Shoals Technologies Q4 revenue beats, but profit misses due to margin drop

Shoals Technologies

24/02/2026 12:11

Overview

Energy solutions provider's Q4 revenue rose 39%, beating analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company reported record backlog and awarded orders of $747.6 mln

Outlook

Shoals expects Q1 2026 revenue between $125 mln and $135 mln

Company anticipates full-year 2026 revenue between $560 mln and $600 mln

Shoals forecasts full-year 2026 adjusted EBITDA between $110 mln and $130 mln

Result Drivers

REVENUE GROWTH - Shoals reported a 39% increase in Q4 revenue to $148.3 mln, driven by higher demand for utility scale solar projects

BACKLOG INCREASE - Record backlog and awarded orders reached $747.6 mln, up 18% from year-end 2024, reflecting strong demand

MARGIN PRESSURE - Gross profit margin fell to 31.6% from 37.6% due to increased material costs and tariffs

Company press release: ID:nGNXcds7lv

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$148.30 mln
$145.37 mln (15 Analysts)
Q4 Adjusted EPS
Miss
$0.10
$0.14 (14 Analysts)
Q4 EPS
$0.05
Q4 Adjusted Net Income
$17.50 mln
Q4 Adjusted EBITDA
$30.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and 1 "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 11.1% above its February 23 closing price of $9.90

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 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.)