Shoals Technologies Group, Inc. Reports Financial Results for Third Quarter 2026

(NASDAQ:SHLS) Shoals Technologies Group, Inc. announced its financial results for the third quarter ended September 30, 2026. Revenue for the quarter increased 43.8% to $195.3 million, compared to $135.8 million in the prior-year period, driven by strong demand, market share capture initiatives, and increased project volume. Gross profit was $62.4 million, up from $50.3 million in the prior-year period, with gross profit as a percentage of revenue at 31.9% versus 37.0% last year. The decline in gross margin was attributed to operational inefficiencies from the ramp-up and transition into a new manufacturing facility, product mix, costs related to product quality matters, and incremental lease accounting amortization. General and administrative expenses were $31.0 million, compared to $29.4 million in the prior-year period, with a $5.4 million increase in cash and share-based incentive compensation due to improved financial performance and increased headcount, partially offset by a $4.1 million decrease in legal spending. Income from operations was $29.0 million, up from $18.7 million in the prior-year period. Net income was $17.9 million, compared to $11.9 million in the prior-year period. Earnings per share for the quarter were $0.11, up from $0.07 in the prior-year period. Adjusted EBITDA was $39.8 million, compared to $32.2 million in the prior-year period. Adjusted Net Income was $24.5 million, up from $21.2 million in the prior-year period. Adjusted Diluted Earnings Per Share was $0.14, compared to $0.13 in the prior-year period. As of September 30, 2026, backlog and awarded orders totaled $791.7 million, representing a 9.8% increase year-over-year and a 1.2% sequential decrease from June 30, 2026. The company attributed the backlog growth to consistent demand and growth in emerging battery energy storage markets. For the fourth quarter of 2026, Shoals expects revenue in the range of $165 million to $185 million and Adjusted EBITDA in the range of $36 million to $40 million. For the full year 2026, the company expects revenue in the range of $665 million to $685 million, Adjusted EBITDA in the range of $129 million to $133 million, cash flow from operations in the range of $55 million to $65 million, capital expenditures in the range of $20 million to $30 million, and interest expense in the range of $11 million to $13 million. The company announced it had entered into an Agreement and Plan of Merger and Reorganization with ARRAY Technologies, Inc., with further details available in a separate transaction press release. The previously scheduled third quarter 2026 earnings call will be conducted as a joint analyst call with ARRAY Technologies, Inc. on November 4, 2026 at 8:00 a.m. EDT.