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

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

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 Trading Down 2.8%

SHLS stock traded down $0.26 during mid-day trading on Tuesday, reaching $9.11. The company’s 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 current ratio of 1.84, a quick ratio of 1.07 and a debt-to-equity ratio of 0.30. The business’s 50 day moving average price is $10.28 and its 200 day moving average price is $8.85. The company has a market cap of $1.53 billion, a price-to-earnings ratio of 45.55, a price-to-earnings-growth ratio of 1.06 and a beta of 1.93.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Shoals Technologies Group

A number of institutional investors have recently modified their holdings of the company. nVerses Capital LLC purchased a new position in Shoals Technologies Group during the 4th quarter valued at about $127,000. Banco Bilbao Vizcaya Argentaria S.A. bought a new position in shares of Shoals Technologies Group in the fourth quarter valued at approximately $124,000. Boothbay Fund Management LLC purchased a new position in Shoals Technologies Group during the fourth quarter valued at approximately $105,000. HighTower Advisors LLC bought a new stake in Shoals Technologies Group during the 4th quarter worth approximately $120,000. Finally, Raymond James Financial Inc. purchased a new stake in Shoals Technologies Group in the 2nd quarter worth approximately $123,000.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on SHLS shares. Jefferies Financial Group raised their target price on Shoals Technologies Group from $10.00 to $12.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. UBS Group lifted their target price on Shoals Technologies Group from $11.00 to $12.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Needham & Company LLC reissued a “buy” rating and issued a $12.00 target price on shares of Shoals Technologies Group in a report on Wednesday, May 6th. The Goldman Sachs Group lifted their price target on shares of Shoals Technologies Group from $11.00 to $13.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Finally, Guggenheim reissued a “buy” rating on shares of Shoals Technologies Group in a research note on Friday, May 22nd. Ten research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Shoals Technologies Group currently has a consensus rating of “Moderate Buy” and a consensus target price 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.