– Record Quarterly Revenue of $148.3 million,
– Quarterly Operating Profit of $17.4 million,
– Quarterly Net Income of $8.1 million,
– Quarterly Adjusted EBITDA1 of $30.3 million,
– Record Backlog and Awarded Orders of $747.6 million,
– Provides First Quarter and Full Year 2026 Outlook,
PORTLAND, Tenn., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. ("Shoals" or the "Company") (NASDAQ:SHLS), a leading provider of electrical balance of system ("EBOS") solutions and components, including battery energy storage solutions ("BESS"), and Original Equipment Manufacturer ("OEM") components for the global energy transition market, today announced results for its fourth quarter ended December 31, 2025.
"2025 was an exceptional year for Shoals. While the rapidly shifting political climate brought some volatility, the massive increase in demand for energy through the rest of the decade supports strong fundamentals for our business. We are beginning to see tangible results of executing our strategic plan; expanding our product portfolio, defending share within our core markets, and diversifying our presence into new, attractive market segments. We've made great progress and look forward to building on the momentum," said Brandon Moss, CEO of Shoals.
Mr. Moss added, "I'm pleased with our performance in the fourth quarter, delivering more than $148 million of revenue, an increase of 39% from the prior year. The commercial team drove continued strength in bookings, resulting in record backlog and awarded orders, or BLAO, of $747.6 million, an increase of 18% from year-end 2024, supporting the growth we see ahead. Additionally, we closed out the period with more than $67 million of BLAO attributed to our BESS offering, an exciting result."
______________________ 1 Non-GAAP financial measures referenced in this release are used by management to assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measures.
"We enter 2026 with a strong order book and resilient underlying market demand. The strategic investments, portfolio expansion, and process improvements have positioned us exceptionally well for the coming year and beyond. Shoals has never been more diversified, and enters the year in an unprecedented competitive position. Leveraging its deep experience in Utility Solar, Shoals is growing into a multi-category leader across several market segments, which we believe will drive continued shareholder value creation. I'm proud of what we've achieved, but even more excited about what's ahead," concluded Mr. Moss.
Fourth Quarter 2025 Financial ResultsRevenue increased 39%, to $148.3 million, compared to $107.0 million for the prior-year fourth quarter, driven by increased sales volumes from higher demand of products to meet utility scale solar project demands, consistent with quarter over quarter comparisons in 2025 as compared to 2024.
Gross profit increased to $46.9 million, compared to $40.2 million in the prior-year fourth quarter. Gross profit as a percentage of revenue was 31.6% compared to 37.6% in the prior-year period. The decline from the prior-year period gross profit as a percentage of revenue was the results of increased material costs and $3.3 million in duties and tariffs in Q4 2025 that were not incurred in 2024. In addition, the Company commenced its lease for a new operations facility in Portland, Tennessee, adding $1.5 million in right-of-use asset amortization in the current period as compared to the prior period.
General and administrative expenses were $27.3 million, compared to $21.5 million during the same period in the prior year. Within the balance, there was an increase in professional services related to wire insulation shrinkback, intellectual property, and securities litigation of $7.9 million, offset by $1.6 million in decreases in payroll and employee expenses.
Income from operations was $17.4 million, compared to $16.5 million during the prior-year period.
Net income and net income attributable to Shoals Technologies Group, Inc. were $8.1 million compared to net income and net income attributable to Shoals Technologies Group, Inc of $7.8 million during the prior-year period.
Basic and diluted net income per share was $0.05 compared to basic and diluted net income per share of $0.05 in the prior-year period.
Adjusted EBITDA1 increased to $30.3 million compared to $26.4 million for the prior-year period.
Adjusted gross profit1 for fourth quarter of 2025 was $46.9 million, reflecting a 31.6% adjusted gross profit percentage1, compared to $40.2 million and 37.6% in the prior year. There were no adjustments made to gross profit in the fourth quarters of 2025 or 2024.
Adjusted net income1 was $17.5 million compared to $14.1 million during the same period in the prior year. Adjusted diluted earnings per share1 was $0.10 compared to $0.08 in the prior-year period.
Full Year 2025 Financial ResultsRevenue increased 19%, to $475.3 million, compared to $399.2 million for the prior-year, driven by increased sales volumes from higher demand of products to meet utility scale solar project demands.
Gross profit was $166.5 million, compared to $142.0 million in the prior-year. Gross profit as a percentage of revenue decreased to 35.0% from 35.6% in the prior-year. This decrease in gross profit as a percentage of revenue was due to increases in tariffs, material costs, non-recurring operational charges, competitive dynamics, volume discounts, and product mix in our key markets. These decreases were offset by a reduced amount of wire insulation shrinkback expenses in the current year as compared to the prior year.
General and administrative expenses were $101.5 million, compared to $82.3 million during the prior year. General and administrative expenses increased primarily due to higher legal and professional costs of $15.7 million. These include expenses related to intellectual property litigation that rose from $6.0 million in 2024 to $9.1 million in 2025, wire‑insulation shrinkback litigation increased from $7.2 million to $18.3 million, and shareholder litigation increased from $0.9 million to $2.5 million. Payroll and employee‑related expenses also grew by $1.3 million.
Income from operations was $56.4 million, compared to $51.2 million during the prior year.
Net income was $33.6 million compared to net income of $24.1 million during the prior year.
Net income and net income attributable to Shoals Technologies Group, Inc. was $33.6 million compared to $24.1 million during the prior year.
Basic and diluted net income per share was $0.20 compared to basic and diluted net income per share of $0.14 in the prior-year period.
Adjusted EBITDA1 was $99.5 million compared to $99.1 million for the prior-year.
Adjusted gross profit1 for full year 2025 was $166.5 million, reflecting a 35.0% adjusted gross profit percentage1, compared to $155.8 million and 39.0% in the prior year.
Adjusted net income1 increased 3% to $60.6 million compared to $58.5 million during the prior year. Adjusted diluted earnings per share1 was $0.36 compared to $0.35 in the prior-year.
Backlog and Awarded OrdersThe Company's backlog and awarded orders as of December 31, 2025 were $747.6 million, which is 17.8% higher compared to the same time last year and 3.7% higher compared to September 30, 2025. The increase in backlog and awarded orders reflects continued demand for the Company's solar products, with growth in new domestic and international markets.
Backlog represents signed purchase orders or contractual minimum purchase commitments with take-or-pay provisions and awarded orders are orders we are in the process of documenting a contract but for which a contract has not yet been signed.
First Quarter 2026 OutlookBased on current business conditions, business trends and other factors, for the quarter ending March 31, 2026, the Company expects:
Revenue to be in the range of $125 million to $135 million
Adjusted EBITDA1 to be in the range of $16 million to $21 million
Full Year 2026 OutlookBased on current business conditions, business trends and other factors, for the full year 2026, the Company expects:
Revenue to be in the range of $560 million to $600 million
Adjusted EBITDA1 to be in the range of $110 million to $130 million
Cash Flow from operations to be in the range of $65 million to $85 million
Capital expenditures to be in the range of $20 million to $30 million
Interest expense to be in the range of $8 million to $12 million
A reconciliation of Adjusted EBITDA1 guidance, which is a forward-looking and non-GAAP measure, to the most closely comparable GAAP measure is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, amortization of intangible assets and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future.
Webcast and Conference Call InformationCompany management will host a webcast and conference call on February 24, 2026 at 8:00 a.m. Eastern Time, to discuss the Company's financial results.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at https://investors.shoals.com.
About Shoals Technologies Group, Inc.Shoals Technologies Group is a leading manufacturer of advanced electrical infrastructure solutions for mission-critical applications across utility scale solar, battery storage, and data center power systems. Since its founding in 1996, the Company has designed innovative technologies and systems solutions that allow its customers to substantially increase installation efficiency and safety while improving system performance and reliability at scale. Shoals Technologies Group is a recognized leader in the energy transition industry. For additional information, please visit: https://www.shoals.com.
Investor Relations Contact Shoals Technologies Group, Inc.Email: [email protected]
Forward-Looking Statements
This report contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations; expectations regarding the utility-scale solar market and battery energy storage systems ("BESS") market; project delays; regulatory environment; the effects of competitive dynamics, volume discounts and customer mix in our key markets; pipeline and orders; business strategies, plans and expectations; sales and marketing goals; technology developments; financing and investment plans; warranty and liability accruals and estimates of loss or gains; estimates of potential loss related to the wire insulation shrinkback matter (as defined below); litigation strategy and expected benefits or results from the current intellectual property and wire insulation shrinkback litigation; potential growth opportunities, including opportunities associated with our entry into new markets; production and capacity at our plants; and potential repurchases under the Company's Repurchase Program (as defined below). Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would" or similar expressions and the negatives of those terms.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date of this report. You should read this report with the understanding that our actual future results may be materially different from what we expect.
Some of the key factors that could cause actual results to differ from our expectations include, among others, If demand for solar energy projects diminishes, we may not be able to grow, and our financial results, business and prospects could be materially adversely impacted; If we fail to accurately estimate the potential losses related to the wire insulation shrinkback matter, or fail to recover the costs and expenses incurred by us from the supplier, our profit margins, financial results, business and prospects could be materially adversely impacted; The interruption of the flow of raw materials from international vendors has disrupted our supply chain, including as a result of the imposition of additional duties, tariffs and other charges on imports and exports; We are subject to risks from changes to trade restrictions, import tariffs, anti-dumping and countervailing duties. Such changes could adversely affect the amount or timing of our revenue, results of operations or cash flows; We have modified, and in the future may modify, our business strategy to abandon lines of business or implement new lines of business. Modifying our business strategy could have an adverse effect on our business and financial results; Amounts included in our backlog and awarded orders may not result in actual revenue or translate into profits; We have experienced, and may experience in the future, delays, disruptions, quality control or reputational problems in our manufacturing operations in part due to our vendor concentration; If we fail to retain our key personnel and attract additional qualified personnel, our business strategy and prospects could suffer; Our products are primarily manufactured and shipped from our production facilities in Tennessee, and any damage or disruption at these facilities may harm our business; We may face difficulties integrating and optimizing our consolidated Tennessee-based manufacturing and distribution operations and may not fully realize the anticipated benefits; Safety issues may subject us to penalties, negatively impact customer relationships, result in higher operating costs, and negatively impact employee morale and turnover; The market for our products is competitive, and we face increased competition as new and existing competitors introduce EBOS system solutions and components, which could negatively affect our results of operations and market share; Macroeconomic conditions, including high inflation, high interest rates, and geopolitical instability impacts our business and financial results; We are subject to risks related to our ability to protect, enforce, and defend our intellectual property; Acquisitions, joint ventures and/or investments and the failure to integrate acquired businesses, could disrupt our business and negatively impact our results of operations; A loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment could harm our business and negatively impact revenue, results of operations, and cash flow; A significant drop in the price of electricity may harm our business, financial condition, results of operations and prospects; Failure of our information technology systems, including those managed by third parties, or cybersecurity incidents could disrupt our operations and adversely affect our results of operations; Our expansion outside the U.S. could subject us to additional business, financial, regulatory and competitive risks; Our indebtedness could adversely affect our financial flexibility, restrict our current and future operations, and our competitive position; Existing electric utility industry, federal state and municipal renewable energy and solar energy policies and regulations, including zoning and siting laws, and any subsequent changes, present technical, regulatory and economic barriers to the purchase and use of solar energy systems that may significantly reduce demand for our products or harm our ability to compete; Changes in tax laws or regulations that are applied adversely to us, or our customers could materially adversely affect our business, financial condition, results of operations and prospects; The market price of our Class A common stock may decline and may continue to be subject to significant volatility; Provisions in our amended and restated certificate of incorporation and amended and restated bylaws may have the effect of delaying or preventing a change of control or changes in our management; Our amended and restated certificate of incorporation also provides that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
These and other important risk factors are described more fully in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date of this report. You should read this report with the understanding that our actual future results may be materially different from what we expect.
Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Shoals Technologies Group, Inc.Consolidated Balance Sheets(in thousands, except shares and par value)
December 31,
2025
2024
Assets
Current Assets
Cash and cash equivalents
$
7,320
$
23,511
Accounts receivable, net
128,793
78,181
Unbilled receivables
22,133
20,834
Inventory
89,878
55,977
Other current assets
9,762
9,849
Total Current Assets
257,886
188,352
Property, plant and equipment, net
53,302
28,222
Goodwill
69,941
69,941
Other intangible assets, net
33,499
41,083
Deferred tax assets
438,027
454,160
Right-of-use operating lease assets
46,044
1,786
Other assets
5,402
9,536
Total Assets
$
904,101
$
793,080
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$
64,875
$
20,032
Accrued expenses and other
22,215
12,541
Warranty liability—current portion
3,202
29,602
Deferred revenue
37,031
18,737
Total Current Liabilities
127,323
80,912
Revolving line of credit
136,750
141,750
Right-of-use operating lease liabilities, less current portion
38,661
1,235
Warranty liability, less current portion
403
11,392
Other long-term liabilities
991
991
Total Liabilities
304,128
236,280
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.00001 par value - 5,000,000 shares authorized; none issued and outstanding as of December 31, 2025 and 2024
—
—
Class A common stock, $0.00001 par value - 1,000,000,000 shares authorized; 171,358,711 and 170,670,779 shares issued, 167,450,324 and 166,762,392 outstanding as of December 31, 2025 and 2024, respectively
2
2
Additional paid-in capital
493,090
483,550
Treasury stock, at cost, 3,908,387 shares as of December 31, 2025 and 2024, respectively
(25,272
)
(25,331
)
Retained Earnings
132,153
98,579
Total Stockholders' Equity
599,973
556,800
Total Liabilities and Stockholders' Equity
$
904,101
$
793,080
Shoals Technologies Group, Inc.Consolidated Statements of Operations(in thousands, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenue
$
148,325
$
106,987
$
475,331
$
399,208
Cost of revenue
101,411
66,803
308,823
257,191
Gross profit
46,914
40,184
166,508
142,017
Operating expenses
General and administrative expenses
27,344
21,521
101,524
82,254
Depreciation and amortization
2,166
2,180
