Canadian Solar (Nasdaq: CSIQ) announced its fourth quarter and full-year 2025 financial results, reporting Q4 revenue of $1.2 billion.
The result fell 11% below consensus analyst expectations of $1.37 billion, leading to a 26% drop in share price during pre-market trading following the report. For the full year, the company generated $5.6 billion in revenue, maintaining a thin operating income of $43 million despite a total net loss of $104 million for 2025.
The quarterly miss was driven by a combination of lower global storage volumes, delayed project sales from its Recurrent Energy division, and impairment charges on project assets. Canadian Solar shipped 4.3 GW of solar modules in Q4, a 47% year-over-year decrease. Recurrent Energy reported a gross loss of $23 million for the quarter, largely due to these impairments and a “negative 33.9%” gross margin for the segment in Q4.
Despite the quarterly headwinds, the company’s strategic pivot toward the North American market reached a record scale. Canadian Solar delivered 8.1 GW of modules and 3.9 GWh of energy storage to the United States in 2025. This regional concentration now accounts for 43% of the company’s Q4 module shipments. To support this growth, the company fully ramped its 5 GW module factory in Mesquite, Texas, with plans to expand nameplate capacity to 10 GW by the second half of 2026.
Energy storage emerged as a primary growth driver for the year, with the e-STORAGE division achieving record annual shipments of 7.8 GWh and $1.4 billion in revenue. As of March 13, 2026, the company reported a contracted backlog for battery energy storage systems totaling $3.6 billion.
“In response to the prolonged solar downturn, we pivoted away from the industry’s traditional focus on shipment volumes and instead took the lead by prioritizing margins and diversifying our profit drivers, notably energy storage,” said Dr. Shawn Qu, chairman and CEO of Canadian Solar.
The company is currently moving equipment into its 6.3 GW solar cell plant in Jeffersonville, Indiana. The first phase of cell production is expected to begin by the end of March 2026, with a full ramp-up anticipated by June. For the first quarter of 2026, Canadian Solar expects revenue to range between $900 million and $1.1 billion.
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