Shoals Technologies Group (SHLS) investor relations material

Company background and market position

• Leading provider of electrical balance of systems (EBOS) for utility-scale, commercial, and industrial solar PV and energy storage projects, with over 80 GW under contract or operating globally.

• Founded in 1996, transitioned from automotive to solar EBOS in 2002, and listed on Nasdaq in 2021.

• Recognized for innovation, holding over 60 patents and awarded for 2kV solutions.

• Deep relationships with major EPCs, developers, and utilities, serving as the central nervous system of solar fields.

• U.S.-based manufacturing with a new Tennessee facility opening in 2026, supporting domestic supply and competitive advantage.

Product portfolio and differentiation

• Offers customizable, plug-and-play EBOS solutions that reduce installation labor, materials, and maintenance touchpoints.

• Key products include Big Lead Assembly (BLA), transition boxes, combiners, disconnects, and junction boxes, all designed for efficiency and ease of use.

• BLA system enables above-ground installation, reduces wire runs by 67%, inverter runs by 95%, and eliminates combiner boxes, improving safety and reliability.

• Prefabricated components allow for rapid installation by general labor, minimizing the need for licensed electricians.

• Innovations such as patented molding technology and wireless LoRa communication enhance system performance and data transmission.

Market trends and growth strategy

• Solar is the most cost-effective option for new electricity generation, with utility-scale solar LCOE dropping 77% since 2010.

• Global electricity demand is rising, with solar expected to account for 50% of demand growth through 2027.

• Growth strategy includes expanding U.S. utility-scale market share, accelerating international presence, and developing products for BESS, data centers, and commercial/industrial markets.

• Diversification efforts are yielding results, with new opportunities in BESS and data centers, and successful launches in CCI and OEM segments.