SHLS

Shoals Technologies Group, Inc.

Recommendation Details

PortfolioEnergy

DateNov 12, 2026

ForecastQ Daily Probabilities

40.0%

62.5%

42.1%

Company Description

Shoals Technologies Group, Inc. provides Electrical Balance of System (EBOS) solutions designed for solar power projects throughout the United States. The company manufactures a wide array of EBOS components, including various cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, specialized transition enclosures, splice boxes, wire management solutions, and IV curve benchmarking devices. Additionally, Shoals offers EV Charging solutions for both public and fleet electric vehicle charging infrastructure, alongside its core EBOS systems. Its primary customers are engineering, procurement, and construction (EPC) firms responsible for developing solar energy installations and deploying electric vehicle charging stations. Shoals Technologies Group, Inc. was founded in 1996 and maintains its headquarters in Portland, Tennessee.

Recent News & Events

Transformative all-stock merger with ARRAY Technologies plus a strong Q3 beat and raised guidance create a positive near-term setup, though the deal now hinges on shareholder/regulatory approval and integration execution.

M&A Agreement

Shoals to merge with ARRAY Technologies in all-stock deal

Shoals agreed to an all-stock merger with ARRAY Technologies (ARRAY as legal acquirer), with Shoals holders receiving 1.6931 ARRAY shares per SHLS share and owning ~65% of the combined company. The deal creates an integrated solar/BESS infrastructure platform with pro forma 2027 revenue of $2.2-2.4B and >$100M targeted synergies; closing targeted Q1 2027 pending shareholder and regulatory approvals. Near-term impact is positive given the strategic premium/scale narrative, but the stock now trades partly on deal-arbitrage dynamics and approval risk.

Shoals Investor Relations (Press Release)

Earnings Report

Q3 2026 results beat estimates; full-year outlook raised

Shoals reported Q3 revenue of $195.3M (+43.8% YoY) versus ~$162M consensus and adjusted EPS of $0.14 versus $0.12 expected, with adjusted EBITDA of $39.8M. Management raised FY2026 revenue guidance to $665-685M and guided Q4 revenue of $165-185M, signaling demand momentum; the beat-and-raise is a clear positive near-term catalyst reinforcing confidence in the business.

Shoals Investor Relations (Press Release)

Backlog/Order Growth

Backlog and awarded orders rise 9.8% YoY to $791.7M

Backlog and awarded orders reached $791.7M as of Sept 30, 2026, up 9.8% YoY (down 1.2% sequentially), reflecting consistent demand and growth in emerging battery energy storage markets. The YoY growth supports the demand narrative underpinning the raised outlook, a modest positive for sentiment though the sequential dip tempers enthusiasm.

Shoals Investor Relations (Press Release)

Margin Pressure / Operational Issues

Gross margin falls to 31.9% on facility ramp and quality costs

Gross margin declined to 31.9% from 37.0% YoY, driven by inefficiencies from ramping the new manufacturing facility, unfavorable product mix, and costs to address product quality matters including rework and corrective actions. The margin compression is a negative offset to the strong revenue beat and could weigh on sentiment regarding execution and profitability.

Shoals Investor Relations (Press Release)

SHLS

SHLS

Company Information

Recommendation Details

Company Description

Recent News & Events

Shoals to merge with ARRAY Technologies in all-stock deal

Q3 2026 results beat estimates; full-year outlook raised

Backlog and awarded orders rise 9.8% YoY to $791.7M

Gross margin falls to 31.9% on facility ramp and quality costs