Technology
Canadian Solar Reports Second Quarter 2024 Results
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2 years agoon
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GUELPH, ON, Aug. 22, 2024 /PRNewswire/ — Canadian Solar Inc. (“Canadian Solar” or the “Company”) (NASDAQ: CSIQ) today announced financial results for the second quarter ended June 30, 2024.
Highlights
Solar module shipments of 8.2 GW, above guidance of 7.5 GW to 8.0 GW.Net revenues of $1.6 billion, in line with guidance of $1.5 billion to $1.7 billion.17.2% gross margin, in line with guidance of 16% to 18%.e-STORAGE backlog grew to $2.6 billion, backed by a record 66 GWh of pipeline, as of June 30, 2024.Recurrent Energy expanded its total development pipeline to 27 GWp of solar and 63 GWh of battery energy storage, as of June 30, 2024.Achieved initial closing of BlackRock’s investment in Recurrent Energy, representing the majority of the planned $500 million capital infusion.Announced a $200 million private placement of secured convertible notes with PAG.Published the 2023 Corporate Sustainability Report, featuring sustainability disclosures aligned with global standards, on May 31, 2024.
Dr. Shawn Qu, Chairman and CEO, commented, “We achieved solid results in the second quarter of 2024, with shipments, revenue, and gross margin meeting or surpassing our previous guidance. Today, we have reached an optimal scale—large enough to maintain a highly competitive cost structure yet lean enough to adapt swiftly to changes in industry dynamics. In our module business, we continue to apply a disciplined approach to operations, from strategic capacity investments to stringent order management. At the same time, we are positioning ourselves for sustainable medium- and long-term growth through our energy storage business, e-STORAGE, and global project development platform, Recurrent Energy. Sustainable and ethical growth is key to our strategy, and we are proud to have published our latest Corporate Sustainability Report, featuring expanded disclosures and enhanced transparency.”
Yan Zhuang, President of Canadian Solar’s CSI Solar subsidiary, said, “Despite challenging market dynamics, CSI Solar achieved strong results in the first half. Amidst fierce industry competition, we maintained our focus on profitability while also increasing volume this quarter. As polysilicon prices further declined, the resulting price decreases across the upstream supply chain helped reduce manufacturing costs. Given the current industry landscape, we have decided to delay certain upstream investments to further prioritize profitability. In these situations, our partial vertical integration affords us strategic agility. Additionally, e-STORAGE not only delivered record volumes, but also grew its backlog to $2.6 billion, supported by a robust 66 GWh pipeline.”
Ismael Guerrero, CEO of Canadian Solar’s Recurrent Energy subsidiary, said, “We successfully completed the initial closing of BlackRock’s $500 million investment and expect to finalize the transaction in the coming months. As we progress toward our operational targets, we continue to demonstrate our ability to secure competitive financing. Notably, we obtained a landmark multi-currency revolving credit facility valued at up to €1.3 billion, involving ten banks, to support the construction of renewable energy projects across several European countries.”
Xinbo Zhu, Senior VP and CFO, added, “In the second quarter of 2024, we delivered $1.6 billion in revenue, a gross margin of 17.2%, and $4 million in net income. Going forward, CSI Solar and Recurrent Energy’s leverage profiles will align with their respective strategic goals. This quarter, CSI Solar reduced its debt to better navigate the industry cycle. Meanwhile, Recurrent Energy will continue to increase leverage in the near-term to support its transition to a partial IPP model. The recently announced convertible notes will contribute to optimizing our capital structure, providing us with added financial flexibility.”
Second Quarter 2024 Results
Total module shipments recognized as revenues in the second quarter of 2024 were 8.2 GW, up 30% quarter-over-quarter (“qoq”) and remained consistent year-over-year (“yoy”). Of the total, 135 MW were shipped to the Company’s own utility-scale solar power projects.
Net revenues in the second quarter of 2024 increased 23% qoq and decreased 31% yoy to $1.6 billion. The sequential increase primarily reflects a higher solar module shipment volume, partially offset by a decline in module average selling price (“ASP”). The yoy decrease primarily reflects a decline in module ASPs and lower project sales, partially offset by higher battery energy storage solutions sales.
Gross profit in the second quarter of 2024 was $282 million, up 12% qoq and down 36% yoy. Gross margin in the second quarter of 2024 was 17.2%, compared to 19.0% in the first quarter of 2024 and 18.6% in the second quarter of 2023. The gross margin sequential decrease was primarily caused by lower module ASPs. The gross margin yoy decrease was primarily driven by lesser margin contribution from solar power and battery energy storage asset sales and lower module ASPs, partially offset by lower manufacturing costs.
Total operating expenses in the second quarter of 2024 were $234 million, compared to $204 million in the first quarter of 2024 and $216 million in the second quarter of 2023. The sequential and yoy increases were primarily driven by higher shipping and handling expenses, with the yoy increase being partially offset by a decrease in share-based compensation expense.
Depreciation and amortization charges in the second quarter of 2024 were $122 million, compared to $110 million in the first quarter of 2024 and $73 million in the second quarter of 2023. The sequential and yoy increases were primarily driven by the Company’s continued investment in vertical integration and incremental capacity expansion.
Net interest expense in the second quarter of 2024 was $19 million, compared to less than $1 million in the first quarter of 2024 and $21 million in the second quarter of 2023. Net interest expense returned to a normalized level in the second quarter of 2024 with the absence of an interest benefit deriving from the interest income generated by anti-dumping and countervailing duty deposit refunds in the first quarter of 2024.
Net foreign exchange and derivative gain in the second quarter of 2024 was $13 million, compared to a net loss of $4 million in the first quarter of 2024 and a net gain of $34 million in the second quarter of 2023.
Net income attributable to Canadian Solar in the second quarter of 2024 was $4 million, or $0.02 per diluted share, compared to a net income of $12 million, or $0.19 per diluted share, in the first quarter of 2024, and net income of $170 million, or $2.39 per diluted share, in the second quarter of 2023. Basic and diluted earnings per share (“EPS”) includes Recurrent Energy redeemable preferred shares dividends payable in kind. As a result, an EPS effect of 3 cents was deducted in the second quarter of 2024 on a dilutive basis.
Net cash flow used in operating activities in the second quarter of 2024 was $429 million, compared to net cash flow used in operating activities of $291 million in the first quarter of 2024 and net cash flow provided by operating activities of $290 million in the second quarter of 2023. The operating cash outflow primarily resulted from increased project assets and accounts receivable.
Total debt was $4.2 billion as of June 30, 2024, including $2.0 billion, $2.0 billion, and $0.2 billion related to CSI Solar, Recurrent Energy, and convertible notes, respectively. Total debt decreased as compared to $4.3 billion as of March 31, 2024, mainly driven by optimization of CSI Solar’s financial leverage to navigate the industry cycle, partially offset by new project development for Recurrent Energy.
Business Segments
The Company has two business segments: Recurrent Energy and CSI Solar. The two businesses operate as follows:
Recurrent Energy is one of the world’s largest clean energy project development platforms with 15 years of experience, having delivered approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects. It is vertically integrated and has strong expertise in greenfield origination, development, financing, execution, operations and maintenance, and asset management.CSI Solar consists of solar module and battery energy storage manufacturing, and delivery of total system solutions, including inverters, solar system kits, and EPC (engineering, procurement, and construction) services. CSI Solar’s e-STORAGE branded battery energy storage business includes its utility-scale turnkey battery energy system solutions, as well as a small but growing residential battery energy storage business. These battery energy storage systems solutions are complemented with long-term service agreements, including future battery capacity augmentation services.
Recurrent Energy Segment
As of June 30, 2024, the Company held a leading position with a total global solar development pipeline of 27 GWp and a battery energy storage development pipeline of 63 GWh.
While Recurrent Energy’s business model was historically predominantly develop-to-sell, the Company has been adjusting its strategy to create greater asset value and retain greater ownership of projects in select markets to increase revenues generated through recurring income, such as power sales, operations and maintenance, and asset management income.
The business model consists of three key drivers:
Electricity revenue from operating portfolio to drive stable, diversified cash flows in growth markets with stable currencies;Asset sales (solar power and battery energy storage) in the rest of the world to drive cash-efficient growth model, as value from project sales will help fund growth in operating assets in stable currency markets; andPower services (O&M) and asset management through long-term operations and maintenance (“O&M”) contracts, currently with approximately 11 GW of contracted projects, to drive stable and long-term recurring earnings and synergies with the project development platform.
In January 2024, the Company announced a $500 million investment from BlackRock. The investment will provide Recurrent Energy with additional capital to grow its high value project development pipeline while executing its strategy to transition from a pure developer to a developer plus long-term owner and operator in select markets including the U.S. and Europe. This transition is expected to create a more diversified portfolio and provide more stable long-term revenue in low-risk currencies, and enables Recurrent Energy to create and retain greater value in its own project development pipeline. The perimeter of the transaction includes 30 countries, excluding China and Japan.
In June 2024, Recurrent Energy announced the initial closing of the $500 million investment. The initial closing presents the majority of the planned capital infusion at $300 million (before transaction costs). Once the transaction is fully complete, BlackRock’s $500 million investment will represent 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis. Canadian Solar will continue to own the remaining majority shares of Recurrent Energy.
Project Development Pipeline – Solar
As of June 30, 2024, Recurrent Energy’s total solar project development pipeline was 27.4 GWp, including 1.7 GWp under construction, 4.8 GWp of backlog, and 20.9 GWp of projects in advanced and early-stage pipelines, defined as follows:
Backlog projects are late-stage projects that have passed their risk cliff date and are expected to start construction in the next 1-4 years. A project’s risk cliff date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. This is usually after the projects have received all the required environmental and regulatory approvals, and entered into interconnection agreements, feed-in tariff (“FIT”) arrangements, and power purchase agreements (“PPAs”). A significant majority of backlog projects are contracted (i.e., have secured a PPA or FIT), and the remaining have a reasonable assurance of securing PPAs.Advanced pipeline projects are mid-stage projects that have secured or have more than 90% certainty of securing an interconnection agreement.Early-stage pipeline projects are early-stage projects controlled by Recurrent Energy that are in the process of securing interconnection.
While the magnitude of the Company’s project development pipeline is an important indicator of potential expanded power generation and battery energy storage capacity as well as potential future revenue growth, the development of projects in its pipeline is inherently uncertain. If the Company does not successfully complete the pipeline projects in a timely manner, it may not realize the anticipated benefits of the projects to the extent anticipated, which could adversely affect its business, financial condition, or results of operations. In addition, the Company’s guidance and estimates for its future operating and financial results assume the completion of certain solar projects and battery energy storage projects that are in its pipeline. If the Company is unable to execute on its actionable pipeline, it may miss its guidance, which could adversely affect the market price of its common shares and its business, financial condition, or results of operations.
The following table presents Recurrent Energy’s total solar project development pipeline.
Solar Project Development Pipeline (as of June 30, 2024) – MWp*
Region
In
Construction
Backlog
Advanced
Pipeline
Early-Stage
Pipeline
Total
North America
261
224
1,244
4,374
6,103
Europe, the Middle East, and Africa
(“EMEA”)
783**
2,465
1,578
5,539
10,365
Latin America
450**
486
83
4,540
5,559
Asia Pacific excluding China and Japan
–
173
708
1,413
2,294
China
100
1,320**
–
1,390
2,810
Japan
59
131
–
49
239
Total
1,653
4,799
3,613
17,305
27,370
*All numbers are gross MWp.
**Including 74 MWp in construction and 551 MWp in backlog that are owned by or already sold to third parties.
Project Development Pipeline – Battery Energy Storage
As of June 30, 2024, Recurrent Energy’s total battery energy storage project development pipeline was 62.8 GWh, including 8.5 GWh under construction and in backlog, and 54.3 GWh of projects in advanced and early-stage pipelines.
The table below sets forth Recurrent Energy’s total battery energy storage project development pipeline.
Battery Energy Storage Project Development Pipeline (as of June 30, 2024) – MWh
Region
In
Construction
Backlog
Advanced
Pipeline
Early-Stage
Pipeline
Total
North America
1,400
600
1,580
15,444
19,024
EMEA
–
1,580
4,627
26,612
32,819
Latin America
–
1,765
–
–
1,765
Asia Pacific excluding China and Japan
444
–
400
1,240
2,084
China
2,000
–
–
2,600
4,600
Japan
–
727
449
1,350
2,526
Total
3,844
4,672
7,056
47,246
62,818
Projects in Operation – Solar Power and Battery Energy Storage Power Plants (Including Unconsolidated Projects)
As of June 30, 2024, the solar power and battery energy storage plants in operation totaled around 1.6 GWp and 1.0 GWh respectively, with a combined estimated net resale value of approximately $1.2 billion. The estimated net resale value is based on selling prices that Recurrent Energy is currently negotiating or comparable asset sales.
Power Plants in Operation*
North
America
EMEA
Latin
America
Asia Pacific
ex. China and
Japan
China
Japan
Total
Solar (MWp)
163
58
970
6
310
62
1,569
Battery Energy
Storage (MWh)
280
–
–
24
700
–
1,004
*All numbers are net MWp or MWh owned by Recurrent Energy; total gross MWp of solar projects is 2,621 MWp and total gross battery
energy storage projects is 2,124 MWh, including volume that is already sold to third parties.
Operating Results
The following table presents select unaudited results of operations data of the Recurrent Energy segment for the periods indicated.
Recurrent Energy Segment Financial Results
(In Thousands of U.S. Dollars, Except Percentages)
Three Months Ended
Six Months Ended
June 30,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
Net revenues
50,525
39,433
360,045
89,958
380,097
Cost of revenues
26,564
26,381
201,981
52,945
214,824
Gross profit
23,961
13,052
158,064
37,013
165,273
Operating expenses
32,877
33,573
35,874
66,450
58,288
Income (loss) from
operations*
(8,916)
(20,521)
122,190
(29,437)
106,985
Gross margin
47.4 %
33.1 %
43.9 %
41.1 %
43.5 %
Operating margin
-17.6 %
-52.0 %
33.9 %
-32.7 %
28.1 %
* Income (loss) from operations reflects management’s allocation and estimate as some services are shared by the Company’s two business segments.
CSI Solar Segment
Solar Modules and Solar System Kits
CSI Solar shipped 8.2 GW of solar modules and solar system kits to more than 70 countries in the second quarter of 2024. For the second quarter of 2024, the top five markets ranked by shipments were China, the U.S., Pakistan, Germany, and Brazil.
CSI Solar’s revised manufacturing capacity expansion targets are set forth below.
Solar Manufacturing Capacity, GW*
June 2024
Actual
September 2024
Plan
December 2024
Plan
Ingot
20.4
25.0
25.0
Wafer
28.0
31.0
31.0
Cell
48.4
48.4
48.4
Module
60.0
61.0
61.0
*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice
based on market conditions and capital allocation plans.
e-STORAGE: Battery Energy Storage Solutions
e-STORAGE is CSI Solar’s utility-scale battery energy storage platform. e-STORAGE provides customers with competitive turnkey, integrated, utility-scale battery energy storage solutions, including bankable, end-to-end, utility-scale, turnkey battery energy storage system solutions across various applications. System performance is complemented with long-term service agreements, which include future battery capacity augmentation services and bring in long-term, stable income.
As of June 30, 2024, e-STORAGE had a total project turnkey pipeline of around 66 GWh, which includes both contracted and in-construction projects, as well as projects at different stages of the negotiation process. In addition, e-STORAGE had approximately 3.1 GWh of operating battery energy storage projects contracted under long-term service agreements, all of which were battery energy storage projects previously executed by e-STORAGE.
As of June 30, 2024, the contracted backlog, including contracted long-term service agreements, was $2.6 billion. These are signed orders with contractual obligations to customers, providing significant earnings visibility over a multi-year period.
The table below sets forth e-STORAGE’s manufacturing capacity expansion targets.
Battery Energy Storage Manufacturing
Capacity, GWh*
June 2024
Actual
December 2025
Plan
SolBank
20.0
30.0
*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice
based on market conditions and capital allocation plans.
Operating Results
The following table presents select unaudited results of operations data of the CSI Solar segment for the periods indicated.
CSI Solar Segment Financial Results*
(In Thousands of U.S. Dollars, Except Percentages)
Three Months Ended
Six Months Ended
June 30,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
Net revenues
1,731,470
1,342,153
2,013,993
3,073,623
3,723,723
Cost of revenues
1,441,897
1,094,568
1,726,154
2,536,465
3,120,275
Gross profit
289,573
247,585
287,839
537,158
603,448
Operating expenses
196,255
165,113
168,455
361,368
314,606
Income from operations
93,318
82,472
119,384
175,790
288,842
Gross margin
16.7 %
18.4 %
14.3 %
17.5 %
16.2 %
Operating margin
5.4 %
6.1 %
5.9 %
5.7 %
7.8 %
*Include effects of both sales to third-party customers and to the Company’s Recurrent Energy segment. Please refer to the
attached financial tables for intercompany transaction elimination information. Income from operations reflects
management’s allocation and estimate as some services are shared by the Company’s two business segments.
The table below provides the geographic distribution of the net revenues of CSI Solar:
CSI Solar Net Revenues Geographic Distribution* (In Millions of U.S. Dollars, Except Percentages)
Q2 2024
% of Net
Revenues
Q1 2024
% of Net
Revenues
Q2 2023
% of Net
Revenues
Americas
892
56
676
53
722
36
Asia
455
29
417
32
716
36
Europe and others
238
15
197
15
566
28
Total
1,585
100
1,290
100
2,004
100
*Excludes sales from CSI Solar to Recurrent Energy.
Business Outlook
The Company’s business outlook is based on management’s current views and estimates given factors such as existing market conditions, order book, production capacity, input material prices, foreign exchange fluctuations, the anticipated timing of project sales, and the global economic environment. This outlook is subject to uncertainty with respect to, among other things, customer demand, project construction and sale schedules, product sales prices and costs, supply chain constraints, and geopolitical conflicts. Management’s views and estimates are subject to change without notice.
For the third quarter of 2024, the Company expects total revenue to be in the range of $1.6 billion to $1.8 billion. Gross margin is expected to be between 14% and 16%. Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 9.0 GW to 9.5 GW, including approximately 100 MW to the Company’s own projects. Total battery energy storage shipments by CSI Solar in the third quarter of 2024 are expected to be between 1.4 GWh to 1.7 GWh, including about 1.2 GWh to the Company’s own projects.
For the full year of 2024, the Company expects total module shipments to be in the range of 32 GW to 36 GW and CSI Solar’s total battery energy storage shipments in the range of 6.5 GWh to 7.0 GWh, including approximately 1 GW and 2.5 GWh respectively to the Company’s own projects. The Company’s total revenue is expected to be in the range of $6.5 billion to $7.5 billion.
Dr. Shawn Qu, Chairman and CEO, commented, “While we continue to navigate challenging market conditions, our focus remains on sustainable, profitable growth. We are beginning to see signs of market rationalization, as module pricing and input costs reach record lows. In line with our commitment to strategic future planning, we are adjusting certain capacity investments to ensure a resilient financial profile. We anticipate stabilization in the second half of the year. Although global economic and political uncertainties will likely persist in the coming months, we have consistently managed risk effectively for our shareholders, partners, and customers in the past—and we remain committed to doing so going forward.”
Recent Developments
Canadian Solar
On August 19, 2024, Canadian Solar announced it had entered into a definitive agreement with PAG, pursuant to which PAG will subscribe for US$200 million in aggregate principal of convertible notes due 2029. The transaction is expected to close in the fourth quarter of 2024, subject to closing conditions. The Company will retain certain flexibility on drawdowns, using the net proceeds to optimize its capital structure.
On May 31, 2024, Canadian Solar announced it had published its 2023 Corporate Sustainability Report that showcases the Company’s ongoing progress and achievements in its environmental, social, and governance (ESG) initiatives. The sustainability disclosures in this report are aligned with global standards set by the SASB (the Sustainability Accounting Standards Board) and the Global Reporting Initiative (GRI), with reference to the IFRS (the International Financial Reporting Standards) set by ISSB (International Sustainability Standards Board).
CSI Solar
On August 8, 2024, Canadian Solar announced it had signed a turnkey EPC contract for 100 MW / 200 MWh energy storage solutions with Fotowatio Renewable Ventures (FRV) Australia for FRV’s Terang energy storage project in Victoria, Australia. FRV Australia, part of Jameel Energy and the Canadian infrastructure fund OMERS, is a leading developer of sustainable energy solutions. An energy storage supply agreement and a long-term service agreement had been signed between the companies. Construction of the project is scheduled to commence in August 2024.
On July 18, 2024, Canadian Solar announced it had signed a contract with Root-Power Ltd., part of YLEM Group, to supply 11 MW AC / 22 MWh AC energy storage solutions for Root-Power’s Coryton Energy Park project located in Corringham, Essex, England. Construction of the project started in late May 2024. An energy storage supply agreement and long-term service agreement had been signed between the companies.
On July 9, 2024, Canadian Solar announced it had secured a contract with Aypa Power to deliver a 498 MWh DC standalone battery energy storage system for Aypa’s Bypass Project in Texas. The project is scheduled for completion in the third quarter of 2025. After integrating and commissioning the project to commercial operation, e-STORAGE will provide ongoing operational support for the project under a long-term service agreement.
On July 8, 2024, Canadian Solar announced it had secured a contract from Nova Scotia Power to develop flagship energy storage projects across three locations in Nova Scotia, Canada: Bridgewater, Waverley, and White Rock. The projects total 150 MW / 705 MWh DC. Construction will be completed by the end of 2026, and the first site is expected to be operational in 2025. e-STORAGE will provide comprehensive EPC services along with long-term service agreements.
On June 20, 2024, Canadian Solar announced it had entered into a partnership agreement with leading renewable energy supplier Lifestyle Solar Inc. to provide solar and energy storage solutions to homebuilders in California. Canadian Solar will offer its new N-type modules from its factory in Mesquite, TX, and the innovative stackable EP Cube home battery, enabling Lifestyle Solar’s clients to achieve energy resilience and lower electricity costs.
On June 13, 2024, Canadian Solar announced it had entered into an agreement with U.S. homebuilder D.R. Horton to offer its solar and energy storage products across communities in California. In its commitment to excellence, D.R. Horton has chosen Canadian Solar’s solar panels and batteries, a testament to the superior quality of Canadian Solar’s products.
Recurrent Energy
On August 6, 2024, Canadian Solar announced it had completed the sale of an 83 MWp project in the Dominican Republic to Grupo País and Acciona Energía. The Pedro Corto solar project, located in San Juan de la Maguana, is in the late stage of development.
On July 24, 2024, Canadian Solar announced it had achieved the financial close on a €50 million loan from the European Investment Bank. The facility will support the development and construction of a solar energy portfolio in Italy.
On July 10, 2024, Canadian Solar announced it had signed a 10-year power purchase agreement with GKN Automotive, a global leader in drive systems, for the annual production of approximately 200 GWh of renewable electricity produced by Recurrent Energy’s 115 MWp Rey I Project located in Seville, Andalucia, Spain. Currently under construction, Rey I is expected to be fully operational by the first half of 2026. Recurrent Energy will own and operate the project upon completion.
On June 27, 2024, Canadian Solar announced it had signed a $103 million tax credit facilitation agreement with Bank of America for its North Fork Solar Project. The 160 MW solar project, located southwest of Oklahoma City, is now operational.
On June 20, 2024, Canadian Solar announced it had secured $513 million in project financing for its landmark Papago Storage project located in Maricopa County, Arizona. Construction of the 1,200 MWh Papago Storage is slated to commence in the third quarter of 2024, with commercial operations expected to begin in the second quarter of 2025. This project holds a 20-year tolling agreement with Arizona Public Service, and Recurrent Energy will own and operate the project after construction.
On June 17, 2024, Canadian Solar announced it had achieved commercial operation on its first portfolio of Japan’s feed-in premium (FIP) PV projects on June 1, 2024. Toyota Tsusho Corporation entered into a 20-year power purchase agreement with the Company, securing 100% of the PV power, together with the Non-Fossil Certificates (NFCs) generated by the project.
On June 10, 2024, Canadian Solar announced the inauguration of the 446 MWp / 360 MWac Marangatu Solar Complex in Brasileira, Brazil. SPIC owns 70% of the project, while Recurrent Energy owns the remaining 30%. Developed by Recurrent Energy, Marangatu Solar Complex was fully energized in April 2024. 75% of the energy generated is secured through long-term power purchase agreements (PPAs).
On June 3, Canadian Solar announced it had achieved the initial closing and funding of an investment in Recurrent Energy’s platform by BlackRock through a fund managed by its climate infrastructure business. The initial closing of the transaction, first announced in January 2024, was contingent on requisite regulatory approvals and other conditions, which have now been met.
On May 23, 2024, Canadian Solar announced it had secured a landmark multi-currency revolving credit facility valued at up to €1.3 billion with ten banks for the construction of solar and battery energy storage projects in several European countries, including Spain, Italy, the UK, the Netherland, France and Germany. Initially, the facility will support the near-term construction of close to 1 GW of solar capacity, with the vast majority allocated to Spain and the remainder to the UK.
Conference Call Information
The Company will hold a conference call on Thursday, August 22, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m., Thursday, August 22, 2024, in Hong Kong) to discuss its second quarter 2024 results and business outlook. The dial-in phone number for the live audio call is +1-877-704-4453 (toll-free from the U.S.), +852 800 965 561 (from Hong Kong), +86 400 120 2840 (local dial-in from Mainland China) or +1-201-389-0920 from international locations. The conference ID is 13747972. A live webcast of the conference call will also be available on the investor relations section of Canadian Solar’s website.
A replay of the call will be available after the conclusion of the call until 11:00 p.m. U.S. Eastern Time on Thursday, September 5, 2024 (11:00 a.m. September 6, 2024, in Hong Kong) and can be accessed by dialing +1-844-512-2921 (toll-free from the U.S.) or +1-412-317-6671 from international locations. The replay pin number is 13747972. A webcast replay will also be available on the investor relations section of Canadian Solar’s at www.canadiansolar.com.
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world’s largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 133 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects across the world. Currently, the Company has approximately 1.6 GWp of solar power projects in operation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 20.9 GWp of projects in advanced and early-stage pipeline. In addition, the Company has 1 GWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 63 GWh, including approximately 8.5 GWh under construction or in backlog, and an additional 54.3 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements
Certain statements in this press release, including those regarding the Company’s expected future shipment volumes, revenues, gross margins, and project sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as “believes,” “expects,” “anticipates,” “intends,” “estimates,” the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar power and battery energy storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to global pandemics; supply chain disruptions; governmental support for the deployment of solar power and battery energy storage; future available supplies of silicon, solar wafers and lithium cells; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets such as China, the U.S., Europe, Brazil and Japan; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility, especially environmental, social and governance (“ESG”) requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; the pipeline of projects and timelines related to them; the ability of the parties to optimize value of that pipeline; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 26, 2024. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.
Investor Relations Contact:
FINANCIAL TABLES FOLLOW
The following tables provide unaudited select financial data for the Company’s CSI Solar and Recurrent Energy businesses.
Select Financial Data – CSI Solar and Recurrent Energy
Three Months Ended and As of June 30, 2024
(In Thousands of U.S. Dollars, Except Percentages)
CSI Solar
Recurrent
Energy
Elimination
and
unallocated
items (1)
Total
Net revenues
$1,731,470
$50,525
$(146,562)
$1,635,433
Cost of revenues
1,441,897
26,564
(115,122)
1,353,339
Gross profit
289,573
23,961
(31,440)
282,094
Gross margin
16.7 %
47.4 %
—
17.2 %
Income (loss) from
operations (2)
$ 93,318
$(8,916)
$(36,752)
$47,650
Supplementary
Information:
Interest expense (3)
$(15,924)
$(15,289)
$(1,809)
$(33,022)
Interest income (3)
11,037
3,075
10
14,122
Cash and cash equivalents
$1,379,591
$234,023
$6,223
$1,619,837
Restricted cash – current and
571,546
858
—
572,404
noncurrent
Non-recourse borrowings
—
781,634
—
781,634
Other short-term and long-
1,778,326
1,099,669
—
2,877,995
term borrowings
Green bonds and convertible
—
146,998
228,165
375,163
notes
Select Financial Data – CSI Solar and Recurrent Energy
Six Months Ended June 30, 2024
(In Thousands of U.S. Dollars, Except Percentages)
CSI Solar
Recurrent
Energy
Elimination
and
unallocated
items (1)
Total
Net revenues
$3,073,623
$89,958
$(199,037)
$2,964,544
Cost of revenues
2,536,465
52,945
(159,713)
2,429,697
Gross profit
537,158
37,013
(39,324)
534,847
Gross margin
17.5 %
41.1 %
—
18.0 %
Income (loss) from
$175,790
$(29,437)
$(49,631)
$96,722
operations (2)
Supplementary
Information:
Interest expense (3)
$(31,633)
$(29,578)
$(6,678)
$(67,889)
Interest income (3)
42,906
5,479
39
48,424
Select Financial Data – CSI Solar and Recurrent Energy
Three Months Ended June 30, 2023
(In Thousands of U.S. Dollars, Except Percentages)
CSI Solar
Recurrent
Energy
Elimination
and
unallocated
items (1)
Total
Net revenues
$2,013,993
$360,045
$(10,015)
$2,364,023
Cost of revenues
1,726,154
201,981
(4,686)
1,923,449
Gross profit
287,839
158,064
(5,329)
440,574
Gross margin
14.3 %
43.9 %
—
18.6 %
Income from operations (2)
$119,384
$122,190
$(17,451)
$224,123
Supplementary
Information:
Interest expense (3)
$(15,833)
$(12,824)
$(1,798)
$(30,455)
Interest income (3)
7,550
1,905
1
9,456
Select Financial Data – CSI Solar and Recurrent Energy
Six Months Ended June 30, 2023
(In Thousands of U.S. Dollars, Except Percentages)
CSI Solar
Recurrent
Energy
Elimination
and
unallocated items (1)
Total
Net revenues
$3,723,723
$380,097
$(38,516)
$4,065,304
Cost of revenues
3,120,275
214,824
(28,370)
3,306,729
Gross profit
603,448
165,273
(10,146)
758,575
Gross margin
16.2 %
43.5 %
—
18.7 %
Income from operations (2)
$288,842
$106,985
$(26,100)
$369,727
Supplementary
Information:
Interest expense (3)
$(29,421)
$(17,889)
$(3,593)
$(50,903)
Interest income (3)
14,027
3,357
28
17,412
(1) Includes inter-segment elimination, and unallocated corporate items not considered part of management’s evaluation of business segment operating performance.
(2) Income (loss) from operations reflects management’s allocation and estimate as some services are shared by the Company’s two business segments.
(3) Represents interest expenses payable to and interest income earned from third parties.
Select Financial Data – CSI Solar and Recurrent Energy
Three Months Ended
June 30,
2024
Three Months Ended
March 31,
2024
Three Months Ended
June 30,
2023
(In Thousands of U.S. Dollars)
CSI Solar Revenues:
Solar modules
$ 1,207,816
$ 912,150
$ 1,722,687
Solar system kits
114,869
99,247
216,867
Battery energy storage solutions
225,805
251,473
14,889
EPC and others
36,418
26,808
49,535
Subtotal
1,584,908
1,289,678
2,003,978
Recurrent Energy Revenues:
Solar power and battery energy storage asset
sales
12,752
6,044
338,487
Power services (O&M) and asset
management
18,644
15,868
13,408
Electricity revenue from operating portfolio
and others
19,129
17,521
8,150
Subtotal
50,525
39,433
360,045
Total net revenues
$ 1,635,433
$ 1,329,111
$ 2,364,023
Select Financial Data – CSI Solar and Recurrent Energy
Six Months Ended
June 30, 2024
Six Months Ended
June 30, 2023
(In Thousands of U.S. Dollars)
CSI Solar Revenues:
Solar modules
$ 2,119,966
$ 3,177,563
Solar system kits
214,116
350,454
Battery energy storage solutions
477,278
29,699
EPC and others
63,226
127,491
Subtotal
2,874,586
3,685,207
Recurrent Energy Revenues:
Solar PV and battery energy storage asset
sales
18,796
343,108
Power services (O&M) and asset
management
34,512
22,095
Electricity revenue from operating portfolio
and others
36,650
14,894
Subtotal
89,958
380,097
Total net revenues
$ 2,964,544
$ 4,065,304
Canadian Solar Inc.
Unaudited Condensed Consolidated Statements of Operations
(In Thousands of U.S. Dollars, Except Share and Per Share Data)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Net revenues
$ 1,635,433
$ 1,329,111
$ 2,364,023
$ 2,964,544
$ 4,065,304
Cost of revenues
1,353,339
1,076,358
1,923,449
2,429,697
3,306,729
Gross profit
282,094
252,753
440,574
534,847
758,575
Operating expenses:
Selling and distribution
expenses
131,692
88,412
87,686
220,104
176,057
General and
administrative expenses
100,911
94,693
139,571
195,604
218,219
Research and
developmentexpenses
25,578
34,279
23,137
59,857
40,444
Other operating income,
net
(23,737)
(13,703)
(33,943)
(37,440)
(45,872)
Total operating expenses
234,444
203,681
216,451
438,125
388,848
Income from operations
47,650
49,072
224,123
96,722
369,727
Other income (expenses):
Interest expense
(33,022)
(34,867)
(30,455)
(67,889)
(50,903)
Interest income
14,122
34,302
9,456
48,424
17,412
Gain (loss) on change in
fair value of derivatives,
net
81
(16,694)
(23,775)
(16,613)
(16,174)
Foreign exchange gain,
net
12,486
12,913
57,532
25,399
36,672
Investment income (loss),
net
(835)
169
1,955
(666)
10,335
Total other income
(expenses)
(7,168)
(4,177)
14,713
(11,345)
(2,658)
Income before income taxes
and equity in earnings of
affiliates
40,482
44,895
238,836
85,377
367,069
Income tax expense
(5,283)
(9,677)
(46,019)
(14,960)
(74,734)
Equity in earnings (losses) of affiliates
(7,775)
1,005
4,719
(6,770)
12,030
Net income
27,424
36,223
197,536
63,647
304,365
Less: Net income
attributable to non-
controlling interests and
redeemable non-
controlling interest
23,602
23,871
27,566
47,473
50,683
Net income attributable to
Canadian Solar Inc.
$ 3,822
$ 12,352
$ 169,970
$ 16,174
$ 253,682
Earnings per share – basic
$ 0.02
$ 0.19
$ 2.62
$ 0.21
$ 3.92
Shares used in computation –
basic
66,413,750
66,164,560
64,912,928
66,289,155
64,716,522
Earnings per share –
diluted
$ 0.02
$ 0.19
$ 2.39
$ 0.21
$ 3.58
Shares used in computation –
diluted
66,984,783
66,642,725
71,689,925
66,813,754
71,571,041
Canadian Solar Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)
(In Thousands of U.S. Dollars)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Net Income
$ 27,424
$ 36,223
$ 197,536
$ 63,647
$ 304,365
Other comprehensive income (loss):
Foreign currency translation
adjustment
(59,897)
(53,813)
(68,507)
(113,710)
(45,257)
Gain (loss) on changes in fair
value of available-for-sale debt
securities, net of tax
769
880
(1,050)
1,649
(711)
Gain (loss) on interest rate
swap, net of tax
(481)
965
(67)
484
(172)
Share of gain (loss) on changes
in fair value of derivatives of
affiliate, net of tax
(159)
1,134
503
975
(107)
Comprehensive income (loss)
(32,344)
(14,611)
128,415
(46,955)
258,118
Less: comprehensive income
attributable to non-controlling
interests and redeemable non-
controlling interest
15,637
20,337
3,690
35,974
28,852
Comprehensive income (loss)
attributable to Canadian Solar
Inc.
$ (47,981)
$ (34,948)
$124,725
$ (82,929)
$ 229,266
Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheets
(In Thousands of U.S. Dollars)
June 30,
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 1,619,837
$ 1,938,689
Restricted cash
562,427
999,933
Accounts receivable trade, net
1,019,370
904,943
Accounts receivable, unbilled
164,226
101,435
Amounts due from related parties
35,215
40,582
Inventories
1,204,986
1,179,641
Value added tax recoverable
171,859
162,737
Advances to suppliers, net
172,408
193,818
Derivative assets
5,613
9,282
Project assets
555,555
280,793
Prepaid expenses and other current assets
268,433
283,600
Total current assets
5,779,929
6,095,453
Restricted cash
9,977
7,810
Property, plant and equipment, net
3,079,646
3,088,442
Solar power systems, net
1,266,529
951,513
Deferred tax assets, net
314,200
263,458
Advances to suppliers, net
231,298
132,218
Investments in affiliates
227,703
236,928
Intangible assets, net
33,923
19,727
Project assets
688,648
576,793
Right-of-use assets
226,517
237,007
Amounts due from related parties
38,668
32,313
Other non-current assets
239,899
254,098
TOTAL ASSETS
$ 12,136,937
$ 11,895,760
Canadian Solar Inc.
Unaudited Condensed Consolidated Balance Sheets (Continued)
(In Thousands of U.S. Dollars)
June 30,
December 31,
2024
2023
LIABILITIES, REDEEMABLE NON-
CONTROLLING INTEREST AND EQUITY
Current liabilities:
Short-term borrowings
$ 2,036,003
$ 1,805,198
Accounts payable
842,105
813,677
Short-term notes payable
765,511
878,285
Amounts due to related parties
3,629
511
Other payables
1,179,390
1,359,679
Advances from customers
274,051
392,308
Derivative liabilities
1,387
6,702
Operating lease liabilities
18,006
20,204
Other current liabilities
458,808
587,827
Total current liabilities
5,578,890
5,864,391
Long-term borrowings
1,623,626
1,265,965
Green bonds and convertible notes
375,163
389,033
Liability for uncertain tax positions
5,847
5,701
Deferred tax liabilities
88,624
82,828
Operating lease liabilities
113,331
116,846
Other non-current liabilities
491,554
465,752
TOTAL LIABILITIES
8,277,035
8,190,516
Redeemable non-controlling interest
$ 72,785
$ —
Equity:
Common shares
835,543
835,543
Additional paid-in capital
470,628
292,737
Retained earnings
1,565,881
1,549,707
Accumulated other comprehensive loss
(215,620)
(118,744)
Total Canadian Solar Inc. shareholders’
equity
2,656,432
2,559,243
Non-controlling interests
1,130,685
1,146,001
TOTAL EQUITY
3,787,117
3,705,244
TOTAL LIABILITIES, REDEEMABLE NON-
CONTROLLING INTEREST AND EQUITY
$ 12,136,937
$ 11,895,760
Canadian Solar Inc.
Unaudited Condensed Statements of Cash Flows
(In Thousands of U.S. Dollars)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Operating Activities:
Net income
$ 27,424
$ 36,223
$ 197,536
$ 63,647
$ 304,365
Adjustments to reconcile net
income to net cash provided by
operating activities
174,201
158,350
190,634
332,551
258,372
Changes in operating assets
and liabilities
(630,963)
(486,060)
(98,611)
(1,117,023)
(226,006)
Net cash provided by (used in)
operating activities
(429,338)
(291,487)
289,559
(720,825)
336,731
Investing Activities:
Purchase of property, plant and
equipment
(390,248)
(266,462)
(283,065)
(656,710)
(516,097)
Purchase of solar power
systems
(10,936)
(173,341)
(36,329)
(184,277)
(146,195)
Other investing activities
2,515
6,832
(17,927)
9,347
(29,010)
Net cash used in investing
activities
(398,669)
(432,971)
(337,321)
(831,640)
(691,302)
Financing Activities:
Net proceeds from sale of
subsidiary’s redeemable
preferred shares
297,000
—
—
297,000
—
Payments for repurchase of
subsidiary’s ordinary shares
(70,624)
—
—
(70,624)
—
Net proceeds from subsidiary’s
public offering of ordinary shares
—
—
803,645
—
803,645
Other financing activities
(38,778)
723,412
547,492
684,634
927,241
Net cash provided by financing
activities
187,598
723,412
1,351,137
911,010
1,730,886
Effect of exchange rate changes
(61,483)
(51,253)
(128,769)
(112,736)
(95,679)
Net increase (decrease) in cash,
cash equivalents and restricted cash
(701,892)
(52,299)
1,174,606
(754,191)
1,280,636
Cash, cash equivalents and
restricted cash at the beginning
of the period
$ 2,894,133
$ 2,946,432
$ 2,075,533
$ 2,946,432
$ 1,969,503
Cash, cash equivalents and
restricted cash at the end of the
period
$ 2,192,241
$ 2,894,133
$ 3,250,139
$ 2,192,241
$ 3,250,139
View original content:https://www.prnewswire.com/news-releases/canadian-solar-reports-second-quarter-2024-results-302228478.html
SOURCE Canadian Solar Inc.
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OppFi Reports First Quarter 2026 Results, Record Quarterly Revenue
Published
6 hours agoon
May 7, 2026By
Total revenue increased 8.3% year over year to $151.9 million, a Company record for the first quarter
Net income increased 165.0% year over year to $54.0 million
Adjusted net income1 decreased 11.2% year over year to $30.0 million
Board approves new $40 million Share Repurchase Program
CHICAGO, May 7, 2026 /PRNewswire/ — OppFi Inc. (NYSE: OPFI) (“OppFi” or the “Company”), a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans, today reported financial results for the first quarter ended March 31, 2026.
“Operationally, OppFi had a healthy start to 2026, generating record first-quarter revenue, which reflects the strength of our core operations. Strategically, we believe 2026 is a pivotal year of investment for OppFi as we evolve the business with the transformative combination of OppFi’s digital-first platform and BNC’s national bank charter. This initiative unlocks significant opportunities for growth and product diversification. Combining our operations under unified regulatory supervision by the OCC and Federal Reserve simplifies and strengthens our compliance and risk management, which positions us for long-term scalability and sustainable growth,” said Todd Schwartz, CEO and Executive Chairman of OppFi. Our new share repurchase program reflects our continued confidence in OppFi’s long-term growth prospects, our commitment to returning value to our stockholders and belief that our stock currently trades at a significant discount to its underlying value,” Todd Schwartz added.
(1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures.
Financial Summary
The following table presents a summary of OppFi’s results for the three months ended March 31, 2026 and 2025 (in thousands, except per share data)†. Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.
Three Months Ended March 31,
Change
(Unaudited)
2026
2025
%
Total revenue(1)
$ 151,881
$ 140,268
8.3 %
Net income
$ 54,038
$ 20,390
165.0 %
Net income (loss) attributable to OppFi Inc.
$ 28,401
$ (11,372)
349.7 %
Adjusted net income(2)
$ 30,045
$ 33,817
(11.2) %
Basic EPS
$ 1.06
$ (0.48)
321.0 %
Diluted EPS(3)
$ 0.56
$ (0.48)
215.7 %
Adjusted EPS(2,3)
$ 0.35
$ 0.38
(9.3) %
† The financial results do not reflect the simplification of OppFi’s corporate structure to collapse its prior Up-C structure, which occurred after the end of the quarter.
(1) Total revenue is calculated as the sum of interest on finance receivables and other revenue.
(2) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures.
(3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, including Class V Voting Stock, restricted stock units, performance stock units, and stock options in any periods in which their inclusion would have an antidilutive effect.
Key Performance Metrics
The following table represents key quarterly metrics as of and for the three months ended March 31, 2026 and 2025 (in thousands, except percentage metrics).
As of and for the Three Months Ended
(Unaudited)
March 31, 2026
March 31, 2025
Total net originations(a)
$ 175,975
$ 189,168
Total retained net originations(a)
$ 151,449
$ 168,963
Ending receivables(b)
$ 444,922
$ 406,579
Net charge-offs as % of total revenue(c)
42.5 %
34.6 %
Net charge-offs as % of average receivables, annualized(c)
55.5 %
47.0 %
Average yield, annualized(d)
130.7 %
135.8 %
Auto-approval rate(e)
79 %
79 %
(a) Total net originations are defined as gross originations net of transferred balance on refinanced loans, while total retained net originations are defined as the portion of total net originations with respect to which the Company ultimately purchased a receivable from bank partners.
(b) Ending receivables are defined as the unpaid principal balances of loans at the end of the reporting period.
(c) Net charge-offs as a percentage of total revenue and net charge-offs as a percentage of average receivables represent total charge-offs from the period less recoveries as a percentage of total revenue and as a percentage of average receivables. Net charge-offs as a percentage of average receivables is presented as an annualized metric. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.
(d) Average yield is defined as total revenue from the period as a percent of average receivables and is presented as an annualized metric.
(e) Auto-approval rate is calculated by taking the number of approved loans that are not decisioned by a loan processor or underwriter (auto-approval) divided by the total number of loans approved.
Share Repurchase Program
During the three months ended March 31, 2026, OppFi repurchased 1,040,699 shares of Class A Common Stock, which were held as treasury stock, for an aggregate purchase price of $9.9 million at an average purchase price per share of $9.54. As of March 31, 2026, $11.0 million of the repurchase authorization under the Company’s prior repurchase program remained available. On May 6, 2026, the Board of Directors of OppFi approved a new share repurchase program under which the Company may repurchase up to $40 million of its Class A Common Stock. This new program replaces the Company’s prior share repurchase program, which was terminated.
Repurchases under the new program may be made from time to time on the open market, through privately negotiated transactions, or via other methods, in accordance with applicable securities laws and other relevant legal requirements. The timing and amount of repurchases will depend on market conditions, share price, trading volume and other factors. The new program does not obligate the Company to repurchase any specific dollar amount or number of shares, and it may be extended, modified, suspended or discontinued at any time.
Conference Call
Management will host a conference call today at 9:00 a.m. ET to discuss OppFi’s financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company’s website.
The conference call can also be accessed with the following dial-in information:
Domestic: (800) 579-2543International: (785) 424-1789Conference ID: OPPFI
An archived version of the webcast will be available on OppFi’s website.
About OppFi
OppFi (NYSE: OPFI) is a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans. Through this transparent and responsible platform, which emphasizes financial inclusion and exceptional customer experience, the Company assists consumers who are underserved by traditional financing options in building improved financial health. OppLoans by OppFi maintains a 4.4/5.0 star rating on Trustpilot based on over 5,500 reviews, positioning the Company among the top consumer-rated financial platforms online. OppFi also holds a 35% equity interest in Bitty Holdings, LLC (“Bitty”), a credit access company that provides revenue-based financing and other working capital solutions to small businesses. For additional information, please visit oppfi.com.
Important Additional Information will be Filed with the SEC
In connection with the proposed transaction between OppFi and BNCCORP, Inc. (“BNCC”), OppFi will file with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “registration statement”), which will contain a proxy statement of BNCC and a prospectus of OppFi (the “proxy statement/prospectus”), and OppFi may file with the SEC other relevant documents regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY AND IN THEIR ENTIRETY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY OPPFI, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT OPPFI, BNC AND THE PROPOSED TRANSACTION. A definitive copy of the proxy statement/prospectus will be mailed to stockholders of BNCC when that document is final. Investors and security holders will be able to obtain the registration statement and the proxy statement/prospectus, as well as other filings containing information about OppFi, free of charge from OppFi or from the SEC’s website when they are filed by OppFi. The documents filed by OppFi with the SEC may be obtained free of charge at OppFi’s website, at https://investors.oppfi.com/financials/sec-filings/default.aspx, or by requesting them by mail at 130 E. Randolph Street, Suite 3400, Chicago, IL 60601 or by email at corporate.secretary@oppfi.com.
Participants in a Solicitation
This communication is not a solicitation of a proxy from any security holder of BNCC or OppFi. However, OppFi, BNCC and certain of their respective directors and executive officers may be deemed to be participants in a solicitation of proxies from the stockholders of BNCC in respect of the proposed transaction. Information about OppFi’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2025 and other documents filed by OppFi with the SEC. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities of OppFi or a solicitation of any vote or approval with respect to the proposed transaction by OppFi or BNCC, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
Contacts:
Investor Relations:
Mike Gallentine
Head of Investor Relations
mgallentine@oppfi.com
Media Relations:
media@oppfi.com
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “opportunity,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “possible,” “continue,” “positions,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations with respect to its full year 2026 guidance, the future performance of OppFi’s platform and underwriting models, statements regarding OppFi’s proposed acquisition of BNCC, including the anticipated timing, structure, benefits and strategic rationale of such transactions, OppFi’s expectations with respect to the geographic expansion and product diversification that may come from the acquisition, and expectations for OppFi’s growth and future financial performance. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, the impact of tariffs, and tightening of credit markets on OppFi’s business; the impact of challenging macroeconomic and marketplace conditions; the impact of stimulus or other government programs; risks related to the proposed acquisition of BNCC including the risk that the transactions may not be completed in a timely manner or at all and the risk of integration or execution challenges; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; OppFi’s ability to scale and grow the Bitty business; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi’s business; risks related to any material weakness in OppFi’s internal controls over financial reporting; the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; risks related to evaluating and potentially consummating acquisitions; concentration risk; risks related to OppFi’s ability to comply with various covenants in its corporate and warehouse credit facilities; risks related to potential litigation; changes in applicable laws or regulations, including, but not limited to, impacts from the One Big Beautiful Bill Act; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, and Adjusted EPS. Adjusted EBT is defined as Net Income, adjusted for (1) income tax expense; (2) change in fair value of warrant liabilities; (3) other adjustments, net; and (4) other income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate for each period presented that reflects the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represents shares of both classes of common stock outstanding and includes the impact of dilutive securities, such as restricted stock units, performance stock units, and stock options. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” below for reconciliations for OppFi’s non-GAAP financial measures to the most directly comparable GAAP financial measures.
First Quarter Results of Operations
Consolidated Statements of Operations
The following table present consolidated results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.
Three Months Ended March 31,
Change
(Unaudited)
2026
2025
$
%
Revenue:
Interest and loan related income
$ 150,526
$ 139,118
$ 11,408
8.2 %
Other revenue
1,355
1,150
205
17.8
151,881
140,268
11,613
8.3
Change in fair value of finance receivables
(64,583)
(49,458)
(15,125)
30.6
Net revenue
87,298
90,810
(3,512)
(3.9)
Expenses:
Salaries and employee benefits
14,254
13,778
476
3.5
Direct marketing costs
10,385
10,288
97
0.9
Interest expense and amortized debt issuance costs
8,510
10,247
(1,737)
(17.0)
Professional fees
7,264
4,199
3,065
73.0
Technology costs
3,329
2,961
368
12.4
Payment processing fees
1,658
1,630
28
1.7
Occupancy
871
1,039
(168)
(16.2)
Depreciation and amortization
591
1,760
(1,169)
(66.4)
General, administrative and other
5,074
2,416
2,658
110.0
Total expenses
51,936
48,318
3,618
7.5
Income from operations
35,362
42,492
(7,130)
(16.8)
Other income (expense):
Change in fair value of warrant liabilities
21,295
(21,607)
42,902
198.6
Income from equity method investment
1,120
1,076
44
4.1
Other income
232
80
152
191.1
Income before income taxes
58,009
22,041
35,968
163.2
Income tax expense
3,971
1,651
2,320
140.5
Net income
54,038
20,390
33,648
165.0
Less: net income attributable to noncontrolling interest
25,637
31,762
(6,125)
(19.3)
Net income (loss) attributable to OppFi Inc.
$ 28,401
$ (11,372)
$ 39,773
349.7 %
Earnings (loss) per common share attributable to OppFi Inc.:
Earnings (loss) per common share:
Basic
$ 1.06
$ (0.48)
Diluted
$ 0.56
$ (0.48)
Weighted average common shares outstanding:
Basic
26,778,432
23,691,769
Diluted
86,195,269
23,691,769
Condensed Consolidated Balance Sheets
The following table presents consolidated balance sheets as of March 31, 2026 and December 31, 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.
(Unaudited)
March 31,
December 31,
Change
2026
2025
$
%
Assets
Cash and restricted cash
$ 99,920
$ 93,263
$ 6,657
7.1 %
Finance receivables at fair value
502,558
546,236
(43,678)
(8.0)
Equity method investment
19,145
19,076
69
0.4
Other assets
98,364
95,515
2,849
3.0
Total assets
$ 719,987
$ 754,090
$ (34,103)
(4.5) %
Liabilities and stockholders’ equity
Accounts payable and accrued expenses
$ 41,610
$ 46,171
$ (4,561)
(9.9) %
Other liabilities
45,975
51,235
(5,260)
(10.3)
Total debt
284,260
321,353
(37,093)
(11.5)
Warrant liabilities
5,160
26,455
(21,295)
(80.5)
Total liabilities
377,005
445,214
(68,209)
(15.3)
Total stockholders’ equity
342,982
308,876
34,106
11.0
Total liabilities and stockholders’ equity
$ 719,987
$ 754,090
$ (34,103)
(4.5) %
Condensed Consolidated Statement of Cash Flows
The following table presents the consolidated statement of cash flows for the three months ended March 31, 2026 and 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.
Three Months Ended March 31,
Change
(Unaudited)
2026
2025
$
%
Net cash provided by operating activities
$ 90,779
$ 83,740
$ 7,039
8.4 %
Net cash used in investing activities
(21,436)
(34,241)
12,805
(37.4)
Net cash used in financing activities
(62,686)
(47,019)
(15,667)
33.3
Net increase in cash and restricted cash
$ 6,657
$ 2,480
$ 4,177
168.4 %
Financial Capacity and Capital Resources
As of March 31, 2026, OppFi had $63.9 million in unrestricted cash, an increase of $14.4 million from December 31, 2025. As of March 31, 2026, OppFi had an additional $240.7 million of unused debt capacity under our financing facilities for future availability, representing a 46% overall undrawn capacity, an increase from $203.6 million as of December 31, 2025. The increase in undrawn debt was driven primarily by a decrease in the utilization of revolving lines of credit. Including total financing commitments of $525.0 million and cash and restricted cash on the balance sheet of $99.9 million, OppFi had approximately $624.9 million in funding capacity as of March 31, 2026.
Reconciliation of Non-GAAP Financial Measures
The following tables present reconciliations of non-GAAP financial measures for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.
Adjusted EBT and Adjusted Net Income
Comparison of the three months ended March 31, 2026 and 2025
Three Months Ended March 31,
Change
(Unaudited)
2026
2025
$
%
Net income
$ 54,038
$ 20,390
$ 33,648
165.0 %
Income tax expense
3,971
1,651
2,320
140.5
Other income
(232)
(80)
(152)
191.1
Change in fair value of warrant liabilities
(21,295)
21,607
(42,902)
(198.6)
Other adjustments, net(a)
3,035
609
2,426
398.4
Adjusted EBT
39,517
44,177
(4,660)
(10.5)
Less: pro forma taxes(b)
9,472
10,360
(888)
(8.6)
Adjusted net income
$ 30,045
$ 33,817
$ (3,772)
(11.2) %
Adjusted earnings per share
$ 0.35
$ 0.38
Weighted average diluted shares outstanding
86,195,269
87,991,698
(a) For the three months ended March 31, 2026, other adjustments, net of $3.0 million included $1.7 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.2 million in expenses related to severance, and $0.1 million in expenses related to legal matters. For the three months ended March 31, 2025, other adjustments, net of $0.6 million included $1.3 million in expenses related to stock compensation, $0.3 million in expenses related to severance, $0.3 million in expenses related to legal matters, and $0.2 million in expenses related to an adjustment to the Company’s outstanding lease obligations, partially offset by a $1.4 million addback related to the partial forgiveness of remaining expenses related to OppFi Card’s exit activities. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes.
(b) Assumes a tax rate of 23.97% for the three months ended March 31, 2026 and 23.45% for the three months ended March 31, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes.
Adjusted Earnings Per Share
Comparison of the three months ended March 31, 2026 and 2025
Three Months Ended March 31,
(Unaudited)
2026
2025
Weighted average Class A common stock outstanding
26,778,432
23,691,769
Weighted average Class V voting stock outstanding
58,694,615
62,698,935
Dilutive impact of restricted stock units
556,584
1,341,739
Dilutive impact of performance stock units
12,994
62,377
Dilutive impact of stock options
152,644
196,878
Weighted average diluted shares outstanding
86,195,269
87,991,698
Three Months Ended March 31,
(In thousands, except share and per share data)
2026
2025
(Unaudited)
$
Per Share
$
Per Share
Weighted average diluted shares outstanding
86,195,269
87,991,698
Net income
$ 54,038
$ 0.63
$ 20,390
$ 0.23
Income tax expense
3,971
0.05
1,651
0.02
Other income
(232)
—
(80)
—
Change in fair value of warrant liabilities
(21,295)
(0.25)
21,607
0.25
Other adjustments, net(a)
3,035
0.04
609
0.01
Adjusted EBT
39,517
0.46
44,177
0.50
Less: pro forma taxes(b)
9,472
0.11
10,360
0.12
Adjusted net income
$ 30,045
$ 0.35
$ 33,817
$ 0.38
(a) For the three months ended March 31, 2026, other adjustments, net of $3.0 million included $1.7 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.2 million in expenses related to severance, and $0.1 million in expenses related to legal matters. For the three months ended March 31, 2025, other adjustments, net of $0.6 million included $1.3 million in expenses related to stock compensation, $0.3 million in expenses related to severance, $0.3 million in expenses related to legal matters, and $0.2 million in expenses related to an adjustment to the Company’s outstanding lease obligations, partially offset by a $1.4 million addback related to the partial forgiveness of remaining expenses related to OppFi Card’s exit activities. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes.
(b) Assumes a tax rate of 23.97% for the three months ended March 31, 2026 and 23.45% for the three months ended March 31, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes.
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SOURCE OppFi
Technology
AAON Reports First Quarter 2026 Results with Record Sales and Backlog, Robust Earnings Growth, and Raises Full-Year Guidance
Published
6 hours agoon
May 7, 2026By
First Quarter 2026 Results
(All comparisons are year-over-year, unless otherwise noted)
Delivered record sales and accelerated earnings growth on strong demand and expanding production throughputNet sales grew 54.3% to a record $496.9 millionOperating margins reflected early benefits from improving utilization, with margin improvement expected to build as capacity absorption improvesGAAP diluted EPS increased 37.1% to $0.48 reflecting strong earnings growth on higher volumeTotal backlog increased 107.4% to a record $2.1 billion, driven by continued strength from the data center market
Raises 2026 Outlook
2026 outlook now reflects revenue growth of 40%-45%% and gross margins of approximately 27-28%, supported by record backlog, expanded capacity, and improving operational execution
TULSA, Okla., May 7, 2026 /PRNewswire/ — AAON, INC. (NASDAQ-AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the first quarter of 2026.
First Quarter 2026 Results
Net sales for the first quarter of 2026 increased 54.3% to $496.9 million, from $322.1 million in the first quarter of 2025. This growth was driven by strong demand across both the AAON and BASX brands, and accelerating production throughput made possible by investments made in capacity and operational execution. BASX-branded sales increased 72.4% to $228.6 million, reflecting continued strength in data center cooling demand, higher production volumes, and increased utilization of recently commissioned capacity. AAON-branded sales increased 41.6% to $268.4 million, supported by a strong backlog and accelerating production rates. Booking activity remained solid across both brands, supporting continued share gains and elevated backlog levels. BASX-branded products ended the quarter with backlog up 160.0%, while AAON‑branded bookings demonstrated continued resilience in a softer market environment.
Gross profit margin in the quarter was 25.1%, compared to 26.8% in the prior-year period. The year‑over‑year decline reflected unabsorbed fixed costs associated with recent capacity investments, temporary outsourcing used to support accelerated growth, and transitory price and cost timing dynamics. These effects are intentional and temporary, and are expected to unwind as internal capacity scales and utilization improves.
Selling, general and administrative expenses as a percent of sales declined 220 basis points to 13.7%, demonstrating strong operating leverage and disciplined cost management.
Earnings per diluted share were $0.48, an increase of 37.1% from $0.35 in the first quarter of 2025.
“First‑quarter results demonstrate strong earnings growth driven by higher volume, improved execution, and continued share gains,” said President and CEO Matt Tobolski. “We delivered record sales, improved cash flow, and higher production throughput across our manufacturing network. Importantly, the additional volume we are taking on is carrying attractive incremental contribution, allowing earnings to grow while we intentionally sequence margin improvement during this phase of capacity ramp.
“Our backlog provides exceptional visibility, particularly across the BASX-brand, and positions us to drive continued growth as we move through the year. At the same time, increasing utilization across existing capacity is expected to support margin improvement over time as fixed costs are absorbed, equipment comes fully online, and productivity continues to improve.
“As we progress through 2026, our priorities are clear and unchanged. Drive throughput, convert backlog, and deliver disciplined margin progression over time. We have built the foundation, and we are now focused on converting that foundation into durable earnings power and long-term returns.”
Backlog
March 31, 2026
December 31, 2025
March 31, 2025
(in thousands)
AAON-branded products
$ 509,806
$ 526,350
$ 403,863
BASX-branded products
1,619,649
1,302,145
623,006
$ 2,129,455
$ 1,828,495
$ 1,026,869
Total backlog increased 107.4% year-over-year to $2.13 billion, and increased 16.5% sequentially. The sequential growth was driven entirely by the BASX brand, with backlog increasing 24.4% from the prior quarter. Sustained data center demand and BASX’s custom-engineered solutions continue to support share gains. As planned, AAON-branded products backlog declined sequentially 3.1%, reflecting a deliberate increase in production to address extended lead times, with manufacturing output exceeding order intake during the quarter. Order activity of AAON equipment remained solid, supporting continued share gains despite softer end-market conditions.
2026 Outlook
Dr. Tobolski concluded, “We are encouraged by the start of the year and the momentum we are seeing across the business. Backlog and demand remain exceptionally strong, providing the visibility and stability needed to maintain a sharp focus on execution, production ramp‑up, and customer fulfillment. We are pleased with the benefits we are starting to see from operational investments, and we have meaningful opportunity ahead to further increase production volumes and enhance productivity, which support improved results over time.
“We now expect 2026 sales to grow 40%-45%, with gross margin of 27%-28%, reflecting intentional ramp decisions early in the year and improving margin as utilization and productivity increases through the year. We anticipate SG&A expenses as a percentage of sales will be 14%-15% and expect depreciation and amortization expenses of $95-$100 million.”
Current
Prior
Metric
FY26
FY26
YoY Sales Growth
40%-45%
18%-20%
Gross Profit Margin
27%-28%
29%-31%
SG&A as a % of sales
14%-15%
~16%
Depreciation & Amortization
$95M-$100M
$95M-$100M
Segment Results
AAON Oklahoma
Three Months Ended
(in thousands)
March 31, 2026
December 31, 2025
March 31, 2025
Net sales
$ 243,967
$ 215,503
$ 161,838
Gross profit
$ 64,272
$ 59,168
$ 40,600
Gross profit margin
26.3 %
27.5 %
25.1 %
Net sales for the AAON Oklahoma segment totaled $244.0 million, an increase of 50.7% year-over-year, driven by a strong starting backlog and ongoing production enhancements that improved backlog conversion despite a challenging industry environment. First‑quarter 2026 results also benefited from an easier year‑over‑year comparison, as the prior‑year period was disrupted by the industry’s refrigerant transition, contributing to regained market share.
Gross margin for the segment was 26.3%, compared to 25.1% in the first quarter of 2025. Overhead expenses associated with the new Memphis facility impacted segment margin by $9.8 million. Excluding these costs, segment margins were 29.6%. During the quarter, the segment was impacted by elevated outsourcing levels, price‑cost timing dynamics, and tariff‑related costs, all of which are temporary and do not change the long-term earnings power of the segment.
AAON Coil Products
Three Months Ended
(in thousands)
March 31, 2026
December 31, 2025
March 31, 2025
Net sales
$ 117,611
$ 102,619
$ 94,023
Gross profit
$ 28,302
$ 21,827
$ 29,858
Gross profit margin
24.1 %
21.3 %
31.8 %
Net sales for the AAON Coil Products segment totaled $117.6 million, up 25.1% compared to the same period last year. Growth was driven primarily by BASX-branded liquid cooling sales of $93.2 million, up 40.5% during the period, while AAON‑branded sales declined 11.8% year-over-year.
AAON Coil Products gross margin was 24.1%, declining year-over-year from 31.8%, but increasing sequentially from 21.3%. The sequential margin expansion reflected improved operating leverage on higher throughput at the Longview facility, including a favorable mix of higher-margin BASX sales.
BASX
Three Months Ended
(in thousands)
March 31, 2026
December 31, 2025
March 31, 2025
Net sales
$ 135,358
$ 106,095
$ 66,193
Gross profit
$ 32,391
$ 28,775
$ 15,906
Gross profit margin
23.9 %
27.1 %
24.0 %
Net sales for the BASX segment increased 104.5% to $135.4 million from $66.2 million in the prior-year period. The year-over-year growth reflected strong demand for data center equipment, supported by robust order intake and elevated backlog levels. Increased production from the Company’s new Memphis facility played a key role by expanding capacity and driving higher sales volumes.
BASX segment gross margin was 23.9%, unchanged from the prior-year period. Margin stability reflected strong volume growth, offset by incremental resources and investments to support future growth and share gains. These incremental costs also contributed to the sequential margin contraction.
Balance Sheet & Cash Flow
As of March 31, 2026, the company had cash, cash equivalents and restricted cash of $1.1 million and a balance on its revolving credit facility of $425.2 million. Andy Cheung, CFO and Treasurer, commented, “During the first quarter, operating cash flow totaled $34.0 million, representing the highest level since the third quarter of 2024. This improvement reflected higher earnings and enhanced working capital efficiency. Capital expenditures totaled $52.9 million, primarily reflecting continued investments in incremental capacity to support future growth. As improvements in profitability and productivity continue, we expect these trends to support stronger cash flow and a healthier balance sheet over time.”
Conference Call
The company will host a conference call and webcast this morning at 9:00 a.m. EST to discuss the first quarter of 2026 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-888-880-3330. To access the listen-only webcast, please register at https://app.webinar.net/x89XOEkP41z. On the next business day following the call, a replay of the call will be available on the company’s website at https://aaon.com/investors.
About AAON
Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company’s industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “should”, “will”, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward-looking statements, see “Risk Factors” and “Forward Looking Statements” in AAON’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON’s Quarterly Reports on Form 10-Q, and AAON’s Current Reports on Form 8-K.
Contact Information
Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone: (617) 877-6346
Email: joseph.mondillo@aaon.com
AAON, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31,
2026
2025
(in thousands, except per share data)
Net sales
$ 496,936
$ 322,054
Cost of sales
371,971
235,690
Gross profit
124,965
86,364
Selling, general and administrative expenses
67,906
51,293
Gain on disposal of assets
—
(40)
Income from operations
57,059
35,111
Interest expense
(5,055)
(2,802)
Other income, net
77
174
Income before taxes
52,081
32,483
Income tax provision
12,266
3,191
Net income
$ 39,815
$ 29,292
Earnings per share:
Basic EPS
$ 0.49
$ 0.36
Diluted EPS
$ 0.48
$ 0.35
Cash dividends declared per common share:
$ 0.10
$ 0.10
Weighted average shares outstanding:
Basic
81,756,604
81,472,351
Diluted
83,179,954
83,351,536
AAON, Inc. and Subsidiaries
Segment Net Sales and Profit
(Unaudited)
Three Months Ended March 31,
2026
2025
(in thousands)
AAON Oklahoma
External sales
$ 243,967
$ 161,838
Inter-segment sales
44,509
3,839
Eliminations
(44,509)
(3,839)
Net sales
243,967
161,838
Cost of sales1
179,695
121,238
Gross profit
64,272
40,600
AAON Coil Products
External sales
$ 117,611
$ 94,023
Inter-segment sales
6,818
3,579
Eliminations
(6,818)
(3,579)
Net sales
117,611
94,023
Cost of sales1
89,309
64,165
Gross profit
28,302
29,858
BASX
External sales
$ 135,358
$ 66,193
Inter-segment sales
(2)
43
Eliminations
2
(43)
Net sales
135,358
66,193
Cost of sales1
102,967
50,287
Gross profit
32,391
15,906
Consolidated gross profit
$ 124,965
$ 86,364
1 Presented after intercompany eliminations.
The reconciliation between consolidated gross profit to consolidated income from operations is as follows:
Consolidated gross profit
$ 124,965
$ 86,364
Less: Selling, general and administrative expenses
67,906
51,293
Add: gain on disposal of assets
—
(40)
Consolidated income from operations
$ 57,059
$ 35,111
AAON, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
March 31,
2026
December 31,
2025
2026
2025
Assets
(in thousands, except share and per share data)
Current assets:
Cash and cash equivalents
$ 13
$ 13
Restricted cash
1,087
1,226
Accounts receivable, net
290,161
314,387
Income tax receivable
19,691
27,445
Inventories, net
313,203
261,151
Contract assets, net
298,368
247,037
Prepaid expenses and other
21,177
17,921
Total current assets
943,700
869,180
Property, plant and equipment, net
654,857
631,262
Intangible assets, net and goodwill
171,913
165,799
Right of use assets
17,335
17,988
Other long-term assets
1,907
2,281
Total assets
$ 1,789,712
$ 1,686,510
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term obligations of NMTC1
7,535
7,535
Accounts payable
160,139
110,437
Accrued liabilities
136,731
132,213
Contract liabilities
55,229
80,670
Total current liabilities
359,634
330,855
Debt, long-term
425,154
398,320
Deferred tax liabilities
34,899
30,313
Other long-term liabilities
27,038
23,299
New markets tax credit obligations1
8,778
8,738
Commitments and contingencies (Note 19)
Stockholders’ equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued
—
—
Common stock, $.004 par value, 200,000,000 shares authorized, 81,851,483 and 81,691,075 issued and outstanding at March 31, 2026 and December 31, 2025, respectively
327
327
Additional paid-in capital
71,913
64,358
Retained earnings
861,969
830,300
Total stockholders’ equity
934,209
894,985
Total liabilities and stockholders’ equity
$ 1,789,712
$ 1,686,510
1 Held by variable interest entities
AAON, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
2026
2025
Operating Activities
(in thousands)
Net income
$ 39,815
$ 29,292
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization
20,903
18,943
Amortization of debt issuance costs
40
52
Amortization of right of use assets
40
25
(Recoveries of) Provision for losses on accounts receivable, net of adjustments
(120)
88
Provision for excess and obsolete inventories, net of write-offs
701
57
Share-based compensation
7,696
4,021
Other
—
(45)
Deferred income taxes
4,586
5,976
Changes in assets and liabilities:
Accounts receivable
24,346
(17,631)
Income tax receivable
7,754
(3,323)
Inventories
(52,753)
(11,489)
Contract assets
(51,331)
(53,235)
Prepaid expenses and other long-term assets
(1,487)
(2,703)
Accounts payable
50,375
21,625
Contract liabilities
(25,441)
1,508
Extended warranties
4,387
37
Accrued liabilities and other long-term liabilities
4,483
(2,412)
Net cash provided by (used in) operating activities
33,994
(9,214)
Investing Activities
Capital expenditures
(45,127)
(46,723)
Grant proceeds received
1,650
—
Proceeds from sale of property, plant and equipment
—
40
Acquisition of intangible assets
(7,808)
(3,717)
Principal payments from note receivable
—
12
Net cash used in investing activities
(51,285)
(50,388)
Financing Activities
Borrowings of debt
252,867
235,925
Payments of debt
(226,033)
(138,411)
Payment related to financing costs
(1,395)
—
Stock options exercised
3,062
4,356
Repurchase of stock – open market
—
(31,536)
Repurchases of stock – LTIP plans (Note 17)
(3,203)
(6,768)
Cash dividends paid to stockholders
(8,146)
(8,095)
Net cash provided by financing activities
17,152
55,471
Net decrease in cash, cash equivalents, and restricted cash
(139)
(4,131)
Cash, cash equivalents, and restricted cash, beginning of period
1,239
6,514
Cash, cash equivalents, and restricted cash, end of period
$ 1,100
$ 2,383
Use of Non-GAAP Financial Measures
To supplement the company’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), additional non-GAAP financial measures are provided and reconciled in the following tables. The company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The company believes that this non-GAAP financial measure enhances the ability of investors to analyze the company’s business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies.
Non-GAAP Adjusted Net Income
The company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented.
The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated:
Three Months Ended March 31,
2026
2025
(in thousands)
Net income, a GAAP measure
$ 39,815
$ 29,292
Add: Memphis incentive fee1
—
2,700
Profit sharing effect2
—
(230)
Tax effect
—
(627)
Non-GAAP adjusted net income
$ 39,815
$ 31,135
Non-GAAP adjusted earnings per diluted share
$ 0.48
$ 0.37
1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.
2Profit sharing effect of the Memphis incentive fee in the respective period.
EBITDA
EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company’s ability to internally fund operations. The company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales.
The company’s EBITDA measure provides additional information which may be used to better understand the company’s operations. EBITDA is one of several metrics that the company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a company’s financial performance. EBITDA, as used by the company, may not be comparable to similarly titled measures reported by other companies. The company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the company’s management team and by other users of the company’s consolidated financial statements.
Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA.
The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated:
Three Months Ended March 31,
2026
2025
(in thousands)
Net income, a GAAP measure
$ 39,815
$ 29,292
Depreciation and amortization
20,903
18,943
Interest expense, net
5,055
2,802
Income tax expense
12,266
3,191
EBITDA, a non-GAAP measure
$ 78,039
$ 54,228
Add: Memphis incentive fee1
—
2,700
Profit sharing effect2
—
(230)
Adjusted EBITDA, a non-GAAP measure
$ 78,039
$ 56,698
Adjusted EBITDA margin
15.7 %
17.6 %
1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.
2Profit sharing effect of the Memphis incentive fee in the respective period.
Non-GAAP Adjusted Selling, General and Administrative Expenses
The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated:
Three Months Ended March 31,
2026
2025
(in thousands)
Non-GAAP Adjusted Selling, General and Administrative Expenses
SG&A, a GAAP measure
$ 67,906
$ 51,293
Less: Memphis Incentive Fee1
—
2,700
Profit Sharing effect2
—
(230)
Non-GAAP adjusted SG&A expenses
$ 67,906
$ 48,823
As a percent of sales
13.7 %
15.2 %
1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.
2Profit sharing effect of the Memphis incentive fee in the respective period.
View original content to download multimedia:https://www.prnewswire.com/news-releases/aaon-reports-first-quarter-2026-results-with-record-sales-and-backlog-robust-earnings-growth-and-raises-full-year-guidance-302765303.html
SOURCE AAON
Technology
Tetrous® Wins “Most Exciting New Product” Award at Shoulder 360™
Published
6 hours agoon
May 7, 2026By
Following its ACE (Advancing Cutting-Edge) Award win in 2024, Tetrous is recognized once again, this time by Shoulder 360™ for its EnFix® product line.
LOS ANGELES, May 7, 2026 /PRNewswire/ — Tetrous, Inc., an emerging leader in orthopedic sports medicine innovation, today announced it has been awarded “Most Exciting New Product” at Shoulder 360, recognizing the company’s continued advancement in solutions for bone-to-tendon healing.
This latest honor builds on Tetrous’ earlier recognition at the AOSSM Annual Meeting, where the company received the prestigious ACE (Advancing Cutting-Edge) Award in 2024—a distinction given to breakthrough technologies with the potential to meaningfully improve patient outcomes in sports medicine. Shoulder 360™ is the pre-eminent forum meeting annually to educate the spectrum of health care providers caring for patients with shoulder disorders.
Tetrous’ product line, including EnFix RC®, EnFix TAC-O®, EnFix TAC-T®, and EnFix ACL™, is designed to address longstanding challenges in orthopedic soft tissue repair, particularly in procedures such as rotator cuff repair, where failure rates remain a significant concern. Restoring the bone-to-tendon interface, known as the enthesis, ultimately determines healing and long-term success.
Tetrous offers the only demineralized bone fiber (DBF) implant designed specifically for placement within bone at the bone-tendon interface, supplying the biological drivers for repair. When the mineral component is removed from allograft bone, the bone morphogenic proteins (i.e. growth factors) are exposed, allowing them to help stimulate new tissue formation. The peg design of EnFix allows surgeons to place the implant directly into the bone at the repair site, while the internal cannulation allows bone marrow cells to access the implant and initiate healing.
Significant Commercial Progress
Since receiving its prior “technology” award, Tetrous has demonstrated significant commercial and clinical progress:
Expanded to more than 100 surgeon users with three times year over year surgeon growthSurpassed 3,500 implanted devices, reflecting strong clinical adoptionExpanded clinical use of EnFix across multiple anatomical enthesesCompleted first cases with EnFix ACL for Anterior Cruciate Ligament ReconstructionScaled distribution internationally, with active markets in the United States, Australia, and New Zealand, and planned expansion into Taiwan
Raffy Mirzayan, MD, DOCS Health, Clinical Professor of Orthopaedic Surgery at USC Keck School of Medicine, Los Angeles, and Co-Founder of Shoulder360 said: “Shoulder360 was proud to award the ‘Most Exciting New Product/Service Award’ for 2026 to Tetrous. The winner of the award is voted on by surgeon attendees. Tetrous stood out for its efforts to highlight Enthesis healing with its exciting new EnFix product.”
“The rapid pace of adoption we’ve seen in the past year is incredibly encouraging,” said John Bojanowski, Director and Chief Commercial Officer. “Surpassing 3,500 implants and expanding internationally are strong indicators that surgeons recognize the value of what Tetrous is bringing to the OR.”
“Our recognition at Shoulder 360 reflects the growing confidence from surgeons who are recognizing that we have introduced a differentiated solution that can complete the healing triad of (a) fixation, (b) structure and, now with Tetrous, (c) biology – leading to better outcomes for patients,” said Bradley Patt, PhD, Co-founder, Director and CEO.
About Tetrous, Inc.
Founded in 2019, Tetrous, Inc. utilizes next generation advanced technologies for enthesis repair in sports medicine applications. The EnFix family of demineralized bone fiber implants includes EnFix RC®, EnFix TAC® and EnFix ACL™, designed to enhance the natural healing response by supporting biologic reformation at the bone-to-tendon junction. By focusing on clinically validated technologies that reduce failure rates, accelerate recovery, and restore function, Tetrous is helping surgeons achieve consistent, evidence-based results that translate into both short-term return to normal activities and long-term positive outcomes for patients.
Tetrous enjoys significant IP protection for its EnFix family of products with multiple issued patents and, additionally, has an exclusive license to the demineralized bone fiber technology used in its products for sports medicine applications from TheraCell, an ISTO Biologics Company.
Tetrous®, EnFix®, EnFix RC®, EnFix TAC® and EnFix ACL™ are trademarks of Tetrous, Inc.
For more information visit Tetrous, Inc., and follow us on LinkedIn.
Media Contact:
Ronda Taylor
Tetrous, Inc.
331-307-7499
rtaylor@tetrous.com
Product Information:
John Bojanowski
Tetrous, Inc.
331-307-7499
jbojanowski@tetrous.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/tetrous-wins-most-exciting-new-product-award-at-shoulder-360-302764891.html
SOURCE Tetrous
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