Core Viewpoint - Shares of Shoals Technologies Group (SHLS) have seen a 2.7% increase over the past four weeks, closing at $5.76, with a potential upside indicated by Wall Street analysts' mean price target of $7.25, suggesting a 25.9% increase from the current price [1] Price Targets and Analyst Estimates - The mean estimate consists of 18 short-term price targets with a standard deviation of $1.63, indicating variability among analysts; the lowest estimate is $4.00 (30.6% decline), while the highest is $11.00 (91% increase) [2] - Analysts' price targets can often mislead investors, as empirical research shows that they rarely indicate the actual price direction of a stock [7][10] - A low standard deviation in price targets suggests a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts are optimistic about SHLS's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with near-term stock price movements [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 10.7%, with five estimates moving higher and no negative revisions [12] - SHLS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating potential upside in the near term [13]

Core Insights - Shoals Technologies Group, Inc. has appointed Aaron Zadeh as Country Manager for the Pacific region, focusing on Australia, New Zealand, and the Pacific islands, to enhance its commitment to clean energy solutions in a promising solar market [1][4] - Aaron Zadeh brings over two decades of experience in the solar and energy storage sectors, having held senior roles at leading companies and contributing to significant renewable energy projects globally [2][3] - The appointment is seen as a strategic move to leverage Australia's transformative energy journey and to support the country's renewable energy targets and demand for advanced solar infrastructure [4] Company Overview - Shoals Technologies Group is a leader in electrical balance of systems (EBOS) solutions for the energy transition market, recognized for its innovative technologies that enhance installation efficiency, safety, and system performance [5]

Core Viewpoint - Shoals Technologies Group (SHLS) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise their earnings estimates [1][3] Earnings Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2] - For the current quarter, Shoals Technologies is projected to earn $0.12 per share, indicating a year-over-year increase of +50.0%. Over the last 30 days, two estimates have been revised upward, leading to a 13.9% increase in the Zacks Consensus Estimate [6] - For the full year, the expected earnings per share is $0.38, representing a year-over-year change of +8.6%. In the past month, five estimates have been revised upward with no negative revisions, contributing to a positive consensus outlook [7] Zacks Rank and Performance - Shoals Technologies currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock performance [8] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500, suggesting a favorable investment environment for Shoals Technologies [8] Recent Stock Performance - Over the past four weeks, Shoals Technologies shares have increased by 7.1%, indicating investor confidence in the company's earnings growth prospects [9]

Shoals Technologies Group (SHLS) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SHLS broke through the 50-day moving average, which suggests a short-term bullish trend. The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be mor ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Shoals Technologies Group (SHLS) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][4][7]. Company Summary - Shoals Technologies Group (SHLS) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 10.76, significantly lower than the industry average of 14.45, suggesting it may be undervalued [4]. - SHLS has a PEG ratio of 0.45, which is also lower than the industry average of 0.65, indicating strong earnings growth potential relative to its price [5]. - The P/B ratio for SHLS is 1.33, compared to the industry average of 2.04, further supporting the notion that the stock is undervalued [6]. - Over the past year, SHLS's Forward P/E has fluctuated between 7.04 and 17.31, with a median of 11.36, while its PEG ratio has ranged from 0.29 to 0.72, with a median of 0.47 [4][5]. Industry Summary - The industry average P/E ratio stands at 14.45, while the average PEG ratio is 0.65, indicating that SHLS is positioned favorably within its sector [4][5]. - The average P/B ratio for the industry is 2.04, which highlights SHLS's competitive valuation metrics [6].

Core Insights - Shoals Technologies Group, Inc. has announced the groundbreaking of the Maryvale Solar and Energy Storage Project, marking a significant milestone in renewable energy infrastructure in Australia [1][4] - The project aims to deliver approximately 243 MW of solar generation capacity and 172 MW of battery storage, contributing to Australia's ambitious target of generating 82% of its electricity from renewable sources by 2030 [2][4] - The collaboration with PCL Construction and Gentari highlights the integration of advanced electrical balance-of-system solutions to enhance the efficiency and reliability of renewable energy delivery [3][4] Company Overview - Shoals Technologies Group is recognized as a leader in electrical balance of systems (EBOS) solutions for the energy transition market, focusing on innovative technologies that improve installation efficiency and system performance [5] - The company has been operational since 1996 and has established itself as a key player in the renewable energy industry [5] Project Details - The Maryvale project is one of Australia's largest DC-coupled solar and battery energy storage systems, designed to enhance grid reliability and enable long-duration clean energy delivery [2][4] - Construction has commenced, with commercial operations expected to begin in early 2027, further supporting Australia's renewable energy targets [4]

Shoals Technologies Group (SHLS -13.38%), a leading provider of electrical balance of system (EBOS) solutions for solar and energy storage projects, posted its second quarter 2025 results on August 5, 2025. The standout news: Revenue (GAAP) grew 11.7%, reaching $110.8 million—well ahead of the $104.7 million consensus estimate. Adjusted earnings per share landed at $0.10, topping the expected $0.08. However, gross margin (GAAP) fell to 37.2%, a decline from the prior year. Management described the quarter a ...

Shoals Technologies Group (SHLS) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.00%. A quarter ago, it was expected that this solar energy equipment supplier would post earnings of $0.04 per share when it actually produced earnings of $0.03, delivering a surprise of -25%. Over the ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $110.8 million, representing an 11.7% increase year-over-year and a 37.9% sequential increase [6][27] - Adjusted gross profit was $41.2 million, with a gross profit margin of 37.2%, down from 40.3% in the prior year [28] - Adjusted EBITDA was $24.5 million, or 22.1% of revenue, compared to $27.7 million and 27.9% in the prior year [11][31] - Net income increased to $13.9 million from $11.8 million in the prior year, aided by a $3.1 million gain on the sale of a facility [30] Business Line Data and Key Metrics Changes - Strong bookings of approximately $137.1 million led to a record backlog of $671.3 million, with a book-to-bill ratio of 1.2 [6][36] - The Community Commercial and Industrial (CC and I) segment is expected to generate over $10 million in revenue this year, with June being the highest month of bookings since tracking began [20] - The OEM business is tracking ahead of expectations, driven by strong demand from a single customer [21] Market Data and Key Metrics Changes - The U.S. utility-scale solar market saw a 20% increase in construction year-over-year in the first half of 2025 [16] - The demand for data centers and AI applications is driving significant growth, with data center power demand expected to double by 2030 [24][18] Company Strategy and Development Direction - The company is focused on expanding its product offerings and enhancing operational efficiencies through automation and lean manufacturing principles [10][15] - Strategic growth initiatives include international markets, CC and I, OEM, and Battery Energy Storage Solutions (BESS) [19][22] - The company aims to leverage its domestic manufacturing advantage to capture market share and address labor cost challenges [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment despite regulatory uncertainties, noting that customers are pushing projects forward [7][12] - The company anticipates a strong second half of 2025, with revenue guidance for Q3 in the range of $125 million to $135 million, representing 28% year-over-year growth at the midpoint [36][37] - Management highlighted the importance of maintaining strong relationships with EPCs and developers to navigate the evolving market landscape [11][14] Other Important Information - The company is nearing completion of remediation work related to defective wire, with positive feedback from customers [11] - Legal expenses remain elevated due to ongoing litigation, impacting operating profit margins [30][63] - The company has a high-quality balance sheet, ending the quarter with cash and equivalents of $4.7 million and net debt of $127.1 million [34] Q&A Session Summary Question: What are you seeing in terms of order activity and willingness to move forward? - Management noted strong market demand and project calendars are loaded, with construction up 20% [44][45] Question: Can you provide more color on 2026 expectations? - Management refrained from providing guidance for 2026 but emphasized strong backlog and awarded orders [53] Question: What are the main drivers behind the revenue guidance update? - The increase is attributed to strong execution and winning new customers, with a diverse customer mix [58][59] Question: How sticky are the newer relationships expected to be? - Management aims to convert new customers to higher-margin products over time, focusing on value and quality [90] Question: Can you provide more color on the international markets' revenue contribution? - Revenue contribution from international markets has been minimal in 2025, but growth is expected to accelerate in 2026 [99]

Q2 EARNINGS REPORT August 2025 © 2025 Shoals Technologies Group Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations; expectations regarding the utility-scale solar market; project delays; regulatory environment; the effects of strategic pricing ...