Manufacturer of electrical balance of system components (EBOS) Shoals Technologies Group’s net income jumped over five-fold year-over-year (YoY) to $14.3 million in the first quarter (Q1) of the financial year (FY) 2023 due to increased demand for solar EBOS generally, and the company’s system solutions specifically.

The company’s revenue rose 55% YoY at $105.1 million during January-March.

Shoals said that system solutions revenue grew 95% YoY, contributing 87% to the overall revenue, compared to the 69% contribution YoY.

The company’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) grew by 119% YoY to $36.1 million.

Shoals said it had a backlog and awarded orders worth $527.5 million by the end of Q1, up 75% YoY.

President and Interim CEO of Shoals Jeff Tolnar said, “Demand for our combine-as-you-go solution was particularly strong, with six new customers converting to our system during the quarter, bringing the total number of Big Lead Assembly (BLA) customers to 42. Solar market conditions remain favorable, both for the industry as a whole and for Shoals specifically.”

During Q1, the number of engineering, procurement, construction, and developer conversions increased ten-fold since the Initial Public Offering (IPO) in 2021, wherein the company raised $2.2 billion.

The company announced the closing of its upsized IPO of 88,550,000 shares of Class A common stock. The offering consisted of 11,550,000 shares of Class A common stock issued and sold by the company at an IPO price of $25.00 per share.

Shoals Technologies recorded revenue of $68 million in Q1 2022, a YoY increase of 49% primarily driven by a record increase of 73% in revenue from components and a 40% increase in revenue from system solutions.

The company posted a net profit of $118.3 million in the fourth quarter of 2022, recovering from a loss of $2.15 million during the corresponding period in 2021. Shoals said the recovery was driven by a $110.9 million one-time gain on terminating a trust and retention agreement and higher income from operations.