Core Insights - Shoals Technologies Group, Inc. (SHLS) has reached an important support level and is considered a good stock pick from a technical perspective due to a recent "golden cross" event [1] - A golden cross is a bullish technical chart pattern indicating a potential breakout when a stock's short-term moving average surpasses its long-term moving average, typically involving the 50-day and 200-day averages [2] - The successful golden cross event consists of three stages: a price decline bottoming out, the shorter moving average crossing above the longer one, and maintaining upward momentum [3] Technical Performance - Over the past four weeks, SHLS has gained 13.2%, indicating positive momentum [4] - The stock currently holds a 3 (Hold) rating on the Zacks Rank, suggesting it may be poised for a breakout [4] - The bullish outlook is further supported by positive earnings revisions, with no earnings estimates cut and three revisions higher in the past 60 days, leading to an increase in the Zacks Consensus Estimate [4] Future Outlook - Investors are encouraged to monitor SHLS for potential gains in the near future, given its key technical level and positive earnings estimate revisions [6]

Summary of Shoals Technologies Group (SHLS) Conference Call Company Overview - **Company**: Shoals Technologies Group (SHLS) - **Industry**: Clean Energy, specifically Solar Energy Solutions Key Points and Arguments Demand and Market Activity - Demand for solar projects remains very strong, with many EPC (Engineering, Procurement, and Construction) customers having full project pipelines [4][5] - The solar industry has adapted to ongoing challenges such as labor availability, supply chain issues, and permitting delays [6][7][8] Regulatory Environment - The regulatory environment is currently volatile, with changes in tariffs and investment tax credits (ITC) creating uncertainty [10][11] - The availability of ITC is expected to phase out, which could increase costs for solar projects, but demand for energy remains strong [12][13] - The company does not participate in the 45X manufacturers credits but remains optimistic about its business model [14][15] Foreign Entity of Concern (FIOC) Provision - The FIOC provision may favor Shoals by limiting competition from foreign entities, particularly from China [16][18] - Shoals manufactures all eBOS (electrical balance of systems) solutions in the U.S., positioning itself well in a domestic-focused market [17][18] Competitive Landscape - Shoals differentiates itself from competitors by offering manufactured solutions that are tested for quality, unlike insulation piercing connectors (IPCs) that require field installation [20][22] - The company is working to educate developers on the long-term benefits of its solutions compared to IPCs [25][28] Master Supply Agreements (MSAs) - Shoals has secured significant MSAs, including a 12-gigawatt deal with Blattner and a 12-gigawatt deal with UGT for international projects [29][30] - MSAs provide predictability for project timelines and supply chain management, allowing for better investment in facilities and growth [31][32] International Expansion - Shoals is targeting international markets, including Australia and Saudi Arabia, while also responding to U.S. customer demands for global projects [38][40] Warranty Issues - The company is addressing warranty issues related to defective wire and is on track to complete remediation work this year [41][42] Data Center Demand - There is a growing demand for energy driven by data centers, which is expected to continue in the coming years [45][46] - Shoals is exploring ways to adapt its products for data center applications [47] Gross Margins and Financial Outlook - The company targets gross margins in the mid-30s to high-30s percentage range in the near term, with a long-term goal of exceeding 40% [49][52] - Shoals is focused on maintaining operating profits and cash flows while managing expenses [51][54] Capital Allocation and Growth Strategy - The primary focus is on organic growth, with potential for inorganic acquisitions to enhance product offerings [60][61] - Share repurchases are also considered, but the priority remains on business growth and facility investments [62] Additional Important Content - The company is expanding its involvement with developers to ensure long-term benefits of its products are recognized [36][37] - Shoals is actively working on battery energy storage solutions, which are becoming increasingly important in solar projects [56][58]

Core Insights - Shoals Technologies Group, Inc. has appointed Bobbie L. King, Jr. as Chief Legal Officer and Corporate Secretary to enhance its legal strategy and support sustainable growth [1][2][3] Company Overview - Shoals Technologies Group is a leading provider of electrical balance of system solutions and components for the global energy transition market, including battery energy storage solutions [4] - The company has been recognized for its innovative technologies that improve installation efficiency, safety, and system performance since its founding in 1996 [4] Executive Team Enhancement - Bobbie L. King, Jr. brings over 15 years of legal and leadership experience in the clean infrastructure industry, previously serving at HA Sustainable Infrastructure Capital, Inc. and holding senior roles at NextEra Energy, Inc. and Charles River Laboratories [2][3] - The CEO of Shoals, Brandon Moss, expressed confidence in Mr. King's ability to drive operational efficiencies and support growth within the company [3]

2025年5月27日 | 晚上7:58 EDT Shoals Technologies .SHLS 虚拟投资者会议的要点；买入 | | | 我们举办了一场与SHLS首席执行官Brandon Moss及财务与投资 者关系副总裁Matt Tractenberg的虚拟投资者会议，以讨论关键 竞争动态、近期关税和政策变化的影响、近期及长期需求趋势等 议题。我们此次通话的关键要点已在文中进行了更详细的总结。 Implications Following NXT's recent acquisition of 竞争动态。 eBOS公司Bentek，人们曾担忧SHLS的竞争定位可能存在风险。然 而在我们的电话会议中，SHLS管理层讨论了Bentek历来更多地涉 及组合箱和其他电气外壳，同时还提供一种绝缘刺穿连接器（IPC ）干线总线系统，该系统很少直接与SHLS竞争。重要的是，管理 层指出Bentek的IPC产品与SHLS的BLA产品有几个关键差异，因为 后者是在现场安装而非预组装，并且不具备可持续25-30年的同等 产品质量。因此，这些产品可能更专注于小型站点或对成本更敏感 的客户，而非在速度和质量至关重要的大型项目中。 ...

Group 1: Earnings Performance - Shoals Technologies Group reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.07 per share a year ago, representing an earnings surprise of -25% [1] - The company posted revenues of $80.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 9.19%, but down from $90.81 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Shoals Technologies shares have lost about 32% since the beginning of the year, compared to the S&P 500's decline of -3.9% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.07 on revenues of $95.36 million, and $0.36 on revenues of $418.46 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Solar industry is currently in the bottom 18% of over 250 Zacks industries, which may impact stock performance [8] Group 3: Future Earnings Expectations - The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call and future earnings expectations [3][4] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6]

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 [26][27] - Gross profit decreased to $28.1 million, resulting in a GAAP gross profit percentage of 35%, down from 40.2% in the prior year [27][29] - Adjusted EBITDA for the quarter was $12.8 million, compared to $20.5 million in the prior year, with an adjusted EBITDA margin of 15.9% [29][30] - Net loss was $300,000 compared to net income of $4.8 million in the prior year [29] Business Line Data and Key Metrics Changes - The backlog and awarded orders (BLAO) ended the quarter at $645.1 million, with approximately $500 million having shipment dates in the upcoming four quarters [7][34] - The adjusted gross profit percentage was softer than normal at 35%, influenced by product mix and strategic pricing initiatives [8][9] - The company is seeing strong bookings with approximately $91 million in new orders during the quarter [7] Market Data and Key Metrics Changes - The utility-scale solar market is expected to grow, with Wood Mackenzie projecting the U.S. will add between 41 to 50 gigawatts of average annual solar installations from 2025 through 2035 [39] - The Community, Commercial, and Industrial (C&I) business is gaining momentum, with increased quoting activity and strong demand from smaller EPCs [20][117] 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 [18][19] - Investments in domestic manufacturing and automation technologies are expected to enhance productivity and efficiency [12][32] - The company aims to achieve gross margins in the mid to high 30% range for the remainder of 2025, with a long-term goal of 40% or higher [9][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, noting that project construction and installations have resumed a healthy pace [13][36] - The company believes it has limited direct exposure to risks associated with tariffs and domestic energy policy changes [11][12] - Despite geopolitical uncertainties, the underlying demand for solar energy remains strong, driven by the need for cost-effective energy solutions [9][39] Other Important Information - The company spent $9.5 million on wire insulation shrink back remediation during the quarter, with a remaining warranty liability of $30.4 million [30][33] - The new manufacturing facility is expected to enhance operational efficiency and is set to begin operations by the end of Q3 2025 [32][33] 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 [42][44] Question: Can you provide more details on the two significant wins in the BEST product line? - Management highlighted that the BEST market is comparable in size to the core domestic utility-scale solar market and is seeing wins across multiple channels [46][47] Question: What is the visibility on bookings for projects looking to start construction in 2026 and 2027? - Management indicated that while it is too early to predict, there is a strengthening market driven by data centers and AI, with no significant project delays observed [70][72] Question: How is the company approaching supply chain for international volumes? - Management stated that they are engaged with suppliers to drive cost savings and are focused on consolidating operations in their new facility [94][96] Question: What is driving demand in the C&I market? - Management noted increased quote activity and bookings, with a focus on providing solutions for smaller projects where labor is at a premium [116][117]

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]