Shoals Technologies Group (SHLS) investor relations material

Executive summary

• Achieved record Q3 2025 revenue of $135.8 million, up 32.9% year-over-year, driven by strong demand, market share gains, and higher product volumes for utility-scale solar projects.

• Backlog and awarded orders reached a record $720.9 million, up 21% year-over-year, with $575 million scheduled for delivery in the next four quarters and international markets comprising over 11.5%.

• Strategic growth and diversification in international, CC&I, OEM, and BESS segments are meeting or exceeding expectations, with international pipeline exceeding 20 GW.

• Strong execution in core utility-scale solar market, with quote volume exceeding $900 million in Q3 and robust commercial strategy.

• Net income for Q3 2025 was $11.9 million, reversing a net loss of $0.3 million in the prior year.

Financial highlights

• Gross profit rose to $50.3 million (37% margin), highest since 2023, compared to $25.4 million (24.8%) last year, reflecting lower warranty expenses and favorable product mix.

• Adjusted EBITDA was $32.0 million (23.5% margin), up 30% year-over-year.

• Adjusted net income was $21.0 million, up from $13.9 million in the prior-year period; adjusted diluted EPS was $0.12, up 50% year-over-year.

• Free cash flow was $9.0 million, impacted by $11.9 million in remediation costs and elevated capex.

• Cash and equivalents at quarter end were $8.6 million, with $126.8 million in outstanding borrowings and $71.5 million available under the credit facility.

Outlook and guidance

• Q4 2025 revenue expected at $140–$150 million; adjusted EBITDA $35–$40 million.

• Full-year 2025 revenue guidance raised to $467–$477 million; adjusted EBITDA $105–$110 million.

• Operating cash flow for 2025 expected at $15–$25 million; capex $30–$40 million; interest expense $8–$12 million.

• Management expects continued growth in core and new markets, supported by a strong backlog and expansion into international and BESS markets.

• Ongoing macroeconomic and policy uncertainties, including tariffs and changes to U.S. solar tax incentives, may impact future demand and project timing.