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)

Financial Performance - Q1 2025 revenue was $804 million, a decrease of 115% year-over-year compared to $90807 million in Q1 2024[31] - Adjusted EBITDA for Q1 2025 was $12789 million, a decrease of 375% compared to $20458 million in Q1 2024[31] - Adjusted net income for Q1 2025 was $5193 million, a decrease of 589% compared to $12621 million in Q1 2024[31] - The company's backlog and awarded orders (BLAO) reached $6451 million[21] - Net debt-to-adjusted EBITDA ratio is 12x[46] Growth Initiatives and Market Position - More than 15% of BLAO includes projects with at least one new product[26] - Signed an MOU with UGT Renewables / Sun Africa to help deliver up to 12GW of international solar power in the coming years[27] - The company is focusing on improving supply chain resiliency, exceeding customer service requirements, hitting delivery timelines, providing exceptional quality, and solving real business problems with new products[59] Guidance - The company anticipates full year 2025 revenue to be between $410 million and $450 million[55] - The company anticipates full year 2025 adjusted EBITDA to be between $100 million and $115 million[55] - The company anticipates capital expenditures for 2025 to be between $25 million and $35 million[55]

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 Insights - Shoals Technologies Group, Inc. reported a quarterly revenue of $80.4 million, a decrease of 11.5% compared to the prior-year period, primarily due to strategic pricing actions and customer mix [5][8] - The company achieved a gross margin of 35.0%, down from 40.2% in the prior-year period, reflecting similar challenges as revenue [6][8] - The net loss for the quarter was $(0.3) million, compared to a net income of $4.8 million in the prior-year period [8][10] - Adjusted EBITDA decreased to $12.8 million from $20.5 million year-over-year [8][10] - The backlog and awarded orders increased by 5% year-over-year to $645.1 million, indicating strong demand for the company's products [11] Financial Performance - Revenue for the first quarter of 2025 was $80.4 million, down from $90.8 million in the same quarter of 2024 [5][31] - Gross profit was $28.1 million, compared to $36.5 million in the prior-year period, with a gross profit margin of 35.0% [6][31] - General and administrative expenses decreased to $21.7 million from $22.8 million, primarily due to a reduction in legal expenses [7][31] - The company reported an adjusted net income of $5.2 million, down from $12.6 million in the prior-year period [10][42] Backlog and Orders - The backlog and awarded orders as of March 31, 2025, were $645.1 million, reflecting a 4.9% increase year-over-year and a 1.6% increase sequentially from December 31, 2024 [11] - Approximately $500 million of the backlog is scheduled for the upcoming four quarters, indicating strong future revenue potential [2][11] Market Outlook - The company provided an outlook for the second quarter and full year 2025, citing near-term uncertainty in the utility-scale solar market [13][17] - Despite current market volatility, the company believes the fundamentals of its industry remain strong, with ongoing projects and positive business opportunities [3][11]

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].

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