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Dec 31, 2025
Shoals Q4 2025 Earnings Report
Shoals Q4 2025 Earnings Report
Key Takeaways
Shoals reported record quarterly revenue of $148.3 million, a 39% increase year-over-year, alongside record backlog and awarded orders. Despite strong top-line growth, gross margins were pressured by increased material costs and tariffs, while the company provided a cautious outlook for Q1 2026 due to utility-scale solar market headwinds.
Achieved record quarterly revenue of $148.3 million, up 39% compared to the prior-year period.
Order backlog and awarded orders reached a record $747.6 million, an 18% increase from year-end 2024.
Gross margin declined to 31.6% from 37.6% due to higher material costs, $3.3 million in tariffs, and new facility costs.
Management provided 2026 full-year revenue guidance of $560 million to $600 million, indicating continued growth expectations.
BESS (Battery Energy Storage Solutions) offering saw strong traction with over $67 million in BLAO attributed to the segment.
Forward Guidance
Shoals expects 2026 to be a year of growth despite near-term headwinds in the utility-scale solar market affecting order patterns in Q1.
Positive Outlook
- Full year 2026 revenue expected between $560 million and $600 million.
- Full year Adjusted EBITDA projected between $110 million and $130 million.
- Forecasted cash flow from operations of $65 million to $85 million.
- Strong demand for BESS products with significant BLAO contribution.
- Diversification into new market segments like data centers and battery storage.
Challenges Ahead
- Q1 2026 revenue guidance of $125M-$135M reflects temporary market headwinds.
- Changing customer order patterns affecting short-term visibility.
- Expected interest expense between $8 million and $12 million for the full year.
- Planned capital expenditures of $20 million to $30 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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