Canadian Solar delivered 24.3 GW of modules in FY2025, missing its shipment guidance, while revenue reached $5.6 billion, slightly below the target
Q4 2025 module shipments dropped to 4.3 GW, down 16% QoQ and 47% YoY, with revenue declining to $1.2 billion due to lower solar module and BESS sales
Its US manufacturing expansion is on track as it expands the capacity of its HJT cell fab in response to strong customer demand
Canadian Solar reported missing its 2025 solar module shipment and revenue guidance, delivering 24.3 GW globally against a forecast of 24.5 GW to 24.7 GW and posting $5.6 billion in revenue, below its $5.7 billion to $5.9 billion target. However, the company said its US manufacturing expansion remains on track, including a planned 6.3 GW heterojunction (HJT) solar cell factory in Jeffersonville, Indiana.
Manufacturing was the primary revenue generator ($5.2 billion), followed by Recurrent Energy’s $394 million.
Solar module shipments in Q4 2025 totaled 4.3 GW, a decline of 16% quarter-on-quarter (QoQ) and 47% year-on-year (YoY), while net revenues of $1.2 billion were down 18% and 20%, respectively. The company cites lower sales of solar modules and battery energy storage systems (BESS) for this decline.
North America was the largest module destination during the reporting quarter with a share of 43%, followed by China (19%). Storage shipments of 2.0 GWh during Q4 2025 contributed to a record annual high of 7.8 GWh for the solar PV manufacturer.
Gross profit during the reporting quarter of $124 million was down from $256 million in Q3 2025 and $217 million in Q4 2024. Gross margin was also down to 10.2%.
Gross margin fell sequentially mainly due to impairment charges on some project assets. On a YoY basis, the decline was due to lower contributions from solar module and project asset sales, partly offset by higher module ASPs.
Canadian Solar’s reported net loss of $104 million in Q4 2025 contributed to an annual net loss of $86 million.
“Our quarterly revenue and margin profiles were impacted by delays in certain project sales, which have been pushed into 2026. We continue to shift our business mix toward the monetization of operating and under-construction assets to strengthen our balance sheet and improve cash flow,” said Canadian Solar subsidiary Recurrent Energy’s CEO, Ismael Guerrero.
Its total solar project development pipeline as of December 31, 2025, reached 24.2 GW, including 1.6 GW under construction.
Meanwhile, Canadian Solar continues to press ahead with its US manufacturing plans. Its 5 GW solar module factory in Mesquite, Texas, is now fully ramped up as the company Solar plans to double its nameplate capacity to 10 GW by H2 2026.
Its planned HJT factory in Indiana is intended to host an annual nameplate capacity of 6.3 GW, up from the initially planned 5 GW in response to strong customer demand. This factory will come online in 2 phases. Trial production is scheduled to begin by April 2026, with 2.1 GW under Phase I, making it the only commercially operational HJT solar cell facility in the US, says Canadian Solar. Under Phase II, the HJT cell fab will enter trial production by the end of 2026, adding 4.2 GW of capacity.
In Q1 2026, Canadian Solar expects total revenue to range between $900 million and $1.1 billion, with a gross margin of 13% to 15%. It expects to recognize 2.2 GW to 2.4 GW of module shipments as revenue, while BESS shipments will range from 1.7 GWh to 1.9 GWh.
In terms of sales, the company guides for 6.5 GW to 7.0 GW of solar module sales to the US and 4.5 GWh to 5.5 GWh of BESS in 2026.
“While the first quarter tends to be seasonally softer, we are navigating a complex macro environment, including elevated and volatile input costs across supply chains and policy uncertainty in key markets. In our project development business, we are rebalancing toward asset monetization and optimizing our cost structure,” said Canadian Solar Chairman and CEO Dr. Shawn Qu.
He added, “Our solar module shipments in the U.S. are expected to be slightly lower in 2026 than in 2025, primarily due to a limited supply of solar cells qualified as non-PFE under the OBBBA in the first half of the year. The high cost of such cells will also affect our profitability. I believe this is temporary, as our own production will ramp up in Q2 and Q3. 2026 will be a transition year, as we accelerate our U.S. manufacturing roadmap and diversify our long-term profitability drivers.”