Shoals Technologies’ Q3 2025 revenue rose 32.9% YoY to $135.8 million, supported by strong demand and higher project volume
Gross profit doubled to $50.3 million with a 37% margin, aided by the absence of prior year warranty costs
Backlog and awarded orders reached $720.9 million, up 21% YoY, signaling continued business momentum into 2026
The company has raised FY2025 revenue and adjusted EBITDA guidance amid expanding international pipeline
Shoals Technologies Group, the US-based electrical balance of system (EBOS) supplier, says strong demand and an increase in project volume boosted its Q3 2025 revenues by 32.9% year-on-year (YoY) to $135.8 million, at the higher end of its guidance.
It also reported a positive net income of $11.9 million during the quarter, down from $13.9 million in the previous quarter. In Q3 2024, its net loss totaled $0.3 million (see Shoals Reports Net Loss For Q3 2024 As Project Delays Impact Results). Adjusted EBITDA of $32 million rose from $24.5 million in the prior-year period.
Gross profit totaled $50.3 million, up from $25.4 million a year earlier, with margins improving to 37% from 24.8%. Last year’s results included a one-time $13.3 million insulation shrinkback warranty expense, which didn’t recur this quarter.
Backlog and Awarded Orders
Shoals’ backlog and awarded orders amounted to $720.9 million as of September 30, 2025, representing a 21% YoY and 7.4 % quarter-on-quarter (QoQ) increase. International markets comprise more than 11.5% of the total orders with a book-to-bill ratio of 1:4. Of the total, orders worth $575 million are to be shipped within the next 4 quarters, with the remaining $146.1 million after Q3 2026. Analysts at ROTH believe this suggests an over 20% YoY revenue growth in 2026.
On a QoQ basis, the company’s backlog increased by 14% to $298 million, while awarded orders increased by 3% to $423 million.
Expansion and Diversification
“We are executing our strategic plan of accelerating growth within our core domestic utility scale solar market and expanding our offering into attractive high growth applications. We remain encouraged by the strong customer reception of new products and capabilities, which allows us to continue to both grow share in key segments and diversify our business into new end markets,” said Brandon Moss, CEO of Shoals.
Beyond the US utility-scale market, the company sees growth opportunities in international, community, commercial & industrial (CC&I), OEM, and BESS businesses. Its international pipeline exceeds 20 GW with projects in Latin America, EMEA, and Asia Pacific.
Outlook
Given the increase in backlog and awarded orders, the company has revised its fiscal year 2025 revenue guidance to $467 million to $477 million, while adjusted EBITDA is expected to be between $105 million and $110 million. This compares to its previous guidance of $450 million to $470 million for revenues and $100 million to $115 million for adjusted EBITDA (see Shoals Technologies Exceeds Revenue Guidance In Q2 2025).
Shoals projects its Q4 2025 revenues to be within $140 million to $150 million, and adjusted EBITDA between $35 million and $40 million.
Referring to the policy dynamics in the US, Moss added, “While public policy has brought some complexity and volatility to the financial markets this year, the massive increase in energy consumption we’re experiencing is driving an enormous long-term investment cycle in new power generation. The underlying fundamentals of our markets have steadily improved this year, and customers remain very constructive on new projects moving forward, as seen in our record quoting activity.”
