Representational image. Credit: Canva
Canadian Solar Inc. has released its financial results for the third quarter ended September 30, 2025, reporting strong performance driven by solar module demand and rapid growth in the energy storage segment.
The company posted net revenues of USD 1.5 billion, landing at the higher end of its guidance range. Gross margin reached 17.2 percent, supported by a profitable mix of solar module shipments to key global markets and strong deliveries from the company’s energy storage business.
Chairman and CEO Dr. Shawn Qu stated that the quarter saw healthy traction in both solar and storage, particularly from emerging segments such as data center power. He confirmed that Canadian Solar’s new solar cell factory in Indiana and its integrated battery manufacturing facility in Kentucky remain on track, with commercial production scheduled to begin in 2026—strengthening the company’s U.S. solar supply chain presence.
Solar Segment Highlights
The CSI Solar division shipped 5.1 GW of solar modules during Q3 2025. Although overall shipments were slightly lower than previous quarters, the company benefited from strong demand in North America, where earlier-than-scheduled deliveries shifted some Q4 volumes into Q3.
President of CSI Solar Yan Zhuang noted that market conditions remain favourable for solar modules in regions with supportive policy frameworks, including the United States and Europe. He added that profitability is set to improve further as new U.S. solar manufacturing capacity ramps up.
Recurrent Energy, Canadian Solar’s project development arm, continued to expand its global solar footprint with a pipeline of 25.1 GWp of solar power projects across advanced and early development stages. These include large-scale projects in Australia, Italy, the United States, and several Latin American markets.
Global Solar Pipeline and Market Position
The company’s solar development pipeline remains one of the largest in the industry. Significant volumes of utility-scale solar projects are under construction in the U.S. and Europe, while early development projects in Latin America and the Middle East offer multi-year growth opportunities.
Recurrent Energy CEO Ismael Guerrero said the company’s focus is on higher-margin solar project sales, which improved profitability during the quarter. He added that Recurrent Energy plans to optimize cash flow by increasing project ownership sales in 2026, ensuring sustainable growth for its solar development portfolio.
Financial Position
Canadian Solar reported net income of USD 9 million attributable to shareholders, supported by cost control measures. Cash and cash equivalents totaled USD 2.2 billion, while total debt stood at USD 6.4 billion, reflecting ongoing investment in global solar and storage project development.
Energy Storage Complementing Solar Growth
The company’s energy storage division achieved record shipments of 2.7 GWh during Q3. This strengthens Canadian Solar’s strategy of pairing solar PV plants with large-scale energy storage systems to deliver firm power and grid stability.
As of October 31, 2025, the e-STORAGE contracted backlog reached USD 3.1 billion. The company expects energy storage manufacturing capacity to scale significantly by 2026, complementing solar deployments worldwide.
Outlook
For Q4 2025, Canadian Solar expects revenues between USD 1.3–1.5 billion, with solar module shipments projected at 4.6–4.8 GW. Energy storage shipments are estimated at 2.1–2.3 GWh.
For 2026, the company forecasts 25–30 GW of solar module shipments, reflecting strong demand across global solar markets.
Dr. Qu emphasized that Canadian Solar will continue prioritizing profitable solar markets and leveraging rising demand for integrated solar-plus-storage solutions through 2026.
Taken from Solar Quarter, written by Kavitha on November 20th 2025