Shoals Technologies Group (NASDAQ:SHLS) Posts Earnings Results, Beats Estimates By $0.02 EPS

Shoals Technologies Group (NASDAQ:SHLS) posted its earnings results on Tuesday. The company reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.02, FiscalAI reports. The firm had revenue of $163.37 million during the quarter, compared to the consensus estimate of $160.03 million. Shoals Technologies Group had a net margin of 6.27% and a return on equity of 10.03%. The firm’s revenue for the quarter was up 47.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.10 EPS.

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

• Second-quarter revenue rose 47% year over year to $163.4 million, while adjusted EBITDA increased 28% to $31.6 million. New orders of approximately $207 million produced a 1.3 book-to-bill ratio and record backlog of $801.4 million.
• Management reaffirmed full-year 2026 guidance for revenue of $600–$640 million and adjusted EBITDA of $118–$132 million, with third-quarter revenue expected to reach $150–$170 million. The company expects stronger cash generation in the second half as inventory investments unwind.
• Shoals expects gross margins to improve through the remainder of the year, supported by favorable product mix, productivity gains, and greater fixed-cost leverage at its consolidated facility. Management is targeting gross margins in the low-to-mid 30% range over time.
• BESS revenue reached approximately $20 million in the quarter, with BESS backlog growing to $65 million, and the TerraFlow partnership could support future deployments of up to 5 gigawatts annually. However, management does not expect meaningful TerraFlow revenue until 2027.
• Net debt increased to $181.1 million, or 1.6 times adjusted EBITDA, although the company expanded its revolving facility by $50 million and expects leverage to improve with second-half cash flow. The district court case determining damages in the Voltage litigation is expected to conclude in the third quarter and may weigh on third-quarter EBITDA through legal costs.

Shoals Technologies Group Stock Down 1.6%

Shoals Technologies Group stock opened at $9.22 on Wednesday. The firm has a market capitalization of $1.54 billion, a P/E ratio of 46.10, a P/E/G ratio of 1.14 and a beta of 1.93. The company has a current ratio of 1.84, a quick ratio of 1.07 and a debt-to-equity ratio of 0.30. Shoals Technologies Group has a twelve month low of $4.43 and a twelve month high of $13.18. The stock’s fifty day simple moving average is $10.25 and its 200-day simple moving average is $8.85.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Weiss Ratings upgraded Shoals Technologies Group from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, July 6th. Wells Fargo & Company boosted their price objective on Shoals Technologies Group from $9.00 to $10.00 and gave the company an “equal weight” rating in a report on Thursday, June 11th. Citigroup reissued a “neutral” rating on shares of Shoals Technologies Group in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. raised their target price on Shoals Technologies Group from $9.00 to $10.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Finally, The Goldman Sachs Group lifted their target price on Shoals Technologies Group from $11.00 to $13.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Eleven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $10.64.

Insiders Place Their Bets

In related news, CFO Dominic Bardos sold 54,449 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $8.48, for a total transaction of $461,727.52. Following the completion of the transaction, the chief financial officer directly owned 394,979 shares of the company’s stock, valued at $3,349,421.92. The trade was a 12.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Bobbie Lee King, Jr. sold 10,000 shares of the company’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $10.41, for a total value of $104,100.00. Following the sale, the insider owned 98,918 shares in the company, valued at approximately $1,029,736.38. This trade represents a 9.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On Shoals Technologies Group

A number of large investors have recently modified their holdings of the company. CIBC Asset Management Inc purchased a new stake in shares of Shoals Technologies Group during the 4th quarter worth $85,000. Cibc World Markets Corp purchased a new position in Shoals Technologies Group in the fourth quarter valued at $95,000. Boothbay Fund Management LLC acquired a new stake in Shoals Technologies Group in the fourth quarter valued at $105,000. Mercer Global Advisors Inc. ADV lifted its holdings in Shoals Technologies Group by 20.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 13,670 shares of the company’s stock worth $116,000 after buying an additional 2,304 shares during the last quarter. Finally, HighTower Advisors LLC purchased a new stake in Shoals Technologies Group during the 4th quarter worth about $120,000.

Key Stories Impacting Shoals Technologies Group

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

• Positive Sentiment: Second-quarter revenue rose 47.4% year over year to $163.4 million, exceeding the $160.0 million consensus estimate. Adjusted EPS was $0.12 versus expectations of $0.10 and $0.10 a year earlier. Shoals Technologies Group Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Backlog and awarded orders reached a record $801.4 million, up 19.4% year over year and 5.7% sequentially, with management citing strong demand in battery energy storage. Adjusted EBITDA increased to $31.6 million from $24.7 million. Shoals Technologies Group Reports Second-Quarter Financial Results
• Positive Sentiment: Shoals reaffirmed full-year 2026 revenue guidance of $600 million to $640 million and introduced third-quarter revenue guidance of $150 million to $170 million, alongside adjusted EBITDA guidance of $32 million to $37 million. Shoals Q2 2026 Earnings Call Transcript
• Positive Sentiment: Shoals announced a multi-gigawatt memorandum of understanding with TerraFlow Energy focused on long-duration energy-storage infrastructure, potentially expanding its exposure to a high-growth market. Shoals and TerraFlow Energy Partnership
• Neutral Sentiment: Third-quarter revenue guidance of $150 million to $170 million compares with the $159.1 million consensus estimate, while full-year guidance of $600 million to $640 million compares with $622.7 million expected—positive at the midpoint but not an upward revision.
• Negative Sentiment: Gross margin fell to 30.3% from 37.2%, reflecting new-facility transition inefficiencies, product-quality rework, material issues and product mix. GAAP net income declined to $12.1 million from $13.9 million, while G&A expenses rose $5.4 million.
• Negative Sentiment: Cash flow from operations was negative $34.6 million in the first half, primarily because inventory increased substantially, and borrowings under the revolving credit facility rose to $196.8 million at quarter-end.

Shoals Technologies Group Company Profile

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.