Manufacturer of the solar balance of system (BOS) components Shoals Technologies Group recorded a net income of $12.9 million in the third quarter (Q3) of FY 2022, a 142% jump year-over-year (YoY).

The company’s performance was driven by higher sales volume for solar electrical BOS in general and its combine-as-you-go system solutions specifically.

The revenue from system solutions –a division of business – contributed 77% to the total sales for the company in Q3, compared with 65% YoY.

While Q3 revenue for system solutions rose by 80%, the sales from the solar components business grew marginally by 1% YoY.

Shoals Technologies’ revenue for the July-September quarter stood at $90.82 million, a growth of 52% YoY.

The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $26.6 million, a YoY increase of 57.4%.

Jason Whitaker, Chief Executive Officer of Shoals, said, “Demand for our products has continued to grow faster than the overall market, which is underscored by the 74% year-over-year increase in our backlog and awarded orders this quarter.”

As of September, the company’s backlog and awarded orders were $471.2 million, up 74% YoY and a 44% sequential increase from Q2.

The company CEO said that the two-year tariff exemption for Chinese solar panels, the recently passed Inflation Reduction Act, and higher energy prices had given customers and end-users the confidence to reinitiate previously delayed projects, make multi-year commitments to invest in solar generation and prioritize product availability and performance over price.

9M FY 2022

In the first nine months (9M) of FY 2022, Shoals reported a net income of $24.7 million, a surge of 305% YoY.

Revenue of the Company came in at $232.29 million, up 40.6% YoY

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $62.88 million, a YoY increase of 21.8%.

The Company recorded a revenue of $68 million in the first quarter (Q1) of 2022, a YoY increase of 49% from $45.6 million in the same period last year.

Earlier this year, Shoals announced a new production unit in Tennessee’s Portland spread across 219,000 square feet. The facility is scheduled to be operational by the second quarter of the current fiscal.