Shoals Technologies Group, Inc. · NASDAQ:SHLS

Shoals Technologies — Q1 2025 Earnings Presentation

22 slides from Shoals Technologies's earnings presentation, May 6, 2025

  1. Slide 1: Q1 Earnings Report

    Q1 EARNINGS REPORT May 2025

  2. Slide 2: Disclaimer: Forward-Looking Statements

    Disclaimer © 2025 Shoals Technologies Group Forward-Looking Statements This presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning

  3. Slide 3: Disclaimer: Non-GAAP Financial Information

    Disclaimer © 2025 Shoals Technologies Group Non-GAAP Financial Information This presentation includes Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share (“EPS”) and Net Debt, which are unaudited financial measures that e

  4. Slide 4: Agenda

    Agenda © 2025 Shoals Technologies Group O1 First Quarter Highlights O2 Current Events & Market Environment O3 U.S. Utility Scale Solar 4 O4 Growth Initiatives (International, CC&I, OEM, & BESS) Q1 Earnings Report O5 Financial Overview Shoals

  5. Slide 5: Quarterly Highlights

    Q1 2025 © 2025 Shoals Technologies Group QUARTERLY HIGHLIGHTS Above High End Within Q1 2025 of Q1 2025 Guidance Range Guidance Range $80.4M $12.8M Revenue Adjusted EBITDA1 5 5 Q1 Earnings Report Strategic initiatives driving $645.1M $1.13 Strong demand for Shoals key results, with $500M BLAO Book-to

  6. Slide 6: Current Events & Market Environment

    Q1 2025 © 2025 Shoals Technologies Group CURRENT EVENTS & MARKET ENVIRONMENT Tariffs Strategy Market • Limited direct exposure to • Committed to U.S. domestic • Increasing electricity demand tariffs in the near term manufacturing and load growth • High-quality products and • Energy sources are limit

  7. Slide 7: U.S. Utility Scale Solar

    Q1 2025 U.S. UTILITY © 2025 Shoals Technologies Group New state-of-the art SCALE SOLAR manufacturing facility “Customers’ 2025 construction calendars are full, and projects are moving forward as scheduled.” World class Cultivating customer CUSTOMER relationships with care team FOCUSED new EPCs 7 7 Q

  8. Slide 8: Growth Initiatives & New Markets

    International, CC&I, OEM, & BESS © 2025 Shoals Technologies Group GROWTH INITIATIVES & NEW MARKETS International CC&I OEM BESS • Signed a Memorandum of • Strong quoting activity • Continued partnership with • Three paths to market: (1) Understanding (MOU) with • Short sales cycles and First Solar, I

  9. Slide 9: First Quarter Financial Snapshot

    First Quarter Financial Snapshot © 2025 Shoals Technologies Group $ Change % Change $80.4M 35% $ Thousands Q1 2025 Q1 2024 YoY YoY (except for EPS) Revenue $ 80,361 $ 90,807 $ (10,446) (11.5)% Cost of Goods Sold 52,221 54,347 $ (2,126) (3.9) % Q1 Revenue Q1 Adjusted Gross Profit %1 Gross Profit 28,1

  10. Slide 10: Q1 Cash Flow

    Q1 Cash Flow © 2025 Shoals Technologies Group $15.6M Q1 Cash Flow From Operations $12.4M Q1 Free Cash Flow $3.2M Q1 Capital (Includes $9.5M & $2.5M of shrinkback remediation and legal costs, respectively) 10 10 Expenditures Q1 Earnings Report Shoals

  11. Slide 11: Update on 1500 Shoals Way Facility & Shoals Innovation Field

    Update on 1500 Shoals Way Facility & Shoals Innovation Field © 2025 Shoals Technologies Group Construction on our 1500 Shoals Way facility is progressing well We recently completed building our Shoals Innovation Field and on time. Planning to begin moving in during 2H 2025. adjacent to 1500 Shoals W

  12. Slide 12: Debt & Liquidity

    Debt & Liquidity © 2025 Shoals Technologies Group Q1 2024 Q4 2024 Q1 2025 Cash & Cash Equivalents $15.2 $23.5 $35.6 “Lowest Net Debt Total Long-term Debt $168.8 $141.8 $141.8 since becoming a Less: Cash & Cash Equivalents $15.2 $23.5 $35.6 public company.” Net Debt $153.6 $118.2 $106.1 Adjusted EBIT

  13. Slide 13: Backlog & Awarded Orders

    Backlog & Awarded Orders © 2025 Shoals Technologies Group $645M As of March 31, 2025 in backlog & awarded orders An increase of 1.6% QoQ With Approximately $500M 13 13 to deliver in FFQ Q1 Earnings Report $145M Beyond Q1 2026 Shoals

  14. Slide 14: Financial Outlook

    Financial Outlook © 2025 Shoals Technologies Group 2025 Revenue Full year 2025 expectations: $410-450M $410-450M $100-115M 2025 Full Yr 2025 Adj. EBITDA1 Revenue 2025 Adj. EBITDA1 $30-45M $8-12M $100-115M 2025 Full Yr 2025 Interest Operating Expense Cash Flow 14 14 $25-35M $100 – 110M $20-25M 2025 C

  15. Slide 15: Closing Thoughts

    Closing Thoughts © 2025 Shoals Technologies Group “The changes we Focusing on what we can control and influence: + Improving the resiliency of our supply chain are making and + Exceeding customer service requirements the team we have + Hitting delivery timelines in place positions + Providing except

  16. Slide 16: Shoals

    Shoals Q1 Earnings Report 16 © 2025 Shoals Technologies Group 16

  17. Slide 17: Appendix

    Appendix Shoals Q1 Earnings Report 17 © 2025 Shoals Technologies Group 17

  18. Slide 18: Non-GAAP Reconciliations, Adjusted Gross Profit

    Non-GAAP Reconciliations, Adjusted Gross Profit © 2025 Shoals Technologies Group Adjusted Gross Profit Three Months Ended March 31, 2025 2024 Revenue $ 80,361 $ 90,807 Cost of revenue 52,221 54,347 Gross profit $ 28,140 $ 36,460 Gross profit percentage 35.0 % 40.2 % Wire insulation shrinkback expens

  19. Slide 19: Non-GAAP Reconciliations, Adjusted EBITDA

    Non-GAAP Reconciliations, Adjusted EBITDA © 2025 Shoals Technologies Group Adjusted EBITDA Three Months Ended March 31, 2025 2024 Net income (loss) $ (282) $ 4,774 Interest expense 2,415 4,475 Interest income (118) (113) Income tax expense 2,297 2,448 Depreciation expense 1,391 1,106 Amortization of

  20. Slide 20: Non-GAAP Reconciliations, Adjusted Net Income

    Non-GAAP Reconciliations, Adjusted Net Income © 2025 Shoals Technologies Group Adjusted Net Income Three Months Ended March 31, 2025 2024 Net income (loss) $ (282) $ 4,774 Amortization of intangibles 1,896 1,896 Amortization / write-off of deferred financing costs 156 2,626 Equity-based compensation

  21. Slide 21: Non-GAAP Reconciliations, Adjusted Diluted EPS

    Non-GAAP Reconciliations, Adjusted Diluted EPS © 2025 Shoals Technologies Group Adjusted Diluted EPS Three Months Ended March 31, 2025 2024 Adjusted diluted weighted average shares outstanding 166,960 170,514 Adjusted Net Income $ 5,193 $ 12,621 Adjusted Diluted EPS $ 0.03 $ 0.07 21 21 Q1 Earnings R

  22. Slide 22: Thank You!

    © 2025 Shoals Technologies Group 22 22 Q1 Earnings Report THANK YOU! Please reach out to investors@shoals.com with any further questions. Shoals

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