• Revenue: $6 billion for the full year 2024.
• Net Income: $34 million or $0.48 per diluted share for Canadian Solar shareholders.
• Solar Module Shipments: 8.2 gigawatts in Q4, totaling 31.1 gigawatts for 2024.
• Energy Storage Shipments: 2.2 gigawatt hours in Q4, totaling 6.6 gigawatt hours for 2024.
• Gross Margin: 18.4% for the full year 2024.
• Operating Loss: $40 million for Recurrent Energy in Q4.
• Project Sales: 540 megawatts of PV projects sold in Q4, totaling 1.2 gigawatts for 2024.
• Cash Flow: Net increase in cash of $682 million for the full year 2024.
• Capital Expenditures: $1.1 billion for 2024, with a forecast of $1.2 billion for 2025.
• Q1 2025 Revenue Guidance: $1 billion to $1.2 billion.
• Q1 2025 Gross Margin Guidance: 9% to 11%.
• Full Year 2025 Revenue Guidance: $7.3 billion to $8.3 billion.

• Warning! GuruFocus has detected 8 Warning Signs with CSIQ.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Canadian Solar Inc (NASDAQ:CSIQ) shipped 8.2 gigawatts of solar modules in Q4, contributing to a total of 31.1 gigawatts for the year.
• The company achieved record energy storage volume, with a 500% year-over-year increase in shipments, reaching 6.6 gigawatt hours in 2024.
• Canadian Solar Inc (NASDAQ:CSIQ) is making significant progress on its US manufacturing facilities, which will enhance its domestic production capabilities.
• The company is well-positioned to capitalize on the growing demand for energy storage, with a strong pipeline of 79 gigawatt hours.
• Canadian Solar Inc (NASDAQ:CSIQ) maintained relatively strong profitability in a challenging market by adhering to a disciplined order-taking strategy and focusing on high-margin channels.

Negative Points

• The company faced a challenging operating environment in 2024, with net income for shareholders at only $34 million.
• Gross margin was negatively impacted by inventory write-downs, freight-related duties, tariffs, and project asset impairments.
• The solar industry experienced intensified competition and structural overcapacity, leading to a prolonged market downturn.
• Geopolitical uncertainties and trade-related challenges in key markets like the US are creating operational and financial headwinds.
• General and administrative expenses increased significantly due to impairments to certain manufacturing assets and solar power systems.

Q & A Highlights

Q: Given the changes in battery chemistry and price dynamics, how do you see margins trending for your energy storage systems? A: Xiaohua Qu, CEO, explained that while there are some chemical changes, the main structure remains the same. New technologies like prelithiation are being implemented to improve cycle times and reduce degradation. Savings from these advancements will be passed to customers, but Canadian Solar aims to maintain reasonable margins.

Q: With geopolitical shifts and potential increased activity in Europe, what are the early indications of infrastructure support in countries like Germany? A: Ismael Guerrero, CEO of Recurrent Energy, noted strong movement towards storage installations in Europe, with high PV penetration. Despite geopolitical noise, there hasn't been a slowdown in the US market, and Europe is seeing a significant push for storage deployment.

Q: The Q1 guidance implies a significant acceleration in module shipments in the latter half of the year. Can you provide clarity on this ramp-up? A: Yan Zhuang, President of CSI Solar, stated that while prices are stabilizing globally, the US is seeing a slight decline. The ramp-up is supported by increased US manufacturing and growing storage shipments, focusing on high-margin channels and bundled sales.

Q: Regarding the gross margin improvement, is it expected throughout the year or just in Q2? A: Yan Zhuang clarified that the margin improvement is expected throughout the year, driven by increased storage shipments and improved channel structure. Q1 margins were impacted by impairments and duty effects, but overall, margins are on an upward trend.

Q: How are steel and aluminum tariffs impacting your cost structure, and are these costs passed to customers? A: Yan Zhuang confirmed that these tariffs are accounted for in the cost structure, with no significant impact observed. Some tariffs are absorbed by suppliers, minimizing the effect on Canadian Solar's pricing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.