Shoals Technologies Group reported third‑quarter 2025 revenue of $135.8 million, a 32.9% increase from the $103.4 million earned in the same period last year. Gross margin rose to 37.0%, up from 24.8% in Q3 2024, while operating profit reached $18.7 million and adjusted EBITDA was $32.0 million. The company’s reported earnings per share were $0.07, below the consensus estimate of $0.12, but adjusted EPS of $0.12 matched the estimate.
Backlog and awarded orders climbed to $720.9 million, a 21.0% year‑over‑year increase and a 7.4% sequential rise. The book‑to‑bill ratio of 1.4 indicates sustained demand. Revenue from the domestic utility‑scale solar segment grew 28%, while battery energy storage and data‑center infrastructure contributed 15% of total revenue, reflecting the company’s expansion into high‑growth markets.
Shoals raised its full‑year 2025 revenue outlook to $467.0 million–$477.0 million and provided fourth‑quarter guidance of $112.0 million–$118.0 million in revenue, $30.0 million–$34.0 million in adjusted EBITDA, and $0.10–$0.12 in adjusted EPS. The company reiterated confidence in continued growth driven by strong order flow.
The margin improvement was largely due to the elimination of a $13.3 million wire‑insulation shrinkback warranty expense that impacted Q3 2024. Operating expenses increased, with general and administrative costs rising to $29.4 million from $18.7 million in the prior year, driven by higher legal fees related to ongoing litigation and increased compensation expenses. The company continues to monitor legal and warranty liabilities that could affect future profitability.
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