Shoals Technologies Group, Inc. ( (SHLS) ) has released its Q3 earnings. Here is a breakdown of the information Shoals Technologies Group, Inc. presented to its investors.
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Shoals Technologies Group, Inc. is a prominent player in the renewable energy sector, providing electrical balance of system (EBOS) solutions designed to improve the efficiency and reliability of solar energy installations worldwide. Founded in 1996, Shoals has made a significant impact in the energy transition market by introducing innovative technologies that enhance installation safety and performance.
In its third quarter 2024 earnings report, Shoals Technologies Group announced a quarterly revenue of $102.2 million, a decrease from the previous year, attributed to project delays. Despite this, the company secured a favorable initial ruling in an ITC case against Voltage, LLC, and raised the midpoint of its full-year revenue outlook. The company continues to experience strong customer engagement and interest, with quoting volumes reaching record levels.
Key financial highlights from the quarter include a gross profit of $25.4 million, up from $14.2 million in the prior year, driven by a reduction in wire insulation shrinkback expenses. The company’s gross profit percentage improved to 24.8%, with an adjusted gross profit percentage of 37.9%. However, Shoals reported a net loss of $0.3 million, although this was a significant improvement from the $9.8 million loss in the previous year. Adjusted EBITDA stood at $24.5 million, reflecting a decrease from the prior year.
Looking ahead, Shoals Technologies Group anticipates fourth-quarter revenue to range between $97 and $107 million, with adjusted EBITDA expected to be between $23 and $28 million. For the full year 2024, the company projects revenue to reach between $390 and $400 million, and adjusted net income to be in the range of $58 to $62 million. Management remains optimistic about future growth opportunities and the company’s competitive positioning in the market, despite ongoing challenges in the utility scale solar market.
The company is poised to leverage its innovative solutions and strong market position to navigate the evolving renewable energy landscape, with a focus on enhancing operational efficiency and expanding its international market presence.
