Canadian Solar Q3 Loss Narrower Than Estimates, Revenues Fall Y/Y

Core Insights - Canadian Solar, Inc. (CSIQ) reported a narrower adjusted loss of 58 cents per share for Q3 2025, compared to the Zacks Consensus Estimate of a loss of $1.08, but the loss widened from 31 cents in the same quarter last year [1] - The company achieved revenues of $1.49 billion, exceeding the Zacks Consensus Estimate of $1.43 billion by 4.2%, although this represents a 1.3% decline from $1.51 billion in the prior year due to lower solar module sales [2] - CSIQ's gross margin improved to 17.2%, surpassing the guided range of 14-16%, driven by higher contributions from battery energy storage systems [3][8] Revenue and Operational Performance - Solar module shipments totaled 5.1 gigawatts (GW), reflecting a 39% year-over-year decline [3] - Total operating expenses decreased by 10.3% year over year to $221.7 million, attributed to cost reductions and the absence of impairment charges [4] - Depreciation and amortization charges were $132.8 million, slightly down from $134 million in the previous year [4] Financial Position - As of September 30, 2025, Canadian Solar's cash and cash equivalents stood at $1.76 billion, an increase from $1.70 billion at the end of 2024 [5] - Long-term borrowings rose to $3.50 billion from $2.73 billion as of December 31, 2024 [5] Future Guidance - For Q4 2025, Canadian Solar expects module shipments between 4.6-4.8 GW and battery energy storage shipments of 2.1-2.3 gigawatt-hours (GWh) [6] - Total revenues for Q4 are anticipated to be in the range of $1.3-$1.5 billion, with the Zacks Consensus Estimate for Q3 sales at $1.63 billion [6] - For the full year 2025, the company projects total module shipments of 25-30 GW and battery energy storage shipments of 14-17 GWh [7]