By Adriano Marchese

Canadian Solar said it expects revenue in the first quarter to be lower, missing expectations after revenue declined more than forecasted in the first quarter amid more intense competition.

The Kitchener, Ontario-based renewable energy company said Tuesday it expects total revenue to be between $1 billion and $1.2 billion in its first quarter, down from $1.33 billion a year earlier and below analysts forecasts of $1.59 billion, according to FactSet.

Total module shipments recognized as revenues are expected to be in the range of 6.4 gigawatts to 6.7 gigawatts, including approximately 400 megawatts to the company's own projects, it said.

Battery energy storage shipments are expected to be around 800 megawatt hours.

In its final quarter of the year, Canadian Solar reported net revenue of $1.52 billion, down from C$1.70 billion, short of analyst expectations which forecasted a less precipitous decline to $1.57 billion.

Canadian Solar said the decline was largely due to lower solar module average selling price and shipment volume.

Net income came to $33.9 million, or 48 cents a share, compared with a loss of $1.39 million, or 2 cents a share, in the comparable quarter a year ago.

According to FactSet, analysts were expecting a loss of 9 cents a share.

Chairman and Chief Executive Shawn Qu said 2024 was a challenging year for the solar industry, marked by intense competition and continued policy and trade-related uncertainties creating operational and financial headwinds.

However, Qu said that demand is increasing for energy storage.

"Storage is increasingly compelling, both in stand-alone applications and when paired with solar, driven by growing energy demand from sectors such as data centers and electric vehicles," he said.

Despite the uncertainties, Canadian Solar said that it remains fully committed to the U.S. market and continues to advance its manufacturing expansion across three facilities dedicated to solar modules, solar cells, and energy storage solutions.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 25, 2025 06:44 ET (10:44 GMT)

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