Canadian Solar Third Quarter Results- Net Loss at $14 Million

Leading Solar and storage firm Canadian Solar has released its third quarter results.

Total module shipments recognized as revenues in the third quarter of 2024 were 8.4 GW, up 2% quarter-over-quarter (“qoq”) and 1% year-over-year (“yoy”). Of the total, 31 MW were shipped to the Company’s own utility-scale solar power projects.

Net revenues in the third quarter of 2024 decreased 8% qoq and 18% yoy to $1.5 billion. The sequential decrease primarily reflects lower third party battery energy storage solutions sales, a decline in average selling price and lower project sales, partially offset by higher solar module shipment volume. The yoy decrease primarily reflects a decline in module ASPs and lower project sales, partially offset by higher battery energy storage solutions sales and higher solar module shipment volume.

Gross profit in the third quarter of 2024 was $247 million, down 12% qoq and 20% yoy. Gross margin in the third quarter of 2024 was 16.4%, compared to 17.2% in the second quarter of 2024 and 16.7% in the third quarter of 2023. The gross margin sequential decrease was primarily caused by lesser margin contribution from third party battery energy storage solutions sales and lower module ASPs. The yoy decrease in gross margin was primarily driven by lower module ASPs, partially offset by lower manufacturing costs and higher margin contribution from battery energy storage solutions sales.

Total operating expenses in the third quarter of 2024 were $247 million, compared to $234 million in the second quarter of 2024 and $225 million in the third quarter of 2023. The sequential and yoy increases were primarily driven by higher shipping and handling expenses.

Net loss attributable to Canadian Solar in the third quarter of 2024 was $14 million, compared to a net income of $4 million, in the second quarter of 2024, and net income of $22 million in the third quarter of 2023. The company currently has a cash position of a strong $2.8 billion, helped by the closing of a $500 million investment by Blackrock.