Canadian Solar stock tumbles on bigger-than-expected Q4 loss

Canadian Solar Inc. (NASDAQ:CSIQ) reported a important net miss for the 4th fourth of 2025, sending its shares down astir 29% connected Thursday morning.

The institution posted a nett nonaccomplishment of $86 million, oregon $1.66 per share, acold much than the expected nonaccomplishment per stock of $0.47.

Revenue for the 4th came successful astatine $1.2 billion, down 18% sequentially and 20% year-over-year, falling abbreviated of expert forecasts of $1.37 billion. The diminution was attributed to little income of star modules and artillery vigor retention systems, arsenic good arsenic delays successful definite task deliveries.

Gross nett dropped to $124 million, with a gross borderline of 10.2%, compared with $256 cardinal and 17.2% successful the erstwhile quarter. The alteration was driven successful portion by impairment charges connected definite task assets and little contributions from module and task plus sales, though higher mean selling prices partially offset the impact.

Operating expenses fell to $188 million, down from $222 cardinal successful Q3 2025, reflecting little logistics costs. Nevertheless, operating expenses represented 15.5% of revenue, somewhat higher than the anterior quarter’s 14.9%.

Total star module shipments recognized arsenic gross were 4.3 GW successful Q4 2025, down 16% quarter-over-quarter and 47% year-over-year.

Despite the anemic quarter, Canadian Solar highlighted operational milestones for the year, including 24.3 GW of star module shipments globally, grounds US vigor retention shipments of 3.9 GWh, and the ramp-up of its Texas module mill toward a planned yearly capableness of 10 GWp by the 2nd fractional of 2026.

The institution besides reported full indebtedness of $6.5 cardinal astatine year-end, up somewhat from $6.4 cardinal astatine the extremity of September 2025, mostly owed to caller task financing.

"We demonstrated strategical resilience and operational subject passim a twelvemonth defined by persistent marketplace headwinds and a shifting regulatory landscape,” Canadian Solar CEO Shwan Qu said.

“In effect to the prolonged star downturn, we pivoted distant from the industry's accepted absorption connected shipment volumes and alternatively took the pb by prioritizing margins and diversifying our nett drivers, notably vigor storage.”