Source: davit kirakosyan
Canadian Solar Outperforms Q3 Revenue Expectations
Canadian Solar Inc. (NASDAQ: CSIQ), a leading provider of solar power products and services, reported that its third-quarter revenue surpassed Wall Street expectations, bolstered by record battery energy storage shipments and a continued strategic focus on higher-margin markets. This performance indicates the strength of the company’s diversified business model and its ability to navigate the dynamics of the global solar industry.
Strong Financial Performance
The company posted quarterly revenue of $1.5 billion, beating analysts’ forecasts of $1.37 billion and reaching the upper end of its guidance range. This impressive revenue figure underscores the company’s strong market position and its ability to deliver robust sales growth despite challenging market conditions. The company’s commitment to strategic initiatives, such as expanding its product portfolio and targeting higher-margin markets, has played a crucial role in driving its financial performance.
However, adjusted earnings per share (EPS) came in at a loss of $0.58, missing the consensus estimate of a $0.42 loss. The wider-than-expected loss can be attributed to higher costs and expenses, which have been a consistent challenge for solar companies due to supply chain disruptions and increased raw material prices.
Gross Margin Improvement
Despite the EPS miss, Canadian Solar’s gross margin improved to 17.2%, exceeding its guidance of 14%–16%. This improvement reflects the company’s ability to optimize its cost structure and improve operational efficiency. The higher gross margin also indicates that the company is successfully executing its strategy of focusing on premium markets, which typically offer higher margins than traditional markets.
Record Battery Energy Storage Shipments
The company’s e-STORAGE division achieved record quarterly battery energy storage shipments of 2.7 GWh, well above its prior guidance of 2.1 GWh to 2.3 GWh. The surge in battery energy storage shipments highlights the growing demand for energy storage solutions in the renewable energy sector, as well as Canadian Solar’s ability to capitalize on this trend.
In addition, the unit’s contracted backlog expanded to $3.1 billion as of October 31, 2025. This considerable backlog provides a solid foundation for the company’s future revenue growth and underscores the strong demand for its products and services.
Module Shipments
Total module shipments recognized as revenue were 5.1 GW, down 35% sequentially and 39% year over year. While the decrease in module shipments was significant, profitability was supported by strong performance in premium markets, which helped offset the impact of lower volumes.
Looking Ahead
For the fourth quarter, Canadian Solar projected revenue between $1.3 billion and $1.5 billion, with gross margins in the 14%–16% range. Looking ahead to 2026, the company forecast total module shipments of 25 GW to 30 GW and battery energy storage shipments between 14 GWh and 17 GWh. These forecasts speak to the company’s confidence in its growth prospects and its ability to continue capitalizing on the expanding renewable energy market.
In conclusion, despite the challenges posed by the current market environment, Canadian Solar’s Q3 results highlight its ability to deliver strong revenue growth and improve profitability. The company’s strategic focus on high-margin markets and its robust backlog bode well for its future performance.