Shoals Technologies beats Q1 estimates and raises guidance, supported by strong solar demand and record backlog.
Stock Earnings Results
May 5, 2026
Table of Contents
May 5, 2026
Shoals Technologies Group, Inc. (NASDAQ: SHLS) reported first-quarter 2026 results above expectations and raised its full-year outlook, supported by strong demand and record backlog.
Shoals Technologies provides electrical infrastructure solutions for the energy transition market, including products used in utility-scale solar and battery energy storage projects.
The company reported adjusted EPS of $0.06, above estimates of $0.05, representing a 20.0% earnings surprise and 74.3% revenue growth. Revenue came in at $140.56 million, above estimates of $130.21 million.
The key signal was forward demand.
Shoals ended the quarter with record backlog and awarded orders of $758.0 million, up 17.5% year-over-year and 1.4% sequentially.
That gives investors better visibility into future revenue, especially as demand expands across domestic utility-scale solar, international markets, and battery energy storage.
Revenue rose 74.9% year-over-year to $140.6 million, driven by strong product demand, market share gains, and higher project volume.
Gross margin fell to 29.2% from 35.0% in the prior-year period, pressured by additional tariffs, higher amortization from the new operations facility, and higher material costs.
Shoals increased its full-year outlook and now expects:
For the second quarter, the company expects revenue of $150 million to $170 million and adjusted EBITDA of $28 million to $33 million.
Investors are likely to watch whether Shoals can convert backlog into profitable growth while managing cost pressures.
The key areas are:
Shoals’ report shows how energy transition earnings are being driven by backlog and guidance, not just the current quarter.
The revenue beat and outlook raise are positive, but margins remain the pressure point. Investors will need to see whether demand strength can translate into stronger profitability as tariffs, materials costs, and legal expenses normalize.
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