Loading...
•
Jun 30
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.
Shoals
Shoals
Shoals Revenue by Geographic Location
Revenue by Geographic Location
International Markets Revenue
CapyFin.com 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.
- The company acknowledges a rapidly shifting regulatory environment as a potential distraction for the sector.
- Ongoing legal expenses related to wire insulation shrinkback, intellectual property, and shareholder litigation matters continue to impact general and administrative expenses.
- The inability to provide a quantitative reconciliation for forward-looking non-GAAP measures like Adjusted EBITDA due to inherent difficulties in predicting certain components.