Canadian Solar has reported Q3 2025 net revenues of $1.5 billion, hitting the upper end of its guidance despite a 12% quarterly and 1% annual decline. The dip was driven by lower solar module sales, partly offset by stronger demand for battery energy storage systems (BESS), according to the Canada-headquartered company.
Solar and storage manufacturing under its subsidiary, CSI Solar, continues to be the major driver of the company’s business, followed by utility-scale solar and storage project development arm, Recurrent Energy.
The manufacturer recognized 5.1 GW for its revenues during the quarter, representing a decline of 35% quarter-over-quarter (QoQ) and 39% year-over-year (YoY). While its modules reached over 60 nations during the reporting quarter, the company said it prioritized profitable solar markets, such as North America, that accounted for 44% of the shipments. Its top 5 solar markets were the US, China, Spain, Pakistan, and South Africa.
For the company’s BESS subsidiary, e-STORAGE, the quarterly shipment volume reached a record 2.7 GWh, exceeding the guidance of 2.1 GWh to 2.3 GWh, owing to the shifting of 2 project deliveries from Q4 to Q3. Thanks to growing demand in this space, e-STORAGE’s contracted backlog for utility-scale BESS increased to $3.1 billion as of October 31, 2025. The management says its residential energy storage business is on track to become profitable in 2025.
Management shared an update regarding its US manufacturing facilities. Construction on the solar cell fab in Indiana and the integrated lithium battery cell, pack, and BESS factory in Kentucky is progressing as planned. Canadian Solar Chairman and CEO Dr. Shawn Qu said that Phase I of the cell fab is scheduled to start commercial operations in Q1 2026, while Phase I of the integrated fab will come online in Q4 2026.
Its gross margin of 17.2% during the quarter exceeded expectations (14% to 16%), although it was lower than the 29.8% reported in Q2 2025, but was higher than the 16.4% reported in Q3 2024.
