{"id":817340,"date":"2025-02-25T07:23:46","date_gmt":"2025-02-25T12:23:46","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-fourth-quarter-2024\/"},"modified":"2025-02-25T07:23:46","modified_gmt":"2025-02-25T12:23:46","slug":"shoals-technologies-group-inc-reports-financial-results-for-fourth-quarter-2024","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-fourth-quarter-2024\/","title":{"rendered":"Shoals Technologies Group, Inc. Reports Financial Results for Fourth Quarter 2024"},"content":{"rendered":"
\n

\u2013 Quarterly Revenue of $107.0\u00a0million \u2013<\/p>\n

\u2013\u00a0Adjusted Gross Profit Percentage1<\/sup>\u00a0of 37.6% \u2013<\/p>\n

\u2013\u00a0Quarterly Net Income of $7.8\u00a0million \u2013<\/p>\n

\u2013\u00a0Adjusted EBITDA1<\/sup> of $26.4\u00a0million \u2013<\/p>\n

\u2013\u00a0Ending Backlog and Awarded Orders of $634.7\u00a0million \u2013<\/p>\n

\u2013\u00a0Provides First Quarter and Full Year 2025 Outlook \u2013<\/p>\n

PORTLAND, Tenn., Feb. 25, 2025 (GLOBE NEWSWIRE) — Shoals Technologies Group, Inc. (\u201cShoals\u201d or the \u201cCompany\u201d) (Nasdaq: SHLS), a leading provider of electrical balance of system (\u201cEBOS\u201d) solutions and components, including battery energy storage solutions (\u201cBESS\u201d), and Original Equipment Manufacturer (\u201cOEM\u201d) components for the global energy transition market, today announced results for its fourth quarter ended December\u00a031, 2024.<\/p>\n

\u201c2024 proved to be an unpredictable year for the US utility scale solar industry. A rapidly shifting political landscape, supply chain and regulatory bottlenecks, and persistently high interest rates, drove unprecedented disruption within our markets. However, 2024 was also a year of exciting operational and commercial process improvements that are beginning to yield results,\u201d said Brandon Moss, CEO of Shoals.<\/p>\n

Mr. Moss added, \u201cWe executed well in the period, delivering revenue of $107 million, and finished the year at the high end of our previously guided range. Bookings continued at a healthy pace in the period, resulting in a book to bill of 1.4. While adjusted gross profit percentage continues to see pressure in the short term, we believe we have put in place effective productivity measures to mitigate this trend. And we\u2019re proud of recent international project wins and early customer traction in new markets including CC&I and BESS.\u201d<\/p>\n

\u201cWhile we\u2019re appropriately cautious coming out of 2024, I\u2019m encouraged by the customer momentum as we enter the new year with approximately $635 million of Backlog and Awarded Orders, including $440 million with 2025 delivery dates. I\u2019m also pleased with the quality of that order book, as our goal of getting closer to our customers is also driving greater visibility. We work hard to accommodate our customer\u2019s timelines, and as a result, expect more pronounced seasonality this year, with a softer first half, and strength in the second half. The quality of our business positions us well to drive value for Shoals customers and shareholders in 2025, independent of the macro environment. Given the level of uncertainty around multiple variables impacting our customers, including tariffs, interest rates, and subsidies for the clean energy space, we believe it\u2019s prudent to remain cautious until visibility improves on a number of these items\u201d concluded Mr. Moss.<\/p>\n

\n Fourth<\/strong>
\n Quarter 2024 Financial Results<\/strong>
\n
Revenue decreased 18%, to $107.0\u00a0million, compared to $130.4\u00a0million for the prior-year fourth quarter, driven by lower sales volumes resulting from lower demand as a result of solar project delays that have pushed projects out from 2024, and to a lesser extent, competitive dynamics, volume discounts, and customer mix in our key markets.<\/p>\n

Gross profit decreased to $40.2\u00a0million, compared to $55.4\u00a0million in the prior-year fourth quarter. Gross profit as a percentage of revenue was 37.6% compared to 42.5% in the prior-year period. The decline from the prior-year period was due to the competitive environment, higher material costs, slightly offset by improved leverage on labor costs.<\/p>\n

General and administrative expenses were $21.5\u00a0million, compared to $21.5\u00a0million during the same period in the prior year. Within the balance, there was a decrease in professional services, professional recruiting, and contract services offset by increased payroll and employee expenses.<\/p>\n

Income from operations was $16.5\u00a0million, compared to $31.9\u00a0million during the prior-year period.<\/p>\n

Net income and net income attributable to Shoals Technologies Group, Inc. were $7.8\u00a0million compared to net income and net income attributable to Shoals Technologies Group, Inc of $16.6\u00a0million during the prior-year period.<\/p>\n

Basic and diluted net income per share was $0.05 compared to basic and diluted net income per share of $0.10 in the prior-year period.<\/p>\n

Adjusted EBITDA1<\/sup> decreased to $26.4\u00a0million compared to $39.1\u00a0million for the prior-year period.<\/p>\n

Adjusted gross profit1<\/sup> for fourth quarter of 2024 was $40.2\u00a0million, reflecting a 37.6% adjusted gross profit percentage1<\/sup>, compared to $55.4\u00a0million and 42.5% in the prior year. There were no adjustments made to gross profit in the fourth quarters of 2024 or 2023.<\/p>\n

Adjusted net income1<\/sup> was $14.1\u00a0million compared to $21.3\u00a0million during the same period in the prior year. Adjusted diluted earnings per share1<\/sup> was $0.08 compared to $0.12 in the prior-year period.<\/p>\n

\n Full Year 2024 Financial Results<\/strong>
\n
Revenue decreased 18%, to $399.2\u00a0million, compared to $488.9\u00a0million for the prior-year, driven by lower sales volumes resulting from lower demand as a result of solar project delays that have pushed projects out from 2024, and to a lesser extent, competitive dynamics, volume discounts, and customer mix in our key markets.<\/p>\n

Gross profit was $142.0\u00a0million, compared to $168.3\u00a0million in the prior-year. Gross profit as a percentage of revenue increased to 35.6% from 34.4% in the prior-year, due to a reduction in wire insulation shrinkback expenses recorded in the current year versus the prior year, slightly offset by an increase in raw materials and labor input costs.<\/p>\n

General and administrative expenses were $82.3\u00a0million, compared to $80.7\u00a0million during the prior year. The increase in general and administrative expenses was the result of an increase in legal and professional expenses of $7.0 million associated with litigation for wire insulation shrinkback, intellectual property, and shareholder matters, $4.2 million in operating salaries due to an increase in general and administrative headcount, as well as an increase of $0.8 million in sales and marketing expenses. This increase was offset by decreases of $5.9 million associated with stock compensation and a decrease in $4.4 million in bonus expense due to decreased estimated payouts under our annual incentive plan in comparison to the prior year.<\/p>\n

Income from operations was $51.2\u00a0million, compared to $79.0\u00a0million during the prior year.<\/p>\n

Net income was $24.1\u00a0million compared to net income of $42.7\u00a0million during the prior year.<\/p>\n

Net income attributable to Shoals Technologies Group, Inc. was $24.1\u00a0million compared to $40.0\u00a0million during the prior year. In the prior year, there was $2.7\u00a0million of net income attributable to non-controlling interests. Following the first quarter of 2023, no further non-controlling interest remained.<\/p>\n

Basic and diluted net income per share was $0.14 compared to basic and diluted net income per share of $0.24 in the prior-year period.<\/p>\n

Adjusted EBITDA1<\/sup> was $99.1\u00a0million compared to $173.4\u00a0million for the prior-year.<\/p>\n

Adjusted gross profit1<\/sup> for full year 2024 was $155.8\u00a0million, reflecting a 39.0% adjusted gross profit percentage1<\/sup>, compared to $230.0\u00a0million and 47.0% in the prior year.<\/p>\n

Adjusted net income1<\/sup> decreased 47% to $58.5\u00a0million compared to $111.3\u00a0million during the prior year. Adjusted diluted earnings per share1<\/sup> was $0.35 compared to $0.65 in the prior-year.<\/p>\n

\n Backlog and Awarded Orders<\/strong>
\n
The Company\u2019s backlog and awarded orders as of December\u00a031, 2024 were $634.7\u00a0million, which is approximately flat compared to the same time last year and 6.5% higher compared to September 30, 2024. The increase in backlog and awarded orders reflects continued demand for the Company\u2019s solar products, with growth in new domestic and international markets.<\/p>\n

Backlog represents signed purchase orders or contractual minimum purchase commitments with take-or-pay provisions and awarded orders are orders we are in the process of documenting a contract but for which a contract has not yet been signed.<\/p>\n

\n First Quarter 2025 Outlook<\/strong>
\n
The Company is providing an outlook for the first quarter given the headwinds in the utility scale solar market, which have resulted in certain customers changing order patterns. It is not the Company\u2019s intention to provide quarterly guidance on an ongoing basis. Based on current business conditions, business trends and other factors, for the quarter ending March 31, 2025, the Company expects:<\/p>\n