PV balance of system provider Shoals opens manufacturing facility, reports Q4 earnings

Shoals manufactures balance of system components for solar, energy storage, and EV charging solutions. The company opened a Tennessee facility and posted record revenues and gross profits in 2021.

March 11, 2022 Ryan Kennedy

Image: Shoals

Shoals Technologies Group, a provider of electrical balance of systems (BOS) systems for solar, storage, and electric vehicles (EV) charging announced the opening of a manufacturing facility in Tennessee. The 219,000 square foot facility is expected to reach operations in Q2 2022.

The facility is expected to double the company’s manufacturing capacity. It said the new space will allow it to introduce new innovations to the BOS space.

“Our new facility will allow us to optimize our manufacturing lines to increase operational efficiency, expand production capacity and bring new innovations to market to deliver even more value to our customers,” said Jason Whitaker, CEO of Shoals Technologies Group. “Furthermore, the new facility gives us a significant footprint for the growth of new product lines, especially our Fuel by Shoals® eMobility solutions for electric vehicle charging, which deliver a more simple, reliable, and scalable way to deploy EV charging systems.”

Shoals posted its Q4 2021 results, showing record profits and gross margin. Full-year gross margin for 2021 was 38.8%, and orders nearly doubled year-over-year to a record $299 million. Revenues for its systems solutions increased 29% year-over-year for Q4 2021.

Revenue and gross profit grew 21% and 24% respectively over 2020’s reported figures. Adjusted EDBITA grew modestly, as the company made investments in human capital, international expansion, and a new EV business unit.

“While demand for our products is accelerating, the current environment is dynamic and we are closely monitoring our supply chain, labor costs, materials costs and logistics availability,” said Whitaker.

Fourth quarter revenues totaled $48 million, up from $38.8 million in the previous year’s quarter. Income from operations was $2.2 million, and net loss was $2.2 million. This compares to the previous Q4 income from operations of $7.2 million and a net gain of $4.2 million. The figures are not directly comparable, as because prior to its IPO, the Company was organized as a tax flow-through partnership rather than a corporation and did not record income taxes. Basic and diluted loss per share was $(0.04).

Shoals said at least half of the solar energy projects installed in the US in 2020 used its products.

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