Shoals Technologies Group (SHLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $141 million, up 75% year-over-year and above guidance, driven by strong demand and market share gains.

• Record backlog and awarded orders (BLAO) at $758 million, up 18% year-over-year, with $628 million scheduled for shipment in the next four quarters.

• Adjusted EBITDA was $21.1 million, up 56% year-over-year, at the high end of guidance.

• Adjusted net income rose 112% to $12.1 million year-over-year; adjusted diluted EPS was $0.07, up from $0.03.

• Net loss was $0.3 million, impacted by a $5.3 million litigation settlement expense.

Financial highlights

• Gross profit was $41 million, up 46% year-over-year; GAAP gross margin at 29.2%, adjusted at 29.6%, down from 35.0% last year due to higher tariffs and costs.

• SG&A expenses were $31 million (22% of revenue), down 500 basis points from last year, reflecting operating leverage.

• Operating income grew 79% to $7.7 million; net loss of $0.3 million due to a $5 million class action settlement impact.

• Adjusted EBITDA margin was 15%, down from 16.8% last year.

• Cash and equivalents at quarter end were $1.9 million; net debt to adjusted EBITDA at 1.6x; total liquidity declined to $17.3 million.

Outlook and guidance

• Q2 2026 revenue expected at $150–$170 million (44% year-over-year growth at midpoint); adjusted EBITDA $28–$33 million.

• Full year 2026 revenue guidance raised to $600–$640 million (30% growth at midpoint); adjusted EBITDA $118–$132 million (26% growth at midpoint).

• Cash flow from operations expected at $65–$85 million; capex $20–$30 million; interest expense $8–$12 million for the year.

• Gross margin expected to improve sequentially through the year as facility move completes and efficiencies are realized.

• Management notes ongoing uncertainty from trade policy, tariffs, and energy-related incentives.