Canadian Solar ( (CSIQ) ) has released its Q3 earnings. Here is a breakdown of the information Canadian Solar presented to its investors.
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Canadian Solar Inc., headquartered in Kitchener, Ontario, is a leading global provider of solar technology and renewable energy solutions, specializing in the manufacturing of solar photovoltaic modules and battery energy storage solutions, as well as the development and operation of utility-scale solar power and battery energy storage projects.
In the third quarter of 2024, Canadian Solar reported a gross margin of 16.4%, exceeding its guidance range. The company also grew its e-STORAGE contracted backlog to a record $3.2 billion and completed a significant $500 million investment from BlackRock in its subsidiary, Recurrent Energy. Despite these achievements, the company faced a net loss of $14 million for the quarter.
Key financial metrics revealed that total module shipments reached 8.4 GW, marking a modest increase from previous quarters. However, net revenues decreased by 8% quarter-over-quarter and 18% year-over-year, primarily due to lower battery energy storage solution sales and reduced project sales. The company ended the quarter with a robust cash position of $2.8 billion, which it plans to strategically deploy for future growth.
Canadian Solar continues to focus on its strategic transition towards a partial independent power producer (IPP) business model through Recurrent Energy, despite experiencing delays in permitting and interconnections in some markets. The company maintains a strong project development pipeline, with 26.4 GWp of solar and 66.1 GWh of battery energy storage projects.
Looking forward, Canadian Solar remains committed to its growth strategy, emphasizing investment in high-return technologies and markets, while navigating the challenges posed by deglobalization and market fluctuations. The company anticipates total revenue for the fourth quarter to range between $1.5 billion and $1.7 billion, with an expected gross margin of 16% to 18%.
