NASDAQ$SHLS

Shoals Technologies Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Shoals reported record quarterly revenue and earnings, driven by increased demand for system solutions.

Shoals Technologies Group, Inc. announced strong second-quarter results, with record revenue of $119.2 million, a 62% increase year-over-year. System Solutions revenue grew by 80%, representing 86% of total revenue. The company also signed a landmark 10-gigawatt master supply agreement with Blattner Company, and backlog and awarded orders increased by 67% to $546.1 million.

  • Revenue grew by 62% year-over-year to $119.2 million.
  • System Solutions revenue increased by 80% year-over-year, accounting for 86% of total revenue.
  • Gross margin expanded by 350 bps year-over-year to 42.4%.
  • Backlog and awarded orders increased by 67% year-over-year to $546.1 million.

Headline financials

Total Revenue

$119M

Previous: $73.5M+62.2%
EPS (adj)

$0.14

Previous: $0.07+100.0%
Capital Expenditures

-$4.38M

Previous: -$2.15M-103.7%
Free Cash Flow

$14.5M

Previous: $2.25M+545.7%
Net Income

$18.9M

Previous: $4.4M+329.9%
Operating Income

$31.6M

Previous: $13M+143.7%
Gross Profit

$50.5M

Previous: $28.6M+76.7%
Cash & Equivalents

$5.86M

Previous: $10.1M-41.9%
Total Assets

$819M

Previous: $497M+64.9%
Stock-Based Comp

$4.45M

Previous: $4.07M+9.3%

Revenue & EPS history

Shoals · Revenue · Quarterly

$119M

Q2 2023+62.2%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company is maintaining 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 Q2 2023

Historical avgQ2 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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