Shoals Technologies Group (SHLS) Barclays 39th Annual CEO Energy-Power Conference 2025 summary

Demand environment and market trends

• Demand for utility-scale solar remains robust and consistent, with strong order books extending into 2026.

• Construction calendars for EPC customers are full, with labor being the main bottleneck for accelerated deployment.

• The elimination of the 5% rule in the Treasury guide has not significantly altered near-term demand.

Strategic growth pillars and business diversification

• Four growth pillars: OEM business, commercial/industrial segment, international expansion, and battery energy storage.

• OEM business is growing rapidly due to module manufacturers reshoring capacity.

• Commercial/industrial segment targets smaller projects, leveraging existing engineering and production capabilities.

• International strategy now focuses on select geographies, notably Australia and South America.

• Battery energy storage segment is expected to transform the company, with early revenue and backlog from diverse customers.

Battery energy storage and data center opportunities

• Early-stage battery energy storage business is attracting hyperscalers, IPPs, and DG EPCs, with revenue already being generated.

• Sales cycles for large IPPs are longer, involving joint engineering and trial units before full agreements.

• Data center energy needs are driving product innovation, with products designed for on-site deployment.

• Competitive advantage lies in customization, flexibility, and speed, fitting a niche between large conglomerates and small firms.