Canadian Solar Sees Strong Q2 Growth in Modules and Batteries
Canadian Solar has just reported some impressive second quarter results, showing how quickly the company is shifting gears in the global renewable energy market. In the three months leading up to June, the company shipped 7.9 gigawatts of solar modules. That’s a 14% increase compared to the previous quarter, which helped drive gross profits up to 505 million U.S. dollars. Although sales were slightly lower compared to the same time last year, the quarter-on-quarter momentum provided a strong revenue boost. Net revenues reached 1.7 billion dollars, which is 42% higher than the previous quarter.
What really stood out was the performance of Canadian Solar’s battery energy storage division. Revenue from its storage systems, sold through subsidiary CSI Solar under the e-STORAGE brand, almost tripled between the first and second quarters of this year. Earnings jumped from 155 million to 432 million dollars, meaning storage made up a significant share of total company revenue. This shift has been seen as a strategic response to trade challenges, including new tariffs in the U.S. that have put pressure on solar module imports.
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The numbers highlight how Canadian Solar has been rebalancing its business. In the first quarter, the company posted very modest income from operations — just 1.8 million dollars. By the end of the second quarter, that figure had surged to over 120 million dollars. Executives credited strong battery sales, along with better solar supply chain pricing, for this dramatic turnaround. At the same time, they also warned that margins may be tighter in the second half of the year, as both solar and storage markets face price shifts.
Looking ahead, Canadian Solar plans to scale back its module production slightly while ramping up its battery manufacturing. Between June and December, it expects to reduce module production capacity by several gigawatts, while adding around 5 gigawatt-hours of new battery storage capacity. The company has also hinted at moving some manufacturing into the U.S. to avoid tariff complications, though no final decision has been announced.
Not every part of the business has been as successful. Recurrent Energy, Canadian Solar’s project development arm, recorded higher losses this quarter, largely due to operating costs outweighing revenues. Still, the pipeline of future projects looks strong, especially outside of North America. Canadian Solar now has more than 15 gigawatts of solar projects planned across Europe, the Middle East, Africa, and Latin America, along with a storage pipeline that is significantly larger than its U.S. portfolio.
Even with the dip in project development earnings, Canadian Solar remains optimistic. It expects solar module shipments to drop somewhat in the next quarter, but total revenues are projected to hold steady thanks to continued battery sales. In fact, up to 9 gigawatt-hours of storage sales are forecast for the year, underlining just how central batteries have become to the company’s future.
In short, Canadian Solar’s second quarter results reveal a company that is not just surviving trade turbulence, but reshaping itself around the growing demand for energy storage — a shift that may define the next stage of solar power’s global expansion.
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