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

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Canadian Solar, Inc. (CSIQ - Free Report) 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 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 - Free Report) 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 - Free Report) 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 - Free Report) 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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