Core Viewpoint - Canadian Solar Inc. has successfully completed Large-Scale Fire Testing for its SolBank 3.0 energy storage system, demonstrating enhanced fire safety for utility-scale deployments [1][3]. Group 1: Testing and Safety - The Large-Scale Fire Testing (LSFT) was conducted under the CSA C-800:25 §9.7 protocol, which evaluates fire propagation risks between adjacent battery energy storage systems (BESS) [2]. - During the LSFT, all structural elements of the SolBank 3.0 remained intact, confirming its ability to contain thermal events within a single enclosure [2][3]. - The test results showed no fire propagation to adjacent units, validating the passive fire containment design of the SolBank 3.0 [3]. Group 2: Industry Impact and Leadership - Key stakeholders in the energy storage industry have expressed concerns about fire safety, and the successful testing of the e-STORAGE system addresses these concerns by demonstrating effective fire containment [4]. - The completion of LSFT positions e-STORAGE as a leader in safe and scalable energy storage solutions, reinforcing its commitment to exceed industry safety standards [4]. Group 3: Company Overview - Canadian Solar is a major player in the solar technology and renewable energy sector, having delivered nearly 157 GW of solar photovoltaic modules globally [5]. - As of March 31, 2025, e-STORAGE has shipped over 11 GWh of battery energy storage solutions and has a contracted backlog valued at $3.2 billion [5]. - The company has developed approximately 11.6 GWp of solar power projects and 4.5 GWh of battery energy storage projects globally, with a diversified project pipeline of 27 GWp of solar and 76 GWh of battery storage capacity [5].

Core Insights - Canadian Solar Inc. announced a contract through its subsidiary e-STORAGE to supply a 228 MW/912 MWh Battery Energy Storage System (BESS) for the Diego de Almagro Sur project in Chile [1][2] Company Overview - Canadian Solar is one of the largest solar technology and renewable energy companies globally, founded in 2001 and headquartered in Kitchener, Ontario [6] - The company has delivered nearly 150 GW of solar photovoltaic modules and has a contracted backlog of US$3.2 billion as of December 31, 2024 [6] - e-STORAGE, a subsidiary of Canadian Solar, specializes in battery energy storage systems and has an annual production capacity of 20 GWh [8] Project Details - The Diego de Almagro Sur BESS Project will utilize e-STORAGE's proprietary SolBank 3.0 technology, featuring lithium-iron-phosphate batteries and advanced cooling systems [2][4] - Construction is set to begin in June 2025, with commercial operation expected by December 2026, creating up to 150 jobs at peak activity [3] - The BESS will support the existing 232 MW Diego de Almagro Sur Solar Park, which has been operational since 2022 [3] Economic and Environmental Impact - The project aims to provide advanced grid services essential for integrating more renewable energy into Chile's national grid [4] - It is expected to generate a positive socio-economic impact in the Atacama Region by creating local jobs and utilizing local supply chains [4] - SolBank 3.0's efficiency and safety profile will help minimize environmental impact, aligning with Colbún's sustainability goals [4] Strategic Importance - The agreement positions Colbún as a leader in Chile's energy storage market, ensuring a secure supply of renewable energy for industrial clients [5] - The project is part of a broader strategy to enhance energy transition in Chile, emphasizing the importance of reliable and competitive renewable energy solutions [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company shipped 8.2 gigawatts of solar modules, totaling 31.1 gigawatts for the year, with total revenue of $6 billion [9][10] - Net income attributable to Canadian Solar shareholders was $34 million, or $0.48 per diluted share, impacted by various factors including inventory write-downs and project asset impairments [9][37] - The gross margin was significantly affected by duties, tariffs, and impairments, leading to a reduction of over 950 basis points [33][34] Business Line Data and Key Metrics Changes - CSI Solar achieved full-year revenue of $6.5 billion with a gross margin of 18.4%, maintaining profitability in both module and energy storage segments [18][19] - Energy storage shipments reached 2.2 gigawatt hours in Q4, totaling 6.6 gigawatt hours for the year, marking a 500% year-over-year increase [21][23] - Recurrent Energy had a challenging year with $188 million in revenue and a gross margin of 7.5%, impacted by project delays and impairments [30][31] Market Data and Key Metrics Changes - The U.S. market accounted for approximately 25% of global shipments, with a strategic focus on high-priced channels to maintain margins [19][76] - Polysilicon prices fell over 40% during the year, leading to a decline in module pricing, although the company managed to maintain higher blended prices [19][20] - The company anticipates continued consolidation in the solar market due to geopolitical uncertainties and structural overcapacity [10][42] Company Strategy and Development Direction - The company is focusing on expanding its U.S. manufacturing capabilities, with facilities expected to ramp up production in 2025 [14][16] - Canadian Solar aims to leverage its experience in global markets to adapt quickly to local production needs, enhancing its competitive edge [16][17] - The company is also investing in next-generation energy storage solutions to meet diverse market demands [12][13] Management Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the energy storage market despite challenges in the solar industry, with growing global demand [11][12] - The company expects an extended period of consolidation in the solar market, with operational and financial headwinds due to policy and trade-related challenges [10][42] - For 2025, the company forecasts total revenue between $7.3 billion and $8.3 billion, with module shipments expected to range from 30 to 35 gigawatts [40][42] Other Important Information - The company reported a net increase in cash of $682 million for the full year of 2024, with capital expenditures totaling $1.1 billion [38][39] - The backlog for energy storage projects stands at $3.2 billion, with a record pipeline of 79 gigawatt hours reflecting diversified global demand [23][24] Q&A Session Summary Question: Can you talk about how you see margins trending for your energy storage systems? - Management indicated that while there are changes in battery chemistry, they expect to maintain reasonable margins and pass on benefits to customers [44][45] Question: Can you discuss the guidance for module shipments and the factors driving it? - Management explained that the first quarter guidance implies a significant acceleration in the second half of the year, driven by stabilized prices and increased U.S. manufacturing volume [51][54] Question: What is the impact of tariffs on margins? - Management confirmed that tariffs are already factored into the cost structure, and they do not expect significant changes in margins moving forward [68][70] Question: How are you managing the impact of ADCVD tariffs? - Management noted that the ADCVD tariffs are impacting shipments from Southeast Asia, but they are increasing domestic production to mitigate these effects [101][104] Question: What is the outlook for energy storage margins? - Management stated that while competition is increasing, they expect to maintain margins in the 17% to 20% range for energy storage products [112][114]

Canadian Solar 4Q24 Earnings Call March 25, 2025 Canadian Solar Inc. Safe Harbor Statement This presentation has been prepared by the Company solely to facilitate the understanding of the Company's business model and growth strategy. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the ...