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