Canadian Solar Exceeds Shipment Guidance In Q2/2020

Having Exceeded Revenue, Shipments & Gross Margin Guidance For Q2/2020, Canadian Solar Expects To Ship 11 GW To 12 GW In 2020 Counting On ‘Demand Rebound’; Production Expansion On Cards
10:37 PM (Beijing Time) - 11. August 2020

Canadian Solar targets to have over 16 GW of annual module production capacity by the end of 2020, increasing it from last quarter’s guidance of 15.05 GW.

Key Takeaways

  • Canadian Solar’s Q2/2020 revenues, module shipments and gross margin exceeded its guidance
  • Manufacturing capacity expansion is revealed, and it is working on new 2021 capacity expansion plans
  • With demand picking up in the markets it operates in, it expects to ship 11 GW to 12 GW in 2020, and guides for another 18 GW to 20 GW for 2021

As the global solar PV market picks up pace after it suffered in the early months of the year from COVID-19, Canadian Solar sees things getting better going forward, on account of  the‘demand rebound’ across most of its markets. It says its order backlog for both H2/2020 and next year to be exceeding its previous expectations.

Based on existing market conditions, order book and other factors, Canadian Solar’s management has guided for Q3/2020 total module shipments to be within the range of 2.9 GW to 3.1 GW. Total revenues during the quarter are expected to be around $840 million to $890 million with gross margin of 14% to 16%.

For full year 2020, the company expects annual shipments in the range of 11 GW to 12 GW. Exiting 2020, Canadian Solar sees 2021 as a strong year basis its own sales feedback and forecasts 18 GW to 20 GW of module shipments next year.

Despite such high hopes, the management anticipates some margin pressure due to cost increases from polysilicon supply shortages which it says it expects to share a portion of the higher costs with customers.


During the reporting quarter, Canadian Solar exceeded its module shipment guidance to deliver 2.9 GW, growing from 1.036 GW shipped in Q2/2019 (see Smooth Sailing For Canadian Solar In Q2/2019). It even exceeded the net revenue guidance to report $696 million in this segment with gross margin of 21.2% over and above the guided range.

Nonetheless, it suffered some delays in its project sales that pulled down its energy revenues and gross profits during the quarter. Net income for the company was $20.6 million, vis-à-vis $62.7 million a year back. Its O&M business has around 3 GW of projects under contract, the management stated.

Providing an update to its proposed step to list its MSS business on China’s stock market, the company said it has started pre-IPO capital raising process to bring in new partners to its business and convert it into a Sino-foreign joint stock company (see Canadian Solar Wants Capital Market Access In China).

“This investment round is expected to be completed by the end of September, and will also allow us to immediately expand our manufacturing capacity using the best available technologies and equipment to support our newly set module shipment plan for 2021,” stated company’s Chairman and CEO, Dr. Shawn Qu.


Canadian Solar plans to expand current annual production capacity for ingots to reach a total of 1.92 GW till December 31, 2020, for wafer the target is 5.5 GW, for cell it sees 10.15 GW by target date and for modules it has provided a guidance of 16.06 GW. Management said it is working on its new 2021 capacity expansion plans that it will share in the next quarter.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani