The earnings call presented a mix of significant achievements in intellectual property protection and customer acquisition, alongside challenges such as revenue decline and project delays. Shoals showed strong quoting activity and new product innovations but faced financial impacts from shrink back remediation costs and gross margin pressures.

Company Guidance

During the Shoals Technologies Group Q3 2024 earnings call, guidance was provided regarding various financial metrics and future outlooks. The company reported third-quarter net revenue of $102.2 million, which fell within their guided range, despite a 23.9% year-over-year decline attributed to project delays and competitive dynamics. Gross profit increased to $25.4 million, with an adjusted gross profit margin of 37.9%. Adjusted EBITDA was $24.5 million, and the company expects fourth-quarter revenue to range between $97 million and $107 million, with full-year 2024 revenue anticipated to be between $390 million and $400 million. The backlog and awarded orders totaled $596.6 million, with $445.2 million expected to convert to revenue over the next year. The call also highlighted the company's efforts in product innovation, such as the 2KV system, and expansion into new markets like CC&I, which are expected to drive future growth.

Positive Initial Determination from ITC

Shoals received a favorable initial determination from the ITC regarding its patent infringement case against Voltage. This is seen as a crucial win in protecting the company's intellectual property.

Record Quoting Activity

Shoals quoted $2 billion worth of projects in 2024, showing a 50% increase year-over-year, indicating strong commercial activity and potential future growth.

New Customer Acquisition Post-ITC Ruling

Following the initial ITC ruling, Shoals signed up 4 new EPC customers, demonstrating successful expansion of their customer base.

Significant Increase in Revenue from Top EPCs

Revenue from 4 top EPCs increased from less than $1 million in 2023 to more than $25 million in 2024, with a backlog and awarded orders of 4 gigawatts.

Strong Balance Sheet

The company ended the quarter with a net debt to adjusted EBITDA of 1.2x, highlighting financial stability.

Strategic Product Innovations

New product developments, including the 2KV advanced electrical system, are expected to drive efficiency and cost-effectiveness in solar installations.

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Shoals Technologies Group (SHLS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SHLS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 15, 2021	2020 (Q4)	- / 0.07	―	―	―	―
May 03, 2021	2021 (Q1)	0.04 / 0.05	―	―	―	―
Aug 10, 2021	2021 (Q2)	0.08 / 0.09	0.056	60.71% (+0.03)	―	―
Nov 09, 2021	2021 (Q3)	0.07 / 0.07	0.121	-42.15% (-0.05)	―	―
Mar 10, 2022	2021 (Q4)	0.03 / 0.01	0.07	-85.71% (-0.06)	―	―
May 16, 2022	2022 (Q1)	0.07 / 0.05	0.05	0.00% (0.00)	―	―
Aug 15, 2022	2022 (Q2)	0.06 / 0.07	0.09	-22.22% (-0.02)	―	―
Nov 14, 2022	2022 (Q3)	0.08 / 0.10	0.07	42.86% (+0.03)
Feb 28, 2023	2022 (Q4)	0.09 / 0.15	0.01	1400.00% (+0.14)
May 08, 2023	2023 (Q1)	0.09 / 0.14	0.05	180.00% (+0.09)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SHLS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 12, 2024	$5.77	$4.85	-15.94%
Aug 06, 2024	$5.50	$5.15	-6.36%
May 07, 2024	$8.80	$7.51	-14.66%
Feb 28, 2024	$15.39	$12.83	-16.63%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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