Canadian Solar Reports Second Quarter 2025 Results

, /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the second quarter ended June 30, 2025. Second Quarter Highlights 14% quarter-over-quarter ("qoq") increase in solar module shipments to 7.9 GW, within guidance of 7.5 GW to 8.0 GW. 29.8% gross margin, exceeding guidance of 23% to 25%. Released the 2024 Sustainability Report on May 29, 2025, with updated disclosures aligned to global reporting standards. Dr. Shawn Qu, Chairman and CEO, commented, "We delivered a second quarter largely in line with expectations. While revenue came in below guidance due to storage shipments shifting to the second half and delays in certain project sales, gross margin exceeded expectations, driven by a higher mix of North America module shipments and robust storage volumes. Following the surge in installations in China during the first half, we expect demand to normalize as the market adjusts to a new paradigm. We remain focused on navigating the uncertain policy environment with a focus on risk management and sustainable profitability." Yan Zhuang, President of Canadian Solar's subsidiary CSI Solar, said, "In the second quarter, we delivered module shipments near the high end of guidance. Despite tariff headwinds, e-STORAGE achieved one of its strongest quarters. With solar supply chain pricing trending higher and storage margins normalizing, we expect margin pressure in the second half. We remain focused on strategically managing module volumes to less profitable markets and growing our storage volumes globally. Meanwhile, we continue to build emerging profitability drivers such as our residential energy storage systems and bundled sales solutions." Ismael Guerrero, CEO of Canadian Solar's subsidiary Recurrent Energy, said, "Revenue and profitability in the second quarter were sequentially lower, primarily due to lighter project sales. We monetized over 200 MW of projects in Europe and Japan, including our first and profitable sale of a battery energy storage project in Italy, while a project sale in Latin America shifted to the second half of the year. Overall, we expect our electricity sales revenue to grow steadily, as we enhance the performance of our existing IPP portfolio and advance construction in our target markets, with more meaningful contributions expected next year." Xinbo Zhu, Senior VP and CFO, added, "In the second quarter, we delivered $1.7 billion in revenue and a gross margin of 29.8%. Non-recurring operating expenses, including impairments to projects and manufacturing assets, reduced profitability, resulting in net income attributable to shareholders of $7 million, or a net loss of $0.08 per diluted share. We continue to manage cash flow prudently, prioritizing disciplined capital deployment. Operating cash inflow was $189 million, and we ended the quarter with a cash position of $2.3 billion." Second Quarter 2025 Results Total module shipments recognized as revenues in Q2 2025 were 7.9 GW, up 14% quarter-over-quarter ("qoq") and down 4% year-over-year ("yoy"). Of the total, 672 MW were shipped to the Company's own utility-scale solar power projects. Net revenues were $1.7 billion in Q2 2025, up 42% sequentially and 4% yoy, mainly due to higher sales of battery energy storage systems and solar modules. Gross profit was $505 million, compared to $140 million in Q1 2025 and $282 million in Q2 2024. Gross margin was 29.8%, compared to 11.7% and 17.2%, respectively. The gross margin sequential and yoy increases were primarily driven by a release of unrealized profit upon sales-type leasing of a U.S. project, higher margin contribution from battery energy storage systems, and the benefit from a U.S. anti-dumping ("AD") and countervailing duty ("CVD") true-up adjustment. Operating expenses were $378 million, up from $195 million in Q1 2025 and $234 million in Q2 2024. The increase was primarily caused by impairment charges related to certain solar and storage assets, as well as manufacturing assets. Operating expenses represented 22.3% of revenue, compared to 16.3% in Q1 2025 and 14.3% in Q2 2024. Net income attributable to Canadian Solar in accordance with generally accepted accounting principles in the United States of America ("GAAP") in Q2 2025 was $7 million, or a net loss of $0.08 per diluted share, compared to a net loss of $34 million, or $0.69 per diluted share, in the Q1 2025, and net income of $4 million, or $0.02 per diluted share, in Q2 2024. Adjusted net loss attributable to Canadian Solar Inc. (non-GAAP) was $23 million, and adjusted loss per share - diluted was $0.53 per share in Q2 2025, compared to an adjusted net loss of $60 million or adjusted $1.07 per share in Q1 2025, and a net income of $4 million or $0.02 per share in Q2 2024. Adjusted net loss attributable to Canadian Solar Inc. and adjusted loss per share - diluted in Q2 2025 and Q1 2025 exclude the recognition of income using hypothetical liquidation at book value ("HLBV") method. The Company uses the HLBV method to attribute income and loss to its tax equity investors. Please see Recurrent Energy - HLBV for definition and About Non-GAAP Financial Measures for reconciliation to nearest GAAP measures. Net cash flow provided by operating activities in Q2 2025 was $189 million, driven by changes in working capital, specifically a decrease in inventories, compared to net cash flow used in operating activities of $264 million in Q1 2025 and $429 million in Q2 2024. Total debt, including financing liabilities, was $6.3 billion as of June 30, 2025, including $2.5 billion, $3.5 billion, and $0.3 billion related to CSI Solar, Recurrent Energy, and convertible notes, respectively. Total debt rose from $5.7 billion as of March 31, 2025, mainly due to new borrowings for development of projects and operational assets. Total non-recourse debt as of June 30, 2025, was $1.8 billion. Business Segments The Company operates in two reportable segments: CSI Solar, focused on solar modules and battery energy storage manufacturing and products, and Recurrent Energy, focused on utility-scale solar power and battery energy storage project development and operation. Recurrent Energy As of June 30, 2025, the Company held a leading position with a total global solar project development pipeline of approximately 27 GWp and a battery energy storage project development pipeline of 80 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, with some project ownership sales to manage cash flow and debt level; Asset sales (solar power and battery energy storage) in the rest of the world to drive cash-efficient growth model, as value from project sales will help fund growth in operating assets in stable currency markets; and Power services (O&M) through long-term operations and maintenance ("O&M") contracts, currently with nearly 14 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 June 30, 2025, the Company's total solar project development pipeline was 27.3 GWp, including 2.0 GWp under construction, 4.2 GWp of backlog, and 21.1 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 in the next 1-4 years. A project's risk cliff date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. Typically, this occurs after the project has received all the 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 remaining have a reasonable assurance of securing PPAs. Advanced pipeline projects are mid-stage projects that have secured or have more than 90% certainty of securing 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 expanded 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 the projects to the extent anticipated, which could adversely affect its business, financial condition, or results of operations. In addition, the Company's guidance and estimates for its future operating and financial results assume the completion of certain solar projects and battery energy storage projects that are in its pipeline. If the Company is unable to execute on its actionable pipeline, it may miss its guidance, which could adversely affect the market price of its common shares and its business, financial condition, or results of operations. HLBV The Company applies the HLBV method to account for its contractual relationships with tax equity investors in U.S. solar energy and battery energy storage projects. This method which allocates income or loss attributable to redeemable noncontrolling interests reflects the changes in the amounts that tax equity investors would hypothetically receive upon liquidation at the beginning and end of each reporting period, after considering any capital transactions, such as contributions or distributions, between our subsidiaries and tax equity investors. The following table presents the Company's total solar project development pipeline. Solar Project Development Pipeline (as of June 30, 2025) – MWp* Region Under Construction Backlog Advanced Development Early-Stage Development Total North America 276 547 427 5,024 6,274 Europe, the Middle East, and Africa ("EMEA") 1,073 1,704** 872 4,767 8,416 Latin America 128** 823 352 5,666 6,969 Asia Pacific excluding China and Japan 171 275 430 1,289 2,165 China 300 780** - 2,100 3,180 Japan 52 33 80 127 292 Total 2,000 4,162 2,161 18,973 27,296 *All numbers are gross MWp. **Including 63 MWp under construction and 551 MWp in backlog that are owned by or already sold to third parties. Project Development Pipeline – Battery Energy Storage As of June 30, 2025, the Company's total battery energy storage project development pipeline was 80.2 GWh, including 6.4 GWh under construction and in backlog, and 73.8 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 June 30, 2025) – MWh Region UnderConstruction Backlog Advanced Development Early-Stage Development Total North America 600 200 600 20,644 22,044 EMEA 43 2,708 4,493 31,790 39,034 Latin America - - 1,320 1,385 2,705 Asia Pacific excluding China and Japan 440 240 740 2,580 4,000 China - 1,200 - 6,600 7,800 Japan 8 936 2,031 1,650 4,625 Total 1,091 5,284 9,184 64,649 80,208 CSI Solar Solar Modules and Solar System Kits CSI Solar shipped 7.9 GW of solar modules and solar system kits to more than 70 countries in Q2 2025. The top five markets ranked by shipments were the U.S., China, Pakistan, Spain, and Australia. CSI Solar's revised manufacturing capacity expansion targets are set forth below. Solar Manufacturing Capacity, GW* June 2025 Actual December 2025 Plan Ingot 31.0 31.0 Wafer 37.0 37.0 Cell 36.2 32.4 Module 59.0 51.2 *Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans. e-STORAGE: Battery Energy Storage Solutions As of June 30, 2025, e-STORAGE contracted backlog, including contracted long-term service agreements, was $3 billion. These are signed orders with contractual obligations to customers, providing significant earnings visibility over a multi-year period. The table below sets forth e-STORAGE's manufacturing capacity expansion targets. e-STORAGE Manufacturing Capacity Expansion Plans* June 2025 Actual December 2025 Plan December 2026Plan SolBank Battery Energy Storage Solutions (GWh) 10 15 24 Battery Cells (GWh) 3 3 9 *Nameplate annualized capacities (single-shift basis) at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans. 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 Q3 2025, the Company expects total revenue to be in the range of $1.3 billion to $1.5 billion. Gross margin is expected to be between 14% and 16%. Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 5.0 GW to 5.3 GW. Total battery energy storage shipments by CSI Solar in Q3 2025 are expected to be in the range of 2.1 GWh to 2.3 GWh, including approximately 250 MWh to the Company's own projects. For the full year of 2025, the Company expects CSI Solar's total module shipments to be in the range of 25 GW to 27 GW, including approximately 1 GW to the Company's projects. CSI Solar's total battery energy storage shipments are expected to be in the range of 7 GWh to 9 GWh, including approximately 1 GWh to the Company's own projects. The Company's total revenue is expected to be in the range of $5.6 billion to $6.3 billion. Dr. Shawn Qu, Chairman and CEO, commented, "We expect third quarter margins to moderate as difficult market conditions persist, and storage profitability reflects more recent orders at normalized levels. We narrowed our full year module volume guidance and maintained our storage volume guidance, supported by increased visibility into the second half. Full year revenue expectations have been adjusted to reflect certain project sales shifting into 2026 and a more measured view on module pricing. The second half will remain challenging, with rising solar supply chain prices and ongoing trade uncertainties. We will continue to navigate these conditions with discipline, maintaining a prudent balance between growth and profitability." Recent Developments Canadian Solar On May 29, 2025, Canadian Solar announced the publication of its 2024 Sustainability Report, which highlights the Company's sustainability strategy and performance, including progress towards achieving its sustainability goals. The sustainability disclosures in the report are aligned with the global standards set by the SASB and GRI, with reference to the IFRS set by the ISSB. CSI Solar On July 16, 2025, Canadian Solar announced its residential energy storage system, EP Cube, designed by its subsidiary, Eternalplanet, won the prestigious Red Dot Award 2025. This award recognizes EP Cube as one of the most well-designed residential energy storage products globally. Earlier this year, EP Cube also received several other international design awards, including the If Design Award and MUSE Design Award Gold. On June 3, 2025, Canadian Solar announced the completion of Large-Scale Fire Testing for its SolBank 3.0 energy storage system. The successful test demonstrated that SolBank 3.0 meets key fire safety criteria by containing thermal events within a single enclosure, providing enhanced safety assurance for utility-scale deployments. Recurrent Energy On July 17, 2025, Canadian Solar announced it closed project financing and tax equity for Blue Moon Solar located in Harrison County, Kentucky. U.S. Bank, through its subsidiary U.S. Bancorp Impact Finance, is providing both tax equity and construction financing for the project, totaling $260 million. Constellation will purchase power and renewable energy certificates produced by the 94 MW energy facility. Blue Moon Solar is currently under construction and expected to reach commercial operation in 2026. Recurrent Energy will own and operate the project after it is energized. On July 7, 2025, Canadian Solar announced that the 1,200 MWh Papago Storage facility in Maricopa County, Arizona, has reached commercial operation. The project is now dispatching stored energy to Arizona Public Service (APS), the state's largest electric utility. Papago Storage is the first of three Recurrent Energy projects with tolling agreements in place with APS to become operational. Conference Call Information The Company will hold a conference call on Thursday, August 21, 2025, at 8:00 a.m. U.S. Eastern Time (8:00 p.m., Thursday, August 21, 2025, in Hong Kong) to discuss the Company's second quarter 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.), 800 965 561 (from Hong Kong), +86 400 120 2840 (local dial-in from Mainland China) or +1-201-389-0920 from international locations. The conference ID is 13755040. 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, September 4, 2025 (11:00 a.m. September 5, 2025, in Hong Kong) 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 13755040. 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 24 years, Canadian Solar has successfully delivered nearly 165 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 13 GWh of battery energy storage solutions to global markets as of June 30, 2025, boasting a $3 billion contracted backlog as of June 30, 2025. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 27 GWp of solar and 80 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: FINANCIAL TABLES FOLLOW The following tables provide unaudited select financial data for the Company's CSI Solar and Recurrent Energy businesses. Select Financial Data – CSI Solar and Recurrent Energy Three Months Ended and As of June 30, 2025 (In Thousands of U.S. Dollars) CSI Solar Recurrent Energy Elimination and unallocated items Total Net revenues $ 1,731,803 $ 106,135 $ (144,067) $ 1,693,871 Cost of revenues 1,346,248 71,757 (229,164) 1,188,841 Gross profit 385,555 34,378 85,097 505,030 Operating expenses 264,815 108,815 3,967 377,597 Income (loss) from operations 120,740 (74,437) 81,130 127,433 Other segment items (1) (46,299) Income before income taxes and equity in losses of affiliates 81,134 Supplementary Information: Interest expense $ (15,983) $ (25,521) $ (3,303) $ (44,807) Interest income 7,264 2,296 360 9,920 Depreciation and amortization, included in cost of revenues and operating expenses 131,433 14,344 — 145,777 Cash and cash equivalents $ 1,454,276 $ 346,844 $ 54,914 $ 1,856,034 Restricted cash – current and non-current 340,258 67,917 — 408,175 Non-recourse borrowings — 1,809,269 — 1,809,269 Other short-term and long- term borrowings 2,443,265 1,478,119 — 3,921,384 Convertible notes – non- current — — 274,510 274,510 Green bonds – non-current — 163,586 — 163,586 Select Financial Data – CSI Solar and Recurrent Energy Six Months Ended June 30, 2025 (In Thousands of U.S. Dollars) CSI Solar Recurrent Energy Elimination and unallocated items Total Net revenues $ 2,922,061 $ 231,377 $ (262,942) $ 2,890,496 Cost of revenues 2,376,968 173,715 (305,711) 2,244,972 Gross profit 545,093 57,662 42,769 645,524 Operating expenses 422,516 144,096 6,284 572,896 Income (loss) from operations 122,577 (86,434) 36,485 72,628 Other segment items (1) (87,225) Loss before income taxes and equity in losses of affiliates (14,597) Supplementary Information: Interest expense $ (32,865) $ (46,490) $ (5,939) $ (85,294) Interest income 15,338 5,974 704 22,016 Depreciation and amortization, included in cost of revenues and operating expenses 261,276 28,216 — 289,492 (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 June 30, 2025 Three MonthsEnded March 31, 2025 Three Months Ended June 30, 2024 (In Thousands of U.S. Dollars) CSI Solar: Solar modules $ 1,022,266 $ 797,422 $ 1,207,816 Solar system kits 73,812 85,526 114,869 Battery energy storage solutions 432,399 155,310 225,805 EPC and others 61,613 35,037 36,418 Subtotal 1,590,090 1,073,295 1,584,908 Recurrent Energy: Solar power and battery energy storage asset sales 48,091 72,151 12,752 Power services 18,809 16,499 16,853 Revenue from electricity, battery energy storage operations and others 36,881 34,680 20,920 Subtotal 103,781 123,330 50,525 Total net revenues $ 1,693,871 $ 1,196,625 $ 1,635,433 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 (In Thousands of U.S. Dollars) CSI Solar: Solar modules $ 1,819,688 $ 2,119,966 Solar system kits 159,338 214,116 Battery energy storage solutions 587,709 477,278 EPC and others 96,650 63,226 Subtotal 2,663,385 2,874,586 Recurrent Energy: Solar power and battery energy storage asset sales 120,242 18,796 Power services 35,308 31,009 Revenue from electricity, battery energy storage operations and others 71,561 40,153 Subtotal 227,111 89,958 Total net revenues $ 2,890,496 $ 2,964,544 Canadian Solar Inc. Unaudited Condensed Consolidated Statements of Operations (In Thousands of U.S. Dollars, Except Share and Per Share Data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Net revenues $ 1,693,871 $ 1,196,625 $ 1,635,433 $ 2,890,496 $ 2,964,544 Cost of revenues 1,188,841 1,056,131 1,353,339 2,244,972 2,429,697 Gross profit 505,030 140,494 282,094 645,524 534,847 Operating expenses: Selling and distribution expenses 109,479 90,767 131,692 200,246 220,104 General and administrative expenses 252,671 105,651 100,911 358,322 195,604 Research and development expenses 24,719 24,284 25,578 49,003 59,857 Other operating income, net (9,272) (25,403) (23,737) (34,675) (37,440) Total operating expenses 377,597 195,299 234,444 572,896 438,125 Income (loss) from operations 127,433 (54,805) 47,650 72,628 96,722 Other income (expenses): Interest expense (44,807) (40,487) (33,022) (85,294) (67,889) Interest income 9,920 12,096 14,122 22,016 48,424 Gain (loss) on change in fair value of derivatives, net (5,760) (9,039) 81 (14,799) (16,613) Foreign exchange gain (loss), net (7,318) (4,586) 12,486 (11,904) 25,399 Investment income (loss), net 1,666 1,090 (835) 2,756 (666) Total other expenses (46,299) (40,926) (7,168) (87,225) (11,345) Income (loss) before income taxes and equity in earnings (losses) of affiliates 81,134 (95,731) 40,482 (14,597) 85,377 Income tax benefit (expense) (34,311) 23,122 (5,283) (11,189) (14,960) Equity in losses of affiliates (2,053) (4,045) (7,775) (6,098) (6,770) Net income (loss) 44,770 (76,654) 27,424 (31,884) 63,647 Less: net income (loss) attributable to non-controlling interests and redeemable non-controlling interests 37,573 (42,683) 23,602 (5,110) 47,473 Net income (loss) attributable to Canadian Solar Inc. $ 7,197 $ (33,971) $ 3,822 $ (26,774) $ 16,174 Earnings (loss) per share - basic $ (0.08) $ (0.69) $ 0.02 $ (0.77) $ 0.21 Shares used in computation - basic 67,167,296 66,962,686 66,413,750 67,065,556 66,289,155 Earnings (loss) per share - diluted $ (0.08) $ (0.69) $ 0.02 $ (0.77) $ 0.21 Shares used in computation - diluted 67,167,296 66,962,686 66,984,783 67,065,556 66,813,754 Canadian Solar Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) (In Thousands of U.S. Dollars) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Net income (loss) $ 44,770 $ (76,654) $ 27,424 $ (31,884) $ 63,647 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 95,175 2,091 (59,897) 97,266 (113,710) Gain (loss) on changes in fair value of available-for-sale debt securities 865 (504) 769 361 1,649 Gain (loss) on interest rate swap (8,148) (3,081) (481) (11,229) 484 Share of gain (loss) on changes in fair value of interest rate swap of affiliate (629) (1,232) (159) (1,861) 975 Comprehensive income (loss) 132,033 (79,380) (32,344) 52,653 (46,955) Less: comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests 41,855 (40,768) 15,637 1,087 35,974 Comprehensive income (loss) attributable to Canadian Solar Inc. $ 90,178 $ (38,612) $ (47,981) $ 51,566 $ (82,929) Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (In Thousands of U.S. Dollars) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 1,856,034 $ 1,701,487 Restricted cash 388,025 551,387 Accounts receivable trade, net 915,302 1,118,770 Accounts receivable, unbilled 176,542 142,603 Amounts due from related parties 2,874 5,220 Inventories 1,247,923 1,206,595 Value added tax recoverable 232,744 221,539 Advances to suppliers, net 211,625 124,440 Derivative assets 10,936 14,025 Project assets 371,434 394,376 Prepaid expenses and other current assets 796,174 436,635 Total current assets 6,209,613 5,917,077 Restricted cash 20,150 11,147 Property, plant and equipment, net 3,307,521 3,174,643 Solar power and battery energy storage systems, net 1,981,087 1,976,939 Deferred tax assets, net 397,146 473,500 Advances to suppliers, net 97,985 118,124 Investments in affiliates 262,015 232,980 Intangible assets, net 32,212 31,026 Project assets 1,347,421 889,886 Right-of-use assets 430,534 378,548 Amounts due from related parties 78,150 75,215 Other non-current assets 648,097 232,465 TOTAL ASSETS $ 14,811,931 $ 13,511,550 Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (Continued) (In Thousands of U.S. Dollars) June 30, December 31, 2025 2024 LIABILITIES, REDEEMABLE INTERESTS AND EQUITY Current liabilities: Short-term borrowings $ 2,275,211 $ 1,873,306 Convertible notes — 228,917 Accounts payable 1,016,152 1,062,874 Short-term notes payable 610,288 637,512 Amounts due to related parties 3,427 3,927 Other payables 1,040,789 984,023 Advances from customers 143,224 204,826 Derivative liabilities 2,336 13,738 Operating lease liabilities 24,972 21,327 Other current liabilities 559,163 388,460 Total current liabilities 5,675,562 5,418,910 Long-term borrowings 3,455,442 2,731,543 Convertible notes 274,510 — Green bonds 163,586 146,542 Liability for uncertain tax positions 5,770 5,770 Deferred tax liabilities 119,790 204,832 Operating lease liabilities 321,310 271,849 Other non-current liabilities 620,101 582,301 TOTAL LIABILITIES 10,636,071 9,361,747 Redeemable non-controlling interests 205,363 247,834 Equity: Common shares 835,543 835,543 Additional paid-in capital 575,449 590,578 Retained earnings 1,558,984 1,585,758 Accumulated other comprehensive loss (115,175) (196,379) Total Canadian Solar Inc. shareholders' equity 2,854,801 2,815,500 Non-controlling interests 1,115,696 1,086,469 TOTAL EQUITY 3,970,497 3,901,969 TOTAL LIABILITIES, REDEEMABLE INTERESTS AND EQUITY $ 14,811,931 $ 13,511,550 Canadian Solar Inc. Unaudited Condensed Statements of Cash Flows (In Thousands of U.S. Dollars) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Operating Activities: Net income (loss) $ 44,770 $ (76,654) $ 27,424 $ (31,884) $ 63,647 Adjustments to net income (loss) 366,084 161,770 174,201 527,854 332,551 Changes in operating assets and liabilities (222,298) (349,319) (630,963) (571,617) (1,117,023) Net cash provided by (used in) operating activities 188,556 (264,203) (429,338) (75,647) (720,825) Investing Activities: Purchase of property, plant and equipment and intangible assets (172,729) (256,380) (390,248) (429,109) (660,310) Purchase of solar power and battery energy storage systems (219,695) (128,707) (10,936) (348,402) (184,277) Other investing activities (55,882) (83,897) 2,515 (139,779) 12,947 Net cash used in investing activities (448,306) (468,984) (398,669) (917,290) (831,640) Financing Activities: Proceeds from subsidiary's issuance of preferred shares, net — — 297,000 — 297,000 Capital contributions from tax equity investors in subsidiaries — 14,680 — 14,680 — Repurchase of shares by subsidiary (24,221) (21,404) (70,624) (45,625) (70,624) Other financing activities 495,276 550,962 (38,778) 1,046,238 684,634 Net cash provided by financing activities 471,055 544,238 187,598 1,015,293 911,010 Effect of exchange rate changes 18,985 (41,153) (61,483) (22,168) (112,736) Net increase (decrease) in cash, cash equivalents and restricted cash 230,290 (230,102) (701,892) 188 (754,191) Cash, cash equivalents and restricted cash at the beginning of the period $ 2,033,919 $ 2,264,021 $ 2,894,133 $ 2,264,021 $ 2,946,432 Cash, cash equivalents and restricted cash at the end of the period $ 2,264,209 $ 2,033,919 $ 2,192,241 $ 2,264,209 $ 2,192,241 About Non-GAAP Financial Measures This press release also contains adjusted net income (loss) attributable to Canadian Solar Inc. and adjusted earnings (loss) per share - diluted that are not determined in accordance with GAAP. These non-GAAP financial measures should not be considered as an alternative to net income (loss) attributable to Canadian Solar Inc. or earnings (loss) per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted net income (loss) attributable to Canadian Solar Inc. and adjusted earnings (loss) per share - diluted exclude from net income (loss) attributable to Canadian Solar Inc. and earnings (loss) per share certain items that the Company does not consider indicative of its ongoing financial performance such as the effects of HLBV method to account for its tax equity arrangements. Management uses these non-GAAP financial measures to facilitate the analysis and communication of the Company's financial performance as compared to its previous financial results. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of the Company's financial performance. These non-GAAP measures may differ from non-GAAP measures used by other companies, and therefore their comparability may be limited. The table below provides a reconciliation of our GAAP net income (loss) to non-GAAP financial measures. Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 GAAP net income (loss) attributable to Canadian Solar Inc. $ 7,197 $ (33,971) $ 3,822 $ (26,774) $ 16,174 Non-GAAP income adjustment items: Less: HLBV effects (30,248) (25,902) — (56,150) — Non-GAAP adjusted net income (loss) attributable to Canadian Solar Inc. $ (23,051) $ (59,873) $ 3,822 $ (82,924) $ 16,174 GAAP earnings (loss) per share – diluted $ (0.08) $ (0.69) $ 0.02 $ (0.77) $0.21 Non-GAAP income adjustment items: Less: HLBV effects (0.45) (0.38) — (0.83) — Add: HLBV effects attributable to redeemable non-controlling interests — — — — — Non-GAAP adjusted earnings (loss) per share – diluted $ (0.53) $ (1.07) $ 0.02 $ (1.60) $0.21 Shares used in computation – diluted (GAAP) 67,167,296 66,962,686 66,984,783 67,065,556 66,813,754 Shares used in computation – diluted (Non-GAAP) 67,167,296 66,962,686 66,984,783 67,065,556 66,813,754 SOURCE Canadian Solar Inc. 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Canadian Solar Reports Second Quarter 2025 Results

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