Battery maker Shoals's Q2 revenue rises more than expectated on strong demand

Overview

• Shoals Q2 revenue rises 11.7% to $110.8 mln, beating analyst expectations

• Adjusted EPS for Q2 beats estimates, reaching $0.10

• Co reports record backlog and awarded orders of $671.3 mln

• Shoals raises full-year 2025 revenue outlook, citing strong demand

Outlook

• Shoals expects Q3 revenue between $125 mln and $135 mln

• Company projects full-year 2025 revenue of $450 mln to $470 mln

• Shoals forecasts Q3 adjusted EBITDA of $30 mln to $35 mln

• Company anticipates full-year 2025 adjusted EBITDA of $100 mln to $115 mln

Result Drivers

• STRONG DEMAND - Revenue growth driven by strong demand for products and increased project volumes

• STRATEGIC INITIATIVES - Growth attributed to strategic initiatives in core domestic utility markets

• BACKLOG INCREASE - Record backlog and awarded orders reflect consistent demand and international market growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Shoals Technologies Group Inc is $7.00, about 23.1% above its August 4 closing price of $5.38

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX3P3ZVj