Shoals Technologies Group (SHLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $141 million, up 75% year-over-year, exceeding guidance and driven by strong demand and project volume.

• Record backlog and awarded orders (BLAO) at $758 million, up 18% year-over-year, with $628 million scheduled for shipment in the next four quarters.

• Adjusted EBITDA was $21.1 million, up 56% year-over-year, at the high end of guidance.

• Company raised both revenue and adjusted EBITDA guidance for the year, citing robust demand and market share gains.

• Net loss was $0.3 million, impacted by litigation settlement expenses.

Financial highlights

• Revenue: $140.6 million, up 75% year-over-year, driven by U.S. utility scale solar demand.

• Gross profit: $41.0 million (up 46%), but gross margin declined to 29.2% from 35.0% due to higher tariffs and costs.

• Adjusted EBITDA: $21.1 million (56% growth), margin 15% (down from 16.8% last year).

• Adjusted net income: $12.1 million, up 112% year-over-year; adjusted diluted EPS: $0.07, up from $0.03.

• Cash and equivalents: $1.9 million; net debt: $179.9 million; net debt/adjusted EBITDA: 1.6x.

Outlook and guidance

• Q2 2026 revenue expected at $150–$170 million (44% year-over-year growth at midpoint); adjusted EBITDA at $28–$33 million.

• Full year 2026 revenue guidance raised to $600–$640 million (30% growth at midpoint); adjusted EBITDA to $118–$132 million.

• Full year cash flow from operations expected at $65–$85 million; capex $20–$30 million; interest expense $8–$12 million.

• Margins expected to improve sequentially as facility move completes and efficiencies are realized.

• Management notes ongoing uncertainty from trade policy, tariffs, and energy-related incentives.