Shoals Technologies’ FY2025 revenue rose 19% YoY to $475.3 million, driven by higher demand from utility-scale solar projects
Gross profit and net income increased as well, while adjusted EBITDA remained almost flat
Q4 2025 revenue grew 39% YoY to $148.3 million, meeting guidance
The company ended the year with a record backlog and awarded orders of $747.6 million, up 17.8% YoY
Shoals Technologies Group, the electrical balance of system (EBOS) manufacturer, exited FY2025 with revenue of $475.3 million, a 19% increase year-on-year (YoY). It attributes the improvement to higher sales volumes driven by increased demand from utility-scale solar projects.
The company’s annual gross profit of $166.5 million was also up from $142 million in the previous year. The net income for the year totaled $33.6 million, compared to over $24 million, but adjusted EBITDA increased only marginally, coming in at $99.5 million vs. $99.1 million reported last year.
Shoals also reported a 39% revenue increase in Q4 2025, to $148.3 million from $107 million in Q4 2024, for the same reason, and within its guided range. Q4 gross profit of $46.9 million improved over $40.2 million.
Its net income was $8.1 million for the quarter, up from $7.8 million in Q4 2024, while adjusted EBITDA rose to $30.3 million from $26.4 million over the same period.
“While the rapidly shifting political climate brought some volatility, the massive increase in demand for energy through the rest of the decade supports strong fundamentals for our business,” said Shoals CEO Brandon Moss. “We are beginning to see tangible results of executing our strategic plan; expanding our product portfolio, defending share within our core markets, and diversifying our presence into new, attractive market segments.”
The EBOS and battery energy storage systems (BESS) manufacturer also reported a record backlog and awarded orders worth $747.6 million as of December 31, 2025. It increased by 17.8% YoY and 3.7% quarter-on-quarter (QoQ). Of this, around $603 million orders are to be delivered within the next 4 quarters and $145 million beyond Q4 2026. “Additionally, we closed out the period with more than $67 million of BLAO attributed to our BESS offering, an exciting result,” shared Moss.
Shoals has guided Q1 2026 revenues to range within $125 million to $135 million, and adjusted EBITDA of $16 million to $21 million.
For FY2026, its projections are for $560 million to $600 million in revenue and $110 million to $130 million in adjusted EBITDA.
Analysts at ROTH commented, “Looking ahead, we would expect volumes to be healthy and strong. Our sense is management may be focused on driving and keeping utilization of its new facility/factory high (at Portland, Tennessee to be fully operational by mid-2026). As the facility ramps, we would expect cost-outs and margin expansion potential for H2'26, but especially in 2027.”
Recently, Shoals signed an agreement with ON.energy to supply several GWs of power systems for AI data centers.
Patent lawsuit update
Recently, Shoals claimed a win in its patent infringement suit against Voltage Energy and its related foreign entity. The US International Trade Commission (ITC) issued an initial finding that Voltage violated Section 337 of the Tariff Act of 1930 by importing LYNX trunk bus products into the US.
However, Voltage claimed its own win in the case, saying that the Administrative Law Judge found its new LYNX design does not infringe either of Shoals’ patents, allowing the company to continue supplying its trunk bus solutions to the industry. The ITC is set to release the final determination by June 2026.
In 2025, the ITC had launched a new investigation into Voltage’s alleged infringement of Shoals’ patents ’375 and ’376 related to an improved trunk bus lead assembly for solar projects (see Shoals Technologies Achieved Higher End Of Q4 2024 Revenue Guidance).