Shoals Technologies Turned Profitable In Q4/2022

Shoals Reports 97% Annual Revenue Improvement In Q4/2022 Citing Higher Sales Volumes & Growing Demand For Solar EBOS

Shoals Technologies Turned Profitable In Q4/2022

Shoals’ annual revenues for 2022 had 78% share coming from system solutions business, according to the management. (Source: Shoals Technologies Group, Inc)

  • Shoals has reported an increase of 97% in its annual revenues for Q4/2022 led by system solutions business
  • Claims its EBOS products were used on more than 50% of all US based solar projects installed in 2022
  • Increased backlog and awarded orders volume by 43% annually to a total of $428.6 million till December 31, 2022
  • Expects to report $470.0 million to $510.0 million revenues in full year 2023

US based electrical balance of system (EBOS) solutions provider Shoals Technologies Group has reported increased annual revenues, gross profit and achieved profitability in Q4/2022 thanks to higher sales volumes and grew its backlog and awarded orders volume by 43%.

Annual revenues of $94.7 million for the reporting quarter went up 97% as the company says it experienced greater demand for solar EBOS, combine-as-you-go system solutions and its EV products. System solutions revenues rose 150% annually, representing 86% of the revenues from 68% in the previous year (see 2021 Financial Results Of Shoals Technologies).

Gross profit for Q4 swelled 154% to $40.4 million while adjusted EBITDA was $30.1 million. Shoals was able to report net income of $118.3 million, whereas it had been in the red with -$2.2 million net loss a year back.

During full year 2022, its annual revenues rose over 53% to $327 million, and adjusted EBITDA by 47% to $93 million. Company’s gross profit was reported at $131 million reflecting an annual increase of around 58%. System solutions business division brought in 78% of total annual revenues as solar components contributed another 22%.

Management claims its EBOS products were used on more than 50% of all US based solar projects installed in 2022 referring to IHS Markit estimate of 16.4 GW utility scale solar deployed in the country last year.

Financial analysts from Cowen commented on the results, “Shoals exited the year on solid footing, posting record revenue, gross profit, net income, adjusted EBITDA, and adjusted net income, not just on just for 4Q22, but for the year. We were particularly impressed with the company’s gross margin performance of 42.7%, which benefited from greater fixed cost leverage coupled with higher volumes and a greater mix of Combine-as-you-go revenue.”

Its backlog and awarded orders volume expanded by 43% annually to a total of $428.6 million till December 31, 2022. On a call with analysts to discuss annual results, CFO Dominic Bardos said this was a drop of 9% sequentially due to slower conversion of pipeline projects into awarded orders and higher-than-expected shipment volume in the reporting quarter.

Shoals’ CEO Jason Whitaker said in the initial few weeks of 2023 its backlog and awarded orders have hit ‘record levels yet again’ with new customers added to its list. The Cowen analysts stated, “Importantly, in January customer activity picked up markedly, driving backlog and awarded orders to a record high. This implies that the current backlog is in excess of $471.2mn, which was the company’s previous record high, set last quarter.”


Management forecasts between $470.0 million to $510.0 million revenues in full year 2023, while guiding the adjusted EBITDA within $140.0 million to $155.0 million. Adjusted net income is expected to range between $87 million to $97 million, and capital expenditures are anticipated as $8.0 million to $12.0 million. It also sees interest expense for the year between $22.0 million to $26.0 million.

Shoals expects 60% of its revenues, adjusted EBITDA and adjusted net income for 2023 to be generated in the 2nd half, with H1/2023 bringing in around 40%.

The management also announced the appointment of President Jeffrey Tolnar to the position of the company’s interim CEO once CEO Whitaker leaves. Search for a permanent CEO is ongoing as Whitaker leaves the company till mid-March 2023 owing to health reasons.

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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