Shoals Technologies Group, Inc. reported first‑quarter 2026 revenue of $140.6 million, a 74.9% increase from $80.4 million in the same period a year earlier. The jump was driven by robust demand in the company’s core solar and battery‑energy‑storage segments, while the data‑center line also contributed to the growth. The company’s gross margin fell to 29.2% from 35.0% year‑over‑year, a compression largely attributable to a $3.8 million increase in tariffs and right‑of‑use amortization linked to the new consolidated facility, higher material costs, and a shift toward lower‑margin product mix.
Shoals posted a net loss of $0.3 million for the quarter, matching the loss reported in Q1 2025. Adjusted EBITDA rose to $21.1 million from $12.8 million a year earlier, reflecting higher revenue and improved operating leverage despite the margin squeeze. The company’s adjusted diluted earnings per share of $0.07 beat the consensus estimate of $0.06, a $0.01 or 16% beat, driven by disciplined cost management and the continued expansion of high‑margin solar contracts.
Management raised its second‑quarter revenue guidance to $150 million–$170 million, up from the prior $140 million–$160 million range, and lifted full‑year revenue guidance to $600 million–$640 million, an increase from the previous $560 million–$600 million outlook. The guidance reflects confidence in sustained demand in the U.S. utility‑scale solar market and the growing battery‑energy‑storage and data‑center businesses, while acknowledging that margin improvement will take time as the new facility reaches full operational capacity.
CEO Brandon Moss emphasized that the company’s record backlog of $758 million and awarded orders of the same amount signal strong future revenue visibility. CFO Dominic Bardos noted that “Q2 will still have lower margins but improving in the back half,” underscoring the expectation of sequential margin recovery as the new facility’s consolidation completes and operational efficiencies are realized.
Market reaction to the results was positive, with analysts citing the revenue and EPS beats, the upward revision of guidance, and the record backlog as key drivers. Concerns about margin compression were tempered by management’s outlook for sequential improvement and the company’s strategic focus on high‑growth markets.
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