Aug 27, 2026 earnings call — First U.S. HJT solar plant opens
Opened first commercially operational HJT plant in the U.S.; Phase 1 ramping to 2.1 gigawatt peak; revenue totaled $1.2 billion.
Revenue $1.2B (est $1.2B) · EPS $-1.40 (est $-0.18) · Next-quarter revenue outlook $1.4B
Key quotes
"We are currently ramping up Phase 1 capacity to 2.1 gigawatt peak."
"For e-STORAGE, we shipped 3.7 gigawatt hours of energy storage solutions this quarter and recognized revenue on 3.3 gigawatt hours after accounting for the more than 400 megawatt hours to internal projects under execution."
"Overall, we view this policy direction as net positive for Canadian Solar, and we welcome the administration's support for American industrial growth."
Analyst Q&A 5
R&D spend, IP location, shipping costs
Q (Colin Rusch · Oppenheimer & Company): Analyst asked about trend lines for R&D spending and where R&D and IP work will be located. He also asked how shipping expense will be managed or passed to customers.
A: Management said R&D spending is typically around 1% to 2% of total revenue and is being controlled. They said more manufacturing and process R&D and IP will sit in the U.S., with Canada holding IP related to power electronics and energy storage. Shipping costs are built into contracts and should fall as onshoring to the U.S. reduces overseas freight.
"Because our revenue base is big, so although the R&D spending is significant, but usually, typically is around 1% to 2% of the total revenue." — Shawn Qu (CTO)
Pricing impact from Section 232
Q (Maheep Mandloi · Mizuho): Analyst asked whether the mid-$0.30 per watt pricing includes any impact from the new Section 232 on polysilicon and whether prices can be adjusted higher for customers. He also asked what prices they are seeing now.
A: Management said their contracts include change-in-law and adjustment mechanisms to handle moves like Section 232. They called the Poly 232 change very new but said the market is already adjusting, driving accelerated deliveries and increased price and demand ahead of the December 4 proclamation. They said the 13 gigawatts backlog shows strong demand for U.S.-based products and customers are willing to work with them.
"Our contracts are structured with change in law and adjustment mechanisms with all this anticipated." — Colin Parkin (CEO)
Backlog value and tariff exemptions
Q (Thomas Koerner): Analyst asked whether the backlog and its revenue value include the Section 232 adjustment and whether duty exemptions for tariffs apply to U.S. CapEx, including R&D.
A: Management said the backlog and its revenue value do not include the 232 adjustment yet and that the value will increase as contracts are adjusted and renegotiated. They said Poly 232 allows U.S. manufacturing projects to offset tariff duties and that they will actively engage with the Department of Commerce and apply for tariff and MIP exemptions related to their U.S. manufacturing plant.
"Well, the Poly 232 that allows the U.S. manufacturing project to offset the tariff duties." — Shawn Qu (CTO)
Tariff rebate qualification and price moves
Q (Philip Shen · ROTH Capital Partners): Analyst asked if the company expects to qualify for the tariff rebate (MIP) program and to explain why. He also asked how large recent price moves have been and what happens if they cannot qualify for the rebate.
A: Management said they expect to qualify because they have invested in U.S. manufacturing (module factory in Mesquite, cell factory in Jeffersonville, energy storage factory in Shelbyville) but they will complete the formal process with the Department of Commerce. They said it is premature to quantify price moves after only a week or two and they are waiting for further guidance, but they expect the changes will be accretive to CS PowerTech. They added that even without full rebates, higher module prices would still be accretive to CSI and CS PowerTech.
"I think we're only a week or 2 into this new proclamation, and we're still waiting for, as a matter of fact, expecting new guidance to come." — Colin Parkin (CEO)
U.S. rules, FCC, space PV, HJT choice
Q (Alan Lau · Jefferies): Analyst asked about complying with a new White House bulk power system policy for energy storage and earlier FCC clarifications for inverters and 45X eligibility. He also asked whether space PV work is at customer discussion stage or R&D and why the company chose HJT over TOPCon.
A: Management said they need to study the very new policy but expect they can address changes because their supply chain already supports domestic content and their U.S. manufacturing plans are structured around that. They said they do not see current impact from the FCC changes, are working with suppliers to meet FCC requirements, and noted that 45X-qualified items will be considered domestic and will not require FCC approval. On space PV, they said it is a long-term area where P-type HJT is favorable; Jeffersonville adopted HJT, they run thin wafers (110 micron average and R&D to 50-micron P-type successfully), they are talking with space partners but cannot name customers, and they chose HJT for long R&D experience, fewer operators needed, and cleaner IP compared with TOPCon.
"I don't want to comment on such a recent policy change, but I would only say that at the moment, I expect we'll be able to address any changes." — Colin Parkin (CEO)