Growing PV Demand Boosts Shoals’ Business In Q1

Shoals’ Revenues Soar With 55% Annual Increase As US Company Updates Annual Guidance

Growing PV Demand Boosts Shoals’ Business In Q1

Shoals has kicked off 2023 with a strong start with its awarded and backlog orders increasing significantly on annual basis till the end of Q1/2023. (Source: Shoals Technologies Group, Inc)

  • Shoals says its revenues and gross profit increased in Q1/2023 due to higher sales volumes for solar EBOS
  • Its backlog and awarded orders too went up 75% annually and 23% sequentially to $528 million
  • Management has revised the lower end of its 2023 revenue guidance by $10 million

Shoals Technologies Group, the US based electrical balance of system (EBOS) supplier for the PV industry, has reported 55% annual increase in revenues for Q1/2023 with $105.1 million due to higher sales volumes for solar EBOS and combine-as-you-go system solutions, while growing backlog and awarded orders by 75% to $527.5 million.

Philip Shen of Roth MKM said, “Heading into the print, we were looking for bookings to be strong and management delivered. And this is before the Treasury issues its guidance for domestic content/the remaining IRA provisions, which should accelerate bookings further.”

Management shared that the backlog and awarded orders also represent 23% sequential increase and that the Q1 quotes were up 56% compared to last year. In a call with analysts, Shoals said global solar-related quotes increased 57% QoQ and that it expects to realize majority of these orders within next 9 months to 12 months.

“Demand for our combine-as-you-go solution was particularly strong, with six new customers converting to our system during the quarter, bringing the total number of Big Lead Assembly (BLA) customers to 42,” said company President and Interim CEO Jeff Tolnar.

System solutions revenues increased 95% YoY to represent 87% of the company’s revenue in the reporting quarter as it increased from 69% last year.

Gross profit improved 84% annually to $48.3 million, adjusted EBITDA increased 119% with $36.1 million, while net income went up 265% to $17 million, according to the company.


While the management did not give any Q2 forecast, with strong performance in Q1 it has raised annual outlook for 2023 to $480 million and $510 million revenues, changing lower end of revenue guidance from $470 million announced previously.

Adjusted EBITDA of $145 million to $160 million and adjusted net income of $92 million to $102 million too are an improvement over previous guidance (see Shoals Technologies Turned Profitable In Q4/2022).

Recently the company announced filing a patent infringement complaint with the US International Trade Commission (US ITC) against US based Hikam America and Voltage, LLC and their foreign entities seeking a ban on their ‘infringing products from importation’ in the US.

It wants the agency to investigate ‘unlawful imports of certain photovoltaic connectors and components’ that it says infringes on the company’s 2 valid and enforceable patents that it says relate to improved connectors for solar panel arrays.

These patented connectors, it explains, are less expensive to manufacture and transport than alternatives and are easier and simpler to use.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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