Canadian Solar Reports Fourth Quarter and Full Year 2025 Results

About this update from Canadian Solar Inc.

KITCHENER, ON , March 19, 2026 /PRNewswire/ -- Canadian Solar Inc. (" Canadian Solar " or the "Company") (NASDAQ: CSIQ) today announced financial results for the fourth quarter and full year ended December 31, 2025 . Full Year 2025 Highlights 24.3 GW of solar module shipments delivered globally, with record 8.1 GW delivered to the U.S. market. Record 7.8 GWh of energy storage shipments delivered globally, with 3.9 GWh delivered to the U.S. market. Energy storage contracted backlog increased to record $3.6 billion , as of March 13, 2026 . Completed a US$230 million convertible bond issuance to accelerate U.S. manufacturing initiatives. Resumed direct oversight of U.S. operations, forming CS PowerTech as the new U.S. manufacturing platform. Fully ramped up Texas module factory to an annual production run rate exceeding 5 GW, with planned expansion to nameplate capacity of 10 GWp by the second half of 2026. Dr. Shawn Qu , Chairman and CEO , commented, "We demonstrated strategic resilience and operational discipline throughout a year defined by persistent market headwinds and a shifting regulatory landscape. In response to the prolonged solar downturn, we pivoted away from the industry's traditional focus on shipment volumes and instead took the lead by prioritizing margins and diversifying our profit drivers, notably energy storage. Our commitment to the U.S. market remains steadfast as we spearhead the reshoring of manufacturing to North America . Our solar module factory in Mesquite, Texas has fully ramped up, and we intend to double its nameplate capacity to support a more resilient domestic supply chain. We are moving in the equipment for the first phase of our solar cell plant in Jeffersonville, Indiana as we speak and expect to see the first cell come off the production line by the end of March, with full ramp up expected by the end of June. Furthermore, we are advancing the second phase, which once operational, will bring our U.S. cell capacity to 6.3 GWp, establishing the largest crystalline silicon technology footprint in the country." Colin Parkin , President of Canadian Solar and President of e-STORAGE , said, "We shipped 4.3 GW of solar modules this quarter, as we maintained our disciplined approach to order intake amid rising input costs, concluding the year with total shipments of 24.3 GW. Although site construction delays shifted certain energy storage volumes into the first quarter of 2026, we still delivered a record 7.8 GWh in global energy storage shipments. This represents robust double-digit growth, achieved while successfully navigating a turbulent policy environment. Our momentum is further evidenced by a record contracted backlog of $3.6 billion . As we direct our resources toward our comprehensive U.S. manufacturing strategy, we are proactively rebalancing our project development investments to optimize cash flow and manage leverage." Ismael Guerrero , CEO of Canadian Solar's subsidiary Recurrent Energy , said, "Our quarterly revenue and margin profiles were impacted by delays in certain project sales, which have been pushed into 2026. We continue to shift our business mix toward the monetization of operating and under-construction assets to strengthen our balance sheet and improve cash flow. As we manage the pacing of construction activities, we are also optimizing our pipeline for quality, focusing on generating value from existing opportunities." Xinbo Zhu , Senior VP and CFO , added, "For the fourth quarter, we reported revenue of $1.2 billion and a gross margin of 10.2%. Profitability was affected by sequentially lower global storage volumes and solar module deliveries to the North American market, delayed project sales, and project asset impairments. Capital expenditures in 2025 totaled $962 million , slightly below expectations, and we ended the year with a cash position of $1.9 billion ." Fourth Quarter 2025 Results Total solar module shipments recognized as revenues in Q4 2025 were 4.3 GW, down 16% quarter-over-quarter ("qoq") and down 47% year-over-year ("yoy"). Net revenues were $1.2 billion in Q4 2025, down 18% sequentially and 20% yoy, mainly due to lower sales of solar modules and battery energy storage systems. Gross profit was $124 million , compared to $256 million in Q3 2025 and $217 million in Q4 2024. Gross margin was 10.2%, compared to 17.2% and 14.3% in Q3 2025 and Q4 2024, respectively. The sequential decrease in gross margin was primarily due to the impairment charges related to certain project assets. The yoy decrease was driven by lower contribution from solar modules and project asset sales, partially offset by higher module ASPs. Operating expenses were $188 million , down from $222 million in Q3 2025 and $344 million in Q4 2024 due to lower logistics costs. Operating expenses represented 15.5% of revenue, compared to 14.9% in Q3 2025 and 22.6% in Q4 2024. Net loss attributable to Canadian Solar in accordance with generally accepted accounting principles in the United States of America ("GAAP") in Q4 2025 was $86 million , or a net loss of $1.66 per diluted share, compared to a net income of $9 million , or a net loss of $0.07 per diluted share, in the Q3 2025, and net income of $34 million , or $0.48 per diluted share, in Q4 2024. Net income/(loss) per diluted share includes the dilutive effect of convertible bonds, as applicable, and the Recurrent Energy redeemable preferred shares dividends. Net cash flow used in operating activities in Q4 2025 was $65 million, driven by changes in working capital, specifically an increase in project assets, partially offset by a decrease in inventories, compared to net cash flow used in operating activities of $112 million in Q3 2025 and net cash flow provided by operating activities of $66 million in Q4 2024. Total debt, including financing liabilities, was $6.5 billion as of December 31, 2025 , including $3.8 billion , $2.5 billion and $0.2 billion related to Recurrent Energy, Manufacturing, and convertible notes, respectively. Total debt increased from $6.4 billion as of September 30, 2025 , mainly due to new borrowings for construction of projects. Total non-recourse debt under Recurrent Energy as of December 31, 2025 , was $2.2 billion . Business Segments On December 1, 2025 , Canadian Solar announced a strategic initiative to resume direct oversight of its U.S. operations. The Company has formed a new joint venture with its majority-owned subsidiary, CSI Solar Co., Ltd. (" CSI Solar "), by holding a 75.1% controlling stake in CS PowerTech Inc. ("CS PowerTech"), which operates U.S. -based manufacturing and sales of solar modules, solar cells, and advanced energy storage systems. On December 16, 2025 , CSI Solar's shareholders approved the proposed initiative. Following the consummation of this strategic initiative, Canadian Solar's business is organized into two segments: Manufacturing, comprising CS PowerTech, which focuses on manufacturing and sales of solar modules, battery energy storage products, and other power technology products for the U.S. market, and CSI Solar , which serves all other global markets; and Recurrent Energy, which focuses on solar power and battery storage project development, asset sales, power services, and electricity revenue from its operating portfolio. Manufacturing Solar Modules and Solar System Kits The Company shipped 4.3 GW of solar modules and solar system kits to more than 70 countries and regions in Q4 2025. Consistent with the Company's transition from volume-driven growth to high-value creation, the Company will focus its disclosure on strategic markets rather than aggregate global manufacturing capacity. In the U.S. , the Company operates a 5 GWp solar module factory in Mesquite, Texas , which will be expanded to nameplate capacity of 10 GWp by the second half of 2026. The Company is also continuing to advance its flagship, state-of-the-art heterojunction technology ("HJT") solar cell factory in Jeffersonville, Indiana . In response to strong customer demand, the Company is increasing its production capacity beyond 5 GWp, with additional production lines being installed and commissioned through 2026. Phase I: Trial production is scheduled to begin by April 2026 . Phase I has a nameplate capacity of 2.1 GWp and represents the only commercially operational HJT solar cell facility in the U.S. Phase II: The Company expects to begin trial production for Phase II by the end of 2026. This expansion will add 4.2 GWp of capacity, bringing the Company's total solar cell nameplate capacity in the U.S. to 6.3 GWp. e-STORAGE: Battery Energy Storage Solutions As of March 13, 2026 , e-STORAGE contracted backlog, including contracted long-term service agreements, stood at $3.6 billion . These signed orders carry contractual obligations to customers and provide significant earnings visibility over a multi-year period. Recurrent Energy As of December 31, 2025 , the Company had a total global solar project development pipeline of approximately 24 GWp and a battery energy storage project development pipeline of 83 GWh. The business model consists of three key drivers: Electricity revenue from operating portfolio to drive stable, diversified cash flows in growth markets with stable currencies; Asset sales , including selective operating assets in stable currency markets and assets in the rest of the world, to manage cash flow, debt level and to fund growth in operating portfolio; and Power services (O&M) through long-term operations and maintenance ("O&M") contracts, currently with nearly 15 GW of contracted projects, to drive stable and long-term recurring earnings and synergies with the project development platform. Project Development Pipeline – Solar As of December 31, 2025 , the Company's total solar project development pipeline was 24.4 GWp, including 1.6 GWp under construction, 3.2 GWp of backlog, and 19.6 GWp of projects in advanced and early-stage development, defined as follows: Backlog projects are late-stage projects that have passed their risk cliff date and are expected to start construction within the next one to four years. A project's risk cliff date is the date on which it passes the last high-risk development stage and varies by country. Typically, this occurs after the project has received all required environmental and regulatory approvals, and entered into interconnection agreements and offtake contracts, including feed-in tariff ("FIT") arrangements and power purchase agreements ("PPAs"). A significant majority of backlog projects are contracted (i.e., have secured a PPA or FIT), and the remainder have a reasonable assurance of securing PPAs. Advanced pipeline projects are mid-stage projects that have secured or are more than 90% likely to secure an interconnection agreement. Early-stage pipeline projects are early-stage projects controlled by the Company that are in the process of securing interconnection. While the magnitude of the Company's project development pipeline is an important indicator of potential increases in power generation and battery energy storage capacity, as well as potential future revenue growth, the development of projects in its pipeline is inherently uncertain. If the Company does not successfully complete the pipeline projects in a timely manner, it may not realize the anticipated benefits of those projects to the extent expected, which could adversely affect its business, results of operations, and financial condition. In addition, the Company's guidance and estimates of its future operating and financial results assume the completion of certain solar projects and battery energy storage projects in its pipeline. If the Company is unable to execute on its actionable pipeline, it may fail to meet its guidance, which could adversely affect the market price of its common shares and its business, results of operations, and financial condition. The following table presents the Company's total solar project development pipeline. Solar Project Development Pipeline (as of December 31, 2025 ) – MWp* Region UnderConstruction Backlog AdvancedDevelopment Early-StageDevelopment Total North America 276 556 427 3,923 5,182 Europe , the Middle East , and Africa ("EMEA") 674 1,687** 1,033 4,995 8,389 Latin America 128** 374 352 6,256 7,110 Asia Pacific 492 616** 546 2,080 3,734 Total 1,570 3,233 2,358 17,254 24,415 *All numbers are gross MWp. **Including 63 MWp under construction and 441 MWp in backlog that are owned by or already sold to third parties. Project Development Pipeline – Battery Energy Storage As of December 31, 2025 , the Company's total battery energy storage project development pipeline was 83.5 GWh, including 6.2 GWh under construction and in backlog, and 77.3 GWh of projects in advanced and early-stage development. The table below sets forth the Company's total battery energy storage project development pipeline. Battery Energy Storage Project Development Pipeline (as of December 31, 2025 ) – MWh* Region UnderConstruction Backlog AdvancedDevelopment Early-StageDevelopment Total North America 600 200 600 21,540 22,940 EMEA 43** 2,590** 3,829 31,955 38,417 Latin America - - 1,320 4,645 5,965 Asia Pacific 162 2,640 2,981 10,380 16,163 Total 805 5,430 8,730 68,520 83,485 *All numbers are gross MWh. **Including 13 MWh under construction and 1,194 MWh in backlog that are owned by third parties. Business Outlook The Company's business outlook is based on management's current views and estimates given factors such as existing market conditions, order book, production capacity, input material prices, foreign exchange fluctuations, the anticipated timing of project sales, and the global economic environment. This outlook is subject to uncertainty with respect to, among other things, customer demand, project construction and sale schedules, product sales prices and costs, supply chain constraints, and geopolitical conflicts. Management's views and estimates are subject to change without notice. In Q1 2026, the Company expects total revenue to be in the range of $900 million to $1.1 billion . Gross margin is expected to be between 13% and 15%. Total module shipments recognized as revenues are expected to be in the range of 2.2 GW to 2.4 GW. Total battery energy storage shipments in Q1 2026 are expected to be in the range of 1.7 GWh to 1.9 GWh. The Company is issuing new guidance of 6.5 to 7.0 GW of solar modules and 4.5 to 5.5 GWh of battery energy storage solutions to the U.S. in 2026. Dr. Shawn Qu , Chairman and CEO, commented, "While the first quarter tends to be seasonally softer, we are navigating a complex macro environment, including elevated and volatile input costs across supply chains and policy uncertainty in key markets. In our project development business, we are rebalancing toward asset monetization and optimizing our cost structure. Our solar module shipments in the U.S. are expected to be slightly lower in 2026 than in 2025, primarily due to a limited supply of solar cells qualified as non-PFE under the OBBBA in the first half of the year. The high cost of such cells will also affect our profitability. I believe this is temporary, as our own production will ramp up in Q2 and Q3. 2026 will be a transition year, as we accelerate our U.S. manufacturing roadmap and diversify our long-term profitability drivers." Recent Developments Canadian Solar On January 15, 2026 , Canadian Solar announced a decisive victory in litigation proceedings against Maxeon Solar Pte. Ltd. ("Maxeon") before the Patent Trial and Appeal Board ("PTAB") of the United States Patent and Trademark Office ("USPTO"). In Final Written Decisions, the PTAB ruled in Canadian Solar's favor, holding that all claims asserted by Maxeon against Canadian Solar relating to the alleged infringement of the patents at issue in the federal court litigation are invalid. On January 13, 2026 , Canadian Solar announced the closing of its previously announced offering of US$230 million aggregate principal amount of 3.25% convertible senior notes due 2031 (the "Notes"), including the full exercise of the initial purchasers' option to purchase an additional US$30 million aggregate principal amount of the Notes. The Notes were offered in a Rule 144A private offering. The net proceeds from the offering were approximately US$223.1 million, after deducting the initial purchasers' discount and estimated offering expenses. On December 24, 2025 , Canadian Solar announced the appointment of Colin Parkin as a member of its board of directors (the "Board") and his promotion to President of Canadian Solar. Parkin succeeds Yan Zhuang on the Company's Board and assumes the role of the Company's President from Dr. Shawn Qu. Dr. Qu, the Founder of Canadian Solar, continues to serve as the Company's Chairman and Chief Executive Officer. In conjunction with Parkin's appointment, the Board also appointed Dylan Marx as Chief Operating Officer. On December 1, 2025 , Canadian Solar announced a strategic initiative to resume direct oversight of its U.S. operations and continue reshoring manufacturing to North America. On December 16, 2025 , the shareholders of its majority-owned subsidiary CSI Solar approved the proposed initiative. Canadian Solar has formed a new joint venture with CSI Solar by holding a 75.1% controlling stake in CS PowerTech, which operates U.S. -based manufacturing and sales of solar modules, solar cells, and advanced energy storage systems. Manufacturing: CS PowerTech and CSI Solar On March 17, 2026 , Canadian Solar announced that it had entered into an agreement with a major U.S. utility for a 500 MW / 2,493 MWh DC battery energy storage system ("BESS") project, supporting data center grid infrastructure and resiliency. Shipments are expected to start in March 2027 and be completed by July 2027 . On February 11, 2026 , Canadian Solar announced the delivery of its first grid-connected battery energy storage system in Japan , with a rated output of 2 MW and an energy capacity of 8.25 MWh DC. The project was developed by Canadian Solar Projects K.K. e-STORAGE was responsible for the design, engineering, and commissioning of the project, and will also provide long-term maintenance and inspection services throughout the operational life of the BESS. On February 5, 2026 , Canadian Solar announced that it had signed agreements for the supply and long-term servicing of two standalone battery energy storage projects totaling 503 MWh DC in Franklin County, Texas. The projects, collectively referred to as the Lupinus projects, are being developed by Sunraycer. They comprise Lupinus 1, a 202 MWh facility expected to begin construction in Q1 2027 and reach commercial operation in Q3 2027, and Lupinus 2, a 301 MWh facility scheduled to start construction in Q3 2026 and achieve commercial operation in Q2 2027. On December 17, 2025 , Canadian Solar announced that it would deliver 408 MWh AC Battery Energy Storage System to Vena Energy for its Tailem Bend 3 project in South Australia. The project is under construction and is targeted to begin operation in 2027. Under an initial 5-year Long Term Service Agreement, Canadian Solar's e-STORAGE will also be responsible for maintenance of the battery energy storage system. Recurrent Energy On February 24, 2026 , Canadian Solar announced that it had completed the sale of its 200 MWh Fort Duncan Battery Storage facility to Hunt Energy Network. Canadian Solar expects to recognize the revenue from the transaction in the first quarter of 2026. Located in Maverick County, Texas , Fort Duncan Battery Storage reached commercial operation in June 2025. The Company had secured $183 million in project financing and tax equity for the storage facility. On December 2, 2025 , Canadian Solar announced that it had been granted a Development Consent Order ("DCO") for its Tillbridge solar and battery energy storage project, located in Lincolnshire, England . The proposed project combines 800 MW of solar PV and 500 MW / 1,000 MWh of battery energy storage. The DCO was awarded by the UK Secretary of State for the Department for Energy Security and Net Zero . Once operational, Tillbridge will become one of the largest hybrid solar and storage facilities in the United Kingdom. Conference Call Information The Company will hold a conference call on Thursday, March 19, 2026 , at 8:00 a.m. U.S. Eastern Time to discuss the Company's fourth quarter and full year 2025 results and business outlook. The dial-in phone number for the live audio call is +1-877-704-4453 (toll-free from the U.S.) or +1-201-389-0920 from international locations. The conference ID is 13758808. A live webcast of the conference call will also be available on the investor relations section of Canadian Solar's website at www.canadiansolar.com . A replay of the call will be available after the conclusion of the call until 11:00 p.m. U.S. Eastern Time on Thursday, April 2, 2026 and can be accessed by dialing +1-844-512-2921 (toll-free from the U.S.) or +1-412-317-6671 from international locations. The replay pin number is 13758808. A webcast replay will also be available on the investor relations section of Canadian Solar's website at www.canadiansolar.com . About Canadian Solar Inc. Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario , the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 25 years, Canadian Solar has successfully delivered over 174 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 18 GWh of battery energy storage solutions to global markets as of December 31, 2025 , boasting a $3.6 billion contracted backlog as of March 13, 2026 . Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12 GWp of solar power projects and 6.2 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 24 GWp of solar and 83 GWh of battery energy storage capacity in various stages of development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com . Safe Harbor/Forward-Looking Statements Certain statements in this press release, including those regarding the Company's expected future shipment volumes, revenues, gross margins, and project sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "may", "will", "expect", "anticipate", "future", "ongoing", "continue", "intend", "plan", "potential", "prospect", "guidance", "believe", "estimate", "is/are likely to" or similar expressions, the negative of these terms, or other comparable terminology. These forward-looking statements include, among other things, our expectations regarding global electricity demand and the adoption of solar and battery energy storage technologies; our growth strategies, future business performance, and financial condition; our transition to a long-term owner and operator of clean energy assets and expansion of project pipelines; our ability to monetize project portfolios, manage supply chain fluctuations, and respond to economic factors such as inflation and interest rates; our outlook on government incentives, trade measures, regulatory developments, and geopolitical risks; our expectations for project timelines, costs, and returns; competitive dynamics in solar and storage markets; our ability to execute supply chain, manufacturing, and operational initiatives; access to capital, debt obligations, and covenant compliance; relationships with key suppliers and customers; technological advancement and product quality; and risks related to intellectual property, litigation, and compliance with environmental and sustainability regulations. Other risks were described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 30, 2025 . Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Wina Huang Investor Relations Canadian Solar Inc. [email protected] FINANCIAL TABLES FOLLOW The following tables provide unaudited select financial data for the Company's Manufacturing and Recurrent Energy businesses. Select Financial Data – Manufacturing and Recurrent Energy Three Months Ended and As of December 31, 2025 (In Thousands of U.S. Dollars) Manufacturing RecurrentEnergy Eliminationandunallocateditems Total Net revenues $ 1,263,572 $ 67,043 $ (113,406) $ 1,217,209 Cost of revenues 1,080,512 89,741 (77,445) 1,092,808 Gross profit 183,060 (22,698) (35,961) 124,401 Operating expenses 145,792 46,282 (3,612) 188,462 Income (loss) from operations 37,268 (68,980) (32,349) (64,061) Other segment items (1) (54,465) Loss before income taxes and equity in losses of affiliates (118,526) Supplementary Information: Interest expense $ (14,909) $ (29,987) $ (3,562) $ (48,458) Interest income 7,241 1,592 127 8,960 Depreciation and amortization, included in cost of revenues and operating expenses 119,566 13,210 — 132,776 Cash and cash equivalents $ 1,214,433 $ 89,936 $ 66,049 $ 1,370,418 Restricted cash – current and non- current 436,561 133,456 — 570,017 Non-recourse borrowings — 2,168,485 — 2,168,485 Other short-term and long-term borrowings 2,417,322 1,424,462 — 3,841,784 Convertible notes – non-current — — 195,313 195,313 Green bonds – current — 153,152 — 153,152 Select Financial Data – Manufacturing and Recurrent Energy Twelve Months Ended December 31, 2025 (In Thousands of U.S. Dollars) Manufacturing RecurrentEnergy Eliminationandunallocateditems Total Net revenues $ 5,612,124 $ 403,620 $ (420,637) $ 5,595,107 Cost of revenues 4,669,608 320,166 (420,893) 4,568,881 Gross profit 942,516 83,454 256 1,026,226 Operating expenses 743,959 236,111 3,000 983,070 Income (loss) from operations 198,557 (152,657) (2,744) 43,156 Other segment items (1) (183,895) Loss before income taxes and equity in losses of affiliates (140,739) Supplementary Information: Interest expense $ (64,284) $ (99,114) $ (14,768) $ (178,166) Interest income 34,794 8,678 2,582 46,054 Depreciation and amortization, included in cost of revenues and operating expenses 498,026 57,027 — 555,053 (1) Includes interest expense, net, loss on change in fair value of derivatives, net, foreign exchange loss, net and investment income, net. The following table summarizes the revenues generated from each product or service. Three Months Ended December 31, 2025 Three Months Ended September 30 , 2025 Three Months Ended December 31 , 202 4 (In Thousands of U.S. Dollars) Manufacturing: Solar modules $ 718,597 $ 839,421 $ 944,055 Battery energy storage solutions 296,848 486,033 241,942 Solar system kits 35,409 29,874 77,619 EPC and others 101,412 29,793 74,607 Subtotal 1,152,266 1,385,121 1,338,223 Recurrent Energy: Solar power and battery energy storage assetsales 15,975 39,770 137,890 Power services 20,286 19,892 20,232 Revenue from electricity, battery energy storageoperations and others 28,682 42,619 24,896 Subtotal 64,943 102,281 183,018 Total net revenues $ 1,217,209 $ 1,487,402 $ 1,521,241 Twelve Months Ended December 31, 2025 Twelve Months Ended December 31, 2024 (In Thousands of U.S. Dollars) Manufacturing: Solar modules $ 3,377,706 $ 4,281,178 Battery energy storage solutions 1,370,590 814,604 Solar system kits 224,621 398,173 EPC and others 227,855 181,422 Subtotal 5,200,772 5,675,377 Recurrent Energy: Solar power and battery energy storage assetsales 175,987 156,686 Power services 75,486 69,972 Revenue from electricity, battery energy storageoperations and others 142,862 91,374 Subtotal 394,335 318,032 Total net revenues $ 5,595,107 $ 5,993,409 Canadian Solar Inc. Unaudited Condensed Consolidated Statements of Operations (In Thousands of U.S. Dollars, Except Share and Per Share Data) Three Months Ended Twelve Months Ended December 31 , September 30 , December 31 , December 31 , December 31 , 2025 2025 2024 2025 2024 Net revenues $ 1,217,209 $ 1,487,402 $ 1,521,241 $ 5,595,107 $ 5,993,409 Cost of revenues 1,092,808 1,231,101 1,304,205 4,568,881 4,994,090 Gross profit 124,401 256,301 217,036 1,026,226 999,319 Operating expenses: Selling and distributionexpenses 81,047 101,298 131,671 382,591 487,947 General and administrativeexpenses 106,946 116,539 219,611 581,807 515,204 Research and developmentexpenses 21,683 19,999 30,476 90,685 120,792 Other operating income, net (21,214) (16,124) (37,625) (72,013) (94,543) Total operating expenses 188,462 221,712 344,133 983,070 1,029,400 Income (loss) from operations (64,061) 34,589 (127,097) 43,156 (30,081) Other income (expenses): Interest expense (48,458) (44,414) (35,395) (178,166) (137,468) Interest income 8,960 15,078 26,301 46,054 88,470 Loss on change in fair valueof derivatives, net (7,052) (20,571) (49,719) (42,422) (51,400) Foreign exchange gain(loss), net (8,035) 3,188 40,013 (16,751) 46,750 Investment income (loss),net 120 4,514 (1,334) 7,390 1,427 Total other expenses (54,465) (42,205) (20,134) (183,895) (52,221) Loss before income taxes andequity in earnings (losses) ofaffiliates (118,526) (7,616) (147,231) (140,739) (82,302) Income tax benefit (expense) 4,178 (7,138) 11,707 (14,149) 16,576 Equity in earnings (losses) ofaffiliates (16,453) (6,324) 85 (28,875) (12,136) Net loss (130,801) (21,078) (135,439) (183,763) (77,862) Less: net loss attributable tonon-controlling interests andredeemable non-controllinginterests (44,463) (30,064) (169,342) (79,637) (113,913) Net income (loss) attributableto Canadian Solar Inc. $ (86,338) $ 8,986 $ 33,903 $ (104,126) $ 36,051 Earnings (loss) per share - basic $ (1.66) $ (0.07) $ 0.51 $ (2.50) $ 0.54 Shares used in computation –basic 67,712,693 67,620,463 66,947,055 67,368,537 66,616,400 Earnings (loss) per share -diluted $ (1.66) $ (0.07) $ 0.48 $ (2.50) $ 0.54 Shares used in computation -diluted 67,712,693 67,620,463 73,363,174 67,368,537 66,939,428 Canadian Solar Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) (In Thousands of U.S. Dollars) Three Months Ended Twelve Months Ended December 31 , September 30 , December 3 1 , December 3 1 , December 3 1 , 2025 2025 2024 2025 2024 Net loss $ (130,801) $ (21,078) $ (135,439) $ (183,763) $ (77,862) Other comprehensiveincome (loss), net of tax: Foreign currencytranslation adjustment 39,752 4,013 (129,573) 141,031 (112,941) Gain (loss) on changesin fair value of available-for-sale debt securities 1,941 (1,939) 679 363 2,223 Gain (loss) on interestrate swap 7,955 (452) 6,821 (3,726) (1,569) Share of gain (loss) onchanges in fair value ofinterest rate swap ofaffiliate (443) — 1,626 (2,304) 693 Comprehensive loss (81,596) (19,456) (255,886) (48,399) (189,456) Less: comprehensiveloss attributable to non-controlling interests andredeemable non-controlling interests (31,664) (28,806) (194,803) (59,383) (145,860) Comprehensive income(loss) attributable to Canadian Solar Inc. $ (49,932) $ 9,350 $ (61,083) $ 10,984 $ (43,596) Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (In Thousands of U.S. Dollars) December 31 , December 31 , 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 1,370,418 $ 1,701,487 Restricted cash 541,705 551,387 Accounts receivable trade, net 829,957 1,118,770 Accounts receivable, unbilled 228,393 142,603 Amounts due from related parties 17,959 5,220 Inventories 1,133,539 1,206,595 Value added tax recoverable 252,251 221,539 Advances to suppliers, net 217,871 124,440 Derivative assets 15,002 14,025 Project assets 549,269 394,376 Prepaid expenses and other current assets 822,502 436,635 Total current assets 5,978,866 5,917,077 Restricted cash 28,312 11,147 Property, plant and equipment, net 3,376,035 3,174,643 Solar power and battery energy storage systems,net 2,065,498 1,976,939 Deferred tax assets, net 634,160 473,500 Advances to suppliers, net 104,518 118,124 Investments in affiliates 289,601 232,980 Intangible assets, net 31,981 31,026 Project assets 1,481,486 889,886 Right-of-use assets 441,291 378,548 Amounts due from related parties 76,848 75,215 Other non-current assets 663,133 232,465 TOTAL ASSETS $ 15,171,729 $ 13,511,550 Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (Continued) (In Thousands of U.S. Dollars) December 31 , December 31 , 2025 2024 LIABILITIES, REDEEMABLE INTERESTS ANDEQUITY Current liabilities: Short-term borrowings $ 2,389,037 $ 1,873,306 Convertible notes — 228,917 Green bonds 153,152 — Accounts payable 878,827 1,062,874 Short-term notes payable 939,549 637,512 Amounts due to related parties 7,484 3,927 Other payables 779,198 984,023 Advances from customers 162,586 204,826 Derivative liabilities 6,179 13,738 Operating lease liabilities 26,783 21,327 Other current liabilities 507,594 388,460 Total current liabilities 5,850,389 5,418,910 Long-term borrowings 3,621,232 2,731,543 Convertible notes 195,313 — Green bonds — 146,542 Liability for uncertain tax positions 5,788 5,770 Deferred tax liabilities 296,719 204,832 Operating lease liabilities 354,508 271,849 Other non-current liabilities 578,152 582,301 TOTAL LIABILITIES 10,902,101 9,361,747 Redeemable non-controlling interests 326,559 247,834 Equity: Common shares 835,543 835,543 Additional paid-in capital 568,921 590,578 Retained earnings 1,481,632 1,585,758 Accumulated other comprehensive loss (78,125) (196,379) Total Canadian Solar Inc. shareholders' equity 2,807,971 2,815,500 Non-controlling interests 1,135,098 1,086,469 TOTAL EQUITY 3,943,069 3,901,969 TOTAL LIABILITIES, REDEEMABLEINTERESTS AND EQUITY $ 15,171,729 $ 13,511,550 Canadian Solar Inc. Unaudited Condensed Statements of Cash Flows (In Thousands of U.S. Dollars) Three Months Ended Twelve Months Ended December 3 1 , September 30, December 3 1 , December 3 1 , December 3 1 , 2025 2025 2024 2025 2024 Operating Activities: Net loss $ (130,801) $ (21,078) $ (135,439) $ (183,763) $ (77,862) Adjustments to net loss 158,944 213,292 454,591 900,090 844,537 Changes in operatingassets and liabilities (93,177) (304,274) (252,686) (969,068) (1,651,999) Net cash (used in)provided by operatingactivities (65,034) (112,060) 66,466 (252,741) (885,324) Investing Activities: Purchase of property,plant and equipmentand intangible assets (266,377) (266,768) (212,098) (962,254) (1,106,173) Purchase of solarpower and batteryenergy storage systems (53,105) (27,685) (326,081) (429,192) (757,577) Other investingactivities 20,946 6,789 (95,730) (112,044) (98,507) Net cash used in investingactivities (298,536) (287,664) (633,909) (1,503,490) (1,962,257) Financing Activities: Proceeds fromsubsidiary's issuance ofpreferred shares, net — — (14,756) — 482,244 Capital contributionsfrom tax equityinvestors in subsidiaries 750 200,301 196,058 215,731 226,935 Repurchase of sharesby subsidiary (24,510) — (1,894) (70,135) (79,582) Other financingactivities 45,561 110,110 (41,940) 1,201,909 1,690,174 Net cash provided byfinancing activities 21,801 310,411 137,468 1,347,505 2,319,771 Effect of exchange ratechanges 102,273 5,035 (133,798) 85,140 (154,601) Net decrease in cash,cash equivalents andrestricted cash (239,496) (84,278) (563,773) (323,586) (682,411) Cash, cash equivalentsand restricted cash atthe beginning of theperiod $ 2,179,931 $ 2,264,209 $ 2,827,794 $ 2,264,021 $ 2,946,432 Cash, cash equivalentsand restricted cash atthe end of the period $ 1,940,435 $ 2,179,931 $ 2,264,021 $ 1,940,435 $ 2,264,021 View original content: https://www.prnewswire.com/news-releases/canadian-solar-reports-fourth-quarter-and-full-year-2025-results-302718570.html SOURCE Canadian Solar Inc.

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