Shoals Technologies Group, Inc. Q1 FY2026 earnings call

First quarter revenue was $141M, 75% above prior year; commercial team added $151M in new orders, backlog at $758M; gross profit percentage 29.6% below expectations but expected to improve; SG&A at 22% of revenue; adjusted EBITDA $21M, up 56%; progress in international markets; partnership with On Energy; moving to new facility.

Core utility - scale solar market saw strong growth; OEM business grew 33% year - over - year; CC&I remains a small portion; BESS VLAO ended the quarter at $75M with $9M added in Q1, with revenue from BESS products starting in Q1.

For Q2 2026, revenue expected $150 - $170M, adjusted EBITDA $28 - $33M. Full - year 2026 revenue $600 - 640M, adjusted EBITDA $118 - 132M; cash flow from ops $65 - 85M, capex $20 - 30M, interest expense $8 - 12M.

Risks include product mix impacting gross margin, tariffs and freight costs, temporary labor inefficiencies during facility move, legal expenses from litigation, and potential impacts from Middle East conflict on costs.

Q: Philip Shen asks about tax equity pause and booking strength; A: Brandon and Dom respond.

Q: Julian Demelon Smith asks about battery BESS trends and margin guide; A: Tara Fangle responds.

Q: Praneet Satish asks about margin components; A: Brandon and Dom respond.

Q: Colin Rush asks about international sales traction; A: Brandon responds.

Q: Mark Strauss asks about project timing and margins beyond 2026; A: Brandon and Dom respond.

Q: Sean Milligan asks about BESS quoting pipeline; A: Brandon responds.

Q: Vikram Bagri asks about spooling impact and tariffs; A: Brandon and Dom respond.

Q: Brian Lee asks about guidance and tariffs; A: Brandon and Dom respond