-- Record Quarterly Revenue of $148.3 million --

-- Quarterly Operating Profit of $17.4 million --

-- Quarterly Net Income of $8.1 million --

-- Quarterly Adjusted EBITDA(1) of $30.3 million --

-- Record Backlog and Awarded Orders of $747.6 million --

-- Provides First Quarter and Full Year 2026 Outlook --

PORTLAND, Tenn., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. ("Shoals" or the "Company") (Nasdaq: SHLS), a leading provider of electrical balance of system ("EBOS") solutions and components, including battery energy storage solutions ("BESS"), and Original Equipment Manufacturer ("OEM") components for the global energy transition market, today announced results for its fourth quarter ended December 31, 2025.

"2025 was an exceptional year for Shoals. While the rapidly shifting political climate brought some volatility, the massive increase in demand for energy through the rest of the decade supports strong fundamentals for our business. We are beginning to see tangible results of executing our strategic plan; expanding our product portfolio, defending share within our core markets, and diversifying our presence into new, attractive market segments. We've made great progress and look forward to building on the momentum," said Brandon Moss, CEO of Shoals.

Mr. Moss added, "I'm pleased with our performance in the fourth quarter, delivering more than $148 million of revenue, an increase of 39% from the prior year. The commercial team drove continued strength in bookings, resulting in record backlog and awarded orders, or BLAO, of $747.6 million, an increase of 18% from year-end 2024, supporting the growth we see ahead. Additionally, we closed out the period with more than $67 million of BLAO attributed to our BESS offering, an exciting result."

______________________

(1) Non-GAAP financial measures referenced in this release are used by management to assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measures.

"We enter 2026 with a strong order book and resilient underlying market demand. The strategic investments, portfolio expansion, and process improvements have positioned us exceptionally well for the coming year and beyond. Shoals has never been more diversified, and enters the year in an unprecedented competitive position. Leveraging its deep experience in Utility Solar, Shoals is growing into a multi-category leader across several market segments, which we believe will drive continued shareholder value creation. I'm proud of what we've achieved, but even more excited about what's ahead," concluded Mr. Moss.

Fourth Quarter 2025 Financial Results

Revenue increased 39%, to $148.3 million, compared to $107.0 million for the prior-year fourth quarter, driven by increased sales volumes from higher demand of products to meet utility scale solar project demands, consistent with quarter over quarter comparisons in 2025 as compared to 2024.

Gross profit increased to $46.9 million, compared to $40.2 million in the prior-year fourth quarter. Gross profit as a percentage of revenue was 31.6% compared to 37.6% in the prior-year period. The decline from the prior-year period gross profit as a percentage of revenue was the results of increased material costs and $3.3 million in duties and tariffs in Q4 2025 that were not incurred in 2024. In addition, the Company commenced its lease for a new operations facility in Portland, Tennessee, adding $1.5 million in right-of-use asset amortization in the current period as compared to the prior period.

General and administrative expenses were $27.3 million, compared to $21.5 million during the same period in the prior year. Within the balance, there was an increase in professional services related to wire insulation shrinkback, intellectual property, and securities litigation of $7.9 million, offset by $1.6 million in decreases in payroll and employee expenses.

Income from operations was $17.4 million, compared to $16.5 million during the prior-year period.

Net income and net income attributable to Shoals Technologies Group, Inc. were $8.1 million compared to net income and net income attributable to Shoals Technologies Group, Inc of $7.8 million during the prior-year period.

Basic and diluted net income per share was $0.05 compared to basic and diluted net income per share of $0.05 in the prior-year period.

Adjusted EBITDA(1) increased to $30.3 million compared to $26.4 million for the prior-year period.

Adjusted gross profit(1) for fourth quarter of 2025 was $46.9 million, reflecting a 31.6% adjusted gross profit percentage(1) , compared to $40.2 million and 37.6% in the prior year. There were no adjustments made to gross profit in the fourth quarters of 2025 or 2024.

Adjusted net income(1) was $17.5 million compared to $14.1 million during the same period in the prior year. Adjusted diluted earnings per share(1) was $0.10 compared to $0.08 in the prior-year period.

Full Year 2025 Financial Results

Revenue increased 19%, to $475.3 million, compared to $399.2 million for the prior-year, driven by increased sales volumes from higher demand of products to meet utility scale solar project demands.

Gross profit was $166.5 million, compared to $142.0 million in the prior-year. Gross profit as a percentage of revenue decreased to 35.0% from 35.6% in the prior-year. This decrease in gross profit as a percentage of revenue was due to increases in tariffs, material costs, non-recurring operational charges, competitive dynamics, volume discounts, and product mix in our key markets. These decreases were offset by a reduced amount of wire insulation shrinkback expenses in the current year as compared to the prior year.

General and administrative expenses were $101.5 million, compared to $82.3 million during the prior year. General and administrative expenses increased primarily due to higher legal and professional costs of $15.7 million. These include expenses related to intellectual property litigation that rose from $6.0 million in 2024 to $9.1 million in 2025, wire--insulation shrinkback litigation increased from $7.2 million to $18.3 million, and shareholder litigation increased from $0.9 million to $2.5 million. Payroll and employee--related expenses also grew by $1.3 million.

Income from operations was $56.4 million, compared to $51.2 million during the prior year.

Net income was $33.6 million compared to net income of $24.1 million during the prior year.

Net income and net income attributable to Shoals Technologies Group, Inc. was $33.6 million compared to $24.1 million during the prior year.

Basic and diluted net income per share was $0.20 compared to basic and diluted net income per share of $0.14 in the prior-year period.

Adjusted EBITDA(1) was $99.5 million compared to $99.1 million for the prior-year.

Adjusted gross profit(1) for full year 2025 was $166.5 million, reflecting a 35.0% adjusted gross profit percentage(1) , compared to $155.8 million and 39.0% in the prior year.

Adjusted net income(1) increased 3% to $60.6 million compared to $58.5 million during the prior year. Adjusted diluted earnings per share(1) was $0.36 compared to $0.35 in the prior-year.

Backlog and Awarded Orders

The Company's backlog and awarded orders as of December 31, 2025 were $747.6 million, which is 17.8% higher compared to the same time last year and 3.7% higher compared to September 30, 2025. The increase in backlog and awarded orders reflects continued demand for the Company's solar products, with growth in new domestic and international markets.

Backlog represents signed purchase orders or contractual minimum purchase commitments with take-or-pay provisions and awarded orders are orders we are in the process of documenting a contract but for which a contract has not yet been signed.

First Quarter 2026 Outlook

The Company is providing an outlook for the first quarter given the headwinds in the utility scale solar market, which have resulted in certain customers changing order patterns. It is not the Company's intention to provide quarterly guidance on an ongoing basis. Based on current business conditions, business trends and other factors, for the quarter ending March 31, 2026, the Company expects:

   -- Revenue to be in the range of $125 million to $135 million 
 
   -- Adjusted EBITDA1 to be in the range of $16 million to $21 million 

Full Year 2026 Outlook

Based on current business conditions, business trends and other factors, for the full year 2026, the Company expects:

   -- Revenue to be in the range of $560 million to $600 million 
 
   -- Adjusted EBITDA1 to be in the range of $110 million to $130 million 
 
   -- Cash Flow from operations to be in the range of $65 million to $85 
      million 
 
   -- Capital expenditures to be in the range of $20 million to $30 million 
 
   -- Interest expense to be in the range of $8 million to $12 million 

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February 24, 2026 07:00 ET (12:00 GMT)