Shoals Technologies Group, a manufacturer of electrical infrastructure solutions for utility-scale solar, battery storage, and data center power systems, posted revenue of $195.3 million in the third quarter (Q3) of 2026, up 43.8% year over year (YoY) from $135.8 million.

The increase in revenue, which exceeded analysts’ estimates by $33.31 million, was driven by strong underlying demand for the company’s products, market share gains, and a higher project volume during the year.

Net income surged 50.4% YoY to $17.9 million from $11.9 million.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 23.5% to $39.8 million from $32.2 million during the same period last year.

Earnings per share (EPS) stood at $0.11, compared with $0.07 in the prior-year period. EPS beat analysts’ estimates by $0.02.

9M 2026 Results

For the first nine months (9M) of 2026, Shoals reported revenue of $499.2 million, up 52.7% from $327 million during the corresponding period in 2025.

EPS was $0.17, up from $0.15 in the same period last year.

The company’s backlog and awarded orders stood at $791.7 million as of September 30, 2026, up 9.8% YoY. Shoals said the YoY increase reflected consistent demand for its products, including growth in emerging battery energy storage markets.

Business Highlights

Shoals reported approximately $186 million in new orders during Q3 2026, marking its third-highest quarterly bookings on record.

The company announced a stock-for-stock merger with ARRAY Technologies. Following the transaction, Shoals shareholders will own approximately 65% of the combined company, while ARRAY shareholders will hold the remaining 35%.

The combined company is expected to offer integrated structural balance-of-systems and electrical balance-of-systems solutions for utility-scale solar projects, including trackers, foundations, wire management, and electrical infrastructure.

Its combined backlog and awarded orders totaled about $3.4 billion as of September 30, 2026.

The combined company is targeting $35 million in annualized synergies in the first year, increasing to more than $100 million by the third year.

Shoals also plans to leverage ARRAY’s international presence to expand its electrical infrastructure business. The company’s international project order book has reached approximately $100 million.

The company estimates that if the combined entity’s full product portfolio had been deployed across every project it served, it could have generated an additional $2.5 billion in sales, highlighting the substantial cross-selling opportunity.

The merger is expected to strengthen its presence in battery energy storage systems and data center power infrastructure by combining Shoals’ electrical solutions with ARRAY’s wire management and foundation products.

Talking about the merger, Brandon Moss, CEO, said developers and operators will benefit from a simpler, more reliable and more coordinated project experience. EPCs benefit from faster, more efficient installation and fewer execution challenges in the field.

“That is why we believe the combined platform is differentiated immediately, even before we begin co-developing the next generation of integrated products. Over the long-term, bringing SBOS and EBOS together creates meaningful opportunities for product innovation. The immediate value is coordination and simplicity,” he added.

Shoals is also developing its Air Link plug-and-play power distribution solution for data centers, with a planned launch in 2027. The company expects ARRAY’s wire management capabilities to support this product’s development.

Outlook for 2026

Shoals expects revenue of $165 million to $185 million in Q4 2026 and adjusted EBITDA of $36 million to $40 million.

For 2027, the combined company projects revenue between $2.2 billion and $2.4 billion and adjusted EBITDA, including synergies, between $410 million and $480 million.

The company raised its full-year 2026 revenue guidance to between $665 million and $685 million.

The company reported Q2 revenue of $163.4 million, up 47.4% YoY from $110.8 million.