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Sep 30, 2023
Shoals Q3 2023 Earnings Report
Shoals reported record quarterly revenue with significant impact on gross margin due to wire insulation shrinkback expenses.
Key Takeaways
Shoals Technologies Group, Inc. reported a 48% year-over-year increase in revenue, reaching a record $134.2 million for the third quarter of 2023. However, gross margin was significantly impacted by $50.2 million in wire insulation shrinkback expenses, resulting in a net loss of $(9.8) million. Adjusted EBITDA increased by 81% year-over-year to $48.0 million, and backlog and awarded orders grew by 34% year-over-year to $633.3 million.
Revenue grew 48% year-over-year to a record $134.2 million.
Gross margin was 10.5%, impacted by $50.2 million in wire insulation shrinkback expenses.
Net loss was $(9.8) million.
Backlog and awarded orders increased 34% year-over-year to $633.3 million.
Forward Guidance
The Company is narrowing its outlook for revenue and raising its outlook for Adjusted EBITDA and Adjusted net income. The outlook for interest expense and capital expenditures remains unchanged.
Positive Outlook
- Revenue to be in the range of $485 million to $495 million
- Adjusted EBITDA to be in the range of $165 million to $175 million
- Adjusted net income to be in the range of $110 million to $120 million
Challenges Ahead
- Interest expense to be in the range of $22 million to $26 million
- Capital expenditures to be in the range of $8 million to $12 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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