Sales fell 12% sequentially and 1% year over year. The gross margin increased to 17.2%, above expectations and higher than the 16.4% a year earlier.
GAAP net income attributable to shareholders was $9 million, or a net loss of 7 cents per diluted share, compared to a loss of 31 cents per diluted share a year ago.
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CSI Solar segment performance and shipments
CSI Solar recognized 5.1 GW of module shipments, a sharp decline from previous periods, including 33 MW to its own projects. Lower sales of modules drove the decline, partly offset by stronger sales of battery energy storage systems.
CSI Solar generated $1.43 billion in revenue and $214.4 million in gross profit, while Recurrent Energy generated $105.2 million in revenue and $48.5 million in gross profit.
Solar panels contributed $839.4 million, battery storage solutions $486.0 million, solar system kits $29.9 million, and EPC and other services $29.8 million.
Energy storage remained the highlight. e-STORAGE shipped a record volume of 2.7 GWh – well above expectations – and grew its contract backlog to $3.1 billion.
Storage revenue rose to $486.0 million from $95.4 million a year earlier. The company had a battery energy storage development pipeline of 80.6 GWh as of September 30, 2025, of which 6.5 GWh is under construction and in backlog, and 74.1 GWh is in late or early development.
Operating expenses fell to $222 million from $378 million in the previous quarter and $247 million a year earlier, due to cost savings and the absence of impairment charges.
Operating income was $34.6 million, while total other expenses were $42.2 million, on $44.4 million in interest expense and $15.1 million in interest income.
Net cash used in operating activities was $112 million, compared to $189 million in the second quarter and $231 million a year earlier. The total debt burden was $6.4 billion. The company had $2.2 billion in cash on hand at the end of the quarter.
Recurring energy update
Recurrent Energy’s global solar development pipeline reached 25.1 GWp, with 2.0 GWp under construction and 3.4 GWp in backlog.
Recurrent reported revenues of $102.3 million, including $39.8 million from asset sales, $19.9 million from energy services and $42.6 million from electricity and storage activities.
Management pointed to an improved mix, record warehousing performance and continued progress in U.S. plant construction. Dr. Shawn Qu said: “Third quarter revenue was at the high end of expectations, while gross margin exceeded expectations, supported by strong energy storage shipments and a high mix of module shipments to profitable markets,” adding that U.S. solar cell and battery production remains on track for 2026.
The company continued to add large-scale storage and solar operations in Canada, Germany, Australia and the United States, commissioning new assets and securing $825 million in financing for the Desert Bloom Storage and Papago Solar projects.
Outlook
Canadian Solar expects fourth-quarter revenue of $1.3 billion to $1.5 billion, lower than analyst estimates of $1.599 billion, with an expected gross margin of 14% to 16%.
It projects module transports from 4.6 GW to 4.8 GW and storage transports from 2.1 GWh to 2.3 GWh.
For 2026, CSI Solar expects 25 GW to 30 GW of module shipments and 14 GWh to 17 GWh of storage volume.
Qu said: “We will continue to focus on profitable solar markets and manage volumes in less profitable regions,” reiterating that Recurrent Energy will increase project property sales in 2026 to manage leverage.
Increased short-term interest rates
The company has a short float of 10.44 million shares, representing 20.03% of the listed float, indicating a relatively high level of short interest among investors betting against the stock.
Price promotion: CSIQ shares were trading 9.38% higher at $31.13 premarket at last check Thursday.
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