Shoals’ Q1 2024 Net Income Drops 72% YoY on Lower Sales

Revenue also decreased 14% YoY due to a drop in production days and project delays


Shoals Technologies Group, a manufacturer of Electrical Balance of Systems (EBOS) for solar, energy storage, and eMobility, reported a net income of $4.8 million during the first quarter (Q1) of 2024, a year-over-year (YoY) decline of 72% from $17 million.

Revenue decreased 14% to $90.8 million YoY due to lower sales volumes resulting from fewer production days and project delays.

Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased by $17.6 million to $20.5 million.

As of March 31, 2024, Shoals reported a backlog and awarded orders totaling $615.2 million, up 17% from the previous year but down 3% sequentially from December 31, 2023. This increase primarily reflects sustained demand for the company’s innovative products, with significant growth in international markets, now accounting for more than 12% of the backlog and awarded orders.

“Despite additional project delays in the period, the team’s continued strong execution allowed Shoals to meet our first quarter outlook. While some industry and supply chain disruptions persist, including extended equipment lead times and long interconnection queues, we remain confident in the long-term fundamental drivers of the industry and our ability to execute our strategic plan. Our offering continues to resonate with customers, supported by backlog and awarded orders increasing 17% YoY, and more than $75 million in new orders added during the quarter,” said Brandon Moss, CEO of Shoals.

General and administrative expenses were $22.8 million, compared to $20 million during the same period in the prior year. This increase was primarily the result of planned increases in payroll expense due to higher headcount and legal fees related to patent infringement and wire insulation shrinkback matters.

According to Moss, in the short term, Shoals’ results will continue to be impacted by project timing. Still, the medium- and long-term outlook for domestic utility-scale solar remains bright, as reflected in robust quoting activity and pipeline levels.

Load growth is expected to increase significantly over the next five years, driven by data center growth, reshoring of manufacturing, electric vehicles, and increased weather volatility, which require more heating and cooling. Meeting all that new demand will require more generation capacity, and Shoals expects solar to be a prime beneficiary.

Shoals reported a net income of $16.6 million during Q4 2023, contrasting with the $118.3 million in Q4 2022.

In Q3 2023, Shoals reported a net loss of $9.8 million, a YoY decline of 176.5% from the net income of $12.8 million.