Shoals Technologies Group (SHLS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $163.4 million, up 47.4% year-over-year, driven by strong demand and market share gains, and within guidance range.

• Adjusted EBITDA was $31.6 million, up 27.9% year-over-year, and Adjusted Net Income was $19.7 million, with Adjusted Diluted EPS of $0.12.

• Net income for Q2 2026 was $12.1 million, down 12.4% from the prior year due to higher costs and litigation expenses.

• Backlog and awarded orders (BLAO) hit a record $801.4 million, up 19.4% year-over-year, with $700 million scheduled for shipment through Q2 2027.

• Completed move to a new facility, focusing on productivity improvements and expansion into high-growth markets.

Financial highlights

• Revenue: $163.4 million, up 47.4% year-over-year; gross profit: $49.5 million; gross margin declined to 30.3% from 37.2% due to operational inefficiencies and product mix.

• Adjusted EBITDA: $31.6 million, up from $24.7 million last year; Adjusted Net Income: $19.7 million; Adjusted Diluted EPS: $0.12.

• Operating income: $18.7 million, up 17% year-over-year; operating margin for Q2 2026 was 11.5%.

• SG&A: $28.5 million, up year-over-year, mainly due to payroll, compensation, and increased headcount.

• Cash and cash equivalents at quarter-end were $15.7 million; net debt to adjusted EBITDA: 1.6x.

Outlook and guidance

• Q3 2026 revenue expected between $150 million and $170 million, with Adjusted EBITDA between $32 million and $37 million.

• Full-year 2026 revenue guidance reaffirmed at $600 million to $640 million, with Adjusted EBITDA at $118 million to $132 million.

• Full-year cash flow from operations projected at $65 million to $85 million; capital expenditures at $20 million to $30 million; interest expense at $8 million to $12 million.

• Operating cash flow for 2026 expected to increase 340% year-over-year at midpoint; capex forecasted to decline 24% at midpoint.

• Management notes ongoing risks from trade policy, tariffs, supply chain volatility, inflation, and regulatory changes.