Shoals Technologies Group Stock Earnings Reports

Shoals reported a strong Q1 2026: revenue of $141M (+75% YoY) beat guidance and backlog & awarded orders (BLAO) reached a record $758M (up ~18% YoY) with ~$628M scheduled to ship in the next four quarters. Management raised full-year guidance: revenue now $600M–$640M and adjusted EBITDA $118M–$132M. Q1 adjusted gross margin (29.6% adjusted; 29.2% GAAP) was slightly below expectations driven by product mix, tariffs, higher freight, and temporary labor/transition inefficiencies tied to consolidating into the new manufacturing facility; management expects Q1 to be the gross‑margin trough with sequential improvement through the year. Adjusted EBITDA was $21.1M (+56% YoY); adjusted net income and EPS improved materially. Shoals began BESS production (recognizing ~$1M revenue), added ~$9M to BESS backlog, and highlighted a strategic partnership with ON.energy (AI data center UPS opportunity). Inventory increased to support strong demand, consuming $41.4M of cash in the quarter; cash on hand was $1.9M and net debt was $179.9M (net debt / adjusted EBITDA ~1.6x). Legal costs (primarily ITC litigation, Prysmian, and a shareholder class action) increased SG&A; a proposed settlement to the class action was announced and largely insurance‑covered. International (notably Australia) and OEM businesses are contributing to diversification and growth. Management reiterated that core U.S. utility-scale solar remains the primary growth driver and emphasized operational scaling, product diversification, and confidence in execution while noting external risks (tariffs, freight, geopolitical tensions) and typical project/order timing variability.