Download PDF

1. Company Snapshot

1.a. Company Description

Shoals Technologies Group, Inc.provides electrical balance of system (EBOS) solutions for solar energy projects in the United States.It produces EBOS components, including cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures, splice boxes, wire management solutions, and IV curve benchmarking devices.


The company also sells EV Charging solutions for public and fleet electric vehicle charging stations; and EBOS systems.It sells its products principally to engineering, procurement, and construction firms that build solar energy projects and install electric vehicle charging stations.Shoals Technologies Group, Inc.


was founded in 1996 and is headquartered in Portland, Tennessee.

Show Full description

1.b. Last Insights on SHLS

Recent negative drivers behind Shoals Technologies Group's performance include: * Investigation into possible securities fraud violations by Levi & Korsinsky, citing undisclosed defects in wire harnesses and potential remediation costs. * Missed Q3 earnings estimates, with a quarterly earnings of $0.08 per share, compared to the Zacks Consensus Estimate of $0.10 per share. * Reports of defects in wire harnesses installed in solar fields, which may lead to costly remediation efforts. * Uncertainty surrounding the quality and reliability of the company's products used for solar power generation.

1.c. Company Highlights

2. Shoals Technologies Group's Q3 2025 Earnings: A Strong Performance

Shoals Technologies Group reported a strong financial performance in Q3 2025, with revenue reaching a record $135.8 million, up 32.9% year-over-year. Gross profit increased to $50.3 million, with a GAAP gross profit percentage of 37.0%. The company's EPS came in at $0.12, slightly below estimates of $0.1252. The strong revenue growth was driven by higher domestic project volume from both new and existing customers.

Publication Date: Nov -23

📋 Highlights
  • Record Revenue & Growth: Q3 2025 revenue reached $135.8M, up 32.9% YoY and 22.5% sequentially, with $185.4M in new orders driving a 1.4 book-to-bill ratio.
  • Gross Profit & Cash Flow: Gross profit rose to $50.3M (37.0% margin), and $19.4M cash was generated, backed by $721M in backlog (up $50M sequentially).
  • 2025 Guidance: Full-year revenue projected at $467–477M, with adjusted EBITDA of $105–110M, reflecting 36% YoY growth at the midpoint for Q4 revenue ($140–150M).
  • BESS & Data Center Momentum: $18M in BESS bookings (3% of backlog) and expansion into data centers, with $360M+ market opportunity in solar-plus-storage and grid firming.
  • Tariff Impact & Mitigation: Section 232 aluminum tariffs affected margins, but pass-through to customers is feasible, with potential reimbursement if tariffs are invalidated.

Revenue Growth Drivers

The company's commercial team continues to drive significant growth in its book of business, adding approximately $185.4 million in new orders in the period. This resulted in a strong book-to-bill of 1.4 this quarter and supports the continued growth expected in 2026. As of September 30, 2025, approximately $575 million of the company's backlog and awarded orders has shipment dates in the upcoming 4 quarters.

Margin Analysis

Gross margins have been stable this year, within the range of 35-37%. The new BLA has lower margins due to a larger share of the solar field, which has less value engineering. Tariffs also affected margins, but the company has the ability to pass them on to customers. As Dominic Bardos mentioned, "We're working to drive cost out of the system, and I'm hopeful to have a more pleasant surprise on the upside."

Valuation Metrics

Using the current valuation metrics, the company's P/S Ratio stands at 3.02, and EV/EBITDA is at 25.39. These metrics suggest that the market is pricing in significant growth expectations. With analysts estimating next year's revenue growth at 18.1%, it remains to be seen if the company can continue to deliver on these expectations.

Growth Prospects

The company is excited about its growth pillars, including the utility scale solar business, which is operating at record levels, and the CC&I business, which is up 36% year-over-year. The OEM business is also expanding substantially. With a strong backlog and awarded orders, the company is well-positioned for future growth.

3. NewsRoom

Card image cap

Reviewing Shoals Technologies Group (NASDAQ:SHLS) & Nextpower (NASDAQ:NXT)

Dec -01

Source: defenseworld.net

Card image cap

Shoals Technologies Group, Inc. (SHLS) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Card image cap

Shoals Technologies Group (SHLS) Matches Q3 Earnings Estimates

Nov -04

Source: zacks.com

Card image cap

Shoals Technologies Group, Inc. Reports Financial Results for Third Quarter 2025

Nov -04

Source: globenewswire.com

Card image cap

Ethic Inc. Purchases New Holdings in Shoals Technologies Group, Inc. $SHLS

Nov -01

Source: defenseworld.net

Card image cap

Halper Sadeh LLC Encourages Shoals Technologies Group Inc. Shareholders to Contact the Firm to Discuss Their Rights

Oct -27

Source: businesswire.com

Card image cap

Shoals Technologies Group, Inc. Announces Participation in Upcoming Events for the Investor Community

Oct -23

Source: globenewswire.com

Card image cap

Shoals Technologies Group, Inc. Announces Third Quarter 2025 Earnings Release Date and Conference Call

Oct -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.37%)

6. Segments

System Solutions

Expected Growth: 7%

Shoals Technologies Group's System Solutions segment growth is driven by increasing adoption of renewable energy, rising demand for electrification of transportation, and growing need for energy storage solutions. Additionally, the company's focus on providing innovative and cost-effective solutions, expanding partnerships, and strategic acquisitions are contributing to its 7% growth.

Components

Expected Growth: 9%

Shoals Technologies Group, Inc.'s 9% growth is driven by increasing adoption of renewable energy sources, rising demand for electric vehicles, and growing need for energy storage solutions. The company's innovative products, such as balance of system solutions, are well-positioned to capitalize on these trends, leading to strong revenue growth.

7. Detailed Products

Electrical Balance of System (EBOS) Solutions

Shoals Technologies Group, Inc. offers a range of electrical balance of system (EBOS) solutions, including connectors, cables, and harnesses, designed to optimize the performance and efficiency of solar and energy storage systems.

Solar Junction Boxes

Shoals Technologies Group, Inc. provides solar junction boxes that enable safe and efficient connections between solar panels and inverters, ensuring maximum energy output.

Inverter Solutions

Shoals Technologies Group, Inc. offers a range of inverter solutions, including string inverters, central inverters, and microinverters, designed to optimize energy conversion and transmission.

Energy Storage Solutions

Shoals Technologies Group, Inc. provides energy storage solutions, including battery management systems and energy storage inverters, designed to optimize energy storage and release.

Monitoring and Control Systems

Shoals Technologies Group, Inc. offers monitoring and control systems that enable real-time monitoring and control of solar and energy storage systems, ensuring optimal performance and efficiency.

8. Shoals Technologies Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Shoals Technologies Group, Inc. is medium due to the presence of alternative energy storage solutions, but the company's focus on lithium-ion batteries and energy storage systems provides some differentiation.

Bargaining Power Of Customers

The bargaining power of customers for Shoals Technologies Group, Inc. is low due to the company's strong relationships with its customers and the customized nature of its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Shoals Technologies Group, Inc. is medium due to the company's dependence on a few key suppliers for critical components, but the company's scale and relationships with suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Shoals Technologies Group, Inc. is high due to the growing demand for energy storage solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Shoals Technologies Group, Inc. is high due to the competitive nature of the energy storage industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.09%
Debt Cost 13.21%
Equity Weight 74.91%
Equity Cost 13.21%
WACC 13.21%
Leverage 33.50%

11. Quality Control: Shoals Technologies Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SunPower

A-Score: 4.5/10

Value: 9.6

Growth: 0.9

Quality: 6.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Shoals Technologies

A-Score: 3.9/10

Value: 1.2

Growth: 7.9

Quality: 5.0

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
SPI Energy Co

A-Score: 3.8/10

Value: 9.0

Growth: 3.7

Quality: 2.9

Yield: 0.0

Momentum: 7.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Array Technologies

A-Score: 3.8/10

Value: 6.9

Growth: 3.7

Quality: 2.9

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Beam

A-Score: 3.6/10

Value: 8.4

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Sunnova Energy

A-Score: 2.6/10

Value: 8.0

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.34$

Current Price

8.35$

Potential

-0.00%

Expected Cash-Flows