Canadian Solar Q1 Loss Lower Than Expected, Revenues Fall Y/Y

Core Insights - Canadian Solar, Inc. (CSIQ) reported a first-quarter 2025 loss of $1.07 per share, which is an improvement compared to the Zacks Consensus Estimate of a loss of $1.50 per share, but a decline from the previous year's earnings of 19 cents per share [1] - The company's revenues for the quarter were $1.20 billion, exceeding the Zacks Consensus Estimate of $1.09 billion by 9.9%, although this represents a 10% decrease from the year-ago figure of $1.33 billion [1][2] Revenue and Sales Performance - The year-over-year revenue decline was primarily attributed to lower sales of battery energy storage systems and solar modules [2] - Solar module shipments reached 6.9 gigawatts (GW), surpassing the company's guidance of 6.4-6.7 GW, and reflecting a 9.4% increase year over year [3] Operational Metrics - Canadian Solar's gross margin was reported at 11.7%, exceeding the guided range of 9-11%, but down 730 basis points from the previous year due to reduced sales volumes and trade-related duties [3] - Total operating expenses decreased by 4.1% year over year to $195.3 million, attributed to the absence of impairment charges and lower shipping and handling costs [4] Financial Position - As of March 31, 2025, Canadian Solar's cash and cash equivalents stood at $1.58 billion, down from $1.70 billion at the end of 2024 [5] - Long-term borrowings increased to $3.02 billion from $2.73 billion as of December 31, 2024 [5] Future Guidance - For Q2 2025, Canadian Solar anticipates total module shipments between 7.5-8.0 GW, including approximately 500 MW for its projects, with expected revenues in the range of $1.9-$2.1 billion [6] - The company projects a gross margin between 23% and 25% for the second quarter [6] - For the full year 2025, total module shipments are expected to be between 25-30 GW, with total revenues projected in the range of $6.1-$7.1 billion [7]