Canadian Solar failed to meet analysts’ expectations for its fourth quarter results. In addition to the huge quarterly losses, the company’s cautious outlook for the current year has triggered great uncertainty in the market. Affected by the latest earnings data, the company’s share price has plunged.
In the fourth quarter of fiscal 2025, its revenue fell 20% year-over-year to $1.21 billion. This performance was significantly lower than the revenue level of up to $1.39 billion previously predicted by experts. Earnings loss per share of $1.66 was also well above market expectations. Profitability also fell sharply: gross margin fell to 10.2 per cent from 14.3 per cent in the same period last year. Total liabilities of up to $6.5 billion remain a major burden.
Although Canadian Solar has achieved its full-year operating targets in module and energy storage system shipments, its financial performance has lagged behind this development. In particular, forecasts for the first quarter of 2026 have worried investors. Canadian Solar expects revenue to be between $0.9 billion and $1.1 billion, compared to the market’s previous estimate of about $1.57 billion. Analysts attributed the weak performance to high cost pressures and problems in the supply chain of the US business. Currently, local access to solar cells from non-sanctioned suppliers is limited.
Orders on hand in the energy storage space offer a glimmer of hope for the industry, reaching $3.6 billion as of mid-March. However, the stock is currently quoted at € 12.28, just above its 52-week low. Analysts currently have a “hold” consensus rating with an average price target of $18.40. Market watchers believe that the next few months will be a critical stage when companies must demonstrate that they can stabilize their cost structure.
