Financial Data and Key Metrics Changes - The company reported revenue of $80.4 million for Q1 2025, a decline of 11.5% year-over-year, driven by product mix and strategic pricing actions [23][24] - Gross profit decreased to $28.1 million, resulting in a GAAP gross profit percentage of 35%, down from 40.2% in the prior year [23][24] - Adjusted EBITDA was $12.8 million, compared to $20.5 million in the prior year, with an adjusted EBITDA margin of 15.9% [25][26] - Net loss was $300,000 compared to net income of $4.8 million in the prior year [25] Business Line Data and Key Metrics Changes - The company experienced strong bookings of approximately $91 million, resulting in a backlog of $645.1 million and a book-to-bill ratio of 1.13 [5][31] - The adjusted gross profit percentage was softer than normal at 35%, influenced by product mix and strategic pricing initiatives [6][24] - The Community, Commercial, and Industrial (C&I) business is gaining momentum, with increased quoting activity and bookings [17][116] Market Data and Key Metrics Changes - The U.S. utility-scale solar market is projected to add between 41 to 50 gigawatts of average annual solar installations from 2025 through 2035 [36] - The company is seeing a healthy pace of project construction and tracker installations as it enters 2025 [11] - Wood Mackenzie has increased its growth estimate for the commercial market, aligning with the company's observations [17] Company Strategy and Development Direction - The company is focused on diversifying its customer base and expanding into new markets, including international projects in Australia and Chile [15][61] - Investments in domestic manufacturing and automation technologies are expected to enhance productivity and competitive positioning [10][29] - The company aims to achieve gross margins of 40% or more in the long run, with expectations of mid to high 30% gross margins for the remainder of 2025 [7][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the 2025 outlook, noting strong customer construction calendars and project momentum [102] - The geopolitical environment and tariff uncertainties are acknowledged, but management believes the company has limited direct exposure to these risks [9][50] - The company expects to deliver revenue in the range of $410 million to $450 million for the full year 2025, with adjusted EBITDA between $100 million and $115 million [32][33] Other Important Information - The company spent $9.5 million on wire insulation shrink back remediation during the first quarter, with a remaining warranty liability of $30.4 million [26][30] - The new manufacturing facility is expected to enhance operational efficiency and is set to begin operations by the end of Q3 2025 [29] Q&A Session Summary Question: How has the competitive landscape shifted due to tariff uncertainties? - Management noted an increase in customer inquiries and emphasized that discussions are centered around quality and service rather than tariffs [40][42] Question: Can you provide more details on the two significant wins in the BEST product line? - Management highlighted that the BEST market is substantial and growing, with wins across various channels, including solar EPCs and industrial markets [43][45] Question: What is the visibility on bookings for projects looking to start construction in 2026 and 2027? - Management indicated that while it is early to predict, the underlying demand environment remains strong, particularly driven by data centers and AI [68][70] Question: Can you elaborate on the hyperscaler contract and its product details? - Management confirmed that the products supplied are large DC combiners and recombiners, with a higher average selling price compared to traditional offerings [81] Question: What is driving demand in the Community and Industrial markets? - Management noted increased quote activity and bookings, driven by the understanding of the company's solutions and the need for smaller projects [116]

PART I [Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Shoals Technologies Group reported a Q1 2025 net loss and decreased revenue year-over-year, with total assets at $788.4 million and liabilities at $229.5 million, impacted by warranty liabilities and legal proceedings [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to $788.4 million, total liabilities decreased to $229.5 million, and stockholders' equity increased to $558.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $187,746 | $188,352 | | Cash and cash equivalents | $35,609 | $23,511 | | Accounts receivable, net | $67,704 | $78,181 | | Inventory, net | $61,173 | $55,977 | | **Total Assets** | **$788,421** | **$793,080** | | **Total Current Liabilities** | $80,283 | $80,912 | | Warranty liability—current portion | $25,956 | $29,602 | | Revolving line of credit | $141,750 | $141,750 | | **Total Liabilities** | **$229,493** | **$236,280** | | **Total Stockholders' Equity** | **$558,928** | **$556,800** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, revenue decreased 11.5% to $80.4 million, resulting in a net loss of $0.3 million compared to a $4.8 million net income in Q1 2024 Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $80,361 | $90,807 | | Gross Profit | $28,140 | $36,460 | | Income from Operations | $4,312 | $11,584 | | Net Income (Loss) | $(282) | $4,774 | | Basic EPS | $(0.00) | $0.03 | | Diluted EPS | $(0.00) | $0.03 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw net cash from operating activities increase to $15.6 million, leading to a net increase in cash and equivalents of $12.1 million, ending at $35.6 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $15,558 | $12,860 | | Net Cash Used in Investing Activities | $(3,209) | $(2,483) | | Net Cash Used in Financing Activities | $(251) | $(17,848) | | **Net Increase (Decrease) in Cash** | **$12,098** | **$(7,471)** | | **Cash and Cash Equivalents—End of Period** | **$35,609** | **$15,236** | [Note 8: Warranty Liability](index=16&type=section&id=Note%208.%20Warranty%20Liability) The company is addressing a wire insulation shrinkback issue with an estimated loss range of $73.0 million to $160.0 million, resulting in a $30.4 million remaining warranty liability for this matter - The company has identified a wire insulation shrinkback issue from defective wire supplied by Prysmian, leading to a significant warranty provision[50](index=50&type=chunk) - The estimated range of potential loss is between **$73.0 million** and **$160.0 million**. The company has recorded the low-end of the range, **$73.0 million**, as a warranty liability[50](index=50&type=chunk) Warranty Liability Activity (in thousands) | Description | Q1 2025 | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $40,994 | | Warranty Expense | $256 | | Payments | $(9,837) | | **Ending Balance (Mar 31, 2025)** | **$31,413** | [Note 13: Commitments and Contingencies](index=21&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) The company is engaged in multiple legal proceedings, including intellectual property disputes, a lawsuit against supplier Prysmian for defective wire, and securities litigation - The company is pursuing intellectual property litigation against competitors Hikam and Voltage, with one case currently on appeal and a new case filed in January 2025[76](index=76&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - A lawsuit has been filed against supplier Prysmian to recover costs and damages related to the defective wire causing the insulation shrinkback issue[81](index=81&type=chunk) - The company and its officers/directors are defendants in consolidated securities and derivative lawsuits alleging false and misleading statements regarding the wire insulation shrinkback matter[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [Note 15: Revenue Recognition](index=25&type=section&id=Note%2015.%20Revenue%20Recognition) Q1 2025 revenue was primarily from system solutions at $57.4 million and components at $23.0 million, with unbilled receivables significantly decreasing to $10.4 million Revenue by Product Type (in thousands) | Product Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | System solutions | $57,394 | $65,059 | | Components | $22,967 | $25,748 | | **Total revenue** | **$80,361** | **$90,807** | - Unbilled receivables decreased from **$20.8 million** at the end of 2024 to **$10.4 million** at the end of Q1 2025, indicating a shift in the timing of billings relative to revenue recognition[97](index=97&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 revenue decline and gross margin contraction to pricing and mix, while strategically expanding into new markets and managing uncertainties like trade regulations and project delays [Overview and Backlog](index=28&type=section&id=Overview%20and%20Backlog) Shoals, a leading EBOS provider, is expanding into international, BESS, data center, and CC&I markets, with total backlog and awarded orders reaching $645.1 million - The company is strategically expanding beyond its core domestic utility-scale solar market into international, BESS, data centers, and Commercial, Community, and Industrial (CC&I) markets[112](index=112&type=chunk) Backlog and Awarded Orders as of March 31, 2025 | Category | Amount (USD) | | :--- | :--- | | Backlog (signed orders) | $202.2 million | | Awarded Orders (contract pending) | $442.9 million | | **Total** | **$645.1 million** | - Backlog and awarded orders increased by **5%** year-over-year and **2%** since December 31, 2024. Over **13%** of the total is for international projects[113](index=113&type=chunk) [Trends and Uncertainties](index=29&type=section&id=Trends%20and%20Uncertainties) The company faces market uncertainties including evolving trade regulations, the future of the Inflation Reduction Act, persistent solar project delays, and global macroeconomic pressures - The company is exposed to risks from new and potential tariffs on imports from Canada, Mexico, and China, which could increase costs for raw materials like steel, copper, and aluminum[115](index=115&type=chunk)[117](index=117&type=chunk) - Uncertainty around the future of the Inflation Reduction Act (IRA) poses a risk, as its repeal or alteration could decrease the financial attractiveness of solar projects and reduce demand for the company's products[121](index=121&type=chunk) - The domestic utility-scale solar market continues to face project delays due to permitting, supply chain, and financing issues, though the situation is more normalized compared to late 2023 and 2024[122](index=122&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q1 2025 revenue decreased 11.5% to $80.4 million, gross profit fell 22.8% to $28.1 million, and the company reported a net loss of $0.3 million Comparison of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $80,361 | $90,807 | (11.5)% | | Gross profit | $28,140 | $36,460 | (22.8)% | | Income from operations | $4,312 | $11,584 | (62.8)% | | Net income (loss) | $(282) | $4,774 | (105.9)% | - The decrease in revenue was driven by strategic pricing actions, volume discounts, and customer and product mix[141](index=141&type=chunk) - Gross profit percentage decreased from **40.2%** to **35.0%** due to pricing, mix, and reduced fixed cost absorption from lower revenues[142](index=142&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Q1 2025 Adjusted EBITDA decreased to $12.8 million and Adjusted Net Income to $5.2 million, reflecting core operating performance after various adjustments Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $(282) | $4,774 | | Interest, Taxes, D&A, etc. | $8,978 | $14,061 | | Wire insulation shrinkback litigation expenses | $2,529 | $849 | | **Adjusted EBITDA** | **$12,789** | **$20,458** | Reconciliation of Net Income (Loss) to Adjusted Net Income (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $(282) | $4,774 | | Adjustments (Amortization, Equity Comp, etc.) | $7,242 | $10,394 | | Tax impact of adjustments | $(1,767) | $(2,547) | | **Adjusted Net Income** | **$5,193** | **$12,621** | | **Adjusted Diluted EPS** | **$0.03** | **$0.07** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by $15.6 million in Q1 2025 operating cash flow and a $200 million revolving credit facility, with $58.2 million available - The company generated **$15.6 million** in cash from operating activities in Q1 2025, compared to **$12.9 million** in Q1 2024[156](index=156&type=chunk)[161](index=161&type=chunk) - In March 2024, the company paid off its Term Loan Facility and increased its Revolving Credit Facility to **$200.0 million**. As of March 31, 2025, **$141.8 million** was drawn, with **$58.2 million** available[156](index=156&type=chunk)[157](index=157&type=chunk) - The company has a share repurchase program with **$125 million** remaining authorization as of March 31, 2025. No shares were repurchased in Q1 2025[159](index=159&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposure during Q1 2025, with further details available in the 2024 Form 10-K - There were no material changes in the company's market risk exposure during the first quarter of 2025[175](index=175&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[177](index=177&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended March 31, 2025[178](index=178&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including intellectual property and product liability claims, with details provided in Note 13 of the financial statements - The company is subject to various legal proceedings. For detailed information, refer to Note 13 - Commitments and Contingencies[180](index=180&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Material risk factors affecting the business and financial results are discussed in the 2024 Form 10-K and this Form 10-Q - A discussion of material risk factors is available in the company's 2024 Form 10-K and this Form 10-Q[181](index=181&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[182](index=182&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025[185](index=185&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) The report includes an exhibit index, featuring RSU and PSU grant agreements, and certifications by the CEO and CFO - The filing includes certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[187](index=187&type=chunk) - New forms for RSU and PSU grant agreements for 2025 were filed as exhibits[187](index=187&type=chunk)

Q1 EARNINGS REPORT May 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; including our financial guidance for the second quarter of 2025 and for the full year ending December 31, 2025; expectations regar ...

Financial Performance - Quarterly revenue decreased by 11.5% to $80.4 million compared to $90.8 million in the prior-year period[7] - Adjusted EBITDA decreased by $7.7 million to $12.8 million compared to $20.5 million in the prior-year period[10] - Net loss for the quarter was $(0.3) million compared to a net income of $4.8 million in the prior-year period[10] - Revenue for the three months ended March 31, 2025, was $80,631, a decrease of 11.5% compared to $90,807 in the same period of 2024[34] - Adjusted EBITDA for the three months ended March 31, 2025, was $12,789, a decrease of 37.5% from $20,458 in 2024[37] - Net loss for the three months ended March 31, 2025, was $(282), compared to a net income of $4,774 in 2024[34] - Adjusted Net Income for the same period was $5,193, down from $12,621 in 2024[37] - Adjusted Diluted EPS for the three months ended March 31, 2025, was $0.03, down from $0.07 in 2024[39] Margins and Expenses - Gross margin was 35.0%, down from 40.2% in the prior-year period, reflecting strategic pricing actions and customer mix[8] - General and administrative expenses decreased to $21.7 million from $22.8 million in the prior-year period[9] - Gross profit for the same period was $28,140, representing a gross profit margin of 35.0%, down from 40.2% in 2024[37] Future Guidance - The company expects second quarter 2025 revenue in the range of $100 million to $110 million and adjusted EBITDA between $20 million and $25 million[17] - Full year 2025 revenue guidance is projected between $410 million and $450 million, with adjusted EBITDA expected to be between $100 million and $115 million[17] Backlog and Orders - Backlog and awarded orders increased by 5% year-over-year to $645.1 million, with approximately $500 million scheduled for the next four quarters[3][11] - The company reported a robust international market presence, comprising over 13.4% of backlog and awarded orders[11] Strategic Initiatives - Strategic initiatives for market penetration and diversification are progressing well, indicating positive business fundamentals[4] Cash and Assets - Cash and cash equivalents increased to $35,609 as of March 31, 2025, from $15,236 at the end of the same period in 2024[36] - Total current assets decreased slightly to $187,746 as of March 31, 2025, compared to $188,352 at the end of 2024[32] - Total liabilities decreased to $229,493 as of March 31, 2025, from $236,280 at the end of 2024[32] Taxation - The effective income tax rate for Adjusted Net Income was 24.4% for the three months ended March 31, 2025[39]

Core Viewpoint - Shoals Technologies Group, Inc. has signed a Memorandum of Understanding (MOU) with UGT Renewables to collaborate on up to 12 gigawatts (GW) of solar projects, aiming to enhance energy transition efforts in emerging markets [1][2]. Group 1: Collaboration Details - The collaboration focuses on innovative electrical balance of system (EBOS) solutions to support sustainable development in emerging markets [1][2]. - UGT Renewables has a pipeline of 12 GW of solar projects, and the partnership aims to deliver efficient EBOS solutions that require less skilled labor, thus facilitating low-cost electrification [2][3]. Group 2: Project Impact - The initial projects in Angola, with a combined capacity of 600 megawatts (MW), are expected to electrify 60% of the Angolan population and provide clean water to over 1.1 million people [3]. - These projects are financed by the EXIM Bank in the United States and are set to break ground in 2025 [3]. Group 3: Company Background - Shoals Technologies Group is recognized as a leader in the renewable energy industry, providing innovative EBOS solutions that enhance installation efficiency and system performance [4]. - UGT Renewables and its sister company, Sun Africa, are major players in international renewable energy generation and energy storage, with extensive projects under development globally [5].

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 38 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis for identifying investment opportunities [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on supply/demand imbalances indicated by specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant positive technical momentum reversals [1] - The "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading activity [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2024, he was ranked in the Top 3% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1]

Core Viewpoint - Shoals Technologies Group, Inc. will release its first quarter 2025 results on May 6, 2025, before market open, followed by a conference call at 8:00 a.m. Eastern Time [1]. Company Overview - Shoals Technologies Group is a leading provider of electrical balance of systems (EBOS) solutions for the energy transition market, founded in 1996 [3]. - The company has introduced innovative technologies and systems solutions that enhance installation efficiency and safety while improving system performance and reliability [3]. - Shoals Technologies Group is recognized as a leader in the renewable energy industry [3]. Investor Information - Interested investors can access the live webcast of the conference call through the Investor Relations section of the company's website, with an archived replay available shortly after the event [2]. Contacts - Investor Relations contact is Matt Tractenberg, VP of Finance and Investor Relations [4]. - Media contact is Lindsey Williams, VP of Marketing and Communications [4].

SAN DIEGO, March 28, 2025 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims on behalf of Shoals Technologies Group, Inc. (“Shoals” or the “Company”) (NASDAQ: SHLS) against certain of its officers and directors to hold them responsible for damages they allegedly caused the company to suffer. If you have continuously owned Shoals shares since before May 17, 2022, you have certain legal rights as a shareholder.  If you want to learn more, please read below or submit your information at ...

Shoals Technologies (NASDAQ: SHLS ) is primarily an electrical balance of systems (EBOS) provider. EBOS encompasses the electrical components between solar panels, inverters, and batteries. They are also developing solutions to extend their product line into complimentary side businessesMy goal is to identify and perform in depth research on companies that will drive long-term growth and market beating returns. Strong companies are defined by top of industry execution, strong historic and future growth tren ...

PORTLAND, Tenn., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. (Shoals) (Nasdaq: SHLS), a global leader in electrical balance of system (EBOS) solutions for the energy transition market, announced today its participation in the following upcoming investor events: March 4th, 2025: Jefferies Power, Utilities, and Clean Energy Conference in New YorkShoals’ CEO Brandon Moss, VP of Finance and Investor Relations Matt Tractenberg, and VP of Marketing and Communications Lindsey Williams will ho ...