Shoals Technologies Group Inc
NASDAQ:SHLS
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Shoals Technologies Group Inc
Shoals Technologies Group, Inc. provides electrical balance of system solutions for solar energy projects. The company is headquartered in Portland, Tennessee and currently employs 697 full-time employees. The company went IPO on 2021-01-27. The firm designs, manufactures and distributes system solutions for the two types of wiring architectures used by the United States solar industry: homerun and combine-as-you-go. The company also designs, manufactures and distributes individual EBOS and other components including Combiners, Plug-n-play branch connectors and inline fuses, AC disconnects, Recombiners, Wireless monitoring, and Junction boxes. The firm provides products to engineering, procurement and construction firms (EPCs) that build solar energy projects.
Shoals Technologies Group, Inc. provides electrical balance of system solutions for solar energy projects. The company is headquartered in Portland, Tennessee and currently employs 697 full-time employees. The company went IPO on 2021-01-27. The firm designs, manufactures and distributes system solutions for the two types of wiring architectures used by the United States solar industry: homerun and combine-as-you-go. The company also designs, manufactures and distributes individual EBOS and other components including Combiners, Plug-n-play branch connectors and inline fuses, AC disconnects, Recombiners, Wireless monitoring, and Junction boxes. The firm provides products to engineering, procurement and construction firms (EPCs) that build solar energy projects.
Record Revenue: Shoals delivered record Q3 revenue of $135.8 million, up 32.9% year-over-year and 22.5% sequentially, slightly above the high end of guidance.
Backlog Growth: Backlog and awarded orders (BLAO) hit a record $720.9 million, up 21% YoY, with a strong book-to-bill ratio of 1.4 and $575 million scheduled for delivery within the next four quarters.
Guidance Raised: Full-year 2025 revenue guidance was increased to $467–477 million (17–20% YoY growth), with Q4 revenue expected in the $140–150 million range.
Margin Dynamics: Gross margin landed at 37%, within expectations, but improvement was held back by tariffs and product mix. Tariffs negated anticipated margin gains of 100–200 bps.
BESS Momentum: Battery energy storage solutions (BESS) bookings accelerated, with $18 million added to backlog and awarded orders, driven by new MSAs and growing data center and grid firming opportunities.
International Progress: International pipeline exceeds 20 GW with active projects in Latin America, Australia, and EMEA; $6 million in international revenue recognized in Q3.
Litigation and Costs: Legal expenses remained high due to ongoing litigation, including $6.8 million for shrinkback issues, but remediation is on track.
Cash Flow & Investments: Free cash flow was $9 million for the quarter, despite heavy remediation and capex. The new Tennessee facility is operational, with full consolidation targeted by mid-2026.
