Solar module manufacturer Canadian Solar generated $1.52 billion in revenue in the fourth quarter (Q4) of 2024, reflecting an 11% year-over-year decline due to lower solar module average selling prices. Revenue fell short of analysts’ expectations by $45.8 million.

The adjusted net loss for the quarter stood at $98.5 million, a sharp increase compared to the $1.3 million net loss recorded in the same period of 2023. Adjusted loss per share was $1.47, missing analysts’ estimates by $1.23.

Operating expenses increased to $344 million, an over 61% YoY increase, largely driven by impairment charges and higher shipping and handling costs.

Total module shipments for Q4 2024 reached 8.2 GW, a 1% increase compared to the previous year and a 2% decline from the prior quarter. Of this total, 401 MW were directed to Canadian Solar’s utility-scale projects. The U.S., China, Pakistan, Germany, and Brazil remained the company’s top markets for module shipments.

Shawn Qu, CEO of Canadian Solar, said, “2024 was a challenging year for the solar industry, with intense competition and ongoing policy and trade-related uncertainties creating operational and financial headwinds.”

Despite these market challenges, 2024 was a record-breaking year for energy storage in terms of shipments, revenue, and profitability. The company delivered 2.2 GWh capacity in the fourth quarter, increasing the annual total to 6.6 GWh, representing an over 500% YoY increase. This momentum is expected to continue in 2025, although Q1 is anticipated to be seasonally softer. In the U.S., trade policy changes have created market turbulence. However, the company is managing tariff exposure while ramping up onshore capacity. The backlog, valued at $3.2 billion, targets providing strong visibility, while the pipeline has reached a record 79 GWh, reflecting increasingly diversified global demand.

For Recurrent Energy, a Canadian Solar subsidiary, 2024 was its most significant execution year, bringing 1.3 GW of solar projects to commercial operation across the U.S., Italy, Brazil, Japan, and Taiwan. In the U.S. and European independent power producer markets, the company’s operating portfolio reached 490 MW of photovoltaics and 310 MWh of energy storage by the end of the year. However, its financial performance was impacted by project delays that were pushed into the fourth quarter and 2025.

Regarding U.S. manufacturing, Qu noted that the company remains on track with its expansion plans. The module factory in Mesquite, Texas, is set to ramp up in 2025 fully and is expected to deliver around 3 GW of volume this year, increasing the share of domestically produced products in total U.S. shipments. The solar cell facility is progressing well and is fully contracted to supply the module factory. The energy storage facility, which will produce battery cells, modules, and complete systems, is expected to deliver U.S.-made SolBanks at the start of 2026.

Full Year 2024

For 2024, Canadian Solar reported a total revenue of $5.9 billion, a 21% decline from 2023.

The company recorded a net loss of $96.4 million, starkly contrasting its $274.1 million net profit in 2023. The adjusted loss per share was $1.45, compared to a profit of $3.87 in the prior year.

Operating expenses rose to $1.03 billion, up from $826.6 million in 2023. Total module shipments for the year reached 31.1 GW.

Qu noted that solar module pricing has begun to rebound in the U.S. market, driven primarily by the installation surge in China. Following two key policy changes on April 30 and May 31, all new solar projects in China will now participate in the electricity market rather than relying on fixed prices. This shift has caused a temporary increase in demand, but prices are expected to stabilize in the second half of 2025. U.S. tariffs continue to impact imports, particularly with AD/CVD and Section 201 duties affecting modules from Southeast Asia.

However, higher U.S. prices have partially offset these tariff costs, which remain approximately three times higher than the global average. This development has ensured stable revenue contribution from the U.S. market, which accounts for about half of total revenue.

Outlook

In Q1 2025, Canadian Solar expects revenue to be $1 billion to $1.2 billion, with a gross margin projected between 9% and 11%. Module shipments are forecasted to be between 6.4 GW and 6.7 GW, with approximately 400 MW allocated to the company’s projects. Battery storage shipments are expected to reach around 800 MWh, with 150 MWh directed toward company-owned projects.

For 2025, the company anticipates total revenue from $7.3 billion to $8.3 billion. Module shipments are projected to fall between 30 GW and 35 GW, with approximately 1 GW set aside for company projects. Battery energy storage shipments are expected to range between 11 GWh and 13 GWh, including around 1 GWh for the company’s own projects.