Shoals Technologies Group (NASDAQ:SHLS) Announces Quarterly Earnings Results

Shoals Technologies Group (NASDAQ:SHLS) issued its quarterly earnings data on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.01, FiscalAI reports. The firm had revenue of $140.56 million during the quarter, compared to analysts’ expectations of $129.16 million. Shoals Technologies Group had a net margin of 7.06% and a return on equity of 9.10%. Shoals Technologies Group’s quarterly revenue was up 74.4% compared to the same quarter last year.

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 Up 1.8%

Shares of Shoals Technologies Group stock traded up $0.15 during trading on Wednesday, hitting $8.28. The company’s stock had a trading volume of 2,993,670 shares, compared to its average volume of 5,044,696. The company has a market capitalization of $1.39 billion, a PE ratio of 40.68, a P/E/G ratio of 0.94 and a beta of 1.74. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.32 and a current ratio of 2.03. Shoals Technologies Group has a 52 week low of $3.81 and a 52 week high of $11.36. The company has a fifty day simple moving average of $6.76 and a two-hundred day simple moving average of $8.36.

Hedge Funds Weigh In On Shoals Technologies Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD lifted its holdings in Shoals Technologies Group by 151.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,753,784 shares of the company’s stock valued at $108,410,000 after purchasing an additional 7,685,515 shares in the last quarter. Peconic Partners LLC raised its position in shares of Shoals Technologies Group by 79.8% during the second quarter. Peconic Partners LLC now owns 6,975,186 shares of the company’s stock valued at $29,645,000 after buying an additional 3,095,186 shares during the last quarter. First Trust Advisors LP increased its position in Shoals Technologies Group by 1,493.0% in the fourth quarter. First Trust Advisors LP now owns 6,331,682 shares of the company’s stock worth $53,819,000 after purchasing an additional 5,934,223 shares during the last quarter. State Street Corp increased its position in Shoals Technologies Group by 4.0% in the fourth quarter. State Street Corp now owns 6,019,109 shares of the company’s stock worth $51,162,000 after purchasing an additional 229,890 shares during the last quarter. Finally, Invesco Ltd. increased its position in Shoals Technologies Group by 5.8% in the fourth quarter. Invesco Ltd. now owns 5,877,652 shares of the company’s stock worth $49,960,000 after purchasing an additional 323,831 shares during the last quarter.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on SHLS shares. Roth Mkm cut their price target on shares of Shoals Technologies Group from $15.00 to $10.00 and set a “buy” rating on the stock in a report on Tuesday, February 24th. Wells Fargo & Company lowered their price target on shares of Shoals Technologies Group from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 25th. Citigroup reaffirmed a “neutral” rating on shares of Shoals Technologies Group in a report on Wednesday. Royal Bank Of Canada cut their price target on shares of Shoals Technologies Group from $10.00 to $9.00 and set an “outperform” rating for the company in a research note on Wednesday, February 25th. Finally, JPMorgan Chase & Co. cut their price target on shares of Shoals Technologies Group from $11.00 to $9.00 and set an “overweight” rating for the company in a research note on Thursday, April 16th. Ten investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $9.43.

Key Stories Impacting Shoals Technologies Group

Here are the key news stories impacting Shoals Technologies Group this week:

• Positive Sentiment: Q1 results beat expectations — Shoals reported $0.07 EPS vs. consensus $0.06 and revenue of $140.6M (up 74% y/y), showing strong top-line growth and improved adjusted EBITDA. This underpins the stock’s rally narrative. GlobeNewswire: Q1 Results
• Positive Sentiment: Raised guidance and backlog — Management raised full-year revenue guidance (~$600M–$640M) and Q2 revenue ($150M–$170M) and disclosed a record backlog and awarded orders of $758M, supporting revenue visibility. GlobeNewswire: Guidance & Backlog
• Positive Sentiment: Capacity expansion — Shoals opened a 638,000 sq. ft. Tennessee manufacturing facility, which should help scale production to meet growing demand for solar electrical infrastructure. PV Magazine: Facility Opening
• Positive Sentiment: Analyst support — Needham & Company reaffirmed a Buy rating with a $12 price target (~48% above current levels), which could provide buy-side support if execution continues. TickerReport / Benzinga: Needham Rating
• Neutral Sentiment: Earnings materials and call — The company posted the earnings slide deck and held its Q1 call (presentation and transcript available) — useful for detail but not new headline information beyond the results and guidance. Seeking Alpha: Q1 Presentation
• Neutral Sentiment: Proxy outcomes — Shareholders approved board compensation and auditor ratification, removing governance overhangs but not directly changing fundamentals. The Globe and Mail: Proxy Vote
• Negative Sentiment: Small GAAP net loss and operational strain noted — Q1 showed a GAAP net loss (~$0.3M) and management flagged operational/strain issues on the call, which could pressure near-term margins and execution risk as volumes ramp. GlobeNewswire: Financial Details

About Shoals Technologies Group

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.