Canadian Solar (CSIQ) investor relations material

Executive summary

• Delivered 7.9 GW of module shipments, a 14% sequential increase, and 2.2 GWh of storage, with revenue at $1.7 billion; storage shipments lagged guidance due to tariff and project timing impacts.

• Gross margin reached 29.8%, exceeding guidance, driven by a favorable North American mix and robust storage performance.

• Net income attributable to shareholders was $7 million, or a net loss of $0.08 per diluted share, affected by non-recurring expenses and preferred dividend impact.

• Operating cash inflow was $189 million, with a quarter-end cash position of $2.3 billion.

• Industry faced a challenging policy environment, including OBBBA, FEOC requirements, and trade headwinds.

Financial highlights

• Net revenues were $1.7 billion, up 42% sequentially and 4% year-over-year, mainly from higher battery storage and module sales.

• Gross margin was 29.8% (21.6% excluding one-time impact), up from 11.7% in Q1; gross profit reached $505 million.

• Operating expenses rose to $378 million, mainly due to non-recurring items and asset impairments.

• Net cash inflow from operations was $189 million, driven by inventory decreases.

• Total debt increased to $6.3 billion, with cash and equivalents at $2.3 billion at quarter end.

Outlook and guidance

• Q3 2025 module shipment guidance: 5–5.3 GW; storage shipments: 2.1–2.3 GWh; revenue: $1.3–$1.5 billion; gross margin: 14–16%.

• Full-year 2025 module shipment guidance narrowed to 25–27 GW; storage shipment guidance at 7–9 GWh; revenue guidance revised to $5.6–$6.3 billion.

• Margin pressure anticipated in the second half due to rising supply chain costs and normalizing storage margins.

• Plans to gradually reduce leverage in response to profitability pressures.