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Canadian Solar missed second-quarter revenue forecasts and posted an unexpected loss, but set a new record for solar module shipments and beat margin expectations thanks to brisk North American demand.
What does this mean?
Canadian Solar's second quarter delivered a little bit of everything. Revenue clocked in at $1.7 billion -- falling well short of analyst expectations near $1.95 billion -- and the company slipped into an adjusted loss of $0.53 per share instead of a forecasted profit. That said, the company managed to boost gross margin to 29.8%, beating its own guidance as North American sales accelerated and storage shipments held firm. Solar module shipments hit 7.9 GW, up 14% from last quarter and right near the upper end of the company's goals. The revenue shortfall mostly came down to delayed project sales and the timing of storage deliveries, both of which are expected to bounce back in the second half of 2025. Management is still aiming high, keeping full-year revenue guidance at $5.6 to $6.3 billion and targeting up to 27 GW in shipment volume.
Canadian Solar's growth story is tempered by unpredictable project timing. Even with robust shipment growth and strong margins, analysts are staying cautious -- most rate the stock a 'hold' as they wait for steadier revenue and more clarity on delayed projects. The median 12-month price target rests a touch below current levels, signaling that investors are taking a wait-and-see approach until the second half shows some follow-through.
The bigger picture: All eyes on value over volume.
Canadian Solar's results highlight an industry pivot as solar firms adjust to post-boom realities. Sectors across North America are shifting focus from just racking up shipments to growing profitability, with tariff changes and easing supply disruptions shaping strategies. If Canadian Solar's storage and core markets keep gaining traction, the company -- and sector -- could be in for a steadier ride ahead.