| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 38.7x | 17.8x | Bottom tier | |
Growth | 85 | 46.9% | 7.1% | Top tier | |
Quality | 32 | 6.1% | 4.5% | Bottom tier | |
Safety | 56 | 3.3x | 2.6x | Around median | |
Capital Return | 18 | — | 2.12% | Bottom tier | |
Momentum | 44 | 32.3% | 2.9% | Around median | |
Sentiment | 61 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Shoals Technologies Group designs electrical infrastructure solutions for energy projects, with its core business concentrated in the U.S. utility-scale solar market through BLAO products and electrical balance-of-system solutions. The company is diversifying its revenue sources through battery energy storage systems, original equipment manufacturer business, community and commercial and industrial projects, international markets, and the development of AirLink for power delivery within data centers. Revenue comes from supplying these systems and products to projects, with a growing role for higher-margin engineered solutions such as battery solutions and AirLink.
In fiscal Q2 2026, revenue reached $163.4 million, up approximately 47% year over year, and gross profit was $49.5 million, with a GAAP gross margin of 30.3%. The company recorded operating income of $18.7 million, equal to 11.5% of revenue, net income of $12.1 million, and earnings per share of $0.07; adjusted net income was $19.7 million, while adjusted earnings before interest, taxes, depreciation, and amortization were $31.6 million. Despite 20% growth in gross profit, net income declined from $13.9 million in the comparable period, which included a $3.1 million gain from the sale of a manufacturing facility.
The increase was driven primarily by strong demand from new and existing customers in the U.S. utility-scale solar market, along with a meaningful contribution from energy storage; the battery business generated approximately $20 million, or about 12% of quarterly revenue. The original equipment manufacturer business grew 51% year over year, while the community and commercial and industrial business remained a small part of the mix. On a trailing-twelve-month basis in the 2026 data, revenue reached $588.1 million, gross profit was $187.7 million, and net income was $31.8 million, compared with revenue of $475.3 million and net income of $33.6 million in fiscal 2025.
Automated analysis for informational purposes only — not investment advice.
The stock carries a consensus “Buy” rating, with an average price target of $12.50 and a narrow range of $12 to $13, while the average target sits slightly below the 52-week high of $13.18 and the low is $5.43. Potential revaluation is supported by revenue growth and record backlog, but margin pressure, the growth slowdown embedded in fiscal Q3 2026 guidance, and net debt of $181.1 million provide a clear counterbalance to analysts' positive expectations.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue reached $163.4 million, up approximately 47% year over year, driven by demand from new and existing customers in the U.S. utility-scale solar market and by the contribution from energy storage. The battery business generated approximately $20 million in quarterly revenue, while the original equipment manufacturer business grew 51% year over year. The commercial team added approximately $207 million in orders, raising the book-to-bill ratio to 1.3 times. The quarter ended with record backlog and awarded orders of $801.4 million.
On August 4, 2026, management reaffirmed its expectation of fiscal 2026 revenue between $600 million and $640 million, representing 30% year-over-year growth at the midpoint. It expects adjusted earnings before interest, taxes, depreciation, and amortization between $118 million and $132 million, representing 26% growth at the midpoint. It also expects operating cash flow between $65 million and $85 million, capital expenditures between $20 million and $30 million, and interest expense between $8 million and $12 million. For the quarter ending September 30, 2026, it expects revenue between $150 million and $170 million and adjusted earnings before interest, taxes, depreciation, and amortization between $32 million and $37 million.
Battery energy storage revenue reached approximately $20 million in fiscal Q2 2026, and approximately $10 million in orders were added, bringing this business's backlog to $65 million. Management explained that most battery revenue in that quarter was tied to ON.energy and that the products are being installed at an AI-powered data center site paired with batteries. Shoals also signed a memorandum of understanding with TerraFlow to support a deployment plan of up to 5 gigawatts annually using Power Hub Recombiner. According to management on August 4, 2026, the revenue impact from TerraFlow will not begin before 2027.
GAAP gross margin was 30.3%, and adjusted gross margin was 30.6% in fiscal Q2 2026. Management expects sequential improvement supported by a more favorable mix of traditional BLAO products, increased productivity at the new facility, and greater fixed-cost absorption. Management set a target gross-margin range in the low to mid-thirties during fiscal 2026. However, execution remains tied to completing the consolidation of three facilities into one and addressing the effects of tariffs and variations in product mix.
The company generated $6.8 million in operating cash in fiscal Q2 2026 and ended the period with $15.7 million in cash and cash equivalents. Net debt was $181.1 million, while the ratio of net debt to adjusted earnings before interest, taxes, depreciation, and amortization reached 1.6 times. The company also temporarily expanded its revolving credit facility capacity by $50 million to finance business growth. Management expects inventory reduction and the generation of between $65 million and $85 million in cash flow during fiscal 2026 to provide liquidity to repay part of the facility.
AirLink is a product designed to deliver power to data center racks, and management described it on August 4, 2026, as a solution that changes the traditional method of power delivery. The company aims to install a working unit for testing during 2026, with intellectual property filings completed and internal and external laboratory testing underway. Management expects the product to command a price premium over available busway options and generate a margin above the company's average. However, its adoption requires a period of education for engineers, installers, and local inspectors, so the company did not provide an expected revenue figure for it within fiscal 2026 guidance.
