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Sep 30
Shoals Q3 2025 Earnings Report
Shoals Technologies Group, Inc. reported strong financial results for the third quarter of 2025, with record revenue and significant increases in gross profit and net income.
Key Takeaways
Shoals Technologies Group delivered a robust third quarter in 2025, exceeding revenue expectations with a 32.9% year-over-year increase to $135.8 million. The company achieved a gross margin of 37.0% and a net income of $11.9 million, a substantial improvement from a net loss in the prior-year period. Record backlog and awarded orders of $720.9 million indicate strong future demand.
Record quarterly revenue of $135.8 million, marking a 32.9% increase year-over-year, driven by strong demand and market share capture.
Gross profit significantly increased to $50.3 million, with gross margin improving to 37.0% from 24.8% in the prior-year period.
Net income reached $11.9 million, a substantial turnaround from a net loss of $(0.3) million in Q3 2024.
Backlog and awarded orders hit a record $720.9 million, up 21.0% from the prior-year period, with international markets contributing over 11.5%.
Shoals
Shoals
Forward Guidance
For the fourth quarter of 2025, Shoals expects revenue between $140.0 million and $150.0 million and Adjusted EBITDA between $35.0 million and $40.0 million. For the full year 2025, revenue is projected to be in the range of $467.0 million to $477.0 million, with Adjusted EBITDA between $105.0 million and $110.0 million.
Positive Outlook
- Strong revenue outlook for Q4 2025, projecting growth to $140.0 million to $150.0 million.
- Anticipated increase in Adjusted EBITDA for Q4 2025, ranging from $35.0 million to $40.0 million.
- Positive full-year 2025 revenue guidance of $467.0 million to $477.0 million.
- Expected full-year 2025 Adjusted EBITDA of $105.0 million to $110.0 million.
- Projected positive cash flow from operations for full-year 2025, in the range of $15.0 million to $25.0 million.
Challenges Ahead
- Capital expenditures for full-year 2025 are expected to be significant, ranging from $30.0 million to $40.0 million.
- Interest expense for full-year 2025 is projected to be between $8.0 million and $12.0 million.
- The inability to provide a quantitative reconciliation for forward-looking non-GAAP measures due to inherent difficulties in predicting certain GAAP components.
- Public policy has brought some complexity and volatility to the financial markets this year.
- The company faces risks related to ongoing litigation and potential future warranty expenses.