Share Price Slump After Earnings: Canadian Solar Misses Expectations – Weak Outlook Weighs – Stock in Freefall
Guelph (Canada) – Canadian Solar has reported mostly weak results for the second quarter of 2025 (Q2 2025). The outlook for the remainder of the fiscal year also disappointed investors, sending the stock into a sharp decline.
The gross margin climbed to a strong 29.8%, well above the company’s guidance of 23% to 25%. However, this was partly driven by one-off effects, such as deferred profit recognition from sales-type leasing transactions.
Bottom line, Canadian Solar posted a net profit of USD 7.20 million in Q2 2025, up from USD 3.82 million a year earlier. Nevertheless, the company reported a loss per share of –USD 0.08. Adjusted for one-time items like lease accounting and catch-up effects related to U.S. anti-dumping regulations, the adjusted loss per share came to –USD 0.53 — a significant decline compared to the prior year’s figures. In the same quarter last year, Canadian Solar had posted an adjusted profit of USD 0.02 per share.
The outlook for the rest of the year has also deteriorated. For the third quarter, the solar company expects a much weaker business performance, with revenue projected between USD 1.3 and 1.5 billion and a gross margin of 14 to 16 percent. Full-year revenue guidance has been revised downward from USD 6.1–7.1 billion to USD 5.6–6.3 billion. Canadian Solar has also lowered its expected module shipment volume to 25–27 GW (previously 25–30 GW).
Investors sent Canadian Solar shares south on Thursday. At the end of the trading day, the share price stood at €8.80, down 19.8 percent (closing price, August 21, 2025, Stuttgart Stock Exchange). Market participants were particularly concerned about the weak earnings performance and the lowered outlook. Analysts see ongoing price and margin pressure, geopolitical risks, and a normalization of demand after a strong first half as significant negative factors.
Source: IWR Online, 25 Aug 2025
