Shoals Technologies Group, Inc. reported a revenue increase of 19% for the fiscal year ending December 31, 2025, totaling $475.3 million, compared to $399.2 million in 2024. The company's net income rose significantly by 39% to $33.6 million, up from $24.1 million in the previous year. This growth was primarily driven by heightened demand for its electrical balance of systems (EBOS) solutions, particularly in the utility-scale solar market. The gross profit margin slightly decreased to 35.0% from 35.6% in 2024, attributed to rising material costs and competitive pricing pressures.
In terms of operational developments, Shoals reported a backlog of $747.6 million as of December 31, 2025, reflecting a 17.8% increase from the previous year. This backlog includes $326.2 million in signed purchase orders and $421.4 million in awarded orders, with a significant portion expected to be delivered in 2026. The company has also expanded its international presence, with over 12% of its backlog related to international projects. As of the end of 2025, Shoals employed approximately 1,480 individuals, marking a steady workforce as it continues to scale operations.
Strategically, Shoals has focused on enhancing its product offerings and market reach. The company has made significant investments in its manufacturing capabilities, including the consolidation of operations into a new facility in Portland, Tennessee, which is expected to improve efficiency and production capacity. Additionally, Shoals has been actively involved in litigation concerning wire insulation shrinkback issues, which has led to increased legal expenses. The company has recorded a warranty liability of $3.3 million related to this matter, with total expenses for the year amounting to zero, down from $13.3 million in 2024.
Looking ahead, Shoals Technologies Group anticipates continued growth driven by the increasing demand for renewable energy solutions and energy storage systems. However, the company acknowledges potential risks, including project delays, regulatory changes, and macroeconomic factors such as inflation and interest rates that could impact its operations. The company remains committed to navigating these challenges while pursuing opportunities in both existing and new markets.
About Shoals Technologies Group, Inc.
Shoals Technologies Group designs and manufactures electrical balance of system (EBOS) solutions, including proprietary components and system solutions for solar and energy storage projects. Its offerings enhance reliability, reduce installation costs, and simplify system integration for utility-scale solar, BESS, and industrial markets worldwide. The company serves EPCs, OEMs, and developers, leveraging innovative engineering, proprietary technology, and global manufacturing to support the renewable energy transition.
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