Shoals Technologies Q1 results beat estimates despite higher costs

Shoals Technologies

05/05/2026 12:08

Overview

US electrical infrastructure firm's Q1 revenue rose 75% yr/yr, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company raised full-year revenue and adjusted EBITDA outlooks on record backlog and strong demand

Outlook

Shoals sees Q2 revenue between $150 mln and $170 mln

Company expects Q2 adjusted EBITDA of $28 mln to $33 mln

Shoals raises full-year 2026 revenue guidance to $600 mln-$640 mln

Result Drivers

STRONG DEMAND AND MARKET SHARE GAINS - Co said Q1 revenue growth was driven by robust demand for its products, market share capture initiatives, and higher project volumes

HIGHER COSTS PRESSURE MARGINS - Gross margin declined due to increased tariffs, higher material costs, and additional right-of-use asset amortization from the new facility

LITIGATION AND COMPENSATION EXPENSES - General and administrative expenses rose mainly due to increased legal costs for ongoing litigation and higher incentive compensation from increased headcount

Company press release: ID:nGNXccCfW3

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$140.60 mln
$129.05 mln (15 Analysts)
Q1 Adjusted EPS
Beat
$0.07
$0.06 (15 Analysts)
Q1 EPS
$0
Q1 Adjusted Net Income
$12.10 mln
Q1 Adjusted EBITDA
$21.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "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 $9.00, about 8.8% above its May 4 closing price of $8.27

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

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.)