Shoals Technologies Group, Inc. Reports Financial Results for Fourth Quarter 2024

Core Insights - Shoals Technologies Group reported a quarterly revenue of $107.0 million, a decrease of 18% compared to $130.4 million in the prior-year fourth quarter, primarily due to lower sales volumes from solar project delays [4][10] - The adjusted gross profit percentage for the fourth quarter was 37.6%, down from 42.5% in the prior-year period, attributed to competitive pressures and higher material costs [5][8] - The company ended the year with a backlog and awarded orders of $634.7 million, reflecting continued demand for its solar products [16] Financial Performance - Quarterly net income was $7.8 million, compared to $16.6 million in the prior-year period, with basic and diluted net income per share at $0.05, down from $0.10 [7][8] - Adjusted EBITDA for the fourth quarter decreased to $26.4 million from $39.1 million in the prior-year period [8][43] - For the full year 2024, revenue was $399.2 million, down from $488.9 million in 2023, with net income of $24.1 million compared to $42.7 million in the prior year [10][13] Operational Insights - The company experienced a book-to-bill ratio of 1.4, indicating healthy bookings during the period [3] - General and administrative expenses remained flat at $21.5 million compared to the same period last year, with increases in payroll and employee expenses offset by decreases in professional services [6][12] - The company is optimistic about customer momentum entering 2025, with a focus on improving productivity and mitigating short-term pressures on gross profit [3][4] Market Outlook - The company provided an outlook for the first quarter and full year 2025, anticipating revenue between $70 million to $80 million for Q1 and $410 million to $450 million for the full year [24][18] - The CEO noted the importance of remaining cautious due to uncertainties in the utility-scale solar market, including tariffs, interest rates, and subsidies [3][18] - The backlog and awarded orders as of December 31, 2024, were approximately flat year-over-year, indicating stable demand despite market challenges [16]