Shoals Technologies reports record Q2 revenue despite components slide

Shoals has felt the advantages of its IPO earlier this year as it continues to grow its customers base. Image: Shoals Technologies

US solar balance of systems (BOS) solutions provider Shoals Technology Group reported a record Q2 revenue increase of 38% on last year, bringing the total to US$59.7 million.

Its system solutions grew 62% year-on-year and contributed an increased share of last quarter’s revenue compared with the same period the year before. However revenue from its components business slipped owing to changes to the timing of certain customer orders, Shoals said, indicative of a trend for utility-scale solar projects being impacted by component price increases elsewhere.

Speaking to analysts after the results disclosure yesterday, Shoals CEO Jason Whittaker said that while the company had seen “some project movement” on a quarter-to-quarter basis, this was not expected to be material moving forward and Shoals had yet to see any projects cancelling.

Shoals said growth in its system solutions revenue is down to strong demand for its combine-as-you-go system and system solutions, sales of which represented 86% of total revenue last quarter, compared with 73% last year.

In turn, gross profit increased to US$26.2 million, up 56% from US$16.8 million in Q2 2020. Gross profit as a percentage of revenue increased from 38.8% to 43.8%, driven by increased revenue, purchasing efficiencies, improved material planning, reduces logistic costs, product enhancements and other manufacturing efficiencies, according to Shoals.

Income from its operations was US$14.1 million compared with US$5.4 million during the same period in the prior year, an increase of 159%, while net income was US$9.2 million, up from US$5.2 million a year earlier.

Adjusted earnings before tax, interest, depreciation and amortisation (EBITDA) in Q2 increased 34% to US$20.6 million, compared to US$15.4 million last year.

The Portland, Tennessee-based company has also reaffirmed its growth outlook for the remainder of the year. “The continued strength in our results and robust customer demand support our growth outlook,” said Jason Whitaker, CEO of Shoals.

In Q1 2021, Shoals revenue hit new highs of US$181 million at the end of March 2021, driven by strong demand for its products in the US, while an IPO earlier this year has seen the company celebrate a “record year” in which revenues grew 21%.

“Since going public in January, we have more than doubled the number of BLA customers and have an additional 13 customers in transition to our system, including two international customers,” said Whitaker.

Shoals reaffirmed its full year guidance for revenues to be within the US$230 – 240 million range, equivalent to a 31 – 37% increase year-on-year, while earnings is expected to amount to US$75 – 80 million.

Read Next

August 16, 2022
US solar product manufacturer Shoals Technologies Group saw record revenue and gross profit in the second quarter of 2022 due to strong demand for its combine-as-you-go system and a large number of new customers buying up components.
August 15, 2022
German energy company RWE’s onshore renewables business has undergone a dramatic change in fortunes on 2021, with 1H 2022 seeing the unit return to profitability following a poor H1 2021 performance, while during the first half of the year the company invested €2 billion (US$2.04 billion) in the expansion of its green portfolio.
August 12, 2022
ACWA Power posted strong H1 2022 results as it continues to divert its portfolio to renewables and low-carbon technologies.
August 11, 2022
US solar tracker supplier Array Technologies has bounced back from a difficult 2021 by posting strong Q2 2022 financial results mainly due to its acquisition of STI Norland, while upcoming tailwinds could buoy its performance further still moving through the year.
August 10, 2022
US solar tracker manufacturer FTC Solar has cut its net losses compared with last quarter and Q2 2021 but has seen its revenue collapse, blaming a hostile solar environment in the US that has seen project delays and cancellations, which it said it now hoped was coming to an end.
August 9, 2022
The passing of the Inflation Reduction Act (IRA) could bolster opportunities for Clearway Energies, according to Roth Capital Partners.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event