Canadian Solar Q2 Module Shipments Down 60% Year-Over-Year

en.Wedoany.com Reported - On August 27, Canadian Solar released its second-quarter operating results for the period ended June 30, 2026. Module shipments recognized in revenue totaled 3.1 GW, up 25% quarter-over-quarter and down 60% year-over-year, with shipment volumes approaching the 2.9 GW recorded in the second quarter of 2020. Products were sold to over 70 countries and regions, with nearly half going to the North American market.

Second-quarter net revenue was $1.2 billion, up 12% quarter-over-quarter and down 29% year-over-year. Increased sales of modules and battery energy storage systems drove the sequential revenue recovery, partially offset by lower project sales; the year-over-year decline was primarily attributable to reduced module and solar project sales. Quarterly gross profit fell to $168 million from $271 million in the first quarter, with gross margin declining to 13.9% from 25.1%, compared with 29.8% in the same period last year. The quarter did not include the tariff rebate gains recognized in the first quarter, nor the release of unrealized profits from U.S. project sales-type leases recorded in the year-ago period.

Quarterly operating expenses were $240 million, up from $198 million in the first quarter, with incremental costs primarily driven by U.S. manufacturing capacity ramp-up and logistics expenses; operating expenses remained below the $378 million recorded in the same period last year, partly due to reduced impairment charges on certain solar, energy storage, and manufacturing assets. Net loss attributable to Canadian Solar widened to $77 million, or $1.40 per share, compared with a net loss of $32 million in the first quarter and net income of $7 million in the year-ago period. Quarterly net cash outflow from operating activities was $181 million, with a period-end cash balance of $1.9 billion.

During the module business contraction, battery energy storage systems emerged as the primary growth driver. Second-quarter energy storage system shipments recognized in revenue reached 3.7 GWh, up 82% quarter-over-quarter and 73% year-over-year; of this total, 471 MWh was supplied to internal projects under execution, with related revenue to be recognized in subsequent quarters. As of the end of June, e-STORAGE's contracted backlog formed by signed orders and long-term service agreements stood at $3.5 billion.

Canadian Solar is expanding its U.S. domestic manufacturing capacity. The Mesquite, Texas module facility currently has a nominal capacity of 5 GWp, with plans to expand to 10 GWp in the second half of 2026. Phase 1 of the Jeffersonville, Indiana heterojunction cell facility has a nominal capacity of 2.1 GWp, with Phase 2 adding 4.2 GWp and scheduled to begin trial production in the first quarter of 2027, bringing total nominal U.S. cell capacity to 6.3 GWp. Installation and commissioning of related production lines will continue through the end of 2026, and ramp-up costs are expected to continue impacting profitability for the remainder of the year.

The company expects third-quarter module shipments of 3.5 GW to 3.8 GW and energy storage system shipments of 3.4 GWh to 3.8 GWh; quarterly revenue is expected to be $1.3 billion to $1.5 billion, with gross margin expected at 13.5% to 15.5%. The 2026 U.S. market guidance remains unchanged at 6.5 GW to 7.0 GW for module shipments and 4.5 GWh to 5.5 GWh for energy storage system shipments.