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

Shoals Technologies Group (NASDAQ:SHLS) released its quarterly earnings data on Tuesday. The company reported $0.12 EPS for the quarter, beating 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 net margin of 6.27% and a return on equity of 10.03%. The firm’s quarterly revenue was up 47.4% on a year-over-year basis. During the same quarter in the prior year, the company 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 2.8%

NASDAQ SHLS traded down $0.26 during trading on Tuesday, hitting $9.11. The stock had a trading volume of 3,710,321 shares, compared to its average volume of 5,348,825. Shoals Technologies Group has a 12 month low of $4.43 and a 12 month high of $13.18. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.07 and a current ratio of 1.84. The company’s 50-day moving average price is $10.28 and its two-hundred day moving average price is $8.85. The company has a market capitalization of $1.53 billion, a PE ratio of 45.55, a P/E/G ratio of 1.06 and a beta of 1.93.

Insider Activity at Shoals Technologies Group

In other news, CFO Dominic Bardos sold 54,449 shares of Shoals Technologies Group 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 directly owned 394,979 shares in the company, valued at $3,349,421.92. This trade represents a 12.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bobbie Lee King, Jr. sold 10,000 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $10.41, for a total transaction of $104,100.00. Following the completion of the transaction, the insider directly owned 98,918 shares of the company’s stock, 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. 0.81% of the stock is owned by company insiders.

Institutional Trading of Shoals Technologies Group

A number of hedge funds and other institutional investors have recently modified their holdings of SHLS. Price T Rowe Associates Inc. MD lifted its holdings in Shoals Technologies Group by 151.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,753,784 shares of the company’s stock worth $108,410,000 after purchasing an additional 7,685,515 shares during the last quarter. First Trust Advisors LP grew its holdings 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 buying an additional 5,934,223 shares in the last quarter. Amundi increased its position in Shoals Technologies Group by 175.2% during the 4th quarter. Amundi now owns 5,776,766 shares of the company’s stock worth $49,075,000 after buying an additional 3,677,713 shares during the period. Peconic Partners LLC increased its position in Shoals Technologies Group by 79.8% during the 2nd quarter. Peconic Partners LLC now owns 6,975,186 shares of the company’s stock worth $29,645,000 after buying an additional 3,095,186 shares during the period. Finally, Ameriprise Financial Inc. grew its stake in shares of Shoals Technologies Group by 1,110.0% in the second quarter. Ameriprise Financial Inc. now owns 1,687,082 shares of the company’s stock valued at $7,170,000 after acquiring an additional 1,547,651 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on SHLS shares. Needham & Company LLC reissued a “buy” rating and issued a $12.00 target price on shares of Shoals Technologies Group in a research note on Wednesday, May 6th. Roth Capital reaffirmed a “buy” rating on shares of Shoals Technologies Group in a research report on Thursday, July 2nd. Jefferies Financial Group lifted their price objective on Shoals Technologies Group from $10.00 to $12.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. JPMorgan Chase & Co. increased their target price on Shoals Technologies Group from $9.00 to $10.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Finally, Guggenheim restated a “buy” rating on shares of Shoals Technologies Group in a report on Friday, May 22nd. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $10.46.

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.