Shoals Technologies Group beats revenue estimates, stock rises 6.6%

Published 06/05/2025, 14:34
Shoals Technologies Group beats revenue estimates, stock rises 6.6%

Investing.com -- Shoals Technologies Group , Inc. (NASDAQ:SHLS), a provider of electrical balance of system solutions, reported first-quarter earnings that missed analyst expectations but beat on revenue, sending shares up 6.6% in after-hours trading.

The company reported breakeven earnings per share for Q1, missing the analyst estimate of $0.04. However, revenue came in at $80.63 million, surpassing the consensus estimate of $74.76 million. Despite beating revenue expectations, Shoals saw an 11.5% YoY decline in revenue from $90.8 million in the same quarter last year.

Shoals’ CEO Brandon Moss commented on the results, stating, "We began the year with a strong start, delivering revenue above our guided range. The investment that we have made in our commercial function is paying dividends as evidenced in both the growth and quality of our order book."

The company’s backlog and awarded orders increased 5% YoY to $645.1 million, with approximately $500 million scheduled for the coming four quarters. This growth in orders suggests continued demand for Shoals’ products despite current market volatility.

Gross margin for the quarter was 35.0%, down from 40.2% in the prior-year period, primarily due to strategic pricing actions, volume discounts, and customer and product mix.

Looking ahead, Shoals provided full-year 2025 guidance, projecting revenue between $410 million and $450 million, and adjusted EBITDA between $100 million and $115 million.

The stock’s 6.6% rise following the earnings release indicates investors are focusing on the revenue beat and strong order backlog, despite the earnings miss.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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