Canadian Solar (NASDAQ:CSIQ) Posts Earnings Results, Misses Expectations By $0.56 EPS

Canadian Solar (NASDAQ:CSIQ) announced its quarterly earnings results on Thursday. The solar energy provider reported ($1.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.10) by ($0.56), FiscalAI reports. The firm had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.37 billion. Canadian Solar had a negative net margin of 1.86% and a negative return on equity of 4.96%. The company’s revenue for the quarter was down 20.0% on a year-over-year basis. During the same period in the prior year, the business earned $0.48 earnings per share.

Here are the key takeaways from Canadian Solar’s conference call:

• Canadian Solar is aggressively reshoring U.S. manufacturing — Mesquite modules ramped to >5 GW and are being expanded to 10 GW, while the Jeffersonville HJT cell plant (2.1 GWp phase 1, 4.2 GW phase 2) targets a total 6.3 GWp, positioning the company as the largest U.S. crystalline‑silicon cell/module manufacturer.
• Despite a 160 bps YoY gross‑margin improvement, 2025 revenue was $5.6B and the company recorded a full‑year net loss attributable to shareholders of $104M (−$2.5/sh), driven by FX losses and higher interest costs from increased debt to fund the IPP/manufacturing build‑out.
• Energy storage momentum continued with a record 7.8 GWh shipped in 2025 (up 19% YoY), a $3.6B contracting backlog (including 29 GWh of long‑term service agreements), and rising demand from data‑center related projects (notably a 2.5 GWh supply agreement).
• Q1 2026 guidance calls for 2.2–2.4 GW of module shipments and 1.7–1.9 GWh of storage with revenue of $900M–$1.1B and gross margin of 13%–15%; full‑year U.S. targets are 6.5–7 GW modules and 4.5–5.5 GWh storage, but management flags near‑term margin pressure from BABA‑compliant cell constraints and higher input costs.
• Recurrent Energy experienced project‑sale delays and asset impairments that produced a Q4 operating loss of $69M, led to pipeline pruning (now ~24 GW solar and 83 GWh storage), and prompted a strategic shift toward monetizing operating and under‑construction assets to improve cash flow.

Canadian Solar Trading Up 5.2%

Shares of CSIQ opened at $14.24 on Friday. The stock’s fifty day simple moving average is $19.45 and its 200-day simple moving average is $19.60. The firm has a market capitalization of $953.35 million, a PE ratio of -5.69 and a beta of 1.31. Canadian Solar has a 12-month low of $6.57 and a 12-month high of $34.59. The company has a quick ratio of 0.86, a current ratio of 1.07 and a debt-to-equity ratio of 0.93.

More Canadian Solar News

Here are the key news stories impacting Canadian Solar this week:

• Positive Sentiment: Better long‑term sales data: Canadian Solar reported 24.3 GW of module shipments for 2025 with a record 8.1 GW delivered to the U.S., showing strong customer traction in its largest growth market. PR: Full Year Results
• Positive Sentiment: Sector rally helped shares recover intraday as other solar names surged, lifting CSIQ despite company-specific headwinds. This suggests investor interest in the group is providing some buying support. Sector Rally Article
• Neutral Sentiment: Mizuho changed its stance, upgrading Canadian Solar to “Neutral” — a modest vote of confidence but not an optimistic tilt. Mizuho Upgrade
• Neutral Sentiment: Oppenheimer cut its price target from $38 to $19 but left an “Outperform” rating, reflecting a view that downside has been materially re‑priced even as longer‑term upside remains. Oppenheimer Note
• Negative Sentiment: Major earnings miss and weak guidance: CSIQ reported a Q4 loss of $1.66/sh (vs. consensus ≈ -$1.10) and revenue of $1.22B (vs. ~ $1.37B), citing falling module shipments and margin pressure; the miss and soft Q1 outlook triggered a sharp pre‑market selloff. Earnings Miss
• Negative Sentiment: Investor litigation attention: a law firm is investigating potential claims related to Canadian Solar executives, which can increase headline risk and investor uncertainty. Investigation Notice
• Negative Sentiment: Earnings call and analyst writeups emphasize a prolonged sector downturn and regulatory headwinds that pressured results, reinforcing near‑term downside risk until margins and volumes stabilize. Earnings Call Transcript

Analyst Ratings Changes

CSIQ has been the subject of several recent analyst reports. Daiwa Securities Group raised shares of Canadian Solar from a “neutral” rating to an “outperform” rating and set a $30.00 price objective for the company in a report on Tuesday, December 2nd. Oppenheimer reduced their target price on Canadian Solar from $38.00 to $19.00 and set an “outperform” rating on the stock in a report on Friday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Canadian Solar in a report on Monday, December 29th. Finally, Mizuho upgraded Canadian Solar from an “underperform” rating to a “neutral” rating and cut their price objective for the company from $21.00 to $19.00 in a research report on Tuesday. Three research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $19.56.

Institutional Trading of Canadian Solar

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Two Sigma Investments LP bought a new position in shares of Canadian Solar in the 3rd quarter valued at about $11,544,000. JPMorgan Chase & Co. raised its stake in shares of Canadian Solar by 206.6% during the third quarter. JPMorgan Chase & Co. now owns 571,893 shares of the solar energy provider’s stock worth $7,457,000 after buying an additional 385,355 shares during the last quarter. Deutsche Bank AG acquired a new position in Canadian Solar in the fourth quarter valued at approximately $9,003,000. Invesco Ltd. lifted its holdings in Canadian Solar by 19.3% in the third quarter. Invesco Ltd. now owns 2,200,622 shares of the solar energy provider’s stock valued at $28,696,000 after buying an additional 356,625 shares during the period. Finally, Voloridge Investment Management LLC bought a new position in Canadian Solar in the fourth quarter valued at approximately $6,013,000. 52.36% of the stock is owned by institutional investors.

Canadian Solar Company Profile

Canadian Solar Inc (NASDAQ: CSIQ) is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world’s largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.