Shoals Technologies Group recently released its Form 10-Q for the quarter ended March 31, 2026. The company makes electrical balance of system, or EBOS, products for solar and battery storage projects, along with OEM components and installation support services. Its products are sold mainly to EPC firms, utilities, solar developers, independent power producers, solar module manufacturers, and charge point operators, with operations in the U.S. and international markets.
In Item 2, management says the discussion should be read alongside the 2025 Form 10-K and the quarterly financial statements, and notes that the section includes forward-looking statements tied to risks and uncertainties. Shoals also presents several non-GAAP measures in the MD&A, including Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share, saying they are intended to supplement, not replace, GAAP results.
The company says it focuses on two end markets: clean, grid-connected energy and data center and mission-critical electrical infrastructure. For the quarter ended March 31, 2026, 78.8% of revenue came from system solutions, and substantially all revenue came from U.S. customers. Backlog and awarded orders totaled $758.0 million at March 31, 2026, including $390.3 million of backlog and $367.7 million of awarded orders.
Shoals said about $375.5 million of backlog and $252.1 million of awarded orders are expected to deliver in the next 12 months. International projects represented more than 13.1% of backlog and awarded orders, and the combined figure was up 17.5% from a year earlier and 1.4% from Dec. 31, 2025.
Management highlighted trade policy as a major pressure point. The company said tariff actions have hurt gross margins through direct tariff payments and higher supplier prices, even after expanding domestic capabilities and manufacturing capacity. Shoals also said future tariffs, retaliatory actions, or rapid shifts in trade rules could raise input costs for steel, copper and aluminum, while reducing sourcing flexibility and potentially affecting exports.
The company pointed to energy policy as another source of uncertainty. It said the Inflation Reduction Act created long-term incentives for solar projects, but H.R. 1, the One Big Beautiful Bill Act, changed several of those provisions, including an accelerated phaseout or termination of the ITC and PTC for solar projects placed in service after 2027 and new restrictions tied to foreign entities of concern. Shoals said reduced or uncertain incentives could weaken demand and slow project financing and execution.
Shoals also said the utility-scale solar market remains volatile because of permitting delays, supply-chain constraints, labor shortages, financing issues, interconnection bottlenecks, and federal policy changes. In the critical power infrastructure market, the company pointed to rising electricity demand and more complex energy systems, but said policy fragmentation and uneven industry readiness could affect project execution and capital allocation. It added that inflation, elevated interest rates, supply-chain disruption, and geopolitical conflict continued to pressure sourcing, logistics, and financing costs into 2026. As a result of these announcements, the company's shares have moved 0.12% on the market, and are now trading at a price of $8.28. For the full picture, make sure to review Shoals Technologies's 10-Q report.
