Canadian Solar Falls into the Red: Q4 2025 Revenue and Margins Plummet – Stock Takes a Hit

Kitchener (Canada) – Solar company Canadian Solar reported a significant decline in results for the fourth quarter of 2025, falling into the red. Revenue in Q4 2025 amounted to USD 1.2?billion, around 20?% below the previous year’s figure of approximately USD 1.5?billion and well below analysts’ consensus estimates of about USD 1.37?billion.

The decline was even more pronounced on the earnings side: the company posted a net loss of USD 86 million, compared with a profit of USD 34 million in the same quarter of the previous year. Earnings per share (EPS) dropped from +USD 0.48 to -USD 1.66, while analysts had on average expected a loss of only -USD 0.47.

Profitability also deteriorated significantly. The gross margin fell from 14.3 % in Q4 2024 to 10.2 % in the reported quarter. The company cited asset impairments in projects and lower contributions from the module business as the main reasons.

CEO Shawn Qu emphasized the company’s strategic realignment: “We demonstrated strategic resilience and operational discipline throughout a year defined by persistent market headwinds and a shifting regulatory landscape. In response to the prolonged solar downturn, we pivoted away from the industry's traditional focus on shipment volumes and instead took the lead by prioritizing margins and diversifying our profit drivers, notably energy storage.” He also highlighted the expansion of U.S. production.

Operationally, declining module sales and delayed project completions weighed on the figures. Deliveries in the fourth quarter fell 47 % year-on-year to 4.3 GW. For the full year 2025, Canadian Solar delivered 24.3 GW of modules, significantly below the 31.1 GW shipped in 2024. In energy storage, however, the company grew to 7.8 GWh, a new high for Canadian Solar. Fourth-quarter figures nevertheless indicate ongoing margin pressure in the core business.

The disappointing results also triggered investor dissatisfaction: with revenue, earnings, and margins falling well short of expectations, the company’s stock, listed in the global RENIXX index, dropped 25.8 % yesterday, March 19, 2026, to EUR 11.78 (closing price, Stuttgart Stock Exchange).

Source: IWR Online, 20 Mar 2026