Shoals Technologies Group (Nasdaq: SHLS) reported record fourth-quarter 2025 revenue of $148.3 million, a 39% increase over the $107 million posted in the prior-year period. The stock is trading up roughly 6% in the aftermath of the earnings report.
The results highlight a top-line recovery driven by higher domestic project volumes, despite ongoing margin compression from tariffs and legal expenses.
The company’s core U.S. utility-scale solar business saw a sharp acceleration in the second half of the year, growing 30% compared to H2 2024. For the full year, the solar segment grew 11%, supported by a quoting pipeline that exceeded $700 million of unique projects in the fourth quarter. Shoals attributed the revenue jump primarily to higher demand for products used in large-scale solar infrastructure and the successful capture of market share through new product introductions.
While revenue growth exceeded market expectations, the company’s gross profit margin contracted to 31.6%, down from 37.6% in Q4 2024. Shoals attributed the decline to approximately $3.3 million in duties and tariffs alongside increased labor and material costs.
For the full year 2025, total revenue reached $475.3 million. Net income for the year rose to $33.6 million, up from $24.1 million in 2024. Adjusted EBITDA for the fourth quarter was $30.3 million, while adjusted diluted EPS came in at $0.10, missing analyst consensus estimates of $0.14.
The company reported a record backlog and awarded orders of $747.6 million at year-end, an 18% increase compared to 2024. Approximately $603.4 million of that backlog is scheduled for shipment within the next four quarters.
Growth was bolstered by the company’s battery energy storage offerings, which secured $67 million in BLAO. International momentum also accelerated, with 2025 revenue from global markets jumping to $13 million, compared to less than $1 million the previous year.
2026 Outlook
Shoals issued guidance for the first quarter of 2026, forecasting revenue between $125 million and $135 million. For the full year 2026, the company expects revenue between $560 million and $600 million, representing 22% growth at the midpoint.
CEO Brandon Moss cited a “resilient underlying market demand” and noted that the company enters 2026 with its most diversified portfolio to date. Moss specifically pointed to the company’s entry into the AI data-center power market through a new partnership with ON.energy and a new BESS production line at its Portland, Tennessee campus expected to be operational in the coming weeks.
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