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

by · The Markets Daily

Shoals Technologies Group (NASDAQ:SHLS – Get Free Report) issued its earnings results on Tuesday. The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.10 by $0.02, FiscalAI reports. The business had revenue of $163.37 million during the quarter, compared to analysts’ expectations of $160.03 million. Shoals Technologies Group had a return on equity of 10.15% and a net margin of 5.41%.The company’s revenue for the quarter was up 47.4% on a year-over-year basis. During the same quarter in the previous year, the business 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 3.5%

NASDAQ:SHLS traded down $0.30 on Thursday, reaching $8.38. The stock had a trading volume of 2,734,444 shares, compared to its average volume of 5,426,023. The company has a 50-day moving average of $10.18 and a 200 day moving average of $8.84. The company has a current ratio of 1.84, a quick ratio of 1.07 and a debt-to-equity ratio of 0.30. The stock has a market cap of $1.40 billion, a P/E ratio of 44.13, a price-to-earnings-growth ratio of 1.12 and a beta of 1.93. Shoals Technologies Group has a 12-month low of $4.43 and a 12-month high of $13.18.

Insider Activity

In related news, insider Bobbie Lee King, Jr. sold 10,000 shares of the business’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 transaction, the insider owned 98,918 shares in the company, valued at approximately $1,029,736.38. The trade was a 9.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Dominic Bardos sold 54,449 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $8.48, for a total value of $461,727.52. Following the sale, the chief financial officer owned 394,979 shares of the company’s stock, valued at approximately $3,349,421.92. This trade represents a 12.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.81% of the company’s stock.

Institutional Trading of Shoals Technologies Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada grew its holdings in Shoals Technologies Group by 292.5% during the 1st quarter. Royal Bank of Canada now owns 106,531 shares of the company’s stock worth $353,000 after acquiring an additional 79,392 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Shoals Technologies Group by 184.7% during the first quarter. AQR Capital Management LLC now owns 922,358 shares of the company’s stock worth $2,975,000 after purchasing an additional 598,407 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new position in shares of Shoals Technologies Group during the first quarter worth about $57,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Shoals Technologies Group by 8.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 517,507 shares of the company’s stock worth $1,718,000 after purchasing an additional 38,983 shares in the last quarter. Finally, Legal & General Group Plc grew its stake in Shoals Technologies Group by 1.9% in the second quarter. Legal & General Group Plc now owns 195,828 shares of the company’s stock worth $832,000 after purchasing an additional 3,601 shares in the last quarter.

Wall Street Analyst Weigh In

SHLS has been the subject of several recent research reports. Roth Capital reissued a “buy” rating on shares of Shoals Technologies Group in a research report on Thursday, July 2nd. Royal Bank Of Canada lifted their target price on shares of Shoals Technologies Group from $9.00 to $10.00 and gave the company an “outperform” rating in a report on Wednesday. The Goldman Sachs Group upped their price target on shares of Shoals Technologies Group from $11.00 to $13.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. increased their price target 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, Oppenheimer restated an “outperform” rating and set a $13.00 price objective on shares of Shoals Technologies Group in a research note on Tuesday. Eleven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Shoals Technologies Group presently has an average rating of “Moderate Buy” and an average target price of $10.71.

Check Out Our Latest Report on Shoals Technologies Group

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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