Canadian Solar’s FY2024 revenues totaled $6 billion as it achieved Q4 2024 guidance
During Q4 2024, it shipped 8.2 GW modules and solar system kits, with Pakistan among the top 5 destinations for the company
It expects challenges for the solar industry to continue in 2025, hence targets to ship between 30 GW and 35 GW solar modules after having shipped 31.3 GW in 2024
Canada-headquartered solar PV manufacturer Canadian Solar exited FY2024, a ‘challenging year’ for the solar industry, with $6 billion in revenues. This includes $1.5 billion in Q4 2024, achieving the lower end of the guided range.
Its Q4 revenues increased by 1% quarter-on-quarter (QoQ) thanks to the battery energy storage system (BESS) solutions sales and higher project sales. However, the decline in solar module ASPs and shipment volume pulled down the quarterly revenues by 11% year-on-year (YoY).
Gross profit during the quarter dropped 12% QoQ, but rose 2% YoY to $217 million, while gross margin settled at 14.3% compared to 16.4% in Q3 2024 and 12.5% in Q4 2023. The sequential decrease in gross margin was due to lower module ASPs.
Regarding Q4 financials, Canadian Solar’s Senior VP and CFO Xinbo Zhu shared, “Profitability was impacted by a combination of impairments to Recurrent Energy projects, impairments to certain solar manufacturing assets, anti dumping/countervailing duties, and tariffs.”
Nevertheless, it reported $34 million net income in Q4, and $36 million in FY2024.
Canadian Solar shipped 31.3 GW of solar modules last year, achieving the guidance. This comprises 8.2 GW of solar modules and solar system kits shipped to more than 70 nations in Q4. Its top 5 shipment destinations during Q4 were China, the US, Spain, Germany and Pakistan.
Recurrent Energy, the group’s renewable energy development platform, counts its total solar project development pipeline at 24.9 GW as of December 31, 2024, including 1.9 GW under construction, 4.2 GW of backlog and 18.8 GW in advanced and early-stage pipelines. Its BESS pipeline stood at 75.1 GWh.
“2024 was a challenging year for the solar industry, with intense competition and ongoing policy and trade-related uncertainties creating operational and financial headwinds,” said Canadian Solar Chairman and CEO Dr. Shawn Qu. “Despite these industry-wide pressures, our modules business executed targeted strategic adjustments, enabling us to maintain relatively stronger profitability compared to the broader market.”
For FY2025, Canadian Solar targets between 30 GW and 35 GW of solar module shipments, a cautious increase as the management continues to expect challenges for the industry this year. For Q1 2025, a seasonally softer quarter, its shipments are projected to range from 6.4 GW to 6.7 GW.
Utility-scale BESS shipments are expected to reach 800 MWh in Q1 2025 and between 11 GWh and 13 GWh in FY2025, representing an 82% YoY growth.
According to its solar manufacturing capacity plans, Canadian Solar targets production capacities of 33 GW for ingots, 37 GW for wafers, 36.2 GW for cells and 61 GW for modules by December 2025. As of December 2024, its annual manufacturing capacity for these components stood at 25 GW, 31 GW, 48.4 GW, and 60.2 GW, respectively.
Canadian Solar operates a 5 GW solar module manufacturing plant in Texas, US. It plans to bring the previously announced 5 GW solar cell production fab in Jeffersonville, Indiana online by the end of 2025.