What factors drove the changes in Shoals Technologies's revenue and profit?

Did Shoals Technologies beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Shoals Technologies next quarter?

What were the key takeaways from Shoals Technologies's earnings call?

What does Shoals Technologies do and what are its main business segments?

What were the key takeaways from Shoals Technologies’s earnings call?

What is Shoals Technologies's gross profit margin?

What is the revenue and EPS growth rate for Shoals Technologies year over year?

- **Revenue Record**: Q3 $135.8M (+32.9% YoY), full year guidance raised to $467-477M (17-20% growth).
- **Backlog Boom**: BLAO hits $720.9M (21% YoY), with $575M scheduled for next 4 quarters.
- **BESS Breakthrough**: $18M BESS backlog from 2 MSAs, 15% of new facility dedicated to BESS.
- **Margin Resilience**: 37% gross margin despite tariff headwinds, 30% EBITDA growth.
- **International Expansion**: 13% of BLAO in international markets, Australia pipeline exceeds 20GW.
- **Factory Efficiency**: Consolidation underway, $9M free cash flow despite $11.9M remediation costs.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 revenue of $135.8 million, up 32.9% YoY and 22.5% sequentially, driven by domestic project volume and strategic growth channels (international, CC&amp;I, OEM). 
- **Backlog Expansion**: BLAO (backlog and awarded orders) reached $720.9 million (21% YoY), with $575 million scheduled for delivery over the next 4 quarters.
- **Strategic Wins**: 
  - $18 million in BESS backlog from 2 new MSAs for grid firming and data centers.
  - $6 million in international revenue from 3 projects in LatAm and Australia.
  - 36% YoY growth in CC&amp;I business.
- **Operational Milestones**: 
  - New Portland, TN facility nearing full consolidation.
  - 15% of floor space dedicated to BESS production.
  - Record quote volume of $900 million for 2026-2027 projects.

**【CFO Financial Commentary】**
- **Topline Performance**: 
  - Q3 GAAP revenue $135.8M, Non-GAAP gross profit $50.3M (37% margin).
  - Full year 2025 revenue guidance raised to $467-477M (17-20% YoY growth).
- **Cost Management**: 
  - Adjusted EBITDA $32M (23.5% of revenue), up 30% YoY.
  - Free cash flow $9M, despite $11.9M in warranty remediation.
  - Legal expenses $5.7M (including $6.8M for shrinkback litigation).
- **Balance Sheet**: 
  - Cash $8.6M, net debt $118.2M (1.2x net debt/EBITDA).
  - Capital expenditures $30-40M for 2025.

**【Q&A Highlights】**
- **BESS Growth**: 
  - $18M Q3 BESS backlog to begin monetizing in Q2 2026.
  - 15%+ of new facility dedicated to BESS production.
  - Targeting data centers and grid firming use cases with 2 MSAs signed.
- **Margin Dynamics**: 
  - 37% gross margin (mid-30s target range) impacted by long-tail BLA mix and tariffs.
  - 100-200bps margin improvement delayed due to Section 232 aluminum tariffs.
- **International Expansion**: 
  - 13% of BLAO tied to international projects (LatAm, Australia).
  - Australia pipeline exceeds 20GW with government mandate for 40GW new solar by 2030.
- **Factory Consolidation**: 
  - Full consolidation expected by mid-2026.
  - Q3 spent $11.9M on warranty remediation, $4.2M remaining liability.


Shoals Technologies Group, Inc. (SHLS) Q3 2025 Earnings Call Transcript

System Solutions

Solar Components

SHLS

SHLS fundamentals

You can ask Aime