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Canadian Solar Q3 Loss Narrower Than Estimates, Revenues Fall Y/Y

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Key Takeaways

  • Canadian Solar posted an adjusted Q3 loss of 58 cents, narrower than expectations.
  • Revenues rose 4.2% above estimates to $1.49B, aided by higher battery energy storage contributions.
  • CSIQ's gross margin reached 17.2%, topping guidance as cost cuts and storage gains offset lower module sales.

Canadian Solar, Inc. (CSIQ - Free Report) reported a third-quarter 2025 adjusted loss of 58 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.08. However, the loss widened compared with the year-ago quarter’s loss of 31 cents.

The company reported a GAAP loss of 7 cents per share compared with a loss of 31 cents in the same quarter last year.

CSIQ’s Revenues

Canadian Solar reported revenues of $1.49 billion, which topped the Zacks Consensus Estimate of $1.43 billion by 4.2%. However, the top line declined 1.3% from the year-ago quarter’s figure of $1.51 billion.

This year-over-year decrease was due to lower sales of 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 5.1 gigawatts (GW), down 39% year over year.

Canadian Solar’s gross margin was 17.2%, which was higher than its guided range of 14-16%. The gross margin climbed 80 basis points year over year due to higher contribution from battery energy storage systems, which have delivered a more favourable margin profile than solar modules on a blended basis.

Total operating expenses were $221.7 million, down 10.3% year over year due to ongoing cost reductions and the absence of impairment charges related to certain solar and storage assets, as well as manufacturing assets.

Depreciation and amortization charges totaled $132.8 million, down from $134 million recorded in the year-ago period.

Canadian Solar’s Financial Update

As of Sept. 30, 2025, Canadian Solar’s cash and cash equivalents totaled $1.76 billion, up from $1.70 billion as of Dec. 31, 2024.

Long-term borrowings as of Sept. 30, 2025 were $3.50 billion, up from $2.73 billion as of Dec. 31, 2024.

CSIQ’s 2025 Guidance

For the fourth quarter of 2025, Canadian Solar anticipates total module shipments to be in the range of 4.6-4.8 GW. Total battery energy storage shipments are expected in the range of 2.1 gigawatt-hours (GWh)-2.3 GWh, including nearly 600 megawatt-hours to its own projects.

Total revenues are expected in the band of $1.3-$1.5 billion. The Zacks Consensus Estimate for third-quarter sales is pegged at $1.63 billion, higher than the company’s guided range.

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

For full-year 2025, CSIQ now expects total module shipments 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 14-17 GWh.

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

First Solar, Inc. (FSLR - Free Report) reported third-quarter 2025 earnings of $4.24 per share, which missed the Zacks Consensus Estimate of $4.32 by 1.9%. However, the bottom line increased 45.7% from the prior-year quarter’s figure of $2.91.

First Solar’s third-quarter net sales were $1.59 billion, which lagged the Zacks Consensus Estimate by 0.3%. However, the top line improved 79.7% from the year-ago quarter’s $0.89 billion.

Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2025 adjusted earnings of 90 cents per share, which increased 38.5% from the prior-year quarter’s level. The bottom line also surpassed the Zacks Consensus Estimate of 62 cents by 45.2%.

Revenues of $410.4 million outpaced the Zacks Consensus Estimate of $362 million by 13.4%. The top line also increased 7.8% from the prior-year quarter’s reported figure of $380.8 million.

SolarEdge Technologies, Inc. (SEDG - Free Report) reported a third-quarter 2025 adjusted loss of 31 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents. The bottom line also improved from the prior-year quarter’s loss of $15.33.

The company’s revenues of $340.2 million surpassed the Zacks Consensus Estimate of $325 million by 2%. The top line also jumped 44.5% from the year-ago quarter’s $235.4 million.

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