On March 19, CSI Solar Co., Ltd. (688472.SH) disclosed the fourth quarter and full-year 2025 results of its controlling shareholder, Canadian Solar Inc. (CSIQ), along with its outlook for 2026.
The data shows CSIQ achieved full-year 2025 revenue of $5.6 billion (approximately Yuan 39.98 billion). Module shipments reached 24.3 GW, with 8.1 GW delivered to the U.S. market, setting a new historical high for shipments in that region. Energy storage system shipments also hit a record 7.8 GWh, with the U.S. market accounting for 50% of the total.
Despite strong annual performance, CSIQ faced pressure in the fourth quarter due to the cyclical downturn in the photovoltaic industry, rising raw material costs, and delays in certain project deliveries. The quarter recorded revenue of $1.2 billion (approximately Yuan 8.5 billion) with a gross margin of 10.2%, showing significant declines both sequentially and year-over-year, resulting in a net loss of $86 million. Operating expenses benefited from reduced logistics costs.
Energy storage emerged as a key growth driver. By the end of 2025, e-STORAGE, CSI's energy storage technology arm, held a contract backlog valued at $3.6 billion (approximately Yuan 25.7 billion). CSIQ accelerated its localized manufacturing footprint in the U.S.: its 5 GW module factory in Mesquite, Texas, is now fully operational, with plans to expand to 10 GW in the second half of 2026. The first phase (2.1 GW) of its HJT solar cell factory in Indiana is expected to begin trial production in April 2026. Following the commissioning of the second phase (4.2 GW), CSIQ's total U.S. cell production capacity will reach 6.3 GW. Additionally, CSIQ completed a $230 million convertible bond issuance and established CSPowerTech, a U.S. manufacturing business platform.
Looking ahead to 2026, CSIQ forecasts first-quarter revenue between $900 million and $1.1 billion, with gross margins ranging from 13% to 15%. For the full year, it expects U.S. module shipments of 6.5 to 7.0 GW and energy storage shipments of 4.5 to 5.5 GWh. Dr. Shawn Qu, Founder and Chairman of CSIQ, stated that 2026 will be a transitional year. While U.S. module shipments may slightly decline--primarily due to limited availability of qualifying battery cells in the first half--the situation is expected to ease as its in-house cell production ramps up. The company will continue accelerating its U.S. manufacturing strategy to drive long-term profitability.
Regarding raw material price volatility risks, CSI Solar previously stated it effectively manages costs and safeguards profitability through hedging strategies and contract price linkage mechanisms.
Written by Cora Ji, jiruyan@mysteel.com
