NASDAQ$SHLS

Shoals Technologies Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Shoals Technologies Group, Inc. reported record revenue and earnings, driven by strong demand for System Solutions and overall growth in the solar EBOS market.

Shoals Technologies Group reported an exceptional first quarter with record revenue of $105.1 million, a 55% increase year-over-year. System Solutions revenue nearly doubled, contributing to a significantly higher gross margin of 45.9%. Backlog and awarded orders reached a record $527.5 million, reflecting continued robust demand.

  • Revenue grew by 55% year-over-year, reaching $105.1 million.
  • System Solutions revenue increased by 95% compared to the prior year period.
  • Gross margin expanded by 720 bps to 45.9%.
  • Backlog and awarded orders increased by 75% year-over-year to $527.5 million.

Headline financials

Total Revenue

$105M

Previous: $68M+54.6%
EPS (adj)

$0.14

Previous: $0.05+180.0%
BLAO

$528M

No prior period
Adjusted EBITDA

$36.1M

No prior period
Adjusted Net Income

$23.8M

No prior period
Capital Expenditures

-$2M

Previous: -$882K-127.1%
Free Cash Flow

$12.3M

Previous: $1.76M+599.3%
Net Income

$14.3M

Previous: $2.64M+441.5%
Operating Income

$26.1M

Previous: $10M+160.8%
Gross Profit

$48.3M

Previous: $26.3M+83.5%
Cash & Equivalents

$6.46M

Previous: $2.53M+154.9%
Total Assets

$809M

Previous: $474M+70.4%
Stock-Based Comp

$7.52M

Previous: $3.83M+96.4%

Revenue & EPS history

Shoals · Revenue · Quarterly

$105M

Q1 2023+54.6%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company is raising its outlook for the year ending December 31, 2023.

Tailwinds

  • Revenue to be in the range of $480 million to $510 million
  • Adjusted EBITDA to be in the range of $145 million to $160 million
  • Adjusted net income to be in the range of $92 million to $102 million

Headwinds

  • Interest expense to be in the range of $22 to $26 million
  • Capital expenditures to be in the range of $8 to $12 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.2%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-3.6%

Avg return

30 days after

38%

8 / 21 earnings

Positive

+27.2%

Q1 2023

Best reaction

-22.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+6.8%+54.2%
Q4 2025-22.4%-40.1%-34.6%
Q3 2025-10.4%-12.2%-23.3%
Q1 2025+17.3%+35.4%+31.4%
Q4 2024-4.9%-32.4%-23.7%
Q3 2024-14.2%-21.0%-23.6%
Q2 2024-5.7%-6.2%+0.4%
Q1 2024-15.1%-21.6%-20.7%
Q4 2023-16.6%-15.5%-27.4%
Q3 2023-6.7%-14.2%-13.0%
Q2 2023-5.6%-11.7%-24.2%
Q1 2023+27.2%+27.0%+27.2%
Q4 2022+3.7%+5.6%-8.0%
Q3 2022+20.2%+33.9%+19.0%
Q2 2022+0.3%-2.9%-3.2%
Q1 2022+6.7%+20.1%+50.9%
Q4 2021+10.6%+12.4%-16.5%
Q3 2021-7.3%+6.6%-18.0%
Q2 2021-2.4%-0.1%-7.3%
Q1 2021-8.1%-10.3%-12.9%
Q4 2020+9.6%-10.7%-2.4%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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