Shoals Technologies Group (SHLS) investor relations material

Executive summary

• Q2 2026 revenue reached $163.4 million, up 47.4% year-over-year, driven by strong demand and market share gains, and within guidance range.

• Adjusted EBITDA for Q2 was $31.6 million, up 27.9% year-over-year, and adjusted gross profit margin was 30.6%.

• Backlog and awarded orders hit a record $801.4 million, up 19.4% year-over-year, with $700 million scheduled for delivery in the next four quarters.

• Net income for Q2 2026 was $12.1 million, down 12.4% from the prior year due to higher costs and litigation expenses.

• The company completed its move to a new facility, focusing on productivity improvements and expansion into high-growth markets.

Financial highlights

• Gross profit was $49.5 million, with gross margin declining to 30.3% from 37.2% year-over-year due to operational inefficiencies and product mix.

• Adjusted net income for Q2 2026 was $19.7 million, with adjusted diluted EPS of $0.12, both up from the prior-year period.

• Operating income for Q2 2026 was $18.7 million, up 17% year-over-year.

• Cash and cash equivalents at quarter-end were $15.7 million; net debt to adjusted EBITDA was 1.6x.

• Outstanding borrowings under the revolving credit facility increased to $196.8 million as of June 30, 2026.

Outlook and guidance

• Q3 2026 revenue guidance: $150–$170 million, 18% year-over-year growth at midpoint; adjusted EBITDA: $32–$37 million.

• Full-year 2026 revenue guidance reaffirmed at $600–$640 million, 30% growth at midpoint; adjusted EBITDA: $118–$132 million.

• Expected full-year cash flow from operations: $65–$85 million; capex: $20–$30 million; interest expense: $8–$12 million.

• Operating cash flow for 2026 expected to increase 340% year-over-year at midpoint; capex forecasted to decline 24% at midpoint.

• Management notes ongoing risks from trade policy, tariffs, supply chain volatility, inflation, and regulatory changes.