Shoals Technologies (SHLS) First Take 2Q26 beat with in line 3Q26 guidance

Equity Research 4 August 2026 | 7:43AM EDT

Shoals Technologies (SHLS): First Take: 2Q26 beat with in-line 3Q26 guidance; 2026 guidance reiterated

SHLS reported strong 2Q26 results, as revenue of $163mn exceeded GSe/FactSet Brian Lee, CFA | consensus of $157mn/$160mn, adj. EBITDA of ~$32mn was also above Goldman Sachs & Co. LLC

GSe/consensus of ~$31mn/$30mn, and adj. EPS of $0.12 beat consensus of $0.10 Tyler Bisset, CFA | and was in-line with GSe of $0.12. As of the end of 2Q26, SHLS’ backlog and awarded Goldman Sachs & Co. LLC

orders stood at $801mn, up ~6% qoq and up 19% yoy, implying new bookings of Keshav Choudhary | ~$207mn in the quarter. 3Q26 revenue guide came in at $150mn-$170mn and adj. Goldman Sachs India SPL EBITDA guide at $32mn-$37mn vs. our forecasts of ~$161mn and $35mn, respectively. Please find our initial takeaways within this report ahead of the 8:00am ET call this morning.

n 3Q26 broadly guidance in-line, 2026 guidance reaffirmed. 3Q26 revenue guidance came in at $150mn-$170mn vs. our estimate of ~$161mn and adj. EBITDA guide of $32mn-$37mn vs. GSe of $35mn. SHLS reaffirmed its 2026 outlook for revenue of $600mn-$640mn and adj. EBITDA of $118mn-$132mn. n 2Q26 results exceed expectations. Total 2Q26 revenue of $163mn was above GSe/consensus of $157mn/$160mn and up 47% yoy due to underlying demand, market share capture, and growth in volume of projects. Adj. EBITDA came in at ~$32mn, up ~28% yoy, and adj. EPS of $0.12 was higher than $0.10 in 2Q25. Total backlog and awarded orders now stand at $801mn, up ~6% qoq, driven by demand for innovative products and growth in emerging battery energy storage markets. n Gross margins miss GSe. 2Q26 gross margin of 30.3% was below our 31.3% estimate and was also down from 37.2% in 2Q25 due to inefficiencies associated with transition to new facility, product mix, along with costs incurred to address and correct product quality matters, as well as inefficiencies related to material and lease accounting amortization.

Our 12-month price target of $13 is based on a 20.0X P/E multiple on our Q5-Q8 EPS forecasts.

Key risks include warranty issue, slower than expected demand growth, lower than expected margins, and worse than expected policy development.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Shoals Technologies (SHLS)

SHLS 12m Price Target: $13.00 Price: $9.37 Upside: 38.7%

Buy GS Forecast 12/25 12/26E 12/27E 12/28E Market cap: $1.6bn Revenue ($ mn) Enterprise value: $1.7bn EBITDA ($ mn) m ADTV: $58.6mn EBIT ($ mn) United States EPS ($) Americas Clean Energy P/E (X) M&A Rank: 3 EV/EBITDA (X) FCF yield (%) (1.6) 3.2 4.8 5.8 Dividend yield (%) 0.0 0.0 0.0 0.0 Net debt/EBITDA (X) 1.3 0.6 0.0 (0.5)

3/26 6/26E 9/26E 12/26E EPS ($)

Source: Company data, Goldman Sachs Research estimates, FactSet. Price as of 3 Aug 2026 close.