SHLS Shoals Technologies Group Inc

Shoals Technologies Group, Inc. (“the Company”) (Nasdaq: SHLS), a global leader in electrical balance of system (EBOS) solutions for the energy transition market, announces financial highlights of its investor day, which was held today in Nashville, TN.

Shoals’ executive leadership team highlighted a proven track record of financial results, significant cash flow generation, a strong balance sheet and its strong position to achieve long-term (2027) financial targets, including:

• Revenue growth of 12 to 18% CAGR
• Gross Margin of approximately 42%
• Adj. EBITDA Margin* of approximately 30%
• Annual CAPEX of approximately $20M

*A reconciliation of Adjusted EBITDA Margin guidance, which is a forward-looking measure that is a non-GAAP measures, to the most closely comparable GAAP measures is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measure and non-GAAP adjustments may be recognized. The GAAP measure may include the impact of such items as non-cash share-based compensation, amortization of intangible assets and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA margin. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future. 

“We have made significant financial progress since our IPO, and we expect to continue to execute against our strategy to achieve our long-term financial targets and create value for our shareholders,” said Dominic Bardos, CFO. “We have the right team in place and we continue to see opportunities for growth across our business.”

The investor day presentation and related materials are available on the Shoals Technologies Investor Relations website at investors.shoals.com.

About Shoals Technologies Group, Inc.

Shoals Technologies Group is a leading provider of electrical balance of systems (“EBOS”) solutions for the energy transition market. Since its founding in 1996, the Company has introduced innovative technologies and systems solutions that allow its customers to substantially increase installation efficiency and safety while improving system performance and reliability. Shoals Technologies Group is a recognized leader in the renewable energy industry. For additional information, please visit: https://www.shoals.com.

Forward-looking Statements:

This press release contains certain forward-looking statements that are based on the Company’s management’s beliefs and assumptions and on information currently available to the Company’s management. These forward-looking statements relate to, among other things, the Company’s expansion and growth efforts; including our long-term financial guidance for the year ended December 31, 2027. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ from the Company’s expectations include, among other things; our expansion outside the U.S. could subject us to additional business, financial, regulatory and competitive risks; a further increase in interest rates or a reduction in the availability of tax incentives or project debt capital in the global financial markets could make it difficult for end customers to finance the cost of a solar energy system and could reduce the demand for the Company’s products; defects or performance problems in our products or their parts, including those related to the wire insulation shrinkback matter, could result in loss of customers, reputational damage and decreased revenue, and may have a material adverse effect on our business, financial condition and results of operations; we may experience delays, disruptions, quality control or reputational problems in our manufacturing operations in part due to our vendor concentration; the market for our products is competitive, and we may face increased competition as new and existing competitors introduce EBOS system solutions and components, which could negatively affect our results of operations and market share; developments in alternative technologies may have a material adverse effect on demand for the Company’s offerings; and if demand for solar energy projects does not continue to grow or grows at a slower rate than the Company anticipates, the Company may not be able to achieve the Company’s anticipated level of growth and the Company’s business will suffer.

These and other important risk factors are described more fully in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent the Company’s management’s beliefs and assumptions only as of the date of this report. You should read this report with the understanding that the Company’s actual future results may be materially different from what the Company expects.

Except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Investor Relations Matt Tractenberg, VP of Finance and Investor Relationsinvestors@shoals.com

Media RelationsLindsey Williams, VP of MarketingLindsey.williams@shoals.com