Shoals Technologies Group, Inc. ( (SHLS) ) has released its Q4 earnings. Here is a breakdown of the information Shoals Technologies Group, Inc. presented to its investors.
Shoals Technologies Group, Inc. is a leading provider of electrical balance of system solutions and components, including battery energy storage solutions, for the global energy transition market. The company is recognized for its innovative technologies that enhance installation efficiency and safety in the renewable energy industry.
Shoals Technologies Group, Inc. reported its financial results for the fourth quarter of 2024, highlighting a revenue of $107 million and a net income of $7.8 million. Despite facing challenges in the solar industry due to political, supply chain, and regulatory issues, the company managed to end the year at the high end of its guided range.
Key financial metrics for the fourth quarter included an adjusted gross profit percentage of 37.6% and an adjusted EBITDA of $26.4 million. The company also reported a significant backlog and awarded orders totaling $634.7 million, indicating strong demand for its products. However, the revenue decreased by 18% compared to the previous year, primarily due to solar project delays and competitive dynamics.
For the full year 2024, Shoals Technologies experienced a revenue decline of 18% to $399.2 million, with a net income of $24.1 million. The company faced increased expenses related to litigation and raw materials, impacting its profitability. Despite these challenges, Shoals remains optimistic about its growth prospects, particularly in new markets and international projects.
Looking ahead, Shoals Technologies Group, Inc. anticipates a cautious yet optimistic outlook for 2025. The company expects revenue between $410 million and $450 million and adjusted EBITDA between $100 million and $115 million for the full year. Management remains focused on driving value for customers and shareholders, while navigating uncertainties in the macroeconomic environment.