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Shoals Q1 2025 Earnings Report
Shoals Technologies Group, Inc. Reports Financial Results for First Quarter 2025
Key Takeaways
Shoals Technologies Group, Inc. reported a strong start to 2025, with revenue exceeding guided ranges and a robust increase in backlog and awarded orders, driven by strategic initiatives and growth in international, CC&I, BESS, and OEM markets.
Revenue for Q1 2025 was $80.4 million, a decrease of 11.5% compared to the prior-year period.
Net loss for Q1 2025 was $(0.3) million, compared to a net income of $4.8 million in the prior-year period.
Adjusted EBITDA decreased by $7.7 million to $12.8 million in Q1 2025.
Backlog and awarded orders increased by 4.9% year-over-year to $645.1 million as of March 31, 2025.
Shoals
Shoals
Forward Guidance
For the second quarter ending June 30, 2025, Shoals expects revenue between $100 million and $110 million, and Adjusted EBITDA between $20 million and $25 million. For the full year 2025, the company anticipates revenue between $410 million and $450 million, Adjusted EBITDA between $100 million and $115 million, cash flow from operations between $30 million and $45 million, capital expenditures between $25 million and $35 million, and interest expense between $8 million and $12 million.
Positive Outlook
- Expected revenue for Q2 2025 is between $100 million and $110 million.
- Expected Adjusted EBITDA for Q2 2025 is between $20 million and $25 million.
- Full year 2025 revenue guidance is strong, ranging from $410 million to $450 million.
- Full year 2025 Adjusted EBITDA is projected between $100 million and $115 million.
- Positive cash flow from operations expected for full year 2025, ranging from $30 million to $45 million.
Challenges Ahead
- Near-term uncertainty in the utility scale solar market may lead to shifting order patterns.
- The company did not provide a quantitative reconciliation for Adjusted EBITDA guidance due to inherent difficulties in predicting certain GAAP components.
- Non-cash share-based compensation and amortization of intangible assets may impact GAAP measures.
- The company may exclude other similar items from non-GAAP measures in the future.
- Interest expense for full year 2025 is projected to be between $8 million and $12 million.