Canadian Solar Inc announced its first-quarter results on Thursday, with shipments, revenue, and gross margin meeting expectations. However, the company revised its full-year guidance downwards, reflecting market challenges.
The net income attributable to Canadian Solar stood at USD 12 million (EUR 11.2 million), a decline from USD 84 million recorded a year ago but an improvement from the USD-1-million net loss in the preceding quarter.
Net revenues totaled USD 1.33 billion, marking a 22% decrease both year-over-year and sequentially, primarily attributed to a decline in module prices. Despite this, total module shipments increased by 4% year-over-year to 6.3 GW.
The company's gross margin improved to 19% from 18.7% in the first quarter of 2023 and 12.5% in the fourth quarter of 2023, driven by lower manufacturing costs.
Looking ahead to the second quarter, Canadian Solar anticipates revenue in the range of USD 1.5 billion to USD 1.7 billion, with a gross margin forecasted between 16% and 18%. Total module shipments are projected to be between 7.5 GW and 8 GW, with total battery energy storage shipments ranging from 1.4 GWh to 1.6 GWh.
However, the company adjusted its full-year revenue guidance to USD 7.3 billion to USD 8.3 billion, down from the previous range of USD 8.5 billion to USD 9.5 billion. Module shipments are now expected to be between 35 GW and 40 GW, compared to the earlier range of 42 GW to 47 GW. The forecast for total battery energy storage shipments remains unchanged at 6 GWh to 6.5 GWh.
Chairman and Chief Executive Shawn Qu acknowledged the challenging macroenvironment and reiterated the company's commitment to profitable growth. Qu expressed optimism about the second half of the year, anticipating improvements in market conditions.
Qu stated, “With the market continuing to rebalance, we remain hopeful about improving economics in the second half of the year, driven by both price normalization and further reductions to our manufacturing costs.”
He emphasized Canadian Solar's resilience in navigating the current cycle, citing investments in innovation, the expansion of the e-STORAGE business, and planned business model transformations for Recurrent Energy.
