSI Solar, $3.5 billion at Recurrent Energy, and $0.3 billion in convertible notes. Of the total, $1.8 billion was non-recourse debt.

Canadian Solar operates through two main business segments: CSI Solar, which focuses on solar modules and battery energy storage systems, and Recurrent Energy, which develops and operates utility-scale solar and storage projects. Recurrent Energy held a global development pipeline of approximately 27 GWp in solar projects and 80 GWh in battery energy storage as of June 30, 2025. Its business model includes electricity revenue from operating assets, project sales to support growth, and operations and maintenance services, with nearly 14 GW of long-term contracted projects.

Within its solar pipeline, 2.0 GWp of projects were under construction, 4.2 GWp were in backlog (late-stage with secured agreements), and 21.1 GWp were in advanced and early development. For energy storage, the pipeline stood at 80.2 GWh, including 6.4 GWh in construction and backlog, and 73.8 GWh at earlier stages. Looking ahead, Canadian Solar expects third-quarter 2025 revenue to be between $1.3 billion and $1.5 billion, with a gross margin of 14% to 16%. Module shipments are projected at 5.0 GW to 5.3 GW, while battery energy storage shipments are expected at 2.1 GWh to 2.3 GWh.

For the full year 2025, module shipments are forecast at 25 GW to 27 GW, and battery storage shipments at 7 GWh to 9 GWh. Revenue for the year is expected to range from $5.6 billion to $6.3 billion. Dr. Shawn Qu, Chairman and CEO, noted that margins in the third quarter are expected to decline due to market challenges and normalization of storage profitability. He highlighted that full-year guidance for module and storage volumes remains supported by clearer visibility in the second half of the year, although some project sales may shift into 2026. The company continues to face pressures from rising supply chain costs and trade uncertainties but aims to balance growth and profitability with a disciplined approach.

Dr. Shawn Qu, Chairman and CEO, commented, “We delivered a second quarter largely in line with expectations. While revenue came in below guidance due to storage shipments shifting to the second half and delays in certain project sales, gross margin exceeded expectations, driven by a higher mix of North America module shipments and robust storage volumes. Following the surge in installations in China during the first half, we expect demand to normalize as the market adjusts to a new paradigm. We remain focused on navigating the uncertain policy environment with a focus on risk management and sustainable profitability.”

Yan Zhuang, President of Canadian Solar’s subsidiary CSI Solar, said in a statement, “In the second quarter, we delivered module shipments near the high end of guidance. Despite tariff headwinds, e-STORAGE achieved one of its strongest quarters. With solar supply chain pricing trending higher and storage margins normalizing, we expect margin pressure in the second half. We remain focused on strategically managing module volumes to less profitable markets and growing our storage volumes globally. Meanwhile, we continue to build emerging profitability drivers such as our residential energy storage systems and bundled sales solutions.”

Ismael Guerrero, CEO of Canadian Solar’s subsidiary Recurrent Energy, mentioned, “Revenue and profitability in the second quarter were sequentially lower, primarily due to lighter project sales. We monetized over 200 MW of projects in Europe and Japan, including our first and profitable sale of a battery energy storage project in Italy, while a project sale in Latin America shifted to the second half of the year. Overall, we expect our electricity sales revenue to grow steadily, as we enhance the performance of our existing IPP portfolio and advance construction in our target markets, with more meaningful contributions expected next year.”

Xinbo Zhu, Senior VP and CFO, added, “In the second quarter, we delivered $1.7 billion in revenue and a gross margin of 29.8%. Non-recurring operating expenses, including impairments to projects and manufacturing assets, reduced profitability, resulting in net income attributable to shareholders of $7 million, or a net loss of $0.08 per diluted share. We continue to manage cash flow prudently, prioritizing disciplined capital deployment. Operating cash inflow was $189 million, and we ended the quarter with a cash position of $2.3 billion.”

In recent developments, Canadian Solar published its 2024 Sustainability Report in May 2025, outlining progress on sustainability goals in line with global reporting standards. Its subsidiary, Eternalplanet, won the Red Dot Award 2025 for its EP Cube residential energy storage system, adding to other international design awards earlier in the year. The company also completed large-scale fire safety testing for its SolBank 3.0 storage system in June 2025. On the project side, Recurrent Energy announced financing for the Blue Moon Solar project in Kentucky, valued at $260 million, with operations expected in 2026. In July 2025, its 1,200 MWh Papago Storage project in Arizona began commercial operation, providing energy to Arizona Public Service under a tolling agreement.

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