Solar module manufacturer Canadian Solar‘s third quarter (Q3) 2024 revenue and earnings fell short of analyst expectations as average selling prices for solar modules dropped.

Revenue for the quarter came in at $1.51 billion, an 18.34% year-over-year (YoY) decline, missing estimates by $204.42 million. The company posted a net loss of $14 million or – $0.31 per share, missing consensus estimates by $0.19.

The revenue shortfall was also due to reduced project sales and weaker third-party battery energy storage sales. These declines outweighed gains from increased shipment volumes in both solar modules and battery energy storage systems.

Gross profit stood at $247 million, a 20% drop as gross margin dropped to 16.4% from 16.7% in Q3 2023. Operating expenses rose to $247 million, driven by higher shipping and handling costs. Compounding by increased depreciation and net interest expenses, total operating losses led to a challenging quarter.

Total module shipments recognized as revenues in Q3 2024 were 8.4 GW, up 2% quarter-over-quarter and 1% year-over-year. Of the total, 31 MW were shipped to the company’s utility-scale solar power projects. The top five markets ranked by shipments were the U.S., China, Pakistan, Germany, and Brazil.

As of September 30, 2024, Recurrent Energy, which is Canadian Solar’s clean energy project development platform, had a total solar project development pipeline of 26.4 GW, including 1.7 under construction, 4.8 GW of backlog, and 19.9 GW of projects in advanced and early-stage pipelines.

Recurrent Energy’s total battery energy storage project development pipeline was 66.1 GWh, including 9.8 GWh under construction and in backlog and 56.3 GWh of projects in advanced and early-stage pipelines.

CSI Solar shipped 8.4 GW of solar modules and solar system kits to more than 70 countries in the third quarter of 2024.

For the next quarter, Canadian Solar projects revenue between $1.5 billion and $1.7 billion, with gross margins improving to 16-18%. Expected module shipments range from 8 GW to 8.5 GW, including 500 MW directed to in-house projects. Battery energy storage shipments are forecasted at 2 GWh to 2.4 GWh, highlighting continued expansion in the energy storage sector.

For the full year of 2025, the company expects total module shipments to be in the range of 30 GW to 35 GW and CSI Solar’s total battery energy storage shipments in the range of 11 GWh to 13 GWh, including approximately 1 GW and 1 GWh respectively to its own projects.

CEO Shawn Qu emphasized the company’s robust technological foundation and focus on innovation despite industry-wide challenges, noting, “We remain well-positioned to grow in energy storage and renewable markets while navigating complex global conditions.”

The solar market continues to face intense competition, geopolitical pressures, trade barriers, and patent disputes, creating a cyclical low. However, these downturns test our resilience and enhance the economics of solar and Energy storage, driving long-term growth opportunities.”

Canadian Solar highlighted advancements in TOPCon cell technology, which achieved mass production efficiencies of 26.7%, solidifying its position in a competitive market. Meanwhile, U.S. shipments accounted for over 30% of total volumes, underlining its strategic emphasis on North America.

Canadian Solar detailed its expanding U.S. manufacturing footprint with its Texas solar module facility, which has been operational since late 2023, ramping production to reach full capacity by mid-2025.

The company also has a solar cell facility in Indiana, which is set to open by late 2025, and a new battery manufacturing plant in Kentucky, through its subsidiary e-STORAGE, will see an investment of over $300 million in Phase 1, targeting a capacity of 3 GWh annually.

In August this year, the company raised $200 million from PAG in a private placement of secured convertible notes.

Canadian Solar ran up a loss of $47.98 million in the second quarter of 2024 from a profit of $124.73 million in the same quarter last year.