Shoals beat Q2 guidance with double-digit growth and has revised its outlook for FY 2025 upward based on strong global demand
Backlog hits $671.3 million, with international expansion and export-linked partnerships driving growth opportunities
It has now updated guidance, given the growing solar demand despite regulatory shifts
Shoals Technologies Group delivered a strong performance in Q2 2025, reporting $110.8 million in revenue, an 11.7% increase year-on-year (YoY), surpassing its guidance. Backed by a record backlog and awarded orders that increased 4.4% annually and 4.1% sequentially to $671.3 million, and strong demand from the AI and data centers, the US-based electrical balance of system (EBOS) manufacturer has raised its full-year 2025 outlook.
Of the total backlog reported as of June 30, 2025, Shoals counts over 13.2% from overseas markets. The company expects to ship over $540 million of this backlog within the next 4 quarters. On its earnings call, the company shared that its pipeline exceeds 20 GW and includes projects in Latin America, EMEA and Asia Pacific. It added that its relationships with large global developers tied to the US Export Import Bank are ‘opening doors’.
Shoals attributed its revenue growth to strong demand and an increase in project volume. Its gross profit also rose slightly to $41.2 million compared to $40 million in the prior-year period. Gross profit as a percentage of revenue declined to 37.2% YoY, vs. 40.3% last year, due to strategic price actions, volume discounts, and customer and product mix.
Shoals increased its net income from $11.8 million to $13.9 million over the same period, but adjusted EBITDA of $24.5 million declined from $27.7 million.
“The year is shaping up to be very strong. We delivered revenue above the high end of our guided range, and ended the period with record backlog and awarded orders of $671.3 million. Our strategy of accelerating growth within our core domestic utility scale markets is yielding results. We continue to be very encouraged by the traction we are seeing within our four growth initiatives, which are providing exposure to new markets, customers, and applications for Shoals,” said Shoals CEO Brandon Moss.
Guidance
Shoals remains upbeat on the future of the solar PV industry, owing to strong demand, despite the ‘rapidly shifting regulatory environment’.
“The underlying fundamentals of the energy transition markets remain very healthy and the power is in high demand. Our experienced and sophisticated customers are capable of navigating the uncertainty, and remain committed to their project timelines for the coming years,” shared Moss. “For this reason, we are incrementally more constructive on the demand environment. As such, I’m pleased to increase our revenue guidance for the full year 2025.”
Shoals now targets its full year 2025 revenues in the range of $450 million to $470 million and adjusted EBITDA of $100 million to $115 million. Q3 2025 revenues are likely to contribute $125 million to $135 million, and EBITDA $30 million to $35 million, respectively. Another $135 million to $145 million revenue contribution is likely in Q4 this year.
This is an increase over its previous guidance for FY 2025 of $430 million in revenues and $108 million in adjusted EBITDA (see Strong Start For Shoals In 2025, Despite Lower Profits).
Shoals expects the community, commercial and industrial (CC&I) business segment to bring in revenues of over $10 million in FY2025, thanks to strong bookings seen in June 2025. “Our OEM business is tracking ahead of expectations - our single customer continues to see strong demand,” added Shoals. It does not specify the customer, but it should be First Solar, to whose 3.5 GW Alabama factory Shoals is supplying its custom junction boxes from its local factory.
Team TaiyangNews will be at the upcoming RE+ event in the US, where we are co-organizing the 2025 Solar Made in USA summit in collaboration with RE+ and EUPD Research. To be held on September 8, 2025, in Las Vegas, US, during the RE+ 2025 event, it will feature leading names from the world of solar to discuss the future of US solar and storage manufacturing, and strategies for the players going forward under the regulatory hurdles created by the OBBBA. Registrations are open and can be done here.