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Shoals Technologies Q3 revenue beats on strong demand, higher project volumes

By Reuters News


Overview

  • U.S. electrical infrastructure maker's Q3 revenue rose 44%, beating analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Gross margin declined due to new facility ramp-up and product quality costs


Outlook

  • Shoals expects Q4 revenue between $165 mln and $185 mln

  • Company sees Q4 adjusted EBITDA in the range of $36 mln to $40 mln

  • Shoals raises 2026 revenue outlook to $665 mln-$685 mln


Result Drivers

  • DEMAND AND MARKET SHARE - Co said revenue growth was driven by strong product demand, market share capture, and higher project volumes

  • OPERATIONAL INEFFICIENCIES - Co cited new facility ramp-up, product mix, and quality-related costs as factors reducing gross margin

  • BACKLOG GROWTH - Co said backlog growth reflected ongoing demand, particularly in battery energy storage markets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$195.30 mln

$162.40 mln (14 Analysts)

Q3 Adjusted EPS

Beat

$0.14

$0.12 (14 Analysts)

Q3 EPS

$0.11

Q3 Adjusted Net Income

$24.50 mln

Q3 Adjusted EBITDA

$39.80 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Shoals Technologies Group, Inc. is $11.00, about 29.9% above its November 3 closing price of $8.47

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Nov 4 - FTC Solar Q3 revenue slightly beats estimates on project wins

  • Nov 3 - Enlight Renewable Q3 revenue rises 40% on new projects

  • Nov 2 - Entergy Q3 profit beats estimates on retail sales; raises dividend


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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