Canadian Solar’s Q3 2025 revenues reached the higher end of guidance despite weaker module sales
It reported record 2.7 GWh BESS shipments that boosted results and expanded storage backlog to $3.1 billion
US cell and battery manufacturing projects remain on schedule for a 2026 start-up, shared the management
FY2025 guidance has been trimmed again as solar market pressure persists despite strong storage demand
Canadian Solar has reported Q3 2025 net revenues of $1.5 billion, hitting the upper end of its guidance despite a 12% quarterly and 1% annual decline. The dip was driven by lower solar module sales, partly offset by stronger demand for battery energy storage systems (BESS), according to the Canada-headquartered company.
Solar and storage manufacturing under its subsidiary, CSI Solar, continues to be the major driver of the company’s business, followed by utility-scale solar and storage project development arm, Recurrent Energy.
The manufacturer recognized 5.1 GW for its revenues during the quarter, representing a decline of 35% quarter-over-quarter (QoQ) and 39% year-over-year (YoY). While its modules reached over 60 nations during the reporting quarter, the company said it prioritized profitable solar markets, such as North America, that accounted for 44% of the shipments. Its top 5 solar markets were the US, China, Spain, Pakistan, and South Africa.
For the company’s BESS subsidiary, e-STORAGE, the quarterly shipment volume reached a record 2.7 GWh, exceeding the guidance of 2.1 GWh to 2.3 GWh, owing to the shifting of 2 project deliveries from Q4 to Q3. Thanks to growing demand in this space, e-STORAGE’s contracted backlog for utility-scale BESS increased to $3.1 billion as of October 31, 2025. The management says its residential energy storage business is on track to become profitable in 2025.
Management shared an update regarding its US manufacturing facilities. Construction on the solar cell fab in Indiana and the integrated lithium battery cell, pack, and BESS factory in Kentucky is progressing as planned. Canadian Solar Chairman and CEO Dr. Shawn Qu said that Phase I of the cell fab is scheduled to start commercial operations in Q1 2026, while Phase I of the integrated fab will come online in Q4 2026.
Its gross margin of 17.2% during the quarter exceeded expectations (14% to 16%), although it was lower than the 29.8% reported in Q2 2025, but was higher than the 16.4% reported in Q3 2024.
Guidance
For Q4 2025, Canadian Solar projects its solar module and utility-scale BESS shipments in DC terms within 4.1 GW to 4.8 GW, and 2.1 GWh to 2.3 GWh, respectively. Revenues are expected to be between $1.3 billion and $1.5 billion, with a gross margin of 14% to 16%.
The company has once again lowered its FY2025 shipment guidance to between 24.5 GW and 24.7 GW for solar modules and 7.8 GWh and 8.0 GWh for storage. The revenue guidance of $5.7 billion to $5.9 billion is also less than the $5.6 billion to $6.3 billion it forecast in August 2025 (see Canadian Solar Q2 Revenues Rise 42% QoQ On Storage, Module Sales).
In terms of shipments, Canadian Solar expects 25 GW to 30 GW of modules and 14 GWh to 17 GWh of BESS shipments for FY2026. Management continues to expect pressures in the solar module market next year, but sees strong demand for storage.
“We will continue to focus on profitable solar markets and to manage volumes in less profitable regions,” shared Qu. “Our 2026 full year storage outlook reflects strong year-over-year growth, backed by contracted volumes and visibility into customers' development pipelines.” He added, “Financial prudence remains our top priority. Accordingly, Recurrent Energy will increase project ownership sales in 2026 to recycle capital and manage the overall debt level.”
The manufacturer expected to end December 2026 with 31 GW of ingot, 33.2 GW of wafer, 33.2 GW of cell, and 55.8 GW of module manufacturing capacity. The BESS storage production capacity is aimed to increase from 15 GWh at the end of December 2025 to 24 GWh, while battery cell capacity will be raised from 3 GWh to 9 GWh over the same period.
