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Jun 30, 2025
Shoals Q2 2025 Earnings Report
Shoals Technologies Group, Inc. reported financial results for the second quarter ended June 30, 2025, with revenue increasing by 11.7% year-over-year and record backlog and awarded orders.
Key Takeaways
Shoals Technologies Group delivered strong second-quarter results, exceeding revenue guidance and achieving a record backlog. The company's focus on core domestic utility-scale markets and growth initiatives contributed to an 11.7% increase in revenue year-over-year. Despite a decline in gross margin due to strategic pricing and product mix, net income and EPS saw increases. The company also raised its full-year 2025 revenue outlook, reflecting confidence in the demand environment.
Revenue for Q2 2025 increased by 11.7% year-over-year to $110.8 million, surpassing the high end of the company's guidance.
Backlog and awarded orders reached a record level of $671.3 million as of June 30, 2025, representing a 4.4% increase from the prior year.
Gross margin for the quarter was 37.2%, a decrease from 40.3% in the prior-year period, attributed to strategic pricing actions, volume discounts, and customer and product mix.
Net income rose to $13.9 million from $11.8 million in the prior-year period, and diluted EPS increased to $0.08 from $0.07.
Revenue by Geographic Location
Forward Guidance
Shoals Technologies Group has provided an optimistic outlook for the third quarter and increased its full-year 2025 revenue guidance, reflecting confidence in market demand and business conditions.
Positive Outlook
- Third-quarter 2025 revenue is expected to be in the range of $125.0 million to $135.0 million, indicating continued growth.
- Full-year 2025 revenue guidance has been increased to a range of $450.0 million to $470.0 million.
- Adjusted EBITDA for Q3 2025 is projected between $30.0 million and $35.0 million, showing anticipated profitability.
- Full-year 2025 Adjusted EBITDA is expected to be in the range of $100.0 million to $115.0 million.
- Cash flow from operations for the full year 2025 is anticipated to be between $15.0 million and $25.0 million.
Challenges Ahead
- Capital expenditures for the full year 2025 are projected to be between $30.0 million and $40.0 million, indicating significant investment needs.
- Interest expense for the full year 2025 is expected to be in the range of $8.0 million to $12.0 million, impacting net income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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