Canadian Solar posted $1.7 billion in Q2 revenues, up 42% QoQ, driven by strong storage and module sales
Energy storage segment under e-STORAGE delivered strong performance with 2.2 GWh shipments, despite tariff challenges
Module shipments reached 7.9 GW, meeting guidance, with top markets including the US, China, and Spain
It has now reduced 2025 solar manufacturing capacity targets while lowering annual revenue guidance
Canadian Solar posted $1.7 billion in revenues for Q2 2025, up 42% quarter-on-quarter (QoQ) and 4% year-on-year (YoY), driven by strong battery storage and solar module sales. While it fell short of guidance due to delays in project sales and shipments as storage orders shifted to H2, the management says gross margin exceeded expectations at 22.3% on a higher mix of North America shipments and strong storage volumes.
Energy storage played a big role for the company, with e-STORAGE delivering one of its best performances, despite tariff challenges, even though 2.2 GWh of shipments in this category were lower than the projected range of 2.4 GWh to 2.6 GWh (see Canadian Solar Hits Q1 Revenue Target, Posts Net Loss).
As for solar modules, Canadian Solar met the guidance at the higher end of the range with 7.9 GW shipped, representing 14% QoQ growth, to more than 70 nations. The top 5 markets were the US, China, Pakistan, Spain, and Australia.
Canadian Solar is making strategic moves to focus more on storage as imported solar modules face tougher tariffs and policy environment in the US.
“With solar supply chain pricing trending higher and storage margins normalizing, we expect margin pressure in the second half. We remain focused on strategically managing module volumes to less profitable markets and growing our storage volumes globally,” said Canadian Solar subsidiary CSI Solar’s President, Yan Zhuang. “Meanwhile, we continue to build emerging profitability drivers such as our residential energy storage systems and bundled sales solutions.”
Similarly, the company is also lowering its nameplate annual solar PV manufacturing capacity plans by December 2025 to 32.4 GW from 36.2 GW for solar cells, and to 51.2 GW from 59 GW for solar modules. Ingot and wafer production capacities of 31 GW and 37 GW will remain unchanged from June 2025.
Canadian Solar’s utility-scale solar power and battery energy storage system (BESS) project development pipeline under Recurrent Energy grew to around 27 GW and 80 GWh, respectively. As of June 30, 2025, its global BESS project development pipeline was 80.2 GWh, including 6.4 GWh under construction and in backlog, and 73.8 GWh of projects in advanced and early-stage development. Of the total, more than 39 GWh is located in the EMEA region, followed by 22 GWh in North America.
Recurrent Energy locked in $106 million in revenues with project sales of 213 MW and $34 million in gross profit, but reported an operating loss of $74 million.
“Revenue and profitability in the second quarter were sequentially lower, primarily due to lighter project sales,” said Recurrent Energy CEO Ismael Guerrero. “Overall, we expect our electricity sales revenue to grow steadily, as we enhance the performance of our existing IPP portfolio and advance construction in our target markets, with more meaningful contributions expected next year.”
Commenting on the impact of the One Big Beautiful Bill Act (OBBBA), the management said it has sweeping implications for both supply and demand in the US. While it brings supply challenges from FEOC rules and import duties, demand faces an Investment Tax Credit (ITC) phase-out by 2027. The management added that despite near-term uncertainty, the company’s long-term growth looks strong, driven by rising energy demand and cost-competitive solar-plus-storage solutions.
Looking ahead, Canadian Solar expects to report Q3 2025 revenues within $1.3 billion to $1.5 billion, with gross margin expected in the range of 14% to 16%. Total module and BESS shipments are guided within 5.0 GW to 5.3 GW and 2.1 GWh to 2.3 GWh, respectively.
For the full year 2025, it has once again lowered the revenue guidance, now expecting $5.6 billion to $6.3 billion in revenues, with storage shipments of 7 GWh to 9 GWh. Solar module shipments are expected to range from 25 GW to 27 GW, down from 25 GW to 30 GW offered in the previous quarter.
At SNEC 2025, CSI Solar President Yan Zhuang discussed the company’s long-term strategy, US manufacturing, and energy storage focus with TaiyangNews Managing Director Michael Schmela in an exclusive interview as part of the TaiyangNews & SNEC Solar Leadership Conversations (see SNEC 2025 Exclusive: Interview With Canadian Solar President Yan Zhuang).
TaiyangNews will explore the US solar market in view of the regulatory shifts at the upcoming RE+ 2025 event in Las Vegas, US. It is co-organizing the 2025 Solar Made in USA summit in collaboration with RE+ and EUPD Research. To be held on September 8, 2025, it will feature leading names from the world of solar to discuss the future of US solar and storage manufacturing and future strategies for the players in light of the regulatory hurdles created by the OBBBA. Registrations are open and can be done here.