Canadian Solar (CSIQ) investor relations material

Executive summary

• Q2 2026 revenue reached $1.2 billion, at the high end of guidance, with gross margin at 13.9% and net loss attributable to shareholders of $77 million ($1.40 per share), impacted by elevated freight and ramp-up costs.

• Recognized 3.1 GW of solar module shipments and 3.7 GWh of storage shipments, both at or above guidance, with 471 MWh shipped to internal projects.

• Manufacturing remains the primary financial driver, with a focus on high-margin regions and rapid scaling in energy storage.

• Opened the first phase of the HJT solar cell facility in Indiana, ramping to 2.1 GW capacity, with plans to reach 6.3 GW by 2027.

• Cash position at quarter end was $1.9 billion.

Financial highlights

• Revenue totaled $1.2 billion, gross margin was 13.9%, both in line with guidance; net loss attributable to shareholders was $77 million, or $1.40 per share.

• Operating loss was $49 million, driven by higher shipping and ramp-up costs.

• Net interest expense rose to $43 million, and a $9 million FX loss was recorded.

• Mark-to-market gain of $41 million from an equity investment helped buffer results.

• Total assets: $16.1 billion; total debt: $7.1 billion; net cash used in operations: $181 million.

Outlook and guidance

• Q3 2026 revenue expected between $1.3 billion and $1.5 billion, with gross margin of 13.5%-15.5%.

• Anticipates 3.5-3.8 GW of solar module and 3.4-3.8 GWh of storage deliveries in Q3.

• Full-year 2026 U.S. guidance: 6.5-7 GW module shipments, 4.5-5.5 GWh storage shipments.

• Expects sequential improvement as delayed project sales close and U.S. shipments accelerate.

• Margins expected to remain stable, but ramp-up costs in Indiana will weigh on profitability for the rest of 2026.