- Shoals’ Q2/2022 revenues went up by 23% on annual basis while gross profit improved 9%
- BLA customers increased by 4 to a total of 29; Cowen called BLA 2.0 as a further differentiator for the company
- Management has reiterated its annual guidance for 2022, going by its backlog and awarded orders increasing by 63% YoY to $327.2 million
US based Shoals Technologies Group reported a healthy Q2/2022 having grown its annual revenues by 23% to $73.5 million, while backlog and awarded orders improved 63% to $327.2 million as order patterns ‘normalized’ with the White House’s 2-year tariff exemption for solar panels acting as a ‘turning point’ in customer sentiment.
Its revenues were driven by annual increase of 97% in components and 11% in system solutions. During the reporting quarter, it increased the number of its Big Lead Assembly (BLA) customers by 4 EPC and developers to a total of 29.
It remains on track to complete certification for BLA 2.0 and high capacity plug-and-play harnesses in H2/2022 which the management expects to accelerate its growth with higher ASP per MW than its current products. Jeffrey Osborne of Cowen sees BLA 2.0 as a ‘further differentiator’ for the US company.
Gross profit improved 9% to $28.6 million, while adjusted EBITDA of $19.8 million declined from $20.6 million last year (see Q2/2021 YoY Revenues For Shoals Technologies Go Up).
“We have done a lot of work since the beginning of 2021 to position Shoals to succeed in the challenging and uncertain landscape faced by the solar industry in the first half of this year, and we think the strong performance of the company reflects that,” said CEO Jason Whitaker. “Now that many of those headwinds are abating, we see the potential for upside to our market expectations.”
Answering a question of Roth Capital Partners’ Philip Shen, Whitaker confirmed the company not seeing any direct impact to its business with the Uyghur Forced Labor Prevention Act (UFLPA) detentions as of now.
Management said increase in backlog and awarded orders reflect continued robust demand for its products and the numbers improved 8% sequentially when the numbers added up to $302 million, giving the company confidence to reiterate its annual 2022 guidance (see Shoals Technologies Releases Q1/2022 Results).