Manufacturer of electrical balance of systems (EBOS) for solar, energy storage, and eMobility Shoals Technologies Group recorded a net profit of $118.3 million in the fourth quarter (Q4) of 2022, a massive recovery from a loss of $2.15 million during the corresponding period in 2021.

The recovery was driven by a $110.9 million one-time gain on terminating a trust and retention agreement and higher income from operations.

The company generated total revenue of $94.65 million, a year-over-year (YoY) increase of 97% from $48.05 million in Q4 2021. The higher revenue resulted from better sales volumes due to greater demand for solar BOS generally and the company’s “combine-as-you-go system” and electric vehicle solutions.

The adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization stood at $30.11 million, a YoY increase of 167% compared to $11.27 million.

Full Year 2022 

Shoals Technologies posted a profit of $143 million, a considerable increase from $3.94 million the previous year.

The company recorded total revenue of $326.9 million, a YoY increase of 53.3% from $213.2 million in 2021.

The adjusted EBITDA for the year stood at $92.99 million, a YoY increase of 48% compared to $62.86 million.

“Shoals set new records for revenue, gross profit, net income, adjusted EBITDA, and adjusted net income in both the fourth quarter and full year. Compared to the prior-year periods, fourth quarter and full-year revenue grew 97% and 53%, respectively,” said Jason Whitaker, Chief Executive Officer of Shoals.

The higher sales volumes provided greater leverage on fixed costs leading to margin expansion.

The company said their product demand is underscored by the $428.6 million backlog and new orders at the end of the year. This represented a growth of 43% compared to the same period the previous year.

The company recorded a net income of $12.9 million in the third quarter of FY 2022, a 142% YoY jump.

Earlier in 2022, Shoals announced a new production unit in Tennessee’s Portland spread across 219,000 square feet.