Canadian Solar Posts $1.7 Billion Sales
Canadian Solar (NASDAQ:CSIQ) reported Q2 2025 earnings on August 21, 2025, delivering $1.7 billion in GAAP revenue, 7.9 GW of module shipments (near the high end of guidance), and a gross margin of 29.8% (including one-time items), with net attributable income of $7 million (GAAP). Revenue fell below expectations due to delayed project sales and storage shipments, while supply chain cost pressures and nonrecurring write-downs weighed on operating profit, and management revised full-year module and revenue guidance lower but held storage shipment targets steady. The analysis below highlights regulatory responses, cost dynamics, and strategic pipeline management critical to long-term investors.
The One Big Beautiful Bill Act (OBBA) introduced stricter Foreign Entity of Concern (FEOC) and trade policies, increasing compliance challenges for manufacturers and developers aiming to maintain U.S. tax credit eligibility. Canadian Solar confirmed it had safe-harbored 1.6 GW of projects as of June 30, 2025 and is targeting an additional 2.3 GW, bringing the total close to 4 GW, as discussed on the earnings call.
By front-loading its safe-harbor strategy, Canadian Solar is leveraging regulatory certainty, positioning Recurrent as one of the few long-term developers with critical U.S. market flexibility and competitive advantage under tightening policy regimes.
Source Fool.com
