Shoals Technologies Group (NASDAQ:SHLS) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Shoals Technologies Group (NASDAQ:SHLS) announced its quarterly earnings data on Wednesday. The company reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02, FiscalAI reports. The business had revenue of $195.31 million during the quarter, compared to analysts’ expectations of $161.78 million. Shoals Technologies Group had a return on equity of 10.36% and a net margin of 5.84%. The firm’s quarterly revenue was up 43.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.12 earnings per share.

Here are the key takeaways from Shoals Technologies Group’s conference call:

• Shoals and ARRAY agreed to merge in a stock-for-stock transaction, with Shoals shareholders expected to own about 65% of the combined company. The companies expect to close in the first quarter of 2027, subject to shareholder and regulatory approvals.
• Management is targeting more than $100 million in annual synergies by year three, with $35 million expected in year one. It also cited a potential $2.5 billion in incremental sales from cross-selling, based on projects where only one company’s products were used; these are opportunities, not guaranteed results.
• The companies forecast combined 2027 revenue of $2.2 billion to $2.4 billion and Adjusted EBITDA of $410 million to $480 million, including synergies. They expect pro forma net debt to Adjusted EBITDA of 2.6x in 2026, falling below 2x in 2027, and plan preferred-stock redemptions that management says would reduce distributions by nearly $100 million over five years.
• Both companies reported strong Q3 operating momentum: Shoals posted record revenue of $195.3 million, up 44% year over year, while ARRAY reported a record $2.6 billion order book, up 42%. ARRAY’s adjusted gross margin was 22.8%, including a 330-basis-point charge related to a supplier rebate reserve.
• The proposed benefits depend on successfully integrating the businesses and capturing commercial synergies, and the transaction remains subject to approvals. Management also noted that the merger is not expected to require new debt to close, but ongoing liquidity and the pace of preferred-stock redemptions remain important considerations.

Shoals Technologies Group Stock Up 6.8%

Shares of Shoals Technologies Group stock traded up $0.61 during trading on Friday, reaching $9.61. The stock had a trading volume of 4,135,919 shares, compared to its average volume of 5,325,826. The company has a market capitalization of $1.62 billion, a price-to-earnings ratio of 41.76, a P/E/G ratio of 1.10 and a beta of 1.86. The stock has a fifty day moving average price of $7.68 and a two-hundred day moving average price of $8.47. Shoals Technologies Group has a 52 week low of $5.43 and a 52 week high of $13.18. The company has a current ratio of 2.25, a quick ratio of 1.12 and a debt-to-equity ratio of 0.32.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on SHLS shares. Weiss Ratings upgraded shares of Shoals Technologies Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, October 9th. Jefferies Financial Group decreased their price target on shares of Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating for the company in a report on Wednesday, October 14th. Citigroup restated a “neutral” rating on shares of Shoals Technologies Group in a research report on Wednesday, July 22nd. Oppenheimer reiterated an “outperform” rating and set a $13.00 target price on shares of Shoals Technologies Group in a report on Tuesday, August 4th. Finally, Cantor Fitzgerald boosted their target price on Shoals Technologies Group from $11.00 to $12.00 and gave the company an “overweight” rating in a research note on Thursday. Twelve equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $10.88.

About Shoals Technologies Group

Shoals Technologies Group, Inc develops electrical balance-of-system (EBOS) solutions for solar energy projects. Its products connect, protect, combine and monitor the direct-current electrical output of solar panels before electricity is converted and delivered to the broader power system.

The company’s product portfolio includes wire harnesses, junction boxes, inline fuses, disconnects, recombiners, communication and monitoring equipment, and other electrical components used in photovoltaic installations.