{"id":847029,"date":"2025-05-06T07:07:17","date_gmt":"2025-05-06T11:07:17","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-first-quarter-2025\/"},"modified":"2025-05-06T07:07:17","modified_gmt":"2025-05-06T11:07:17","slug":"shoals-technologies-group-inc-reports-financial-results-for-first-quarter-2025","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-first-quarter-2025\/","title":{"rendered":"Shoals Technologies Group, Inc. Reports Financial Results for First Quarter 2025"},"content":{"rendered":"
\n

\u2013\u00a0 Quarterly Revenue of $80.4 million\u00a0 \u2013<\/p>\n

\u2013\u00a0\u00a0Gross Margin of 35.0%\u00a0 \u2013<\/p>\n

\u2013\u00a0\u00a0Net Loss of $(0.3) million\u00a0 \u2013<\/p>\n

\u2013\u00a0\u00a0Adjusted EBITDA1<\/sup> of $12.8 million\u00a0 \u2013<\/p>\n

\u2013\u00a0\u00a0Backlog and Awarded Orders Increased 5% Year-Over-Year to $645.1 million\u00a0 \u2013<\/p>\n

\u2013\u00a0\u00a0Provides Second Quarter and Full Year 2025 Outlook\u00a0 \u2013<\/p>\n

PORTLAND, Tenn., May 06, 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 first quarter ended March\u00a031, 2025.<\/p>\n

\u201cWe began the year with a strong start, delivering revenue above our guided range. The investment that we have made in our commercial function is paying dividends as evidenced in both the growth and quality of our order book. I\u2019m proud of the robust backlog and awarded orders of $645 million, with approximately $500 million scheduled for the coming four quarters. The strategic initiatives that are driving increased market penetration and diversification are progressing very well, with commercial success in international, CC&I, BESS, and OEM markets,\u201d said Brandon Moss, CEO of Shoals.<\/p>\n

\u201cWhile volatility and uncertainty may dominate today\u2019s headlines, the markets that we operate within are showing continued strength. Our value proposition of delivering high-quality, innovative products combined with exceptional engineering and design support is resonating with new and existing customers. The underlying fundamentals of both our industry and business opportunities remain very positive. Projects are moving forward, and 2025 is shaping up to be a solid year,\u201d added Mr. Moss.<\/p>\n

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1<\/sup> Non-GAAP financial measures referenced in this release are used by management to assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measures.<\/sub><\/p>\n

\n
\n
First<\/strong>
\n Quarter 2025 Financial Results<\/strong>
\n
Revenue decreased 11.5%, to $80.4\u00a0million, compared to $90.8\u00a0million for the prior-year period, driven by strategic pricing actions, volume discounts, and customer and product mix.<\/p>\n

Gross profit was $28.1\u00a0million, compared to $36.5\u00a0million in the prior-year period. Gross profit as a percentage of revenue was 35.0% compared to 40.2% in the prior-year period. The decline from the prior-year period was driven by strategic pricing actions, volume discounts, customer and product mix, and reduced fixed cost absorption due to lower revenues.<\/p>\n

General and administrative expenses were $21.7\u00a0million, compared to $22.8\u00a0million during the same period in the prior year. The decrease in general and administrative expenses was the result of a $3.3 million decrease in general legal expenses for intellectual property and shareholder litigation matters, offset by a $1.7 million increase in legal expenses related to wire insulation shrinkback litigation.<\/p>\n

Income from operations was $4.3\u00a0million, compared to $11.6\u00a0million during the prior-year period.<\/p>\n

Net income (loss) was $(0.3)\u00a0million compared to $4.8\u00a0million during the prior-year period. Earnings (loss) per share was $(0.00) compared to $0.03 in the prior-year period.<\/p>\n

Adjusted EBITDA1<\/sup> decreased $7.7\u00a0million to $12.8\u00a0million compared to $20.5\u00a0million for the prior-year period.<\/p>\n

Adjusted net income1<\/sup> decreased $7.4 million to $5.2 million compared to $12.6 million during the prior-year period. Adjusted diluted earnings per share1<\/sup> were $0.03 compared to $0.07 in the prior-year period.<\/p>\n

\n Backlog and Awarded Orders<\/strong>
\n
The Company\u2019s backlog and awarded orders as of March\u00a031, 2025, were $645.1 million, representing a 4.9% increase compared to the prior-year period and a 1.6% sequential increase from December\u00a031, 2024. The increase in backlog and awarded orders as compared to the prior-year period reflects consistent demand for the Company\u2019s innovative products, with growth in international markets, which comprises more than 13.4% of backlog and awarded orders.\u00a0\u00a0<\/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 with a contract but for which a contract has not yet been signed.<\/p>\n

\n Second Quarter 2025 Outlook<\/strong>
\n
The Company is providing an outlook for the second quarter given the near-term uncertainty in the utility scale solar market, which has resulted in shifting order patterns. Based on current business conditions, business trends and other factors, for the quarter ending June 30, 2025, the Company expects:<\/p>\n