Canadian Solar reported fourth quarter results that fell short of analyst expectations, with shares tumbling 18% following the announcement.

The company posted a loss of $1.66 per share for the fourth quarter, significantly worse than the analyst estimate of a loss of $0.47 per share. Revenue came in at $1.22 billion, missing the consensus estimate of $1.37 billion and down 20% YoY from $1.52 billion in the same quarter last year.

The company shipped 4.3 GW of solar modules in the quarter, down 47% YoY, while delivering 7.8 GWh of energy storage shipments for the full year.

Gross margin contracted to 10.2% from 14.3% in the prior year period, primarily due to impairment charges related to certain project assets and lower contribution from solar modules and project asset sales. The company reported a net loss attributable to Canadian Solar of $86 million, compared to net income of $34 million in the fourth quarter of 2024.

For the first quarter of 2026, Canadian Solar expects revenue between $900 million and $1.1 billion, with the midpoint of $1.0 billion falling below typical seasonal patterns. The company projects gross margin of 13% to 15% and module shipments of 2.2 GW to 2.4 GW. For full year 2026, the company issued guidance of 6.5 GW to 7.0 GW of solar modules and 4.5 GWh to 5.5 GWh of battery energy storage solutions to the U.S. market.

"While the first quarter tends to be seasonally softer, we are navigating a complex macro environment, including elevated and volatile input costs across supply chains and policy uncertainty in key markets," said Dr. Shawn Qu, Chairman and CEO.

The company ended the quarter with $1.9 billion in cash and total debt of $6.5 billion. Canadian Solar’s energy storage contracted backlog reached a record $3.6 billion as of March 13, 2026. The company is advancing its U.S. manufacturing expansion, with its Texas module factory fully ramped and plans to double capacity to 10 GWp by the second half of 2026.