Canadian Solar 1Q Results Beat; Weak 2Q Guide; Maintain Underweight

Research evidence excerpt

Canadian Solar 1Q Results Beat; Weak 2Q Guide; Maintain Underweight

J P M O R G A N North America Equity Research

14 May 2026

Canadian Solar Underweight

CSIQ, CSIQ US

1Q Results Beat; Weak 2Q Guide; Maintain Price (13 May 26):$20.05

Underweight Price Target (Dec-26):$9.00

CSIQ reported 1Q results ahead of expectations, driven by strong shipments and

further aided by a $93mm IEEPA tariff refund. 2Q26 guidance was softer than

expected, as margins continue to be pressured by upstream costs. Encouragingly,

the company continues to execute on milestones for its US buildout, with the

Indiana solar cell factory producing its first trial cell in late March and expecting

Clean Energy, Power Infrastructure,

deliveries to begin in 2H26. Capacity expansions for the company’s Southeast Asia and Sustainable Investing

BESS and battery cell facility have also been planned, with new production lines AC Mark Strouse, CFA

slated to come on line in 1H27. The company also announced the appointment of

(1-212) 622-8244

former president Colin Parkin to the CEO position, while the founder and CEO will mark.w.strouse@jpmorgan.com

move into a CTO role. Our Dec 26 price target remains $9. Maintain Underweight. Michael G Fairbanks

• 1Q Results Beat. CSIQ reported strong 1Q results, with gross profit of (1-212)michael.fairbanks@jpmchase.com622-4908

$271mm on revenues of ~$1.07bn, ahead of expectations (JPMe: $135mm/

Anna Zhu

$946mm; Street: $134mm/$951mm). Gross margin of ~25.1% was driven (1-212) 622-0012

largely by an IEEPA tariff refund accrual of ~860 bps, favorable geographic anna.zhu@jpmorgan.com

mix (45% module shipments in North America), and elevated energy storage J.P. Morgan Securities LLC

volumes. Module and energy storage shipments of 2.5 GW and 2.1 GWh,