Shoals Technologies’ Net Income Surges by 159% in Q2 on Higher Product Demand

Revenue was recorded at $119.21 million, a 62.2% YoY increase


Shoals Technologies Group, a manufacturer of electrical balance of systems (EBOS) for solar, energy storage, and eMobility, recorded a net income of $18.92 million during the second quarter (Q2) of 2023, a year-over-year (YoY) increase of 159% compared to $7.3 million.

The revenue was recorded at $119.21 million, a YoY increase of 62.2%

The increase in revenue stemmed from elevated sales quantities due to a heightened need for solar EBOS overall and the company’s customizable Combine-As-You-Go System Solutions in particular.

System Solutions revenue saw an 80% rise compared to the previous year, constituting 86% of the total revenue, as opposed to the 77% seen in the prior year.

The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were recorded at $38.67 million, a 95.5% YoY increase compared to $19.77 million.

Jeff Tolnar, President of Shoals, said, “Shoals delivered another outstanding performance in the second quarter, setting new company records for revenue and earnings. Revenue grew 62% year-over-year, while System Solutions revenue increased 80% compared to the year-ago period, as customers continue to partner with and use Shoals for their EBOS needs. This was further illustrated in the quarter when we signed our landmark 10-gigawatt master supply agreement with Blattner.”

1H 2023

During the first half (1H) of 2023, the company recorded a net income of $35.91 million, a YoY increase of 200% compared to $11.97 million.

Shoals’ revenue during 1H stood at $224.2 million, a 58.4% YoY increase.

During January-June, EBITDA was recorded at $74.8 million, a YoY increase of 106% from $36.3 million.

As of June 30, 2023, the company’s backlog and awarded orders were valued at $546.1 million, indicating a substantial 67% YoY surge.

In April, the company and Brookfield Renewable announced a partnership to introduce an innovative Charging-as-a-Service solution for electric vehicle charging infrastructure to eliminate large up-front payments and enable streamlined deployment of charging networks for fleets, retail, multi-unit dwellings, and other large commercial properties.

During the period, Shoals was also awarded a 120 MW contract to supply its BLA+ (Big Lead Assembly) solution to a utility-scale solar project in Western Australia. The BLA+ solution, formerly known as BLA 2.0, is a bundled offering that combines the BLA system with all the components required to attach the BLA to the racking system, including wire management, support wire, and tensioning systems to create a single integrated offering.

The company’s net income jumped over five-fold YoY to $14.3 million in Q1 2023 due to increased demand for solar EBOS generally and the company’s system solutions specifically.