Shoals Issues Revised 2026 Outlook After Third-Quarter Sales

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue reached $195.3 million, up 43.8%, and the company now expects full-year sales of $665 million to $685 million.

Shoals Technologies Group (SHLS), a manufacturer of electrical infrastructure for utility-scale solar, battery storage and data-center power, reported third-quarter revenue of $195.3 million, up 43.8% from $135.8 million a year earlier, and issued revised full-year 2026 guidance.

The company said productivity improvements pushed both quarterly revenue and Adjusted EBITDA above its expected range. Chief executive Brandon Moss said the firm remains focused on operational improvements as it finishes 2026.

Year-over-year growth slowed from 47.4% in the second quarter, after 74.9% in the first quarter. The company attributed the third-quarter increase to strong underlying demand, market-share capture initiatives and a higher volume of projects.

Gross profit was $62.4 million. Gross margin was 31.9%, compared with 37.0% a year earlier. The company said the year-over-year margin decline reflected operational inefficiencies tied to the ramp-up and transition into a new manufacturing facility, product mix, costs to address product-quality matters including rework and corrective actions, and incremental lease-accounting amortization. Sequentially, gross margin had been 30.3% in the second quarter and 29.2% in the first quarter.

Income from operations was $29.0 million, compared with $18.7 million a year earlier. Net income was $17.9 million, or $0.11 a share, versus $11.9 million, or $0.07 a share, a year earlier. Adjusted EBITDA was $39.8 million. Adjusted diluted earnings were $0.14 a share.

General and administrative expenses were $31.0 million. The company said a $5.4 million increase in cash and share-based incentive compensation from improved performance and higher headcount was partly offset by $4.1 million less legal spending than a year earlier.

Backlog and awarded orders stood at $791.7 million as of September 30, 2026, up 9.8% from a year earlier. That was a 1.2% sequential decrease from June 30, after a 5.7% increase into June from March 31. The company said the year-over-year backlog increase reflected consistent demand and growth in emerging battery energy-storage markets.

For the quarter ending December 31, 2026, Shoals expects revenue of $165 million to $185 million and Adjusted EBITDA of $36 million to $40 million. For full-year 2026, it now expects revenue of $665 million to $685 million and Adjusted EBITDA of $129 million to $133 million. It also expects cash flow from operations of $55 million to $65 million, capital expenditures of $20 million to $30 million, and interest expense of $11 million to $13 million.

In a separate release issued the same day, the company said it had entered an agreement and plan of merger and reorganization with ARRAY Technologies, Inc. Transaction, integration and restructuring costs of $0.7 million related to that deal were added back in the quarter. The scheduled third-quarter earnings call was to be conducted as a joint analyst call with ARRAY on November 4.

Moss said the long-term health of the market remains robust and that the company is positioned to continue momentum into 2027.