Canadian Solar (NASDAQ: CSIQ) Q1 2026 results, outlook and new CEO
Rhea-AI Filing Summary
Canadian Solar Inc. reported first quarter 2026 revenue of $1.1 billion, as lower solar module sales were partly offset by stronger battery storage demand. Solar module shipments recognized as revenue were 2.5 GW, sharply lower quarter-over-quarter, while battery energy storage shipments rose to 2.1 GWh.
Gross profit increased to $271 million and gross margin to 25.1%, helped by a one-time $93 million tariff refund. Net loss attributable to shareholders narrowed to $32 million, or $0.71 per share, and cash ended at $1.9 billion with total debt of $6.8 billion. The company guided Q2 2026 revenue of $1.0–$1.2 billion, gross margin of 13–15%, module shipments of 3.1–3.3 GW and storage shipments of 2.8–3.2 GWh, and announced Colin Parkin as the new CEO as founder Dr. Shawn Qu becomes Executive Chairman and CTO.
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Insights
Margin recovery is heavily driven by a one-off tariff refund while the business remains loss-making.
Canadian Solar showed mixed fundamentals in Q1 2026. Revenue was $1.1 billion, down 11% sequentially and 10% year-over-year as solar module shipments fell, but storage shipments rose to 2.1 GWh and helped diversify the mix.
Gross margin jumped to 25.1% from 10.2% in Q4 2025, largely because of a $93 million IEEPA tariff refund. Without repeating this benefit, underlying margin sustainability is less clear, especially with management highlighting continued pressure on solar pricing and normalizing storage margins.
Net loss attributable to shareholders narrowed to $32 million versus $86 million in the prior quarter, and cash was $1.9 billion against total debt of $6.8 billion. The company guided Q2 2026 revenue of $1.0–$1.2 billion and lower gross margin of 13–15%, indicating near-term profitability will depend more on execution and less on one-time gains.
Key Figures
Key Terms
IEEPA tariff refund financial
non-recourse debt financial
contracted backlog financial
Tunnel Oxide Passivated Contact technical
redeemable non-controlling interests financial
safe harbor regulatory
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2026
Commission File Number: 001-33107
CANADIAN SOLAR INC.
4273 King Street East, Suite 102
Kitchener, Ontario, N2P 2E9
Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
CANADIAN SOLAR INC.
Form 6-K
TABLE OF CONTENTS
| Signature |
| Exhibit Index |
| Exhibit 99.1 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CANADIAN SOLAR INC. | ||
| By: | /s/ Shawn (Xiaohua) Qu | |
| Name: | Shawn (Xiaohua) Qu | |
| Title: | Executive Chairman and CTO | |
Date: May 14, 2026
EXHIBIT INDEX
Exhibit 99.1 — Canadian Solar Reports First Quarter 2026 Results and Announces Appointment of Chief Executive Officer
Exhibit 99.1
Canadian Solar
Reports First Quarter 2026 Results and Announces
Appointment of Chief Executive Officer
Kitchener, Ontario, May 14, 2026 – 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.”
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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.
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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.
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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.”
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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.
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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 |
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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.
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The following table summarizes the revenues generated from each product or service.
Three Months March 31, 2026 | Three Months December 31, 2025 | Three Months 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 | ||||||
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| 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 | |||||||||
Page 9
| 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 | ) | ||||
Page 10
| 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 | ||||||
Page 11
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 | ||||
Page 12
| 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 | ||||||||
Page 13
FAQ
How did Canadian Solar (CSIQ) perform financially in Q1 2026?
Canadian Solar generated $1.1 billion in net revenue in Q1 2026, down year-over-year, but expanded gross profit to $270.8 million and gross margin to 25.1%. Net loss attributable to shareholders narrowed to $32.1 million, or $0.71 per share.
What drove Canadian Solar’s margins in Q1 2026?
Gross margin improved to 25.1% mainly due to a $93 million IEEPA tariff refund. This one-time benefit, combined with cost controls, lifted gross profit to $270.8 million, compared with $124.4 million in Q4 2025 and $140.5 million in Q1 2025.
What were Canadian Solar’s Q1 2026 shipment volumes for solar and storage?
Solar module shipments recognized as revenue were 2.5 GW, down 42% sequentially and 64% year-over-year. Battery energy storage shipments reached 2.1 GWh, up 5% sequentially and 142% year-over-year, reflecting rapid growth in the storage business.
What guidance did Canadian Solar provide for Q2 2026?
For Q2 2026, Canadian Solar expects $1.0–$1.2 billion in total revenue, gross margin of 13–15%, solar module shipments of 3.1–3.3 GW, and battery energy storage shipments of 2.8–3.2 GWh, including about 400 MWh to projects under execution.
What leadership changes did Canadian Solar announce in May 2026?
On May 14, 2026, Canadian Solar appointed Colin Parkin as Chief Executive Officer, effective immediately. Founder Dr. Shawn Qu transitioned from Chairman and CEO to Executive Chairman and Chief Technology Officer, focusing on technology and long-term R&D strategy.
What is the size of Canadian Solar’s project development pipeline?
As of March 31, 2026, Canadian Solar had a 23.7 GWp total solar project pipeline and an 80.6 GWh battery energy storage project pipeline. These include projects under construction, in backlog, and in advanced and early-stage development across multiple regions.
How strong is Canadian Solar’s contracted backlog in energy storage?
Through its e-STORAGE business, Canadian Solar reported a $3.5 billion contracted backlog for battery energy storage solutions as of May 8, 2026. These signed orders, including long-term service agreements, represent binding customer commitments over multiple years.