Shoals Technologies Group Reports 32.9% Revenue Growth To $135.8 Million In Q3 2025, Driven By Record $720.9 Million Backlog And Strong Global Demand

Shoals Technologies Group, Inc., a leading provider of electrical balance of system (EBOS) solutions and components supporting the global energy transition, announced its financial results for the third quarter ended September 30, 2025. The company reported strong performance driven by record backlog, robust customer demand, and strategic expansion into new high-growth markets.

Brandon Moss, CEO of Shoals, stated, “I’m very pleased with our third-quarter performance, delivering revenue above the high end of our guidance range, with record backlog and awarded orders of $720.9 million and a book-to-bill ratio of 1.4. We are successfully executing our strategic plan of accelerating growth within our core domestic utility-scale solar market while expanding into new, fast-growing applications. The positive reception of our new products and capabilities continues to help us increase market share and diversify our business across multiple end markets.”

He further added, “Although public policy dynamics have added some volatility to financial markets this year, the massive rise in energy consumption globally is fueling a long-term investment cycle in power generation. The underlying fundamentals of our markets have improved significantly, with record quoting activity from customers who remain highly optimistic about upcoming projects. With our new state-of-the-art production facility now operational, Shoals is exceptionally well positioned to meet growing demand and sustain our momentum into the coming year.”

For the third quarter of 2025, Shoals reported revenue of $135.8 million, a 32.9% increase compared to $102.2 million in the prior-year period. This growth was primarily driven by strong product demand, successful market share initiatives, and higher project volumes. Gross profit rose to $50.3 million from $25.4 million a year ago, representing 37.0% of revenue, compared to 24.8% previously. The improvement reflects the absence of the $13.3 million wire insulation shrinkback warranty expense recorded in Q3 2024.

General and administrative expenses increased to $29.4 million from $18.7 million in the prior-year period, mainly due to higher legal costs associated with ongoing matters and increased cash and share-based compensation. Operating income rose sharply to $18.7 million from $4.5 million, while net income improved to $11.9 million from a net loss of $0.3 million in the previous year. Adjusted EBITDA stood at $32.0 million, up from $24.5 million, and adjusted net income reached $21.0 million, compared to $13.9 million in the prior-year quarter.

The company’s backlog and awarded orders reached $720.9 million as of September 30, 2025, representing a 21% year-over-year increase and a 7.4% sequential rise from the previous quarter. International markets accounted for more than 11.5% of this total, underscoring Shoals’ growing global footprint and sustained demand for its innovative EBOS solutions. For the fourth quarter of 2025, Shoals expects revenue between $140 million and $150 million, and adjusted EBITDA between $35 million and $40 million.

For the full year, the company forecasts revenue in the range of $467 million to $477 million, adjusted EBITDA between $105 million and $110 million, operating cash flow between $15 million and $25 million, and capital expenditures between $30 million and $40 million. Interest expenses are projected to be between $8 million and $12 million. With a strong financial foundation, record backlog, and expanding product portfolio, Shoals Technologies Group remains well positioned to capitalize on the accelerating global transition toward renewable energy and to deliver sustained long-term growth.