Canadian Solar Reports First Quarter 2026 Results and Announces Appointment of Chief Executive Officer

Rhea-AI Summary

Canadian Solar (NASDAQ: CSIQ) reported Q1 2026 revenue of $1.1 billion, at the high end of guidance, with gross margin 25.1% boosted by a $93 million tariff refund. The company shipped 2.5 GW of solar modules and 2.1 GWh of storage, and posted a net loss of $32 million ($0.71/share), narrowing sequentially.

Trial production began at the Jeffersonville, Indiana HJT solar cell plant, with U.S. manufacturing expansion underway. Colin Parkin was appointed CEO, while founder Dr. Shawn Qu became Executive Chairman and CTO. Q2 2026 guidance calls for $1.0–$1.2 billion revenue and 13–15% gross margin.

Positive

• Q1 2026 revenue $1.1B, reaching the high end of guidance range
• Gross margin improved to 25.1%, supported by a $93 million tariff refund
• Q1 net loss narrowed to $32M from $86M in Q4 2025
• Battery energy storage shipments rose to 2.1 GWh, up 142% year-over-year
• e-STORAGE contracted backlog $3.5B with binding multi-year customer commitments
• U.S. manufacturing expansion toward 10 GWp modules in Mesquite and 6.3 GWp cells in Jeffersonville
• Large development pipelines: 23.7 GWp solar and 80.6 GWh storage projects as of March 31, 2026

Negative

• Q1 2026 net loss of $32M or $0.71 per share
• Net revenues down 11% qoq and 10% yoy to $1.1B
• Solar module shipments fell 42% qoq and 64% yoy to 2.5 GW
• Operating cash flow −$209M in Q1 2026, driven by higher inventories
• Total debt increased to $6.8B, including $2.3B non-recourse at Recurrent Energy
• Q2 2026 gross margin guidance of 13–15%, below Q1’s 25.1%
• Management highlights market complexity, storage competition, and policy/geopolitical uncertainty impacting planning

News Market Reaction – CSIQ

-11.15%

68 alerts

-11.15% Session close to close

+5.8% Peak Tracked

-24.2% Trough Tracked

$1.36B Market Cap

1.2x Rel. Volume

In the May 14 session, CSIQ declined 11.15%, reflecting a significant negative market reaction. Argus tracked a peak move of +5.8% during that session. Argus tracked a trough of -24.2% from its starting point during tracking. Our momentum scanner triggered 68 alerts that day, indicating high trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -11.2% in the session following this news. A negative reaction despite headline be...

Analysis

The stock dropped -11.2% in the session following this news. A negative reaction despite headline beats would fit a pattern where investors focus on underlying profitability and balance sheet risk. Q1 2026 included a $32 million net loss even after a $93 million tariff refund, and total debt reached $6.8 billion. Prior Q4 2025 results triggered a double‑digit decline after another quarterly loss. If sentiment turned sharply lower again, concerns around sustainable margins, cash burn and execution on the 23.7 GWp solar and 80.6 GWh storage pipelines could be central.

Key Figures

Q1 2026 revenue: $1.1 billion Q1 2026 gross margin: 25.1% Tariff refund benefit: $93 million +5 more

8 metrics

Q1 2026 revenue $1.1 billion First quarter 2026 net revenues, at high end of $900M–$1.1B guidance

Q1 2026 gross margin 25.1% First quarter 2026, boosted by IEEPA tariff refund benefits

Tariff refund benefit $93 million Included in Q1 2026 gross profit as IEEPA tariff refund

Q1 2026 net loss $32 million (−$0.71/share) GAAP net loss attributable to shareholders in Q1 2026

Cash position $1.9 billion Cash balance as of March 31, 2026

Total debt $6.8 billion Total debt including financing liabilities as of March 31, 2026

e‑STORAGE backlog $3.5 billion Contracted backlog including long-term service agreements as of May 8, 2026

Solar & storage pipeline 23.7 GWp solar; 80.6 GWh storage Global project development pipelines as of March 31, 2026

Historical Context

5 past events · Latest: Apr 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 20	Earnings call scheduling	Neutral	-0.2%	Announced timing and access details for Q1 2026 earnings call.
Apr 17	IP dispute outcome	Positive	+1.7%	PTAB invalidated Trina’s TOPCon patents asserted against Canadian Solar.
Apr 10	Annual report filing	Neutral	+0.7%	Filed Form 20-F for 2025, updating investors on operations and risks.
Mar 31	Storage contract win	Positive	+6.7%	e‑STORAGE to deliver 420 MWh AC battery systems for Drax in the UK.
Mar 19	Q4 and FY 2025 earnings	Negative	-26.9%	Reported Q4 loss and pressured margins despite record shipments and backlog.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news reactions have generally aligned with the implied sentiment, including a sharp selloff on weak Q4 2025 results and gains on positive storage contract and IP news.

Recent Company History

Over the last few months, Canadian Solar has highlighted several key developments. On Mar 19, 2026, Q4 2025 results showed a $1.2 billion quarter with a $86 million GAAP net loss and 10.2% gross margin, prompting a sharp negative reaction. Subsequent news included a major UK storage deal on Mar 31, invalidation of Trina’s TOPCon patents on Apr 17, and routine filings, all with modestly positive stock responses. Today’s Q1 2026 earnings and CEO change build directly on that narrative of improving margins but ongoing profitability and leverage challenges.

Key Terms

heterojunction technology, hjt, feed-in tariff, ppas, +3 more

7 terms

heterojunction technology medical

"flagship, state-of-the-art heterojunction technology ("HJT") solar cell factory in Jeffersonville"

Heterojunction technology is a way of building electronic devices—most commonly solar panels—by joining two different types of semiconductor materials so each layer does the job it’s best at, like pairing a strong frame with a lightweight, efficient surface. For investors it matters because this design can boost energy conversion, reduce performance loss over time, and improve temperature resilience, which can raise long‑term output and revenue potential while also affecting manufacturing cost and supply risks.

hjt technical

"state-of-the-art heterojunction technology ("HJT") solar cell factory in Jeffersonville"

HJT stands for heterojunction technology, a method for making solar cells that combines two different types of silicon layers to boost efficiency and reduce energy loss. Think of it as sandwiching a high-performance layer onto a durable core so the panel converts more sunlight into electricity while running cooler and degrading more slowly. Investors care because HJT-equipped panels can command higher prices, lower operating costs, and may extend product lifetimes, all of which affect a solar maker’s margins and long-term returns.

feed-in tariff financial

"including feed-in tariff ("FIT") arrangements and power purchase agreements ("PPAs")"

A feed-in tariff is a government-guaranteed payment rate for electricity that small producers deliver to the power grid, typically set above market prices for a fixed period to encourage renewable energy projects. It matters to investors because it creates predictable, long-term revenue like a locked-in contract for a homeowner renting out a room, reducing project risk, improving financeability, and directly affecting project valuations and returns.

ppas financial

"including feed-in tariff ("FIT") arrangements and power purchase agreements ("PPAs")"

PPAs are contracts in which a buyer agrees to purchase electricity from a generator at a set price and for a set period, like a long-term subscription for power. They matter to investors because they lock in revenue and costs, reducing uncertainty and making it easier to value, finance, and compare energy projects or companies.

o&m technical

"Power services (O&M) through long-term operations and maintenance ("O&M") contracts"

O&M stands for "operations and maintenance," which includes the day-to-day activities needed to keep a business, project, or system running smoothly. For investors, understanding O&M costs helps gauge how efficiently a company manages its resources and maintains its assets, ultimately affecting profitability and long-term stability. Think of it like the ongoing expenses required to keep a car running reliably.

non-recourse debt financial

"Total non-recourse debt under Recurrent Energy as of March 31, 2026, was $2.3 billion."

A non-recourse debt is a loan where the lender can seize only the specific asset pledged as security (for example, a building or equipment) if the borrower defaults, and cannot pursue the borrower’s other assets or income. Investors care because this limits how much downside the borrower’s other holdings absorb and changes who bears loss in trouble: lenders face higher recovery risk while equity holders can be wiped out more easily, affecting valuation and risk assessment.

ieepa regulatory

"due to the recognition of IEEPA tariff refund benefits"

A U.S. law that gives the president broad authority to control trade, freeze assets, and block financial transactions during a declared national emergency. Investors care because those powers can abruptly restrict a company's ability to sell products, access cash, or do business with certain countries or parties, creating sudden risks to revenues, supply chains and share prices — like an emergency brake that can stop or reroute parts of a business overnight.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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KITCHENER, ON, May 14, 2026 /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the first quarter ended March 31, 2026.

First Quarter Highlights

• Solar module shipments of 2.5 GW, above guidance of 2.2 GW to 2.4 GW.
• Energy storage shipments of 2.1 GWh, exceeding guidance of 1.7 GWh to 1.9 GWh.
• Net revenues of $1.1 billion, at the high end of $900 million to $1.1 billion guidance.
• Gross margin of 25.1%.
• Commenced trial production at the flagship HJT solar cell factory in Jeffersonville, Indiana, marking a key milestone in U.S. domestic manufacturing, with commercial operation targeted to begin in July 2026.
• Appointment of Mr. Colin Parkin as Chief Executive Officer, effective May 14, 2026. Mr. Parkin previously served as President of Canadian Solar. Dr. Shawn Qu, the Company's founder, will transition from Chairman and Chief Executive Officer to the roles of Executive Chairman and Chief Technology Officer.

Dr. Shawn Qu, Executive Chairman and CTO, commented, "Canadian Solar's journey from its founding in Ontario to its current position as a global leader in integrated clean energy is a testament to our enduring resilience. We have consistently evolved, and today we are navigating a pivotal shift from volume-driven expansion to value-driven leadership. This evolution calls for thoughtful leadership succession, and I am incredibly proud to transition the Chief Executive role to Colin Parkin, whose execution and operational leadership have already established our first-mover advantage in the energy storage sector. As I dedicate my focus to advancing our technological roadmap, we are deepening our commitment to our U.S. manufacturing footprint. Our Jeffersonville solar cell facility has entered trial production, and commercial operation is expected to commence in about two months. Coupled with the capacity expansion at our Mesquite module plant, we are helping strengthen the American solar supply chain to ensure long-term, sustainable growth."

Dr. Shawn Qu founded Canadian Solar Inc. in Mississauga, Ontario 25 years ago. He holds a Ph.D. in Materials Science from the University of Toronto, an M.Sc. in Physics and an honorary doctorate from the University of Manitoba, and a B.Sc. in Physics from Tsinghua University. Dr. Qu has been a Fellow of the Canadian Academy of Engineering since 2019.

Colin Parkin, CEO of Canadian Solar, said, "We began the year with strong execution, exceeding guidance across all metrics. We delivered 2.5 GW of solar modules globally with an optimized mix of U.S. volumes. We maintained a disciplined approach to solar module shipments throughout the quarter, strategically managing volumes in response to elevated feedstock costs—including silver—to protect profitability. Our domestic manufacturing in the U.S. contributed robust margins, as we continue to reshore our supply chain. In our energy storage segment, we recognized revenue on 2.1 GWh of volume, supported by smooth construction progress across multiple customer sites. We will build on this momentum, with storage volumes expected to reach record levels in the second half. The broader solar market remains complex, as incremental price increases have not yet fully absorbed upstream cost pressures. Furthermore, competition in the storage sector is intensifying. In the face of these challenges, we remain committed to a balanced strategy focused on rigorous execution and continuous innovation."

Ismael Guerrero, CEO of Canadian Solar's subsidiary Recurrent Energy, said, "The sequential improvement in revenue was primarily driven by the sale of the Fort Duncan project, while the improvement in margin reflected the absence of pipeline impairment charges this quarter. As we continue to monetize other operating and under-construction assets, the impact on our results of operations may be less favorable in the near term. However, this strategy remains necessary to deleverage our balance sheet and recycle capital."

Xinbo Zhu, Senior VP and CFO, added, "In the first quarter of 2026, we achieved $1.1 billion in revenue and a gross margin of 25.1%, with gross margin increasing both sequentially and year-over-year primarily due to the recognition of tariff refund benefits. Aided by this one-time benefit and continued controls on operating expenses, net loss attributable to shareholders narrowed to $32 million, or $0.71 per share. We closed the period with a cash position of $1.9 billion."

First Quarter 2026 Results

Total solar module shipments recognized as revenue in Q1 2026 were 2.5 GW, down 42% quarter-over-quarter ("qoq") and down 64% year-over-year ("yoy").

Total battery energy storage shipments recognized as revenue in Q1 2026 were 2.1 GWh, up 5% qoq and up 142% yoy.

Net revenues were $1.1 billion in Q1 2026, down 11% sequentially and 10% yoy, mainly due to lower sales of solar modules partially offset by higher sales of battery energy storage systems.

Gross profit was $271 million, inclusive of a $93 million tariff refund benefit, compared to $124 million in Q4 2025 and $140 million in Q1 2025. Gross margin was 25.1%, compared to 10.2% and 11.7% in Q4 2025 and Q1 2025, respectively. The sequential and yoy increase in gross margin was primarily due to the recognition of IEEPA tariff refund benefits.

Operating expenses were $198 million, compared to $188 million in Q4 2025 and up from $195 million in Q1 2025 due to lower logistics costs offset by the absence of one-time gains recorded in the previous quarter. Operating expenses represented 18.4% of revenue, compared to 15.5% in Q4 2025 and 16.3% in Q1 2025.

Net loss attributable to Canadian Solar in accordance with generally accepted accounting principles in the United States of America ("GAAP") in Q1 2026 was $32 million, or a net loss of $0.71 per share, compared to a net loss of $86 million, or a net loss of $1.66 per share, in Q4 2025, and a net loss of $34 million, or a net loss of $0.69 per share, in Q1 2025. Net income or loss per diluted share includes the dilutive effect of convertible bonds, as applicable, and dividends on the Recurrent Energy redeemable preferred shares.

Net cash flow used in operating activities in Q1 2026 was $209 million, driven by changes in working capital, specifically an increase in inventories, compared to net cash flow used in operating activities of $65 million in Q4 2025 and net cash flow used in operating activities of $264 million in Q1 2025.

Total debt, including financing liabilities, was $6.8 billion as of March 31, 2026, including $3.8 billion, $2.6 billion and $0.4 billion related to Recurrent Energy, Manufacturing, and convertible notes, respectively. Total debt increased from $6.5 billion as of December 31, 2025, mainly due to the issuance of convertible notes. Total non-recourse debt under Recurrent Energy as of March 31, 2026, was $2.3 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.

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

• Manufacturing, comprising CS PowerTech, which focuses on the manufacturing and sales of solar products, 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 2.5 GW of solar modules and solar system kits to more than 60 countries and regions in Q1 2026.

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 it expects to expand 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 began in April 2026. Phase I has a nameplate capacity of 2.1 GWp and is expected to become one of the first commercial-scale HJT solar cell facilities in the U.S. upon commencement of commercial operations.
• Phase II: The Company expects to begin trial production for Phase II at the beginning of 2027. 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 May 8, 2026, e-STORAGE contracted backlog, including contracted long-term service agreements, stood at $3.5 billion. These signed orders represent binding customer commitments and provide significant earnings visibility over a multi-year period.

Recurrent Energy
As of March 31, 2026, the Company had a total global solar project development pipeline of approximately 24 GWp and a battery energy storage project development pipeline of 81 GWh.

The business model consists of three key drivers:

• Electricity revenue from the 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 levels and to fund growth in the operating portfolio; and
• Power services (O&M) through long-term operations and maintenance ("O&M") contracts, currently with 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 March 31, 2026, the Company's total solar project development pipeline was 23.7 GWp, including 1.8 GWp under construction, 2.6 GWp of backlog, and 19.3 GWp of projects in advanced and early-stage development, defined as follows:

• Backlog projects 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 reasonable assurance of securing PPAs.
• Advanced pipeline projects are mid-stage projects that have secured or are assessed by the Company as having a greater than 90% likelihood of securing 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 March 31, 2026) – MWp*
Region		Under Construction	Backlog	Advanced Development	Early-Stage Development	Total
North America		606	226	427	4,573	5,832
Europe, the Middle East, and Africa ("EMEA")		674	1,418**	1,134	4,111	7,337
Latin America		-	374	352	6,256	6,982
Asia Pacific		492	616**	572	1,887	3,567
Total		1,772	2,634	2,485	16,827	23,718
*All numbers are gross MWp. **Including 443 MWp in backlog that are owned by or already sold to third parties.

Project Development Pipeline – Battery Energy Storage

As of March 31, 2026, the Company's total battery energy storage project development pipeline was 80.6 GWh, including 5.0 GWh under construction and in backlog, and 75.6 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 March 31, 2026) – MWh*
Region	Under Construction	Backlog	Advanced Development	Early-Stage Development	Total
North America	600	200	600	21,640	23,040
EMEA	-	1,350**	3,925	30,322	35,597
Latin America	-	-	1,320	5,005	6,325
Asia Pacific	1,200	1,620	3,281	9,580	15,681
Total	1,800	3,170	9,126	66,547	80,643
*All numbers are gross MWh.  **Including 600 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, taking into account 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 Q2 2026, the Company expects total revenue to be in the range of $1.0 billion to $1.2 billion. Gross margin is expected to be between 13% and 15%. Total module shipments recognized as revenue are expected to be in the range of 3.1 GW to 3.3 GW. Total battery energy storage shipments in Q2 2026 are expected to be in the range of 2.8 GWh to 3.2 GWh, including approximately 400 MWh to internal and external projects under execution.

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

Colin Parkin, CEO of Canadian Solar, commented, "The first half of the year reflects prevailing market challenges, with solar margins remaining under pressure. In our energy storage business, margins are normalizing, and we remain partially exposed to fluctuations in lithium carbonate pricing. These factors, combined with a broader backdrop of policy uncertainty and geopolitical volatility, continue to impact both customers' long-term planning and our own operational execution. We anticipate stronger storage volumes and the benefits from the ramp-up of our U.S. domestic solar cell manufacturing to be weighted toward the second half, while our project development business continues to execute on its rebalancing strategy."

Recent Developments

Canadian Solar

On May 14, 2026, Canadian Solar announced the appointment of Mr. Colin Parkin as Chief Executive Officer, effective immediately. Mr. Parkin, who previously served as the Company's President, succeeds founder Dr. Shawn Qu, who has transitioned from Chairman and CEO to the roles of Executive Chairman and Chief Technology Officer. In this new capacity, Dr. Qu will focus on spearheading the Company's technological innovation and long-term R&D strategy.

On April 17, 2026, Canadian Solar announced that the Patent Trial and Appeal Board ("PTAB") of the U.S. Patent and Trademark Office ("USPTO") issued Final Written Decisions invalidating all claims of two TOPCon (Tunnel Oxide Passivated Contact) solar cell patents. These patents were previously asserted by Trina Solar Co., Ltd. ("Trina") against certain subsidiaries of Canadian Solar. These decisions reflect Canadian Solar's continued ability to manage international intellectual property disputes.

 

Manufacturing: CS PowerTech and CSI Solar

On March 31, 2026, Canadian Solar announced that it would deliver a total of 420 MWh AC of battery energy storage systems for Drax Group, a leading UK renewable energy company, across two projects in the United Kingdom. Both projects are being developed by Apatura and have been acquired by Drax. Battery installations are scheduled to commence in the third quarter of 2026 at the Marfleet site, with the Neilston project expected to start installations in early 2027.

 

Conference Call Information

The Company will hold a conference call on Thursday, May 14, 2026, at 8:00 a.m. U.S. Eastern Time to discuss the Company's first quarter 2026 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 13760199. A live webcast of the conference call will also be available via the webcast link on the investor relations section of Canadian Solar's website.

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, May 28, 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 13760199. A webcast replay will also be available via the webcast link on the investor relations section of Canadian Solar's website.

About Canadian 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 nearly 177 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar had shipped over 20 GWh of battery energy storage solutions to global markets as of March 31, 2026, and had a $3.5 billion contracted backlog as of May 8, 2026. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12.2 GWp of solar power projects and 6.4 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 24 GWp of solar and 81 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 markets for solar power and battery energy storage; our growth strategies, future business performance, and financial condition; our ability to sustain our project development and balance long-term asset ownership with selective project sales; 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, and policy support schemes, trade measures, regulatory developments, and geopolitical risks; our expectations for project timelines, costs, offtake 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 are described in the Company's filings with the Securities and Exchange Commission, including its latest annual report on Form 20-F filed on April 10, 2026. 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 March 31, 2026 (In Thousands of U.S. Dollars)
			Manufacturing		Recurrent Energy		Elimination and unallocated items		Total
Net revenues			$ 949,662		$ 139,232		$  (11,016)		$  1,077,878
Cost of revenues			673,316		153,749		(20,007)		807,058
Gross profit			276,346		(14,517)		8,991		270,820
Operating expenses			149,529		45,736		2,689		197,954
Income (loss) from operations			126,817		(60,253)		6,302		72,866
Other segment items (1)									(64,181)
Income before income taxes and equity in losses of affiliates									8,685
Supplementary Information:
Interest expense			$  (14,828)		$  (31,664)		$  (5,878)		$  (52,370)
Interest income			6,252		10,202		204		16,658
Depreciation and amortization, included in cost of revenues and operating expenses			114,089		16,632		—		130,721
Cash and cash equivalents			$ 1,353,014		$ 71,283		$ 16,813		$ 1,441,110
Restricted cash – current and non-current			323,034		119,147		—		442,181
Non-recourse borrowings			—		2,284,531		—		2,284,531
Other short-term and long-term borrowings			2,505,510		1,349,878		—		3,855,388
Convertible notes – non-current			—		—		419,150		419,150
Green bonds – current			—		151,137		—		151,137
(1) Includes interest expense, net, gain 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 Ended March 31, 2026		Three Months Ended December 31, 2025		Three Months Ended March 31, 2025
	(In Thousands of U.S. Dollars)
Manufacturing:
Solar modules	$  455,117		$  718,597		$  797,422
Battery energy storage solutions	382,758		296,848		155,310
Solar system kits	25,437		35,409		85,526
EPC and others	77,152		101,412		35,037
Subtotal	940,464		1,152,266		1,073,295
Recurrent Energy:
Solar power and battery energy storage asset sales	88,541		15,975		72,151
Power services	22,416		20,286		16,499
Revenue from electricity, battery energy storage operations and others	26,457		28,682		34,680
Subtotal	137,414		64,943		123,330
Total net revenues	$  1,077,878		$  1,217,209		$  1,196,625

 

	Canadian Solar Inc. Unaudited Condensed Consolidated Statements of Operations (In Thousands of U.S. Dollars, Except Share and Per Share Data)
		Three Months Ended
		March 31,		December 31,		March 31,
		2026		2025		2025
Net revenues		$ 1,077,878		$ 1,217,209		$ 1,196,625
Cost of revenues		807,058		1,092,808		1,056,131
	Gross profit	270,820		124,401		140,494
Operating expenses:
	Selling and distribution expenses	54,281		81,047		90,767
	General and administrative expenses	135,472		106,946		105,651
	Research and development expenses	20,718		21,683		24,284
	Other operating income, net	(12,517)		(21,214)		(25,403)
Total operating expenses		197,954		188,462		195,299
Income (loss) from operations		72,866		(64,061)		(54,805)
Other income (expenses):
	Interest expense	(52,370)		(48,458)		(40,487)
	Interest income	16,658		8,960		12,096
	Gain (loss) on change in fair value of derivatives, net	4,985		(7,052)		(9,039)
	Foreign exchange loss, net	(33,920)		(8,035)		(4,586)
	Investment income, net	466		120		1,090
Total other expenses		(64,181)		(54,465)		(40,926)
Income (loss) before income taxes and equity in losses of affiliates		8,685		(118,526)		(95,731)
Income tax benefit (expense)		(16,938)		4,178		23,122
Equity in losses of affiliates		(5,255)		(16,453)		(4,045)
Net loss		(13,508)		(130,801)		(76,654)
Less: net income (loss) attributable to non-controlling interests and redeemable non-controlling interests		18,585		(44,463)		(42,683)
Net loss attributable to Canadian Solar Inc.		$  (32,093)		$  (86,338)		$  (33,971)
Earnings (loss) per share – basic		$  (0.71)		$  (1.66)		$  (0.69)
Shares used in computation – basic		67,817,714		67,712,693		66,962,686
Earnings (loss) per share - diluted		$  (0.71)		$  (1.66)		$  (0.69)
Shares used in computation – diluted		67,817,714		67,712,693		66,962,686

 

Canadian Solar Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) (In Thousands of U.S. Dollars)
		Three Months Ended
		March 31,		December 31,		March 31,
		2026		2025		2025
Net loss		$ (13,508)		$  (130,801)		$ (76,654)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		63,355		39,752		2,091
Gain (loss) on changes in fair value of available-for-sale debt securities		—		1,941		(504)
Gain (loss) on interest rate swap		6,604		7,955		(3,081)
Share of gain (loss) on changes in fair value of interest rate swap of affiliate		22		(443)		(1,232)
Comprehensive income (loss)		56,473		(81,596)		(79,380)
Less: comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests		35,562		(31,664)		(40,768)
Comprehensive income (loss) attributable to Canadian Solar Inc.		$  20,911		$  (49,932)		$ (38,612)

 

Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (In Thousands of U.S. Dollars)
			March 31,		December 31,
			2026		2025
ASSETS
Current assets:
	Cash and cash equivalents		$ 1,441,110		$ 1,370,418
	Restricted cash		420,784		541,705
	Accounts receivable trade, net		698,978		829,957
	Accounts receivable, unbilled		247,858		228,393
	Amounts due from related parties		13,903		17,959
	Inventories		1,519,211		1,133,539
	Value added tax recoverable		263,970		252,251
	Advances to suppliers, net		220,530		217,871
	Derivative assets		6,852		15,002
	Project assets		747,798		549,269
	Prepaid expenses and other current assets		881,774		822,502
Total current assets			6,462,768		5,978,866
Restricted cash			21,397		28,312
Property, plant and equipment, net			3,469,541		3,376,035
Solar power and battery energy storage systems, net			2,099,078		2,065,498
Deferred tax assets, net			657,297		634,160
Advances to suppliers, net			101,001		104,518
Investments in affiliates			307,255		289,601
Intangible assets, net			31,282		31,981
Project assets			1,231,954		1,481,486
Right-of-use assets			430,948		441,291
Amounts due from related parties			84,008		76,848
Other non-current assets			638,019		663,133
TOTAL ASSETS			$ 15,534,548		$ 15,171,729

 

Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (Continued) (In Thousands of U.S. Dollars)
		March 31,		December 31,
		2026		2025
LIABILITIES, REDEEMABLE INTERESTS AND EQUITY
Current liabilities:
	Short-term borrowings	$ 2,602,193		$ 2,389,037
	Green bonds	151,137		153,152
	Accounts payable	1,030,796		878,827
	Short-term notes payable	724,908		939,549
	Amounts due to related parties	6,286		7,484
	Other payables	821,534		779,198
	Advances from customers	216,077		162,586
	Derivative liabilities	5,789		6,179
	Operating lease liabilities	32,601		26,783
	Other current liabilities	479,288		507,594
Total current liabilities		6,070,609		5,850,389
Long-term borrowings		3,537,726		3,621,232
Convertible notes		419,150		195,313
Liability for uncertain tax positions		5,642		5,788
Deferred tax liabilities		300,722		296,719
Operating lease liabilities		338,663		354,508
Other non-current liabilities		565,341		578,152
TOTAL LIABILITIES		11,237,853		10,902,101
Redeemable non-controlling interests		295,933		326,559
Equity:
	Common shares	835,543		835,543
	Additional paid-in capital	569,859		568,921
	Retained earnings	1,449,539		1,481,632
	Accumulated other comprehensive loss	(25,121)		(78,125)
Total Canadian Solar Inc. shareholders' equity		2,829,820		2,807,971
Non-controlling interests		1,170,942		1,135,098
TOTAL EQUITY		4,000,762		3,943,069
TOTAL LIABILITIES, REDEEMABLE INTERESTS AND EQUITY		$ 15,534,548		$ 15,171,729

 

	Canadian Solar Inc. Unaudited Condensed Statements of Cash Flows (In Thousands of U.S. Dollars)
		Three Months Ended
		March 31,		December 31,		March 31,
		2026		2025		2025
	Operating Activities:
	Net loss	$  (13,508)		$  (130,801)		$  (76,654)
	Adjustments to net loss	152,825		158,944		161,770
	Changes in operating assets and liabilities	(347,975)		(93,177)		(349,319)
	Net cash used in operating activities	(208,658)		(65,034)		(264,203)
	Investing Activities:
	Purchase of property, plant and equipment and intangible assets	(173,210)		(266,377)		(256,380)
	Purchase of solar power and battery energy storage systems	(20,053)		(53,105)		(128,707)
	Other investing activities	60,176		20,946		(83,897)
	Net cash used in investing activities	(133,087)		(298,536)		(468,984)
	Financing Activities:
	Capital contributions from tax equity investors in subsidiaries	—		750		14,680
	Repurchase of shares by subsidiary	—		(24,510)		(21,404)
	Net proceeds from issuance of convertible notes	222,983		—		43,896
	Other financing activities	114,936		45,561		507,066
	Net cash provided by financing activities	337,919		21,801		544,238
	Effect of exchange rate changes	(53,318)		102,273		(41,153)
	Net decrease in cash, cash equivalents and restricted cash	(57,144)		(239,496)		(230,102)
	Cash, cash equivalents and restricted cash at the beginning of the period	$ 1,940,435		$ 2,179,931		$ 2,264,021
	Cash, cash equivalents and restricted cash at the end of the period	$ 1,883,291		$ 1,940,435		$ 2,033,919

View original content:https://www.prnewswire.com/news-releases/canadian-solar-reports-first-quarter-2026-results-and-announces-appointment-of-chief-executive-officer-302772213.html

SOURCE Canadian Solar Inc.

FAQ

What were Canadian Solar’s (CSIQ) key financial results for Q1 2026?

Canadian Solar reported Q1 2026 revenue of $1.1 billion and a net loss of $32 million ($0.71 per share). According to Canadian Solar, gross profit reached $271 million with a 25.1% gross margin, helped by a $93 million tariff refund benefit.

How did Canadian Solar’s solar module and storage shipments perform in Q1 2026?

In Q1 2026, Canadian Solar shipped 2.5 GW of solar modules and 2.1 GWh of battery energy storage. According to Canadian Solar, solar shipments declined 42% sequentially, while storage shipments increased 5% quarter-over-quarter and 142% year-over-year, reflecting strong storage segment growth.

What guidance did Canadian Solar (CSIQ) provide for Q2 2026 revenue and margins?

For Q2 2026, Canadian Solar expects $1.0–$1.2 billion in revenue and 13–15% gross margin. According to Canadian Solar, it forecasts 3.1–3.3 GW of solar module shipments and 2.8–3.2 GWh of battery energy storage shipments recognized as revenue in the quarter.

What leadership changes did Canadian Solar announce on May 14, 2026?

Effective May 14, 2026, Colin Parkin was appointed Chief Executive Officer of Canadian Solar. According to Canadian Solar, founder Dr. Shawn Qu transitioned from Chairman and CEO to roles as Executive Chairman and Chief Technology Officer, focusing on technology and strategic oversight.

How is Canadian Solar expanding its U.S. manufacturing footprint in 2026?

Canadian Solar is ramping U.S. capacity with a Mesquite, Texas module plant targeting 10 GWp and an HJT solar cell factory in Jeffersonville, Indiana. According to Canadian Solar, Jeffersonville Phase I began trial production in April 2026, with total U.S. cell capacity planned at 6.3 GWp.

What are Canadian Solar’s solar and storage project pipelines as of March 31, 2026?

As of March 31, 2026, Canadian Solar reported a 23.7 GWp global solar project pipeline and an 80.6 GWh battery storage pipeline. According to Canadian Solar, these include under-construction, backlog, advanced, and early-stage projects across North America, EMEA, Latin America, and Asia Pacific.

How much debt and cash did Canadian Solar hold at the end of Q1 2026?

At March 31, 2026, Canadian Solar had total debt of $6.8 billion and cash of $1.9 billion. According to Canadian Solar, debt included $3.8 billion at Recurrent Energy, $2.6 billion in Manufacturing, and $0.4 billion in convertible notes, with $2.3 billion non-recourse.