Canadian Solar Inc announced net revenue of $1.2 billion in the second quarter of 2026, boosted by record energy storage shipments that helped offset a sharp fall in volumes of solar modules. Revenue for the quarter ending June 30, 2026 was at the high end of the company’s guidance range of $1.0 billion to $1.2 billion. Gross margin declined to 13.9% from 25.1% in Q1 2026 and 29.8% in Q2 2025. Net Loss attributable to shareholders for the quarter was $77 million or $1.40 per share, compared to a net loss of $9 million or $0.17 per share in the prior year quarter.
The e-STORAGE energy storage business of Canadian Solar was a key driver for the quarter. The division delivered 3.7 GWh of battery energy storage systems, which exceeded its guidance of 2.8 GWh to 3.2 GWh. Storage shipments were up 82% sequentially and up 73% year over year. The company’s e-STORAGE backlog was $3.5 billion under contract, reflecting continued demand for utility-scale battery storage.
However, solar module shipments were 3.1 GW. Volumes were up 25% quarter-on-quarter but down 60% year-on-year as the company continued to focus on higher-value strategic markets rather than lower-margin global volumes. In solar technology we have a multi-dimensional roadmap… “U.S. manufacturing is the heart of our strategy over the near to mid-term,” said Colin Parkin, Chief Executive Officer of Canadian Solar. In July, Canadian Solar added 2.1 GWp of capacity with the opening of Phase I of its solar cell facility in Jeffersonville, Indiana. It’s being billed as the first commercial U.S. producer of advanced heterojunction (HJT) solar cells.
Phase II equipment installation is expected to start by the end of 2026, bringing the total cell manufacturing capacity of the facility to 6.3 GWp in the first half of 2027. Its module manufacturing facility in Mesquite, Texas is expected to increase its annual nameplate capacity from 5 GWp to 10 GWp in the second half of 2026.
The facilities are expected to enhance the role of Canadian Solar’s subsidiary CS PowerTech as an integrated PV manufacturing supplier in North America. Canadian Solar’s project development business, Recurrent Energy, was impacted by delayed project sales during the quarter.
The deferred transactions are expected to close in the third quarter of 2026, management said. Recurrent Energy Closes $695M Project Finance and Tax Equity for 330 MW Cobalt Solar Project in California Following Delays It also entered commercial operation early at the 150 MWac Carwarp Energy Park in Victoria, Australia. Recurrent Energy’s development pipeline includes 21.7 GWp of solar and 84.1 GWh of battery storage projects.
In July, the company announced Dylan Marx as its new CEO. Canadian Solar further confirmed that all remaining U.S. patent-infringement litigation brought by Maxeon Solar has been dismissed with prejudice. At the end of the second quarter, Canadian Solar had $1.9 billion in cash and $7.1 billion in total debt, up from $6.8 billion at the end of the first quarter.
Recurrent Energy assumed non-recourse project construction debt to help fund the debt increase. The $181 million operating cash outflow was driven mainly by working capital movements. Canadian Solar expects third quarter 2026 revenue of $1.3 billion to $1.5 billion and gross margin of 13.5% to 15.5%. We expect to ship 3.5 GW to 3.8 GW of solar modules and 3.4 GWh to 3.8 GWh of battery storage products in Q3. Canadian Solar reaffirmed its full-year target to deliver 6.5 GW to 7.0 GW of solar modules and 4.5 GWh to 5.5 GWh of energy storage solutions to the U.S. market.
The results underscore Canadian Solar’s growing focus on energy storage and U.S. manufacturing as the company contends with softer demand for solar modules and margin headwinds in the global photovoltaic market.
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