Canadian Solar met its revenue and solar module shipment guidance for Q1 2025
Compared to a $34 million net income in the previous quarter, it reported a $34 million net loss for the reporting period
The management has lowered annual solar module shipment guidance to 25 GW to 30 GW
Canada-headquartered Canadian Solar suffered a net loss of $34 million in Q1 2025 despite meeting its net revenue guidance at the high end with $1.2 billion, and exceeding solar module shipment guidance with 6.9 GW capacity shipped.
Net revenues of $1.2 billion were down 21.3% sequentially, and 10% year-on-year (YoY), mainly due to lower sales of battery energy storage systems (BESS) and solar modules. Gross profit declined to $140 million compared to $217 million in Q4 2024.
Net loss of $34 million compared to a $34 million net income the company reported in the previous quarter (see Canadian Solar Achieves $34 Million Net Income In Q4 2024 Amid Tough Year).
The company shipped 6.9 GW of solar modules and solar system kits to over 70 countries, with China, the US, Pakistan, Spain, and Brazil constituting its top 5 markets.
While Q1 is considered a seasonally softer quarter, Canadian Solar Chairman and CEO Dr. Shawn Qu admitted that the company continues to face ‘many of the same challenges that defined 2024,’ including historically low module prices and geopolitical complexities.
“While we strictly control operating expenses and capital expenditures, we maintain tailored strategies across our business. We will continue to manage module volumes with a focus on profitability, accelerate growth in our margin-accretive energy storage business, and advance Recurrent Energy's transition toward a partial IPP model,” stated Qu.
For Recurrent Energy’s project development business, its solar project development pipeline was 26.9 GW as of March 31, 2025. Its battery energy storage project development pipeline was 75.7 GWh. A large chunk of this pipeline for both solar and storage exists in the EMEA region. Additionally, the management shared that its e-STORAGE business had a total project turnkey pipeline of more than 91 GWh.
Going forward, Canadian Solar expects its Q2 2025 revenues to be within the $1.9 billion to $2.1 billion range with a gross margin of between 23% and 25%. It guides module shipments to range from 7.5 GW to 8.0 GW, while total BESS shipments are likely to range within 2.4 GWh to 2.6 GWh.
The management has lowered its annual shipment guidance, from 30 GW to 35 GW of solar modules expected earlier, to 25 GW to 30 GW. BESS shipments are projected within the 7 GWh to 9 GWh range, while revenues will be within the $6.1 billion to $7.1 billion range.
“We expect second quarter performance to be bolstered by strong energy storage shipments. We continue to operate in an environment of global pricing volatility and evolving policy uncertainty that limits margin visibility,” added Qu. “Our updated full year guidance reflects our current assessment of ongoing market and geopolitical developments, as we adhere to our profit-first strategy.”
Meanwhile, Canadian Solar continues its US manufacturing expansion with its 5 GW Texas module facility online since Q3 2024. Another 5 GW solar cell factory in Indiana is on track for commissioning in Q4 2025, while a 6 GWh energy storage facility in Kentucky is scheduled to come online in Q1 2026.