Shoals Technologies Group (NASDAQ:SHLS) Issues Earnings Results, Misses Estimates By $0.04 EPS

Shoals Technologies Group (NASDAQ:SHLS) issued its quarterly earnings data on Tuesday. The company reported $0.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.04), FiscalAI reports. Shoals Technologies Group had a return on equity of 8.50% and a net margin of 7.66%.The business had revenue of $148.33 million during the quarter, compared to the consensus estimate of $144.52 million. During the same period last year, the company earned $0.08 earnings per share. The business’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 Stock Down 30.9%

SHLS stock opened at $6.84 on Wednesday. The firm has a market cap of $1.14 billion, a PE ratio of 34.20, a P/E/G ratio of 0.84 and a beta of 1.70. Shoals Technologies Group has a 12 month low of $2.71 and a 12 month high of $11.36. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.19 and a quick ratio of 1.53. The firm has a 50 day simple moving average of $9.41 and a 200 day simple moving average of $8.52.

Shoals Technologies Group News Roundup

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

• Positive Sentiment: Record revenue and backlog: Q4 revenue was $148.3M (+39% YoY) and backlog & awarded orders totaled $747.6M, supporting multi-quarter revenue visibility. Shoals Q4 Results (GlobeNewswire)
• Positive Sentiment: 2026 growth outlook: Management guided FY2026 revenue $560M–$600M and adjusted EBITDA $110M–$130M, and Q1 revenue $125M–$135M (above consensus), giving investors a clear growth target for the year. Shoals targets $560M–$600M 2026 revenue (MSN)
• Positive Sentiment: New commercial win / product expansion: Shoals and ON.energy will deploy critical‑power systems for a major AI data‑center operator — expands TAM exposure beyond utility solar into data-center/BESS use cases. Shoals & ON.energy deployment (Yahoo)
• Neutral Sentiment: Company corrected a mistaken earlier press release line that implied changes to order patterns and suspension of guidance — the correction restores reporting continuity but highlights execution/communications risk. Corrected press release (GlobeNewswire)
• Neutral Sentiment: Adjusted EBITDA and adjusted metrics improved year-over-year (Q4 adjusted EBITDA $30.3M; FY2025 adjusted EBITDA ~$99.5M), but non‑GAAP adjustments matter for comparability. Quiver summary
• Negative Sentiment: Earnings miss on EPS: Reported EPS $0.10 vs. consensus ~$0.14, which, despite strong revenue, disappointed expectations and pressured shares. Earnings miss (Zacks)
• Negative Sentiment: Margin compression and rising costs: Gross margin fell to 31.6% (from 37.6%) due to higher material costs, duties/tariffs and litigation-related expenses; G&A rose materially for legal/professional fees. Tariff and margin analysis (Seeking Alpha)
• Negative Sentiment: Q1 EBITDA outlook and slowdown concerns: Several outlets flagged Q1 adjusted EBITDA guidance below expectations, which has raised near‑term growth/profitability concerns and weighed on investor sentiment. Q1 outlook concerns (Seeking Alpha)

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SHLS. Wells Fargo & Company lifted their price objective on shares of Shoals Technologies Group from $6.00 to $10.00 and gave the company an “equal weight” rating in a research note on Thursday, November 6th. Roth Mkm restated a “buy” rating on shares of Shoals Technologies Group in a research report on Tuesday. Zacks Research lowered shares of Shoals Technologies Group from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. TD Cowen reiterated a “buy” rating on shares of Shoals Technologies Group in a research note on Tuesday. Finally, Guggenheim upped their target price on Shoals Technologies Group from $8.00 to $12.00 and gave the stock a “buy” rating in a research report on Tuesday, November 11th. Eleven research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $9.40.

Insider Activity

In other Shoals Technologies Group news, CFO Dominic Bardos sold 4,170 shares of the company’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $7.83, for a total value of $32,651.10. Following the transaction, the chief financial officer owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. This represents a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.52% of the company’s stock.

Institutional Investors Weigh In On Shoals Technologies Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. boosted its position in shares of Shoals Technologies Group by 5.8% in the 4th quarter. Invesco Ltd. now owns 5,877,652 shares of the company’s stock valued at $49,960,000 after purchasing an additional 323,831 shares during the period. Mercer Global Advisors Inc. ADV lifted its stake in Shoals Technologies Group by 20.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,670 shares of the company’s stock valued at $116,000 after buying an additional 2,304 shares in the last quarter. nVerses Capital LLC acquired a new position in shares of Shoals Technologies Group in the fourth quarter worth about $127,000. Polymer Capital Management US LLC purchased a new position in shares of Shoals Technologies Group in the fourth quarter worth approximately $201,000. Finally, Interval Partners LP acquired a new stake in shares of Shoals Technologies Group during the fourth quarter valued at approximately $1,357,000.

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.