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Canadian Solar Inc. Canadian Solar 1Q25 Earnings Call May 15, 2025
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2Canadian Solar Inc. Safe Harbor Statement This presentation has been prepared by the Company solely to facilitate the understanding of the Company’s business model and growth strategy. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisers or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation contains forward-looking statements, and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to its future performance, consolidated results of operations and financial condition. These statements can be identified by the use of words such 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. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from expectations implied by these forward-looking statements as a result of various factors and assumptions. Although we believe our expectations expressed in such forward-looking statements are reasonable, we cannot assure you that they will be realized, and therefore we refer you to a more detailed discussion of the risks and uncertainties contained in the Company’s annual report on Form 20-F, as well as other documents filed with Securities & Exchange Commission. In addition, these forward-looking statements are made as of the current date, and the Company does not undertake to update forward-looking statements to reflect future events or circumstances, unless otherwise required by law.
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3Canadian Solar Inc. FY2025 Q1 Overview Key Financial Metrics Revenue Breakdown $1.2 billion Revenue 11.7% Gross margin $34 million Net loss to CSIQ(1) $0.69 Diluted loss per share to CSIQ(1) (1) Including $26 million and $0.38 positive HLBV impact to net income to CSIQ and diluted earnings per share to CSIQ, respective ly. 6.9 GW Total module shipments 0.8 GWh Total storage shipments $1,072M $125M CSI Solar Recurrent Energy 22% 5% 20%35% 18% North America Latin America EMEA China Asia ex. China 6.9 GW Shipment Breakdown
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4Canadian Solar Inc. Near-Term Challenges and Long-Term Opportunities We are operating in an uncertain environment … We continue to… Geopolitical uncertainty, including ongoing U.S. policy developments, reduce visibility across our business Actively monitor developments and prudently adjust our business operations in real-time We face challenges that test us both operationally and financially… Our strategy includes… • Oversupply across the solar supply chain • Fierce competition and low market pricing • Tariffs and other cost- increasing trade policy • Managing volumes in less profitable markets • Leveraging a blended supply chain strategy • Offering bundled sales to deliver more comprehensive value • Differentiating through battery energy storage • Controlling operating expenses and capital expenditures • Increasing clean energy demand driven by: • AI data centers • Cryptocurrency mining • Electrification of everything, including electric vehicles • Extreme weather events • “Solar + storage” paradigm emerging, with storage demand accelerating globally • Trend of reshoring domestic manufacturing • Significant progress required to meet global climate targets: 5.5 TW by 2030 and 18 TW by 2050 (1.5º C Paris Agreement goal) Challenges and Risk Mitigation Strategies Opportunities
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5Canadian Solar Inc. Technology Leadership Across Both Solar and Storage Next Generation Solar Modules Battery Energy Storage Milestones Anti-Hail Solar Module • Module power up to 630 W and module efficiency up to 23.3% • Tested up to ice ball of 55mm diameter according to IEC 61215 standard • Lower temperature coefficient • Increased energy yield in hot climate TOPCon 2.0 Solar Module • Module power up to 660 W and module efficiency up to 24.4% • Improved energy yield during 30- year lifetime • Reduced BOS and LCOE • Elevated quality through in-house material manufacturing capabilities SolBank 3.0 Plus • Power: 1.2 – 2.4 MW • Capacity: 5.016 MWh • Enhanced lifetime and energy density • Advanced safety design • Mirror design • Installation and service efficiency Recognizing the innovative and outstanding design of EP Cube, Canadian Solar’s residential energy storage solution
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6Canadian Solar Inc. CSI Solar FY2025 Q1 Overview CSI Solar Q1 2025 • Module shipments: 6.9 GW • Storage shipments: 0.8 GWh • Revenue: $1.2 billion • Gross profit: $160 million • Gross margin: 13.4% • Operating profit: $2 million Excluding the impact of intracompany eliminations. 155 173 287 176 290 341 345 316 288 299 207 248 290 320 330 160 13.1% 15.1% 21.3% 14.5%15.9%17.3%17.4%18.5% 14.3% 16.6% 12.1% 18.4% 16.7% 18.6%19.8% 13.4% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 Gross Margin Gross profit, $M Gross margin 2021
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7Canadian Solar Inc. e-STORAGE Performance Overview and Outlook 2025 year-end BESS and battery cell capacity 30 GWh | 3 GWh Contracted backlog(1) $3.2 billion Total pipeline(1) 91 GWh 2025 shipments guidance 7 – 9 GWh Operating projects contracted under LTSA(1) 5.0 GWh Turnkey Utility-Scale Battery Energy Storage Annual Revenue 0 223 440 c.$3.2B(1) 816 2020 2021 2022 2023 2024 2025 contracted backlog 2026+ contracted backlog Transition year from white label to own self-manufactured (1) As of March 31, 2025. $ in millions
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8Canadian Solar Inc. Expanding e-STORAGE’s Global Footprint 228 MW / 912 MWh MWh Diego de Almagro Sur Project in Chile
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9Canadian Solar Inc. Recurrent Energy FY2025 Q1 Overview Recurrent Energy Q1 2025 • Project Sales: 114 MW • Revenue: $125 million • Gross profit: $23 million • Gross margin: 18.6% • Operating loss: $12 million 12 61 8 18 80 48 16 7 157 18 22 13 24 14 14 23 4.2% 43.7% 3.5% 19.2%14.4% 47.1% 21.7% 36.0% 43.9% 27.7% 40.5% 33.1% 47.4% 32.0% 7.5% 18.6% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 Gross Margin Gross profit, $M Gross margin Excluding the impact of intra-group elimination. 2021
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10Canadian Solar Inc. One of the Industry’s Largest and Most Mature Global Solar and Battery Energy Storage Project Development Pipelines Region Under Construction Backlog Advanced Dev. Early-Stage Dev. Total North America 276 565 532 5,187 6,560 EMEA 969 1,881** 1,263 5,155 9,268 Latin America 128** 823 31 5,639 6,621 Asia Pac ex. China & Japan 171 277 430 1,289 2,167 China 300 850** - 850 2,000 Japan 32 53 80 99 264 Total 1,876 4,449 2,336 18,219 26,880 Solar Project Development Pipeline – MWp(1) Securing interconnection c.9 GW with interconnection Region Under Construction Backlog Advanced Dev. Early-Stage Dev. Total North America 1,400 800 0 20,496 22,696 EMEA 43 3,552 3,337 30,218 37,150 Latin America - 1,365 400 - 1,765 Asia Pac ex. China & Japan 440 240 740 1,580 3,000 China - 1,200 - 5,300 6,500 Japan 8 719 1,791 2,040 4,558 Total 1,891 7,876 6,268 59,634 75,669 Battery Energy Storage Project Development Pipeline – MWh(1) c.16 GWh with interconnection Securing interconnection (1) All numbers are gross MWp, as of March 31, 2025. (2) Including 63 MWp under construction and 551 MWp in backlog that are owned by or already sold to third parties.
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11Canadian Solar Inc. Quarterly Income Statement Highlights $ in millions except per share data 1Q24 2Q24 3Q24 4Q24 1Q25 qoq yoy Net revenues 1,329 1,635 1,508 1,521 1,197 -21% -10% -CSI Solar 1,342 1,731 1,716 1,670 1,190 -29% -11% -Recurrent Energy 39 50 45 188 125 -34% +218% -Elimination (52) (146) (253) (337) (118) Gross margin 19.0% 17.2% 16.4% 14.3% 11.7% -260 bp -730 bp -CSI Solar margin 18.4% 16.7% 18.6% 19.8% 13.4% -640 bp -500 bp -Recurrent Energy margin 33.1% 47.4% 32.0% 7.5% 18.6% Selling and distribution expenses 89 132 136 132 91 -31% +3% General and admin expenses 95 101 100 220 106 -52% +12% R&D expenses 34 25 30 30 24 -20% -29% Other operating income (14) (24) (19) (38) (26) Total operating expenses 204 234 247 344 195 -43% -4% Operating income (loss) 49 48 0 (127) (55) Net interest expense (1) (19) (20) (9) (28) Net FX gain or (loss) (4) 13 (4) (10) (14) Income tax (expense) or benefit (10) (5) 20 12 23 Net income (loss) 36 27 (6) (135) (77) Net income (loss) attributable to Canadian Solar Inc. 12 4 (14) 34 (34) Diluted Earnings (loss) per Share 0.19 0.02 (0.31) 0.48 (0.69)(1) Note: Elimination effect from intracompany sales not included in segment margin. Please refer to 6-K for further details. (1) Diluted EPS excludes the effect of convertible bonds, as they were anti -dilutive. -$0.69/share is calculated from total loss of $46M (includes Recurrent Energy redeemable preferred shares dividends of $12M, or an EPS effect of 18 cents) divided by 67.0 million diluted shares.
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12Canadian Solar Inc. Quarterly Cash Flow and Balance Sheet Highlights (1) Includes current portion of long-term borrowings on project assets (2) Net debt includes cash and equivalent and restricted cash $ in millions 1Q24 2Q24 3Q24 4Q24 1Q25 Working capital days 63 24 56 45 102 Operating cash inflow (outflow) (291) (429) (231) 66 (264) Cash and equivalents 2,077 1,620 2,169 1,701 1,577 Restricted cash 817 572 659 563 457 Short-term borrowings(1) 2,180 2,036 2,503 2,120 2,121 Convertible notes – current - - - 229 229 Financing liabilities – current - - - - - Long-term borrowings 1,588 1,624 2,244 2,485 3,023 Green bonds and convertible notes – non-current 380 375 389 147 199 Financing liabilities – non-current 42 76 79 77 81 Total debt 4,190 4,111 5,215 5,058 5,653 Net debt(2) 1,296 1,919 2,387 2,794 3,619 Non-GAAP EBITDA 156 174 129 (3) 72 Net debt / EBITDA (trailing 12 months) 1.8x 3.4x 4.3x 6.1x 9.7x Net interest expense 1 19 20 9 28 EBITDA / net interest coverage (trailing 12 months) 14.5x 11.6x 9.7x 9.2x 4.9x
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13Canadian Solar Inc. Guidance as of May 15, 2025 FY2025 Q1 Actual FY2025 Q2 Guidance FY2024 Actual FY2025 Guidance FY2024-25E yoy ∆% Solar Module Shipments (DC) 6.9 GW 7.5 – 8.0 GW(1) 31.1 GW 25 – 30 GW(3) c. -12% Utility Scale Battery Energy Storage Shipments (DC) 0.8 GWh 2.4 – 2.6 GWh 6.6 GWh(3) 7 – 9 GWh(4) c. +21% Revenue $1.2B $1.9B – $2.1B $6.0B $6.1B – $7.1B c. +10% Gross Margin 11.7% 23% – 25%(2) 16.7% n/a n/a • Q2 margin bolstered by strong e-STORAGE volumes and mix of North America module shipments • Reducing module volumes to less profitable markets in the second half • Second half storage volume expectations impacted by trade negotiations (1) Including around 500 MW to the Company’s own projects. (2) Including approximately 6% margin contribution from deconsolidation of U.S. project. (3) Including around 1 GW to the Company’s own projects. (4) Including around 1 GWh to the Company’s own projects.
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Canadian Solar Inc. Let's Connect Thank You Wina Huang Investor Relations Canadian Solar Inc. investor@canadiansolar.com