Shoals to invest $80 million in Tennessee manufacturing expansion

The electrical balance of systems provider serving the solar industry will move its manufacturing and distribution center to a new, larger facility.

February 22, 2024 Ryan Kennedy

Image: Shoals Technologies Group

Shoals Technologies Group was joined by Tennessee Gov. Bill Lee, Department of Economic and Community Development (TNECD) Commissioner Stuart C. McWhorter to announce an expansion of its Portland, Tennessee manufacturing operations.

Shoals will invest $80 million to move its Tennessee operations to a new, larger location. It is expected to add 550 new jobs at the facility, bringing the total employment in the region to approximately 1,400 people. The new 638,000 square-foot plant will be at 1500 Shoals Way, Portland, Tennessee.

The electrical balance of systems (EBOS) provider serves the solar, energy storage, and electric mobility industries. It said increased demand for solar EBOS products drove the expansion decision.

“Portland is excited to once again be a destination for investment and industry. Shoals has already been a vital community partner, and now, with $80 million of new capital and hundreds of jobs, they will be a top employer in the region as well,” said Mayor Mike Callis.

Shoals said its total manufacturing capacity is now 35 GW, with the ability to expand to 42 GW at existing sites. At current capacities, Shoals can serve demand well into 2025, said the company.

Shoals joined the NASDAQ exchange in January 2021 with a $1 billion initial public offering. It is set to report earnings on February 28, 2024.

In its last earnings report, Shoals posted a record quarter with $132.2 million in revenue. This represents a year-over-year growth of 48% for Q3. The revenue total came in slightly below Wall Street expectations.

Backlog and newly awarded orders reached $633.3 million, growing 34% year-over-year. Adjusted EBITDA grew 81% year-over-year to $48 million. Shoals said its growth was primarily driven by domestic demand for solar EBOS. Shoal’s balance sheet showed total assets of $840.1 million, with current assets at $214.2 million. The company’s total liabilities totaled $315.5 million, while stockholders’ equity was $524.6 million.

Shoals provides big lead assemblies, interconnection components, combiner boxes, transition boxes, service and design and more for solar projects.

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