Canadian Solar raises revenue guidance to $8 bn

Canadian Solar PV manufacturing

Canadian Solar said module shipments rose 37 percent to 5.06 GW in the second quarter of 2022. Of the total, 126 MW were shipped to the company’s own solar power projects.

Canadian Solar said revenues rose 85 percent quarter-over-quarter and 62 percent year-on-year to $2.31 billion in the second quarter of 2022. The increase in revenue was mainly driven by higher project sales, higher solar shipment volumes and average selling price, and significant growth in the battery storage solutions business.

Canadian Solar’s gross profit of $371 million rose 105 percent qoq and 101 percent yoy. Gross margin in the second quarter of 2022 was 16 percent, and compared to 14.5 percent in Q1 of 2022. The sequential gross margin increase was mainly driven by higher module pricing, lower manufacturing costs from the depreciation of the Renminbi relative to the U.S. Dollar and scale benefits from higher volume.

Canadian Solar’s operating expenses in the second quarter of 2022 were $255 million compared to $165 million in Q1 of 2022 and $158 million in Q2 of 2021. The increase was mainly driven by higher shipping and handling expenses and an impairment charge related to certain manufacturing assets, Canadian Solar said in a news statement.

OUTLOOK

Canadian Solar expects revenues to be in the range of $2.0 billion to $2.1 billion and gross margin of 15-16.5 percent for the third quarter of 2022. Total PV module shipments recognized as revenues by CSI Solar are expected to be in the range of 6.0 GW to 6.2 GW, including approximately 140 MW to the company’s own projects.

Canadian Solar has raised total revenue guidance to $7.5 billion to $8.0 billion, from $7.0 billion to $7.5 billion previously. The company expects full year volume targets for CSI Solar and Global Energy to remain unchanged from the ranges communicated in the prior quarter: total module shipments of 20 GW to 22 GW and battery storage shipments of 1.8 GWh to 1.9 GWh (CSI Solar), and total project sales of 2.1 GW to 2.6 GW (Global Energy).

Shawn Qu, Chairman and CEO of Canadian Solar, said: “We are off to a strong first half for 2022, and expect continued solar module volume growth through the remainder of the year as we ramp up capacity towards 2023 volume growth targets.”

“The second quarter will likely be the largest quarter of the year for us due to the timing of project sales and battery storage shipments. However, we expect profitability to remain healthy through the second half of the year, driven by continued manufacturing processing cost reductions and lower logistics costs partially offset by higher polysilicon prices.”