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CSIQ Benefits From Strong Solar and Energy Storage Growth Momentum

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Key Takeaways

  • CSIQ climbed 62.9% in three months, on strength in solar modules and energy storage.
  • Canadian Solar shipped 5.1 GW of modules in Q3 2025, backed by a 25.1 GWp project pipeline.
  • CSIQ's e-STORAGE backlog hit $3.1B, but tariffs and rising input costs continue to pressure margins.

Canadian Solar Inc. (CSIQ - Free Report) continues to benefit from a strong pipeline of solar and energy storage projects. It also continues to build momentum in the fast-growing battery energy storage business with its e-STORAGE platform. 

However, this Zacks Rank #2 (Buy) company faces risks related to rising supply-chain costs.

Factors Acting in Favor of CSIQ

Canadian Solar is seeing an increase in sales of its solar modules and energy storage systems due to the steadily rising global demand for solar power, supported by the rising adoption of renewable energy, falling solar installation costs, and increased battery storage usage in line with growing clean energy projects. Its third-quarter 2025 module shipments reached 5.1 GW, meeting expectations, along with 2.7 GWh of energy storage systems.

CSIQ is expected to continue to register such solid revenue growth in the coming quarters as well, thanks to its strong pipeline of solar and battery energy storage projects. Notably, as of Sept. 30, 2025, the company’s total solar project development pipeline was 25.1 GWp, including 2 GWp under construction and 3.4 GWp in backlog, as well as 19.7 GWp in the advanced and earlier-stage pipeline.

The company also continues to build momentum in the fast-growing battery energy storage business, with its e-STORAGE platform having a contracted backlog of $3.1 billion. Through its e-STORAGE subsidiary, Canadian Solar shipped more than 16 GWh of battery energy storage solutions to global markets as of Sept. 30, 2025.

Challenges Faced by CSIQ

Structural overcapacity across the solar supply chain continues to be a major challenge for the industry, with Chinese manufacturers continuing to dominate the global market with their oversupply of solar products. This oversupply, combined with intensifying competition and evolving trade policies, poses significant challenges for manufacturers like Canadian Solar. The situation has been further exacerbated by recent tariffs, particularly those imposed by the U.S. government in early 2025 and other nations in retaliation, as well as shifting trade policies, which are inflating input costs and compressing already-thin margins.

CSIQ’s Share Price Performance

In the past three months, shares of the company have risen 62.9% compared with the industry’s 11.4% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the same industry are SolarEdge Technologies (SEDG - Free Report) , JinkoSolar (JKS - Free Report) and FTC Solar (FTCI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for SEDG’s 2026 EPS implies an increase of 106.3% year over year. The Zacks Consensus Estimate for SEDG’s 2026 sales implies a year-over-year increase of 14.8%. 

The Zacks Consensus Estimate for JKS’ 2026 EPS calls for an increase of 57.1% year over year. The Zacks Consensus Estimate for JKS’ 2026 sales implies a year-over-year increase of 16.3%. 

The Zacks Consensus Estimate for FTCI’s 2026 EPS calls for an increase of 100.9% year over year. The Zacks Consensus Estimate for FTCI’s 2026 sales implies a year-over-year improvement of 50.9%. 

 

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