Canadian Solar, a leading solar power company, anticipates robust financial performance for the first quarter of 2024, with revenue projected to range between $1.2 billion and $1.4 billion. The company also expects a gross margin of 17 percent to 19 percent during this period.
CSI Solar, a subsidiary of Canadian Solar, forecasts module shipments of 6.1 GW to 6.4 GW for Q1 2024. This figure includes approximately 235 MW designated for the company’s own projects. Additionally, CSI Solar estimates total battery energy storage shipments to be around 1 GWh for the same quarter.
Looking ahead to the full year of 2024, CSI Solar anticipates even greater performance, with module shipments projected to be between 42 GW and 47 GW. Moreover, total battery energy storage shipments are expected to range from 6 GWh to 6.5 GWh. Notably, approximately 2 GW of modules and 2.5 GWh of battery energy storage will be allocated to the company’s internal projects. Canadian Solar aims for a total revenue target of $8.5 billion to $9.5 billion for the entirety of 2024.
Shawn Qu, Chairman and CEO of Canadian Solar, commented on the outlook, stating, “Entering 2024, we anticipate a seasonally softer first quarter. As we remain committed to profitable growth, our strategic management of volume is expected to bolster gross margins, while e-STORAGE concurrently drives more meaningful profit contribution.”
Fourth Quarter 2023 Results
During the fourth quarter of 2023, Canadian Solar experienced a significant uptick in module shipments, reaching 8.2 GW, marking a 26 percent increase year-over-year. However, this figure represented a slight 2 percent decrease from the previous quarter. Of this total, 47 MW of modules were delivered to the company’s utility-scale solar power projects.
Despite the increase in shipments, Canadian Solar reported a decrease in revenue for Q4 2023, which amounted to $1.7 billion, reflecting an 8 percent decline from the previous quarter and a 14 percent decrease compared to the same period in the previous year. The decline was primarily attributed to lower module average selling prices, reduced solar module shipment volume, and diminished project sales. This was partially offset by higher sales in battery energy storage solutions.
Gross profit for Q4 2023 stood at $213 million, down 31 percent from the previous quarter and 39 percent from the same period last year. The gross margin for the quarter was 12.5 percent, compared to 16.7 percent in Q3 2023. The decrease was mainly attributed to lower module average selling prices and an inventory write-down, offset in part by reduced manufacturing costs and higher margins from battery energy storage solutions.
Operating expenses for Q4 2023 totaled $213 million, remaining relatively consistent with the previous quarter and the same period in 2022.
Recurrent Energy Segment
As of January 31, 2024, Recurrent Energy, a subsidiary of Canadian Solar, maintained a leading position in the global solar development arena, boasting a total solar development pipeline of 27 GWp and a battery energy storage development pipeline of 55 GWh.
In January 2024, Recurrent Energy secured a $500 million investment from BlackRock to expand its high-value project development pipeline. This investment is aligned with Recurrent Energy’s strategy to evolve from a pure developer to a developer-plus-long-term owner and operator in select markets, including the U.S. and Europe.
Recurrent Energy’s total solar project development pipeline as of January 31, 2024, comprised 27.3 GWp, including 1.9 GWp under construction, 5.5 GWp in backlog, and 19.9 GWp in advanced and early-stage pipelines.
CSI Solar Segment
In the fourth quarter of 2023, CSI Solar, a division of Canadian Solar, shipped 8.2 GW of solar modules and solar system kits to over 70 countries. The top five markets by shipments were China, the U.S., Brazil, Spain, and Pakistan.
e-STORAGE: Battery Energy Storage Solutions
As of January 31, 2024, e-STORAGE, a subsidiary of Canadian Solar specializing in battery energy storage solutions, boasted a project turnkey pipeline of approximately 63 GWh. This pipeline included both contracted and in-construction projects, as well as those in different stages of negotiation.
Additionally, e-STORAGE had approximately 3.1 GWh of operating battery energy storage projects contracted under long-term service agreements. The total contracted backlog, including long-term service agreements, amounted to $2.6 billion as of January 31, 2024.