Shoals’ Revenue Dips 17% YoY in Q2 on Lower Demand and Installation Delays
The company said 56% of planned installations were seeing delays
August 8, 2024
U.S.-headquartered Shoals Technologies Group, a manufacturer of Electrical Balance of Systems (EBOS) for clean energy, reported a revenue of $99.2 million in the second quarter (Q2) 2024, a 17% year-over-year (YoY) decrease from $119 million.
The fall in revenue was triggered by project pushouts, which resulted in lower demand for the company’s products in domestic utility-scale solar projects.
Shoals also saw a 37.56% decline in net income from $18.9 million in Q2 2023 to $11.8 million in Q2 2024.
Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) dropped to $27.7 million from $48.2 million for the prior-year period.
However, the company noted that the second quarter results exceeded expectations both on revenue and adjusted EBITDA. While revenue dipped from the previous year’s quarter, it increased 9.3% sequentially.
According to Shoals Technologies Group CEO Brandon Moss, 56% of planned installations were experiencing delays of six months or more. “The total gigawatts experiencing any delay now total 41%, up 15% from the prior-year period. As a result of these delays, we continue to experience incremental pushouts during the second quarter, resulting in approximately $40 million of additional revenue moving from the current year into 2025.”
The company attributed the delays to lengthy interconnection queues, the inability to obtain transformers and switchgear promptly, labor shortages, and persistently high financing costs.
“Notably, the amount of projects Shoals is quoting across all customers has increased by more than 50% within the U.S. utility-scale solar market compared to just a year ago. In the first half of the year, a significant portion of our quote volume is with accounts beyond our top 20 customers. We are very positive about the opportunity ahead,” added Moss.
In Q1 2024, Shoals reported a net income of $4.8 million, a YoY decline of 72% from $17 million.
In Q4 2023, the company’s net income dropped to $16.6 million from $118.3 million in the corresponding period in 2022.
