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

Shoals Technologies Group (NASDAQ:SHLS) issued its quarterly earnings results on Tuesday. The company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.04), FiscalAI reports. Shoals Technologies Group had a return on equity of 9.20% and a net margin of 7.06%.The business had revenue of $148.33 million for the quarter, compared to the consensus estimate of $144.52 million. During the same period last year, the firm earned $0.08 earnings per share. The company’s quarterly revenue was up 38.6% compared to the same quarter last year.

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

• Delivered strong top-line momentum with Q4 revenue of approximately $148M (up 38.6% YoY) and a company record backlog/awarded orders (BLAO) of about $748M, of which roughly $603M is planned to ship in 2026.
• Profitability was softer than expected—Q4 adjusted EBITDA rose to $30.3M but margin fell to 20.4% (down from 24.7%), and management now expects gross margins in the low-to-mid 30s in 2026 due to tariffs, product mix, higher labor/shipping and elevated legal costs.
• Progress on growth initiatives—Battery energy storage (BESS) backlog reached $67M, a new BESS production line will be operational soon, and a partnership with ON.energy targets AI/data-center backup power demand.
• Cash and risk profile show mixed signals—2025 legal and remediation costs were material (about $30M in legal spend and ~$7M remediation in Q4), year-end cash was $7.3M with net debt of $129.4M, while 2026 guidance forecasts revenue of $560M–$600M and operating cash flow of $65M–$85M.

Shoals Technologies Group Trading Up 0.1%

SHLS stock opened at $6.85 on Thursday. Shoals Technologies Group has a one year low of $2.71 and a one year high of $11.36. The stock has a market cap of $1.15 billion, a price-to-earnings ratio of 34.25, a price-to-earnings-growth ratio of 0.58 and a beta of 1.70. The company has a fifty day moving average price of $9.38 and a two-hundred day moving average price of $8.51. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.19 and a quick ratio of 1.53.

Insider Activity

In related news, CFO Dominic Bardos sold 4,170 shares of Shoals Technologies Group stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $7.83, for a total transaction of $32,651.10. Following the completion of the sale, the chief financial officer owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. The trade was a 1.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 1.67% of the company’s stock.

Institutional Investors Weigh In On Shoals Technologies Group

Several hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD grew its position in shares of Shoals Technologies Group by 151.6% in 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 during the last quarter. Peconic Partners LLC boosted its stake in Shoals Technologies Group by 79.8% in the 2nd quarter. Peconic Partners LLC now owns 6,975,186 shares of the company’s stock valued at $29,645,000 after purchasing an additional 3,095,186 shares during the period. First Trust Advisors LP boosted its stake in Shoals Technologies Group by 1,493.0% in the 4th quarter. First Trust Advisors LP now owns 6,331,682 shares of the company’s stock valued at $53,819,000 after purchasing an additional 5,934,223 shares during the period. State Street Corp grew its holdings in Shoals Technologies Group by 4.0% in the 4th quarter. State Street Corp now owns 6,019,109 shares of the company’s stock valued at $51,162,000 after buying an additional 229,890 shares in the last quarter. Finally, Invesco Ltd. increased its position in Shoals Technologies Group by 5.8% during the 4th quarter. Invesco Ltd. now owns 5,877,652 shares of the company’s stock worth $49,960,000 after buying an additional 323,831 shares during the period.

Key Headlines Impacting Shoals Technologies Group

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

• Positive Sentiment: Record top-line growth and backlog / strong 2026 guide — Shoals reported a record Q4 revenue of ~$148M and a record backlog/awarded orders of $747.6M; management is guiding 2026 revenue of $560M–$600M and adj. EBITDA of $110M–$130M, supporting medium‑term growth expectations. Shoals reports record $148 million Q4 revenue
• Positive Sentiment: Short interest fell meaningfully in February (down ~14.5% vs. Jan 29), lowering the percentage of shares sold short to ~6.6% and reducing potential short‑squeeze volatility. (Short interest data from filings)
• Neutral Sentiment: Q1 revenue guide is above consensus ($125M–$135M vs. ~$114M expected), which is a demand signal — but profitability outlook is the bigger focus for investors. Corrected Q4 press release
• Neutral Sentiment: Corporate partnerships: Shoals announced a deployment agreement with ON.energy for critical‑power systems in an AI data‑center application — a niche commercial win but not yet material to near‑term financials. Shoals and ON.energy deploy critical-power systems
• Negative Sentiment: Earnings miss and margin pressure — Shoals reported $0.10 GAAP EPS vs. consensus ~$0.14 and gross margin fell ~600 bps to ~31.6% due to higher material costs, tariffs and litigation expenses; that miss and margin deterioration triggered the immediate negative reaction. Seeking Alpha: Q1 outlook signals slowdown
• Negative Sentiment: Shares gapped/down after the release — multiple outlets report an initial double‑digit drop following the earnings/guidance headlines, reflecting investor concern about profitability despite revenue growth. Shares gap down following weak earnings
• Negative Sentiment: Analysts trimming targets/ratings — several firms lowered price targets (Morgan Stanley to $8.50, Barclays to $9.00, UBS trimmed its target) and some moved to neutral/equal‑weight, signaling more cautious near‑term sentiment and reducing upward catalyst consensus. Morgan Stanley PT $8.50 Barclays PT $9.00

Analyst Ratings Changes

SHLS has been the topic of several analyst reports. Jefferies Financial Group reiterated a “buy” rating and set a $10.00 target price on shares of Shoals Technologies Group in a report on Wednesday. Wells Fargo & Company dropped their price objective on Shoals Technologies Group from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Royal Bank Of Canada cut their price objective on Shoals Technologies Group from $10.00 to $9.00 and set an “outperform” rating for the company in a report on Wednesday. Roth Mkm lowered their target price 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. Finally, TD Cowen reaffirmed a “buy” rating on shares of Shoals Technologies Group in a research report on Tuesday. Ten research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $9.50.

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.