Shoals posts record revenue, raises guidance thanks to ‘improving solar market conditions’

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Shoals recently secured a 1GWdc contract to supply its Big Lead Assembly (pictured) and storage solutions for a US solar-plus-storage project. Image: Shoals Technologies.

PV balance of system (BOS) solutions provider Shoals Technologies benefited from improving solar market conditions during Q3 as it posted record quarterly revenue and raised its 2022 guidance.

Jason Whitaker, CEO at the US company, said a two-year tariff exemption for Chinese solar panels, the Inflation Reduction Act and higher energy prices “have given our customers and end-users the confidence to reinitiate previously delayed projects, make multi-year commitments to invest in solar generation and prioritise product availability and performance over price”.

Shoals’ Q3 revenues were US$90.8 million, a quarterly record for the company and a 52% increase year-on-year, thanks to higher sales volumes due to increased demand for solar BOS equipment. Adjusted EBITDA jumped 57% to US$26.6 million.

The company’s backlog and awarded orders in Q3 were up 74% year-on-year to a record US$471.2 million.

Having formed a partnership in January with PV project developer Luminace to pursue distributed renewables and electric vehicle charging solutions across the US, Shoals has since revealed it would double its BOS manufacturing capacity with a new US facility, allowing it to optimise manufacturing processes and bring new innovations to market.

The company earlier this month secured a 1GWdc contract to supply its Big Lead Assembly and storage solutions for a plant that the company said will be one of the largest solar-plus-storage projects in the US when complete.

Whitaker said that because of improving solar market conditions and Shoals’ recent performance, management has raised the low end of its 2022 outlook.

Revenue for the year is expected to be US$310-325 million, up from the previous forecast of US$300-325 million, while the new adjusted EBITDA guide is US$80-86 million, compared with US$77-86 million previously.

6 June 2023
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