Key Highlights

• Q3 2026 Revenue surged 43.8% year-over-year to $195.3 million, exceeding the company's expected range.

• Adjusted EBITDA rose to $39.8 million, up from $32.2 million in Q3 2025.

• Net Income reached $17.9 million, compared to $11.9 million in the prior-year period.

• Backlog and awarded orders stood at $791.7 million as of September 30, 2026.

Shoals Technologies Group, Inc.(NASDAQ:SHLS), a provider of electrical infrastructure solutions for the energy transition market, reported third-quarter 2026 results on November 4, 2026, that surpassed its own guidance range. Revenue increased nearly 44% year-over-year, driven by elevated demand, Market Share gains, and higher project volumes. The company also raised its full-year outlook.

Revenue and Profitability

Revenue for the third quarter of 2026 came in at $195.3 million, representing a 43.8% increase from $135.8 million in Q3 2025. The growth was attributed to underlying Demand for Shoals' products, the effect of market share capture initiatives, and an increase in project Volume during the period. CEO Brandon Moss noted that productivity improvements drove both revenue and Adjusted EBITDA above the company's expected range.

Gross profit totaled $62.4 million, up from $50.3 million in the prior-year quarter. However, gross Margin compressed to 31.9% from 37.0% a year ago. The margin decline reflected operational inefficiencies tied to the ramp-up and transition into a new Manufacturing facility, product mix within the quarter, and costs incurred to address product quality matters, including rework and corrective actions, along with incremental Lease accounting amortization.

General and administrative expenses edged higher to $31.0 million from $29.4 million, driven by a $5.4 million increase in cash and share-based incentive compensation due to improved financial performance and higher headcount. This was partially offset by a $4.1 million reduction in spending related to legal matters compared to Q3 2025.

Income from operations reached $29.0 million, compared to $18.7 million in Q3 2025. Net income was $17.9 million, or $0.11 per share, versus $11.9 million, or $0.07 per share, in the same period last year. Adjusted EBITDA increased to $39.8 million from $32.2 million. Adjusted Net Income was $24.5 million, compared to $21.2 million a year ago.

Backlog and Pipeline

The company's backlog and awarded orders totaled $791.7 million as of September 30, 2026, providing visibility into future revenue. The company has completed its move into a new manufacturing facility, which management described as positioning Shoals for improved operational execution going forward.

Raised Full-Year Outlook

Shoals provided fourth-quarter guidance and raised its full-year 2026 outlook, citing the above-expectations Q3 performance and continued demand momentum. Moss stated that the company's strategy is delivering results, pointing to market-leading positioning, manufacturing capabilities, and an innovation pipeline as factors supporting continued growth into 2027.

The company highlighted its focus on customer delivery, including quality solutions, on-time fulfillment, and customer service, as its primary operational priorities with the Facility transition now behind it.

What Lies Ahead

Shoals Technologies' Q3 2026 results demonstrate accelerating revenue growth driven by market share gains and rising demand for energy transition infrastructure. The $791.7 million in backlog and awarded orders provides a buffer of future revenue visibility. The margin pressure from the manufacturing facility transition and product quality remediation costs represents a near-term headwind, but with the move now complete, management expects operational improvements going forward. The energy transition market continues to expand, and Shoals' positioning as a provider of electrical infrastructure solutions places it at a key intersection of solar and broader clean energy deployment.