Canadian Solar's stock plummeted 26.81% in pre-market trading on Thursday after the company reported disappointing fourth-quarter results and issued a weak outlook for the current quarter.
The solar energy company swung to a net loss of $86.3 million in the fourth quarter, compared with a profit a year earlier, while revenue fell to $1.22 billion, missing analyst estimates. The decline was primarily driven by a 47% drop in solar module shipments and lower battery energy storage sales.
Adding to investor concerns, Canadian Solar provided first-quarter revenue guidance of $900 million to $1.1 billion, significantly below the $1.55 billion consensus estimate. Management cited higher costs, supply chain volatility, and a challenging macro-environment, warning that 2026 would be a transition year with lower expected profitability.
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