03:29:56 EDT Tue 09 Jun 2026
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Canadian Solar Reports Fourth Quarter and Full Year 2025 Results

2026-03-19 06:00 ET - News Release

Canadian Solar Reports Fourth Quarter and Full Year 2025 Results

PR Newswire

KITCHENER, ON, March 19, 2026 /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the fourth quarter and full year ended December 31, 2025.

Full Year 2025 Highlights

  • 24.3 GW of solar module shipments delivered globally, with record 8.1 GW delivered to the U.S. market.
  • Record 7.8 GWh of energy storage shipments delivered globally, with 3.9 GWh delivered to the U.S. market.
  • Energy storage contracted backlog increased to record $3.6 billion, as of March 13, 2026.
  • Completed a US$230 million convertible bond issuance to accelerate U.S. manufacturing initiatives.
  • Resumed direct oversight of U.S. operations, forming CS PowerTech as the new U.S. manufacturing platform.
  • Fully ramped up Texas module factory to an annual production run rate exceeding 5 GW, with planned expansion to nameplate capacity of 10 GWp by the second half of 2026.

Dr. Shawn Qu, Chairman and CEO, commented, "We demonstrated strategic resilience and operational discipline throughout a year defined by persistent market headwinds and a shifting regulatory landscape. In response to the prolonged solar downturn, we pivoted away from the industry's traditional focus on shipment volumes and instead took the lead by prioritizing margins and diversifying our profit drivers, notably energy storage. Our commitment to the U.S. market remains steadfast as we spearhead the reshoring of manufacturing to North America. Our solar module factory in Mesquite, Texas has fully ramped up, and we intend to double its nameplate capacity to support a more resilient domestic supply chain. We are moving in the equipment for the first phase of our solar cell plant in Jeffersonville, Indiana as we speak and expect to see the first cell come off the production line by the end of March, with full ramp up expected by the end of June. Furthermore, we are advancing the second phase, which once operational, will bring our U.S. cell capacity to 6.3 GWp, establishing the largest crystalline silicon technology footprint in the country."

Colin Parkin, President ofCanadian Solarand President of e-STORAGE, said, "We shipped 4.3 GW of solar modules this quarter, as we maintained our disciplined approach to order intake amid rising input costs, concluding the year with total shipments of 24.3 GW. Although site construction delays shifted certain energy storage volumes into the first quarter of 2026, we still delivered a record 7.8 GWh in global energy storage shipments. This represents robust double-digit growth, achieved while successfully navigating a turbulent policy environment. Our momentum is further evidenced by a record contracted backlog of $3.6 billion. As we direct our resources toward our comprehensive U.S. manufacturing strategy, we are proactively rebalancing our project development investments to optimize cash flow and manage leverage."

Ismael Guerrero, CEO of Canadian Solar's subsidiary Recurrent Energy, said, "Our quarterly revenue and margin profiles were impacted by delays in certain project sales, which have been pushed into 2026. We continue to shift our business mix toward the monetization of operating and under-construction assets to strengthen our balance sheet and improve cash flow. As we manage the pacing of construction activities, we are also optimizing our pipeline for quality, focusing on generating value from existing opportunities."

Xinbo Zhu, Senior VP and CFO, added, "For the fourth quarter, we reported revenue of $1.2 billion and a gross margin of 10.2%. Profitability was affected by sequentially lower global storage volumes and solar module deliveries to the North American market, delayed project sales, and project asset impairments. Capital expenditures in 2025 totaled $962 million, slightly below expectations, and we ended the year with a cash position of $1.9 billion."

Fourth Quarter 2025 Results

Total solar module shipments recognized as revenues in Q4 2025 were 4.3 GW, down 16% quarter-over-quarter ("qoq") and down 47% year-over-year ("yoy").

Net revenues were $1.2 billion in Q4 2025, down 18% sequentially and 20% yoy, mainly due to lower sales of solar modules and battery energy storage systems.

Gross profit was $124 million, compared to $256 million in Q3 2025 and $217 million in Q4 2024. Gross margin was 10.2%, compared to 17.2% and 14.3% in Q3 2025 and Q4 2024, respectively. The sequential decrease in gross margin was primarily due to the impairment charges related to certain project assets. The yoy decrease was driven by lower contribution from solar modules and project asset sales, partially offset by higher module ASPs.

Operating expenses were $188 million, down from $222 million in Q3 2025 and $344 million in Q4 2024 due to lower logistics costs. Operating expenses represented 15.5% of revenue, compared to 14.9% in Q3 2025 and 22.6% in Q4 2024.

Net loss attributable to Canadian Solar in accordance with generally accepted accounting principles in the United States of America ("GAAP") in Q4 2025 was $86 million, or a net loss of $1.66 per diluted share, compared to a net income of $9 million, or a net loss of $0.07 per diluted share, in the Q3 2025, and net income of $34 million, or $0.48 per diluted share, in Q4 2024. Net income/(loss) per diluted share includes the dilutive effect of convertible bonds, as applicable, and the Recurrent Energy redeemable preferred shares dividends.

Net cash flow used in operating activities in Q4 2025 was $65 million, driven by changes in working capital, specifically an increase in project assets, partially offset by a decrease in inventories, compared to net cash flow used in operating activities of $112 million in Q3 2025 and net cash flow provided by operating activities of $66 million in Q4 2024.

Total debt, including financing liabilities, was $6.5 billion as of December 31, 2025, including $3.8 billion, $2.5 billion and $0.2 billion related to Recurrent Energy, Manufacturing, and convertible notes, respectively. Total debt increased from $6.4 billion as of September 30, 2025, mainly due to new borrowings for construction of projects. Total non-recourse debt under Recurrent Energy as of December 31, 2025, was $2.2 billion.

Business Segments

On December 1, 2025, Canadian Solar announced a strategic initiative to resume direct oversight of its U.S. operations. The Company has formed a new joint venture with its majority-owned subsidiary, CSI Solar Co., Ltd. ("CSI Solar"), by holding a 75.1% controlling stake in CS PowerTech Inc. ("CS PowerTech"), which operates U.S.-based manufacturing and sales of solar modules, solar cells, and advanced energy storage systems. On December 16, 2025, CSI Solar's shareholders approved the proposed initiative.

Following the consummation of this strategic initiative, Canadian Solar's business is organized into two segments:

  • Manufacturing, comprising CS PowerTech, which focuses on manufacturing and sales of solar modules, battery energy storage products, and other power technology products for the U.S. market, and CSI Solar, which serves all other global markets; and
  • Recurrent Energy, which focuses on solar power and battery storage project development, asset sales, power services, and electricity revenue from its operating portfolio.

Manufacturing

Solar Modules and Solar System Kits

The Company shipped 4.3 GW of solar modules and solar system kits to more than 70 countries and regions in Q4 2025.

Consistent with the Company's transition from volume-driven growth to high-value creation, the Company will focus its disclosure on strategic markets rather than aggregate global manufacturing capacity.

In the U.S., the Company operates a 5 GWp solar module factory in Mesquite, Texas, which will be expanded to nameplate capacity of 10 GWp by the second half of 2026.

The Company is also continuing to advance its flagship, state-of-the-art heterojunction technology ("HJT") solar cell factory in Jeffersonville, Indiana. In response to strong customer demand, the Company is increasing its production capacity beyond 5?GWp, with additional production lines being installed and commissioned through 2026.

  • Phase I: Trial production is scheduled to begin by April 2026. Phase I has a nameplate capacity of 2.1 GWp and represents the only commercially operational HJT solar cell facility in the U.S.
  • Phase II: The Company expects to begin trial production for Phase II by the end of 2026. This expansion will add 4.2 GWp of capacity, bringing the Company's total solar cell nameplate capacity in the U.S. to 6.3 GWp.

e-STORAGE: Battery Energy Storage Solutions

As of March 13, 2026, e-STORAGE contracted backlog, including contracted long-term service agreements, stood at $3.6 billion. These signed orders carry contractual obligations to customers and provide significant earnings visibility over a multi-year period.

Recurrent Energy

As of December 31, 2025, the Company had a total global solar project development pipeline of approximately 24 GWp and a battery energy storage project development pipeline of 83 GWh.

The business model consists of three key drivers:

  • Electricity revenue from operating portfolio to drive stable, diversified cash flows in growth markets with stable currencies;
  • Asset sales, including selective operating assets in stable currency markets and assets in the rest of the world, to manage cash flow, debt level and to fund growth in operating portfolio; and
  • Power services (O&M) through long-term operations and maintenance ("O&M") contracts, currently with nearly 15 GW of contracted projects, to drive stable and long-term recurring earnings and synergies with the project development platform.

Project Development Pipeline - Solar

As of December 31, 2025, the Company's total solar project development pipeline was 24.4 GWp, including 1.6 GWp under construction, 3.2 GWp of backlog, and 19.6 GWp of projects in advanced and early-stage development, defined as follows:

  • Backlogprojects are late-stage projects that have passed their risk cliff date and are expected to start construction within the next one to four years. A project's risk cliff date is the date on which it passes the last high-risk development stage and varies by country. Typically, this occurs after the project has received all required environmental and regulatory approvals, and entered into interconnection agreements and offtake contracts, including feed-in tariff ("FIT") arrangements and power purchase agreements ("PPAs"). A significant majority of backlog projects are contracted (i.e., have secured a PPA or FIT), and the remainder have a reasonable assurance of securing PPAs.
  • Advanced pipeline projects are mid-stage projects that have secured or are more than 90% likely to secure an interconnection agreement.
  • Early-stage pipeline projects are early-stage projects controlled by the Company that are in the process of securing interconnection.

While the magnitude of the Company's project development pipeline is an important indicator of potential increases in power generation and battery energy storage capacity, as well as potential future revenue growth, the development of projects in its pipeline is inherently uncertain. If the Company does not successfully complete the pipeline projects in a timely manner, it may not realize the anticipated benefits of those projects to the extent expected, which could adversely affect its business, results of operations, and financial condition. In addition, the Company's guidance and estimates of its future operating and financial results assume the completion of certain solar projects and battery energy storage projects in its pipeline. If the Company is unable to execute on its actionable pipeline, it may fail to meet its guidance, which could adversely affect the market price of its common shares and its business, results of operations, and financial condition.

The following table presents the Company's total solar project development pipeline.

                                                       
        
          Solar Project Development Pipeline (as of December 31, 2025) - MWp*


                            
        
          Region                                                          Under                       Backlog              Advanced             Early-Stage    Total
                                                                                                   Construction                                      Development            Development


                              
        North America                                                              276                            556                    427                    3,923     5,182



 Europe, the Middle East, and Africa ("EMEA")                                                                    674                        1,687**                 1,033                    4,995     8,389


                              
        Latin America                                                            128**                           374                    352                    6,256     7,110


                              
        Asia Pacific                                                               492                          616**                   546                    2,080     3,734


                            
        
          Total                                                           1,570                          3,233                  2,358                   17,254    24,415





 
          *All numbers are gross MWp.


 
          **Including 63 MWp under construction and 441 MWp in backlog that are owned by or already sold to third parties.

Project Development Pipeline - Battery Energy Storage

As of December 31, 2025, the Company's total battery energy storage project development pipeline was 83.5 GWh, including 6.2 GWh under construction and in backlog, and 77.3 GWh of projects in advanced and early-stage development.

The table below sets forth the Company's total battery energy storage project development pipeline.

                        
          
            Battery Energy Storage Project Development Pipeline (as of December 31, 2025) - MWh*


                     Region                                Under                           Backlog                           Advanced               Early-Stage    Total
                                            Construction                                                        Development             Development


    North America                                            600                                200                                 600                     21,540    22,940


     
          EMEA                             
          43**                           2,590**                              3,829                     31,955    38,417


           Latin America                                       -                                                                1,320                      4,645     5,965


  
         Asia Pacific                                     162                              2,640                               2,981                     10,380    16,163


                      Total                                  805                              5,430                               8,730                     68,520    83,485





   
            *All numbers are gross MWh.



   
            **Including 13 MWh under construction and 1,194 MWh in backlog that are owned by third parties.

Business Outlook

The Company's business outlook is based on management's current views and estimates given factors such as existing market conditions, order book, production capacity, input material prices, foreign exchange fluctuations, the anticipated timing of project sales, and the global economic environment. This outlook is subject to uncertainty with respect to, among other things, customer demand, project construction and sale schedules, product sales prices and costs, supply chain constraints, and geopolitical conflicts. Management's views and estimates are subject to change without notice.

In Q1 2026, the Company expects total revenue to be in the range of $900 million to $1.1 billion. Gross margin is expected to be between 13% and 15%. Total module shipments recognized as revenues are expected to be in the range of 2.2 GW to 2.4 GW. Total battery energy storage shipments in Q1 2026 are expected to be in the range of 1.7 GWh to 1.9 GWh.

The Company is issuing new guidance of 6.5 to 7.0 GW of solar modules and 4.5 to 5.5 GWh of battery energy storage solutions to the U.S. in 2026.

Dr. Shawn Qu, Chairman and CEO, commented, "While the first quarter tends to be seasonally softer, we are navigating a complex macro environment, including elevated and volatile input costs across supply chains and policy uncertainty in key markets. In our project development business, we are rebalancing toward asset monetization and optimizing our cost structure. Our solar module shipments in the U.S. are expected to be slightly lower in 2026 than in 2025, primarily due to a limited supply of solar cells qualified as non-PFE under the OBBBA in the first half of the year. The high cost of such cells will also affect our profitability. I believe this is temporary, as our own production will ramp up in Q2 and Q3. 2026 will be a transition year, as we accelerate our U.S. manufacturing roadmap and diversify our long-term profitability drivers."

Recent Developments

Canadian Solar

On January 15, 2026, Canadian Solar announced a decisive victory in litigation proceedings against Maxeon Solar Pte. Ltd. ("Maxeon") before the Patent Trial and Appeal Board ("PTAB") of the United States Patent and Trademark Office ("USPTO"). In Final Written Decisions, the PTAB ruled in Canadian Solar's favor, holding that all claims asserted by Maxeon against Canadian Solar relating to the alleged infringement of the patents at issue in the federal court litigation are invalid.

On January 13, 2026, Canadian Solar announced the closing of its previously announced offering of US$230 million aggregate principal amount of 3.25% convertible senior notes due 2031 (the "Notes"), including the full exercise of the initial purchasers' option to purchase an additional US$30 million aggregate principal amount of the Notes. The Notes were offered in a Rule 144A private offering. The net proceeds from the offering were approximately US$223.1 million, after deducting the initial purchasers' discount and estimated offering expenses.

On December 24, 2025, Canadian Solar announced the appointment of Colin Parkin as a member of its board of directors (the "Board") and his promotion to President of Canadian Solar. Parkin succeeds Yan Zhuang on the Company's Board and assumes the role of the Company's President from Dr. Shawn Qu. Dr. Qu, the Founder of Canadian Solar, continues to serve as the Company's Chairman and Chief Executive Officer. In conjunction with Parkin's appointment, the Board also appointed Dylan Marx as Chief Operating Officer.

On December 1, 2025, Canadian Solar announced a strategic initiative to resume direct oversight of its U.S. operations and continue reshoring manufacturing to North America. On December 16, 2025, the shareholders of its majority-owned subsidiary CSI Solar approved the proposed initiative. Canadian Solar has formed a new joint venture with CSI Solar by holding a 75.1% controlling stake in CS PowerTech, which operates U.S.-based manufacturing and sales of solar modules, solar cells, and advanced energy storage systems.

Manufacturing: CS PowerTech and CSI Solar

On March 17, 2026, Canadian Solar announced that it had entered into an agreement with a major U.S. utility for a 500 MW / 2,493 MWh DC battery energy storage system ("BESS") project, supporting data center grid infrastructure and resiliency. Shipments are expected to start in March 2027 and be completed by July 2027.

On February 11, 2026, Canadian Solar announced the delivery of its first grid-connected battery energy storage system in Japan, with a rated output of 2 MW and an energy capacity of 8.25 MWh DC. The project was developed by Canadian Solar Projects K.K. e-STORAGE was responsible for the design, engineering, and commissioning of the project, and will also provide long-term maintenance and inspection services throughout the operational life of the BESS.

On February 5, 2026, Canadian Solar announced that it had signed agreements for the supply and long-term servicing of two standalone battery energy storage projects totaling 503 MWh DC in Franklin County, Texas. The projects, collectively referred to as the Lupinus projects, are being developed by Sunraycer. They comprise Lupinus 1, a 202 MWh facility expected to begin construction in Q1 2027 and reach commercial operation in Q3 2027, and Lupinus 2, a 301 MWh facility scheduled to start construction in Q3 2026 and achieve commercial operation in Q2 2027.

On December 17, 2025, Canadian Solar announced that it would deliver 408 MWh AC Battery Energy Storage System to Vena Energy for its Tailem Bend 3 project in South Australia. The project is under construction and is targeted to begin operation in 2027. Under an initial 5-year Long Term Service Agreement, Canadian Solar's e-STORAGE will also be responsible for maintenance of the battery energy storage system.

Recurrent Energy

On February 24, 2026, Canadian Solar announced that it had completed the sale of its 200 MWh Fort Duncan Battery Storage facility to Hunt Energy Network. Canadian Solar expects to recognize the revenue from the transaction in the first quarter of 2026. Located in Maverick County, Texas, Fort Duncan Battery Storage reached commercial operation in June 2025. The Company had secured $183 million in project financing and tax equity for the storage facility.

On December 2, 2025, Canadian Solar announced that it had been granted a Development Consent Order ("DCO") for its Tillbridge solar and battery energy storage project, located in Lincolnshire, England. The proposed project combines 800 MW of solar PV and 500 MW / 1,000 MWh of battery energy storage. The DCO was awarded by the UK Secretary of State for the Department for Energy Security and Net Zero. Once operational, Tillbridge will become one of the largest hybrid solar and storage facilities in the United Kingdom.

Conference Call Information

The Company will hold a conference call on Thursday, March 19, 2026, at 8:00 a.m. U.S. Eastern Time to discuss the Company's fourth quarter and full year 2025 results and business outlook. The dial-in phone number for the live audio call is +1-877-704-4453 (toll-free from the U.S.) or +1-201-389-0920 from international locations. The conference ID is 13758808. A live webcast of the conference call will also be available on the investor relations section of Canadian Solar's website at www.canadiansolar.com.

A replay of the call will be available after the conclusion of the call until 11:00 p.m. U.S. Eastern Time on Thursday, April 2, 2026 and can be accessed by dialing +1-844-512-2921 (toll-free from the U.S.) or +1-412-317-6671 from international locations. The replay pin number is 13758808. A webcast replay will also be available on the investor relations section of Canadian Solar's website at www.canadiansolar.com.

AboutCanadian Solar Inc.

Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario, the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 25 years, Canadian Solar has successfully delivered over 174 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 18 GWh of battery energy storage solutions to global markets as of December 31, 2025, boasting a $3.6 billion contracted backlog as of March 13, 2026. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12 GWp of solar power projects and 6.2 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 24 GWp of solar and 83 GWh of battery energy storage capacity in various stages of development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release, including those regarding the Company's expected future shipment volumes, revenues, gross margins, and project sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "may", "will", "expect", "anticipate", "future", "ongoing", "continue", "intend", "plan", "potential", "prospect", "guidance", "believe", "estimate", "is/are likely to" or similar expressions, the negative of these terms, or other comparable terminology. These forward-looking statements include, among other things, our expectations regarding global electricity demand and the adoption of solar and battery energy storage technologies; our growth strategies, future business performance, and financial condition; our transition to a long-term owner and operator of clean energy assets and expansion of project pipelines; our ability to monetize project portfolios, manage supply chain fluctuations, and respond to economic factors such as inflation and interest rates; our outlook on government incentives, trade measures, regulatory developments, and geopolitical risks; our expectations for project timelines, costs, and returns; competitive dynamics in solar and storage markets; our ability to execute supply chain, manufacturing, and operational initiatives; access to capital, debt obligations, and covenant compliance; relationships with key suppliers and customers; technological advancement and product quality; and risks related to intellectual property, litigation, and compliance with environmental and sustainability regulations. Other risks were described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 30, 2025. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:


          Wina Huang


          Investor Relations


          Canadian Solar Inc.


          
            investor@canadiansolar.com

FINANCIAL TABLES FOLLOW

The following tables provide unaudited select financial data for the Company's Manufacturing and Recurrent Energy businesses.

                                                                                                                                                   Select Financial Data - Manufacturing and Recurrent
                                                                                                                                                                          Energy


                                                                                                                                                     Three Months Ended and As of December 31, 2025

                                                                                                                                      
          
            (In Thousands of U.S. Dollars)


                                                                                                               Manufacturing                                Recurrent                                Elimination        Total
                                                                                                                                                  Energy                                      and
                                                                                                                                                                                         unallocated
                                                                                                                                                                                             items



          Net revenues                                                                                           $1,263,572                                   $67,043                                  $(113,406)   $1,217,209



          Cost of revenues                                                                                        1,080,512                                    89,741                                    (77,445)    1,092,808



          Gross profit                                                                                              183,060                                  (22,698)                                   (35,961)      124,401



          Operating expenses                                                                                        145,792                                    46,282                                     (3,612)      188,462



          Income (loss) from operations                                                                              37,268                                  (68,980)                                   (32,349)     (64,061)



          Other segment items (1)                                                                                                                                                                                   (54,465)



          Loss before income taxes and                                                                                                                                                                             (118,526)
  equity in losses of affiliates





          
            Supplementary Information:



          Interest expense                                                                                        $(14,909)                                $(29,987)                                   $(3,562)    $(48,458)



          Interest income                                                                                             7,241                                     1,592                                         127         8,960



          Depreciation and amortization,                                                                            119,566                                    13,210                                                  132,776
   included in cost of revenues and
   operating expenses





          Cash and cash equivalents                                                                              $1,214,433                                   $89,936                                     $66,049    $1,370,418



          Restricted cash - current and non-                                                                        436,561                                   133,456                                                  570,017
   current



          Non-recourse borrowings                                                                                                                          2,168,485                                                2,168,485



          Other short-term and long-term                                                                          2,417,322                                 1,424,462                                                3,841,784
   borrowings



          Convertible notes - non-current                                                                                                                                                               195,313       195,313



          Green bonds - current                                                                                                                              153,152                                                  153,152




                                                                                                               Select Financial Data - Manufacturing and Recurrent
                                                                                                                Energy


                                                                                                                                                          Twelve Months Ended December 31, 2025

                                                                                                                                     
          
            (In Thousands of U.S. Dollars)


                                                                                                               Manufacturing                                Recurrent                                Elimination        Total
                                                                                                                                                  Energy                                      and
                                                                                                                                                                                         unallocated
                                                                                                                                                                                             items



          Net revenues                                                                                           $5,612,124                                  $403,620                                  $(420,637)   $5,595,107



          Cost of revenues                                                                                        4,669,608                                   320,166                                   (420,893)    4,568,881



          Gross profit                                                                                              942,516                                    83,454                                         256     1,026,226



          Operating expenses                                                                                        743,959                                   236,111                                       3,000       983,070



          Income (loss) from operations                                                                             198,557                                 (152,657)                                    (2,744)       43,156



          Other segment items (1)                                                                                                                                                                                  (183,895)



          Loss before income taxes and                                                                                                                                                                             (140,739)
  equity in losses of affiliates





          
            Supplementary Information:



          Interest expense                                                                                        $(64,284)                                $(99,114)                                  $(14,768)   $(178,166)



          Interest income                                                                                            34,794                                     8,678                                       2,582        46,054



          Depreciation and amortization,                                                                            498,026                                    57,027                                                  555,053
   included in cost of revenues and
   operating expenses





          
            (1) Includes interest expense, net, loss on change in fair value of derivatives, net, foreign exchange loss, net and investment income, net.

The following table summarizes the revenues generated from each product or service.

                                                            Three Months                 Three Months                                Three Months

                                                                Ended                        Ended                                      Ended

                                                               December                  September 30                                December 31
                                                                31, 2025                        , 2025                                       , 202
                                                                                                                                                 4


                                                                      
    
  (In Thousands of U.S. Dollars)



          
            Manufacturing:



          Solar modules                                         $718,597                      $839,421                                     $944,055



          Battery energy storage solutions                       296,848                       486,033                                      241,942



          Solar system kits                                       35,409                        29,874                                       77,619



          EPC and others                                         101,412                        29,793                                       74,607



          
            Subtotal                                1,152,266                     1,385,121                                    1,338,223



          
            Recurrent Energy:



          Solar power and battery energy storage asset            15,975                        39,770                                      137,890
sales



          Power services                                          20,286                        19,892                                       20,232



          Revenue from electricity, battery energy storage        28,682                        42,619                                       24,896
operations and others



          
            Subtotal                                   64,943                       102,281                                      183,018



          
            Total net revenues                     $1,217,209                    $1,487,402                                   $1,521,241




                                                                Twelve
                                                             Months Ended                           Twelve
             Months Ended

                                                               December
                                                                31, 2025                                    December 31, 2024


                                                                     
    
  (In Thousands of U.S. Dollars)



          
            Manufacturing:



          Solar modules                                       $3,377,706                                                             $4,281,178



          Battery energy storage solutions                     1,370,590                                                                814,604



          Solar system kits                                      224,621                                                                398,173



          EPC and others                                         227,855                                                                181,422



          
            Subtotal                                5,200,772                                                              5,675,377



          
            Recurrent Energy:



          Solar power and battery energy storage asset           175,987                                                                156,686
sales



          Power services                                          75,486                                                                 69,972



          Revenue from electricity, battery energy storage       142,862                                                                 91,374
operations and others



          
            Subtotal                                  394,335                                                                318,032



          
            Total net revenues                     $5,595,107                                                             $5,993,409

                                                                                                                                    
          
            Canadian Solar Inc.


                                                                                                                        
    
           Unaudited Condensed Consolidated Statements of Operations


                                                                                                                      
    
          (In Thousands of U.S. Dollars, Except Share and Per Share Data)




                                                                                                               
         
     Three Months Ended                                                                                Twelve
             Months
                                                                                                                                                                                                                                                      Ended


                                                                                            December 31,                             September 30,                                        December 31,                  December 31,                        December 31,


                                                                                                    2025                                       2025                                                 2024                           2025                                 2024





          
            Net revenues                                             $1,217,209                $1,487,402                                    $1,521,241                                          $5,595,107                      $5,993,409



          Cost of revenues                                                       1,092,808                 1,231,101                                     1,304,205                                           4,568,881                       4,994,090


                                                                               Gross profit        124,401                                    256,301                                              217,036                      1,026,226                              999,319





          Operating expenses:


                                                                  Selling and distribution          81,047                                    101,298                                              131,671                        382,591                              487,947
                                                       expenses


                                                                  General and
                                                                   administrative                  106,946                                    116,539                                              219,611                        581,807                              515,204
                                                       expenses


                                                                  Research and development          21,683                                     19,999                                               30,476                         90,685                              120,792
                                                       expenses


                                                                  Other operating income,
                                                                   net                            (21,214)                                  (16,124)                                            (37,625)                      (72,013)                            (94,543)



          
            Total operating expenses                                    188,462                   221,712                                       344,133                                             983,070                       1,029,400




                        Income (loss) from operations                              (64,061)                   34,589                                     (127,097)                                             43,156                        (30,081)



          Other income (expenses):


                                                                  Interest expense                (48,458)                                  (44,414)                                            (35,395)                     (178,166)                           (137,468)


                                                                  Interest income                    8,960                                     15,078                                               26,301                         46,054                               88,470


                                                                  Loss on change in fair
                                                                   value                           (7,052)                                  (20,571)                                            (49,719)                      (42,422)                            (51,400)
                                                       of derivatives, net


                                                                  Foreign exchange gain            (8,035)                                     3,188                                               40,013                       (16,751)                              46,750
                                                       (loss), net


                                                                  Investment income
                                                                   (loss),                             120                                      4,514                                              (1,334)                         7,390                                1,427
                                                       net



          
            Total other expenses                                       (54,465)                 (42,205)                                     (20,134)                                          (183,895)                       (52,221)





          
            Loss before income taxes and                              (118,526)                  (7,616)                                    (147,231)                                          (140,739)                       (82,302)
equity in earnings (losses) of
affiliates



          Income tax benefit (expense)                                               4,178                   (7,138)                                       11,707                                            (14,149)                         16,576



          Equity in earnings (losses) of                                          (16,453)                  (6,324)                                           85                                            (28,875)                       (12,136)
affiliates



          
            Net loss                                                  (130,801)                 (21,078)                                    (135,439)                                          (183,763)                       (77,862)





          Less: net loss attributable to                                          (44,463)                 (30,064)                                    (169,342)                                           (79,637)                      (113,913)
non-controlling interests and
redeemable non-controlling
interests




                        Net income (loss) attributable                            $(86,338)                   $8,986                                       $33,903                                          $(104,126)                        $36,051
to Canadian Solar Inc.





          Earnings (loss) per share - basic                                        $(1.66)                  $(0.07)                                        $0.51                                             $(2.50)                          $0.54



          Shares used in computation -                                          67,712,693                67,620,463                                    66,947,055                                          67,368,537                      66,616,400
basic



          Earnings (loss) per share -                                              $(1.66)                  $(0.07)                                        $0.48                                             $(2.50)                          $0.54
diluted



          Shares used in computation -                                          67,712,693                67,620,463                                    73,363,174                                          67,368,537                      66,939,428
diluted

                                                       
          
            Canadian Solar Inc.


                                             
 
    Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)


                                                 
          
            (In Thousands of U.S. Dollars)




                                                                      Three Months Ended                                                            Twelve
         Months
                                                                                                                                                             Ended


                                                  December 31                              September 30                       December              December               December
                                                                                                           ,                                  3                      3                       3
                                                               ,
                                                                                                                                                1                      1                       1
                                                                                                                                       ,                     ,                      ,


                                                            2025                                         2025                                  2024                   2025                    2024



          
            Net loss                      $(130,801)                                   $(21,078)                           $(135,439)            $(183,763)              $(77,862)



          
            Other comprehensive
income (loss), net of tax:



          Foreign currency                               39,752                                        4,013                             (129,573)               141,031               (112,941)
translation adjustment



          Gain (loss) on changes                          1,941                                      (1,939)                                  679                    363                   2,223
in fair value of available-
for-sale debt securities



          Gain (loss) on interest                         7,955                                        (452)                                6,821                (3,726)                (1,569)
rate swap



          Share of gain (loss) on                         (443)                                                                            1,626                (2,304)                    693
changes in fair value of
interest rate swap of
affiliate


                        Comprehensive loss              (81,596)                                    (19,456)                            (255,886)              (48,399)              (189,456)



          Less: comprehensive                          (31,664)                                    (28,806)                            (194,803)              (59,383)              (145,860)
loss attributable to non-
controlling interests and
redeemable non-
controlling interests


                        Comprehensive income           $(49,932)                                      $9,350                             $(61,083)               $10,984               $(43,596)
(loss) attributable to
Canadian Solar Inc.

                                       
          
            Canadian Solar Inc.


                         
          
            Unaudited Condensed Consolidated Balance Sheets



   
            (In Thousands of U.S. Dollars)




                                                                               December 31

                                                                                           ,     December 31,


                                                                                        2025              2024



   
            ASSETS



   
            Current assets:


      Cash and cash equivalents                                                   $1,370,418        $1,701,487


      Restricted cash                                                                541,705           551,387


      Accounts receivable trade,
       net                                                                           829,957         1,118,770


      Accounts receivable,
       unbilled                                                                      228,393           142,603


      Amounts due from related
       parties                                                                        17,959             5,220


  
   Inventories                                                                  1,133,539         1,206,595


      Value added tax recoverable                                                    252,251           221,539


      Advances to suppliers, net                                                     217,871           124,440


      Derivative assets                                                               15,002            14,025


  
   Project assets                                                                 549,269           394,376


      Prepaid expenses and other
       current assets                                                                822,502           436,635



   
            Total current assets                                              5,978,866         5,917,077



   Restricted cash                                                                   28,312            11,147



   Property, plant and equipment, net                                             3,376,035         3,174,643



   Solar power and battery energy storage systems,                                2,065,498         1,976,939
net



   Deferred tax assets, net                                                         634,160           473,500



   Advances to suppliers, net                                                       104,518           118,124



   Investments in affiliates                                                        289,601           232,980



   Intangible assets, net                                                            31,981            31,026



   Project assets                                                                 1,481,486           889,886



   Right-of-use assets                                                              441,291           378,548



   Amounts due from related parties                                                  76,848            75,215



   Other non-current assets                                                         663,133           232,465



   
            TOTAL ASSETS                                                    $15,171,729       $13,511,550

                                                                      
         
            Canadian Solar Inc.


                                                 
          
           Unaudited Condensed Consolidated Balance Sheets (Continued)


                                                                
         
            (In Thousands of U.S. Dollars)




                                                                                                 December 31

                                                                                                             ,                          December 31,


                                                                                                                    2025                         2024



          
            LIABILITIES, REDEEMABLE INTERESTS AND
EQUITY



          
            Current liabilities:


                                                                         
          Short-term borrowings                    $2,389,037               $1,873,306


                                                                         
          Convertible notes                                                   228,917


                                                                         
          Green bonds                                 153,152


                                                                         
          Accounts payable                            878,827                1,062,874


                                                                         
          Short-term notes payable                    939,549                  637,512


                                                                                    Amounts due to related parties                7,484                    3,927


                                                                         
          Other payables                              779,198                  984,023


                                                                         
          Advances from customers                     162,586                  204,826


                                                                         
          Derivative liabilities                        6,179                   13,738


                                                                         
          Operating lease liabilities                  26,783                   21,327


                                                                         
          Other current liabilities                   507,594                  388,460



          
            Total current liabilities                                                              5,850,389                    5,418,910



          Long-term borrowings                                                                                3,621,232                    2,731,543



          Convertible notes                                                                                     195,313



          Green bonds                                                                                                                       146,542



          Liability for uncertain tax positions                                                                   5,788                        5,770



          Deferred tax liabilities                                                                              296,719                      204,832



          Operating lease liabilities                                                                           354,508                      271,849



          Other non-current liabilities                                                                         578,152                      582,301



          
            TOTAL LIABILITIES                                                                     10,902,101                    9,361,747



          
            Redeemable non-controlling interests                                                     326,559                      247,834





          
            Equity:


                                                                         
          Common shares                               835,543                  835,543


                                                                         
          Additional paid-in capital                  568,921                  590,578


                                                                         
          Retained earnings                         1,481,632                1,585,758


                                                                                    Accumulated other comprehensive loss       (78,125)               (196,379)



          
            Total Canadian Solar Inc. shareholders' equity                                         2,807,971                    2,815,500



          Non-controlling interests                                                                           1,135,098                    1,086,469



          
            TOTAL EQUITY                                                                           3,943,069                    3,901,969



          
            TOTAL LIABILITIES, REDEEMABLE                                                        $15,171,729                  $13,511,550
INTERESTS AND EQUITY

  
          
            Canadian Solar Inc.

  
          
            Unaudited Condensed Statements of Cash Flows

  
          
            (In Thousands of U.S. Dollars)




                                                                                
 
 Three Months Ended                                      Twelve
     Months
                                                                                                                                                       Ended


                                                                 December             September          December              December                      December
                                                                            3                        30,                   3                       3                              3

                                                                              1                                             1                       1                              1
                                                                     ,                                            ,                      ,                             ,


                                                                           2025                     2025                  2024                    2025                           2024


                          Operating Activities:


             Net loss                                                $(130,801)               $(21,078)           $(135,439)             $(183,763)                     $(77,862)


             Adjustments
              to net loss                                               158,944                  213,292               454,591                 900,090                        844,537


             Changes in
              operating                                                (93,177)               (304,274)            (252,686)              (969,068)                   (1,651,999)
  assets and liabilities


             Net cash
              (used in)                                                (65,034)               (112,060)               66,466               (252,741)                     (885,324)
  provided by operating
  activities




                          Investing Activities:


             Purchase of
              property,                                               (266,377)               (266,768)            (212,098)              (962,254)                   (1,106,173)
  plant and equipment
  and intangible assets


             Purchase of
              solar                                                    (53,105)                (27,685)            (326,081)              (429,192)                     (757,577)
  power and battery
  energy storage systems


             Other
              investing                                                  20,946                    6,789              (95,730)              (112,044)                      (98,507)
  activities


             Net cash
              used in
              investing                                               (298,536)               (287,664)            (633,909)            (1,503,490)                   (1,962,257)
  activities




                          Financing Activities:


             Proceeds
              from                                                            -                                     (14,756)                                              482,244
  subsidiary's issuance of
  preferred shares, net



          Capital contributions                                            750                  200,301               196,058                 215,731                        226,935
from tax equity
investors in subsidiaries


             Repurchase
              of shares                                                (24,510)                                      (1,894)               (70,135)                      (79,582)
  by subsidiary


             Other
              financing                                                  45,561                  110,110              (41,940)              1,201,909                      1,690,174
  activities


             Net cash
              provided
              by                                                         21,801                  310,411               137,468               1,347,505                      2,319,771
  financing activities


             Effect of
              exchange
              rate                                                      102,273                    5,035             (133,798)                 85,140                      (154,601)
  changes


             Net
              decrease
              in cash,                                                (239,496)                (84,278)            (563,773)              (323,586)                     (682,411)
  cash equivalents and
  restricted cash


                          Cash, cash
                           equivalents                               $2,179,931               $2,264,209            $2,827,794              $2,264,021                     $2,946,432
  and restricted cash at
  the beginning of the
  period


                          Cash, cash
                           equivalents                               $1,940,435               $2,179,931            $2,264,021              $1,940,435                     $2,264,021
  and restricted cash at
  the end of the period

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SOURCE Canadian Solar Inc.

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