Shoals Technologies Group (NASDAQ:SHLS) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Shoals Technologies Group (NASDAQ:SHLSGet Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.01, FiscalAI reports. Shoals Technologies Group had a net margin of 7.06% and a return on equity of 9.10%. The company had revenue of $140.56 million during the quarter, compared to analysts’ expectations of $129.16 million. Shoals Technologies Group’s revenue for the quarter was up 74.4% on a year-over-year basis.

Here are the key takeaways from Shoals Technologies Group’s conference call:

  • First-quarter revenue beat guidance at $141 million (up 75% YoY) with a record backlog and awarded orders (BLAO) of $758 million after adding roughly $151 million of new orders and a quote pipeline exceeding $1 billion.
  • Adjusted gross margin came in slightly below expectations at 29.6%, citing product mix, tariffs, higher freight and temporary labor inefficiencies from the factory move—management calls Q1 the gross‑margin low point but expects sequential improvement.
  • Management raised guidance, now expecting full‑year revenue of $600–$640 million and adjusted EBITDA of $118–$132 million, with Q2 revenue guide of $150–$170 million.
  • Operating cash use was $41.4 million in Q1 to build inventory for demand, leaving cash and equivalents at $1.9 million and net debt at $179.9 million (net debt/adj. EBITDA ~1.6x); the company plans a moderate revolver expansion to support working capital.
  • Legal/IP update is mixed— the ITC declined to review contested ALJ issues (encouraging; final determination due in early June), while SG&A included ~$6.2 million of ongoing legal costs and a proposed class‑action settlement had a ~$5 million net impact on GAAP results.

Shoals Technologies Group Stock Down 1.1%

NASDAQ:SHLS traded down $0.09 during trading hours on Tuesday, reaching $8.18. The company had a trading volume of 6,514,498 shares, compared to its average volume of 5,014,178. The company has a quick ratio of 1.32, a current ratio of 2.03 and a debt-to-equity ratio of 0.23. The firm has a market cap of $1.37 billion, a price-to-earnings ratio of 41.09, a P/E/G ratio of 0.93 and a beta of 1.74. The business’s 50-day simple moving average is $6.81 and its two-hundred day simple moving average is $8.38. Shoals Technologies Group has a twelve month low of $3.81 and a twelve month high of $11.36.

Analysts Set New Price Targets

Several research firms have recently weighed in on SHLS. UBS Group decreased their price objective on shares of Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating for the company in a research report on Wednesday, February 25th. Roth Mkm decreased their price objective on shares of Shoals Technologies Group from $15.00 to $10.00 and set a “buy” rating for the company in a research report on Tuesday, February 24th. Citigroup reduced their price target on shares of Shoals Technologies Group from $11.00 to $8.50 and set a “neutral” rating for the company in a report on Thursday, February 26th. Barclays reduced their price target on shares of Shoals Technologies Group from $10.00 to $9.00 and set an “overweight” rating for the company in a report on Wednesday, February 25th. Finally, Weiss Ratings cut shares of Shoals Technologies Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, April 15th. Ten investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Shoals Technologies Group has a consensus rating of “Moderate Buy” and an average target price of $9.43.

View Our Latest Analysis on Shoals Technologies Group

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Dynamic Technology Lab Private Ltd bought a new position in shares of Shoals Technologies Group in the first quarter valued at $57,000. Tower Research Capital LLC TRC lifted its stake in shares of Shoals Technologies Group by 468.3% in the second quarter. Tower Research Capital LLC TRC now owns 15,519 shares of the company’s stock valued at $66,000 after buying an additional 12,788 shares in the last quarter. CIBC Asset Management Inc bought a new position in shares of Shoals Technologies Group in the fourth quarter valued at $85,000. Canada Pension Plan Investment Board lifted its stake in shares of Shoals Technologies Group by 13.0% in the second quarter. Canada Pension Plan Investment Board now owns 20,200 shares of the company’s stock valued at $86,000 after buying an additional 2,316 shares in the last quarter. Finally, Cibc World Markets Corp bought a new position in shares of Shoals Technologies Group in the fourth quarter valued at $95,000.

Shoals Technologies Group Company Profile

(Get Free Report)

Shoals Technologies Group, Inc is a leading provider of electrical balance-of-system (BOS) solutions for the solar energy industry. The company designs, engineers and manufactures a comprehensive portfolio of products, including junction boxes, combiner boxes, cable assemblies, power distribution units and monitoring systems. These components are critical to interconnecting photovoltaic modules, optimizing energy output and ensuring safe, reliable performance across solar installations.

Founded in 1996 and headquartered in Portland, Tennessee, Shoals has grown its manufacturing and operations footprint to serve customers around the globe.

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Earnings History for Shoals Technologies Group (NASDAQ:SHLS)

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