Canadian Solar Inc.

Canadian Solar reported Q2 revenue of $1.2 billion, at the high end of guidance. Gross margin was 13.9%, and the company recorded a net loss attributable to shareholders of $77 million, or $1.40 per share. The company recognized revenue on 3.1 GW of solar modules and 3.3 GWh of energy storage solutions; storage shipments were 3.7 GWh. For Q3 2026, the company expects module revenue recognition of 3.5 GW to 3.8 GW, storage deliveries of 3.4 GWh to 3.8 GWh, revenue of $1.3 billion to $1.5 billion, and gross margin of 13.5% to 15.5%. For full-year 2026, it reiterated U.S. volume guidance of 6.5 GW to 7 GW of module shipments and 4.5 GWh to 5.5 GWh of storage shipments.

Colin Parkin emphasized that the company is leaning into high-margin regions, especially North America, where nearly half of quarterly module volumes were shipped. He framed the Jeffersonville HJT cell facility as a major strategic milestone and said the U.S. manufacturing buildout, combined with the 10 GW Texas module plant, positions Canadian Solar as a major North American integrated manufacturer. His tone was constructive and policy-aware, saying recent U.S. policy changes around polysilicon and domestic manufacturing are net positive and should support the company’s long-term investment case.

Xinbo Zhu said total revenue reached the high end of guidance despite lighter contributions from Recurrent because of deferred project sales. He pointed to 21% sequentially higher operating expenses from freight and Jeffersonville ramp costs, net interest expense of $43 million, a $9 million foreign exchange loss, and a $41 million mark-to-market gain that helped offset some pressure. Cash flow used in operations was $181 million, capital expenditures were $172 million, full-year 2026 CapEx is expected to be around $1.3 billion, and the quarter ended with $1.9 billion in cash; debt rose to $7.1 billion mainly from nonrecourse project financing.

Analysts focused on the new Section 232 policy, asking whether existing backlog pricing already reflects it and whether the company can raise prices further. Management said contract structures include change-in-law mechanisms, that the backlog value does not yet include the 232 adjustment, and that renegotiations should push the contract value higher; they also said the policy could accelerate second-half deliveries. Questions also centered on tariff rebate eligibility and FCC rules: management said it expects to qualify for tariff relief because it is investing in U.S. manufacturing, and it does not see any current impact from FCC changes, while noting it is still reviewing the details.