Renewable energy solutions provider Canadian Solar’s revenue for the fourth quarter (Q4) of 2025 declined 20% year-over-year (YoY) to $1.22 billion, from $1.52 billion the previous year. Revenue was below guidance due to project sales being delayed into 2026 and lower-than-expected volumes in both solar and storage.

Revenue from solar module manufacturing during the quarter was $718.59 million, down 23.9% YoY from $944.05 million in Q4 2024.

The net loss for the period was $86 million, down from a profit of $34 million in the same period the previous year.

The gross margin was 10.2% during the quarter, compared to 14.3% in Q4 2024. The decrease in gross margin was primarily due to the impairment charges related to certain project assets. The decrease was also driven by lower contributions from solar modules and project asset sales, partially offset by higher module average selling prices.

The company reported a net loss of $1.66 per diluted share in Q4 2025, compared to a net income of $0.48 per diluted share the previous year.

The company shipped 4.3 GW of solar modules and solar systems to more than 70 countries and regions in Q4 2025.

Speaking on the results, Shawn Qu, Chairman and Chief Executive Officer at Canadian Solar, said, “Given the downward adjustments in both solar modules and energy storage volumes, along with lighter project sales from Recurrent Energy, our total revenue in 2025 was $5.6 billion. We maintained tight control over operating expenses and achieved an operating income of $43 million for the full year. However, our volatile macro environment increased losses, and interest costs grew as we increased the debt to support our IPP build-out.”

Full Year 2025

Canadian Solar posted revenue of $5.60 billion in 2025, a 6.6% YoY decline from $5.99 billion the previous year.

Solar module manufacturing revenue for the year stood at $3.37 billion, down 21.3% YoY from $4.28 billion in 2024.

It posted a $104 million loss during the year, compared to a $36 million profit in 2024.

The company’s loss per diluted share was $2.50, compared to a profit of $0.54 per share in 2024.

As of December 31, 2025, the company had a total global solar project development pipeline of approximately 24 GW and a battery energy storage project development pipeline of 83 GWh.

Canadian Solar’s total solar project development pipeline of 24.4 GW includes 1.6 GW under construction, 3.2 GW in backlog, and 19.6 GW in advanced and early-stage development.

Operational Highlights

In the U.S., the company operates a 5 GW solar module factory in Mesquite, Texas, which will be expanded to a nameplate capacity of 10 GW by the second half of 2026.

The company is also continuing to advance its flagship HJT solar cell factory in Jeffersonville, Indiana. In response to strong customer demand, the company is increasing its production capacity beyond 5 GW, with additional production lines being installed and commissioned through 2026.

Earlier this month, the company entered into an agreement with a major U.S. utility for a 500 MW/2.49 GWh battery energy storage system project to support data center grid infrastructure. Shipments are expected to start in March 2027 and be completed by July 2027.

Last month, the company signed agreements to supply and provide long-term services for two standalone battery energy storage projects totaling 503 MWh in Franklin County, Texas. Developed by Sunraycer and collectively known as the Lupinus projects, the portfolio includes Lupinus 1 (202 MWh), expected to begin construction in Q1 2027 and enter commercial operations by Q3 2027, and Lupinus 2 (301 MWh), scheduled to begin construction in Q3 2026, with commercial operations targeted for Q2 2027.

In January this year, Canadian Solar announced the completion of its previously disclosed offering of $230 million in 3.25% convertible senior notes due 2031, including the full exercise of the initial purchasers’ option for an additional $30 million.

Outlook

In Q1 2026, Canadian Solar expects total revenue to be in the range of $900 million to $1.1 billion. The gross margin is expected to be between 13% and 15%. Total module shipments recognized as revenue are expected to be in the range of 2.2 GW to 2.4 GW, and total battery energy storage shipments in Q1 2026 are expected to be in the range of 1.7 GWh to 1.9 GWh.

“Our solar module shipments in the U.S. are expected to be slightly lower in 2026 than in 2025, primarily due to a limited supply of solar cells qualified as non-PFE under the One Big Beautiful Act in the first half of the year. The high cost of such cells will also affect our profitability. I believe this is temporary, as our own production will ramp up in Q2 and Q3. 2026 will be a transition year, as we accelerate our U.S. manufacturing roadmap and diversify our long-term profitability drivers,” Qu added.

The company issued new guidance of 6.5 to 7 GW of solar modules and 4.5 to 5.5 GWh of battery energy storage solutions to the U.S. in 2026.

Canadian Solar’s revenue for Q3 2025 remained flat at $1.48 billion, reducing 1% YoY from $1.5 billion. However, revenue was at the high end of the company’s guidance range.