Shoals Technologies Group, Inc. · NASDAQ:SHLS
Shoals Technologies — Q4 2024 Earnings Presentation
31 slides from Shoals Technologies's earnings presentation, Feb 25, 2025
Slide 1: Q4 Earnings Report
Q4 EARNINGS REPORT FEB 2025
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements © 2025 Shoals Technologies Group 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
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
Slide 4: Agenda
© 2025 Shoals Technologies Group Agenda O1 Fourth Quarter 2024 Highlights O2 Full Year 2024 Highlights O3 Current Events & Market Environment O4 Strategic Framework Update O5 Ongoing Litigation O6 Financial Overview 4 O7 Outlook & Closing Thoughts 2024 Q4 Report Shoals
Slide 5: Q4 Quarterly Highlights
Q4 Quarterly Highlights © 2025 Shoals Technologies Group $107M Q4 Revenue 37.6% Q4 Gross Profit Percentage Finished the year at “Driven by competitive the high end of the environment & product mix, expected range slightly offset by productivity improvement initiatives” $145M $26.4M 5 2024 Q4 Report
Slide 6: 2024 Full Year Highlights
2024 Highlights © 2025 Shoals Technologies Group FULL YEAR HIGHLIGHTS “We enter 2025 + Diversified our customer list in a position of commercial, + Introduced new products operational, and + Entered new markets like CC&I and BESS financial strength” + Won projects in international markets 6 + Improv
Slide 7: 2024 Highlights: New Product Innovation
2024 Highlights © 2025 Shoals Technologies Group FULL YEAR HIGHLIGHTS New Product Innovation, specifically developed to solve real business issues: + Adapt to construction limitations + Lower costs + Navigate Bottlenecks + Work better with energy limitations + Improved speed of + Lower O&M costs for
Slide 8: 2024 Highlights: Full Year Revenue
2024 Highlights © 2025 Shoals Technologies Group FULL YEAR $399M Full Year Revenue HIGHLIGHTS Shoals used the industry softness to improve internal operations and commercial processes 39.0% Full Year Adjusted Gross Profit Percentage1 8 Driven by: + Industry-wide volume decrease + Product mix 2024 Q4
Slide 9: Current Events & Market Environment
Current Events & Market Environment: 2025 Shoals Technologies Group THE CURRENT MARKET We are navigating the political and regulatory environment in real-time. © 2024 © CUSTOMERS ARE SAYING: IN RESPONSE, SHOALS IS: + They remain cautious, but + Staying flexible to + Investing in automation and posit
Slide 10: Strategic Framework Update
Shoals 2024 Q4 Report 10 © 2025 Shoals Technologies Group
Slide 11: Growth & Diversification Strategy: Market Penetration
Market Penetration Market Penetration © 2025 Shoals Technologies Group CUSTOMER DIVERSITY “…more than 10% of our 2024 Growth & Diversification Strategy revenue coming from customers $2.5B OVER who purchased less than a million 11 dollars combined in 2023.” 2024 Q4 Report IN QUOTES LAST YEAR Shoals
Slide 12: Growth & Diversification Strategy: Market Development
Market Development Market Development © 2025 Shoals Technologies Group INTERNATIONAL Approximately $86M BLAO in 2024 Growth & Diversification Strategy $8M OVER Australia & 12 Chile 2024 Q4 Report NEW PROJECTS AWARDED IN Q4 2024 Shoals
Slide 13: Growth & Diversification Strategy: Product Development, CC&I
Product Development Product Development © 2025 Shoals Technologies Group Commercial, Community, and Industrial (CC&I) Growth & Diversification Strategy $10M Almost “We quoted almost $40 13 million dollars of projects in 2024 and recognized almost $10 million dollars 2024 Q4 Report in revenue.” ALREA
Slide 14: Growth & Diversification Strategy: OEM
Product Development Product Development © 2025 Shoals Technologies Group ORIGINAL EQUIPMENT MANUFACTURER (OEM) Growth & Diversification Strategy WELL- “We’ll report commercial wins to you as they come in 14 POSITIONED 2025.” 2024 Q4 Report through alignment with the leading module manufacturer in th
Slide 15: Growth & Diversification Strategy: BESS
Diversification Diversification © 2025 Shoals Technologies Group A NEW OFFERING: BATTERY ENERGY STORAGE SYSTEMS (BESS) Moving forward, Growth & Diversification Strategy Shoals has: + Hired an industry veteran to lead commercial efforts. $30M OVER + This is a space to watch at Shoals, so stay tuned f
Slide 16: Litigation Update
Litigation © 2025 Shoals Technologies Group Litigation Update January 9 January 15 February 11 A new case citing two new The ITC commission Appealed the patents, ‘375 and ‘376 to reversed the ALJ's initial decision with the provide protection against determination. federal court of alternative desig
Slide 17: Positioned for 2025
© 2025 Shoals Technologies Group POSITIONED FOR 2O25 + A solid order book + A more diversified customer list + An expanded offering 17 + A new, state of the art factory + An energized and experienced leadership team. 2024 Q4 Report “The fundamentals of our business remain sound. Shoals I'm very conf
Slide 18: Fourth Quarter Financial Snapshot
Fourth Quarter Financial Snapshot © 2025 Shoals Technologies Group $ Change % Change $107.0M 37.6% $ Thousands Q4 2024 Q4 2023 YoY YoY (except for EPS) Revenue $106,987 $130,436 ($23,449) (18.0%) Cost of Goods Sold 66,803 75,056 (8,253) (11.0%) Q4 Revenue Q4 Adjusted Gross Profit % 1 Gross Profit $4
Slide 19: Q4 Cash Flow
Q4 Cash Flow © 2025 Shoals Technologies Group $14.0M Q4 Cash Flow From Operations $1.5M 19 Q4 Capital Expenditures 2024 Q4 Report $4M of 2024 CAPEX deferred to 2025 Shoals
Slide 20: Debt & Liquidity
Debt & Liquidity © 2025 Shoals Technologies Group Q4 2023 Q3 2024 Q4 2024 Cash & Cash Equivalents $22.7 $11.1 $23.5 “Optimizing our balance Term Loan Facility $143.8 $0.0 $0.0 sheet is crucial to Revolving Credit Facility $40.0 $141.8 $141.8 maximizing financial Total Long-term Debt $183.8 $141.8 $1
Slide 21: Backlog & Awarded Orders
Backlog & Awarded Orders © 2025 Shoals Technologies Group $634.7M As of December 31, 2024 in backlog & awarded orders an increase of 6.5% QoQ 21 With $439.3M 2024 Q4 Report to deliver in FFQ $195.4M beyond 2025 Shoals
Slide 22: Volatility and Projections
Volatility and Projections © 2025 Shoals Technologies Group DELAYS BOOK & TURN BUSINESS $130M of expected Q4 revenue pushed out 10-20% of the full year (~25% of 2024 plan) Remains consistent year to year 22 For 2025, we are assuming reduced We expect our book and turn YoY volatility, but not a retur
Slide 23: Financial Outlook
Financial Outlook © 2025 Shoals Technologies Group 2025 Revenue Full year 2025 expectations: $410-450M $410-450M $30-45M 2025 Full Yr 2025 Full Yr Revenue Operating Cash Flow 2025 Adj. EBITDA $25-35M $8-12M $100-115M 2025 Capital 2025 Interest Expenditures Expense 23 $70 – 80M $10-15M 2024 Q4 Report
Slide 24: Closing Thoughts
Closing Thoughts © 2025 Shoals Technologies Group “We believe we We are: + Hearing exceptional feedback from customers are turning the + Seeing promising early results from meaningful changes put in place corner into a + Focused on protecting our core business year with + Expanding our geographic re
Slide 25: Q&A
Q&A Shoals 2024 Q4 Report 25 © 2025 Shoals Technologies Group
Slide 26: Appendix
Appendix Shoals 2024 Q4 Report 26 © 2025 Shoals Technologies Group
Slide 27: Non-GAAP Reconciliations, Adjusted Gross Profit
Non-GAAP Reconciliations, Adjusted Gross Profit © 2025 Shoals Technologies Group Adjusted Gross Profit Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenue $ 106,987 $ 130,436 $ 399,208 $ 488,939 Cost of revenue 66,803 75,056 257,191 320,635 Gross profit $ 40,184 $ 55,
Slide 28: Non-GAAP Reconciliations, Adjusted EBITDA
Non-GAAP Reconciliations, Adjusted EBITDA © 2025 Shoals Technologies Group Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income $ 7,818 $ 16,582 $ 24,127 $ 42,661 Interest expense 3,314 5,700 13,827 24,100 Interest income (518) — (518) — Income tax e
Slide 29: Non-GAAP Reconciliations, Adjusted Net Income
Non-GAAP Reconciliations, Adjusted Net Income © 2025 Shoals Technologies Group Adjusted Net Income Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income attributable to Shoals Technologies Group, Inc. $ 7,818 $ 16,582 $ 24,127 $ 39,974 Net income impact from assumed
Slide 30: Non-GAAP Reconciliations, Adjusted Diluted EPS
Non-GAAP Reconciliations, Adjusted Diluted EPS © 2025 Shoals Technologies Group Adjusted Diluted EPS Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Diluted weighted average shares of Class A common stock outstanding, excluding Class B common stock 166,830 170,287 168,725
Slide 31: Thank You!
© 2025 Shoals Technologies Group 31 2024 Q4 Report Thank You! Reach out to Investors@Shoals.com Shoals with any further questions
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