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Q3 EARNINGS REPORT November 2025
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Forward-Looking Statements This presentation contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” “potential,” “commitment,” “outlook,” “continue,” “goal” or any other similar words are intended to identify our forward-looking statements. Although we believe that the expectations and assumptions reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our futurefinancial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in these forward-looking statements. We disclaim and do not undertake any obligation to update or revise any forward-looking statement inthis presentation except as required by applicable law or regulation. For important information on forward-looking statements, please see our earnings release for Q3 2025 on our investor website at https://investors.shoals.com. Non-GAAP Financial Information All results shared within this presentation are non-GAAP unless noted as “reported,” in which case we are referring to our results on a GAAP basis. Please see GAAP to non-GAAP reconciliations at the end of this presentation for comparable GAAP measures. Refer to the definitions of these measures in our earnings release for Q3 2025 on our investor website at https://investors.shoals.com. Market and Industry Data This presentation also contains information regarding the Company's market and industry that is derived from third-party research and publications. That information may rely upon a number of assumptions and limitations, and the Company has not independently verified its accuracy or completeness. Disclaimer 2Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report
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Agenda U.S. Utility Scale SolarO3 Growth Opportunities (International, CC&I, OEM, & BESS)O4 Current Events & Market EnvironmentO2 O1 Third Quarter Highlights Financial OverviewO5 Shoals Q2 Earnings Report Financial OutlookO6 3 3Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report
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4 QUARTERLY HIGHLIGHTS Q3 2025 4Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report $135.8M Revenue $32.0M Adjusted EBITDA1 $720.9M Backlog & Awarded Orders 1.4 Book-to-Bill Strong demand for Shoals products, continued growth, and diversified customer base in new bookings Above High End of our Q3 2025 Guidance Range A Company record BLAO, with $575M containing shipment dates in upcoming four quarters Within our Q3 2025 Guidance Range 1See Appendix for reconciliation of Non-GAAP measures.
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5 5Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report CURRENT EVENTS & MARKET ENVIRONMENT Q3 2025 Market, Policy & Strategy • Solar is best positioned to meet rising energy needs • AI and data centers • Industrialization • On-shoring of manufacturing • Our customers remain as busy as ever • Developers have safe harbored projects for many years • We do not expect a significant “pull forward” of projects • The need for new energy supply is real
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6 6Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report U.S. UTILITY SCALE SOLAR Q3 2025 U.S. Utility Scale Solar Market Remains Resilient “The third quarter was another strong quarter of growth within our core U.S. Utility Scale Solar market.” Our quote volume exceeded more than $900M during Q3 2025 Customer project calendars remain tight, with little excess capacity Our commercial strategy continues to drive growth Labor availability is a focus for the industry
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7 7Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report International GROWTH OPPORTUNITIES The opportunity set across international markets continues to expand Our pipeline exceeds 20GW and includes projects in Latin America, EMEA, and Asia Pacific We’ve hired an experienced commercial leader in Australia Relationships with large, global developers with ties to the US Export- Import Bank are opening doors and growing our pipeline (110 MW Alcones project located in Chile)
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8 8Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report “Our CC&I business is performing well. Our engagement with large, well respected electrical distributors is driving meaningful quote volume increases.” CC&I GROWTH OPPORTUNITIES
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9 9Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report “Our OEM business is tracking ahead of expectations as our partner continues to see strong demand for their panels.” OEM Shoals + First Solar GROWTH OPPORTUNITIES
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10 10Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report BESS The Vision for BESS Has Changed GROWTH OPPORTUNITIES Data Center Power/UPS (Hyperscaler) Grid Firming (Utility) Solar & Storage (IPP/Utility) Investor Day Expansion Opportunity Today Key Takeaway – The domestic market opportunity for BESS is substantially larger than traditional Solar & Storage, with existing products able to meet different end market needs. Peak shaving Energy arbitrage Balancing demand response and frequency regulation Grid resiliency and stability Operational resilience Grid reliability and stabilization Lower electricity bills and better project economics Peak shaving and load shifting
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11 11Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Third Quarter Financial Snapshot Q3 Revenue Q3 Adjusted Gross Profit1 $135.8M $50.3M Q3 Adjusted Diluted EPS1, 49.5% increase YoY $0.12 Q3 Adjusted Gross Profit %1 Q3 Adjusted EBITDA1, 23.5% Adjusted EBITDA Margin1 Q3 Adjusted Net Income1 37.0% $32.0M $21.0M 1See Appendix for reconciliation of Non-GAAP measures. $ Thousands (except for EPS) Q3 2025 Q3 2024 $ Change YoY % Change YoY Revenue $ 135,804 $ 102,165 $ 33,639 32.9% Cost of Goods Sold 85,552 76,789 8,763 11.4% Gross Profit 50,252 25,376 24,876 98.0% Gross Profit % 37.0% 24.8% 12.2% 49.0% Wire Insulation Shrinkback Expense — 13,298 (13,298) (100.0)% Adjusted Gross Profit $ 50,252 $ 38,674 $ 11,578 29.9 % Adjusted Gross Profit % 37.0% 37.9% (0.9)% (2.2)% Adjusted EBITDA $ 31,974 $ 24,533 $ 7,441 30.3 % Adj EBITDA % 23.5% 24.0% (0.5)% (2.0)% Adjusted Net Income $ 20,999 $ 13,935 $ 7,064 50.7% Adj. Net Income % 15.5% 13.6% 1.8% 13.4% Adjusted Diluted EPS $ 0.12 $ 0.08 $ 0.04 49.5%
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12 CASH FLOW Q3 2025 12Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report $19.4M Q3 Cash Flow From Operations $21.2M 2025 YTD Cash Flow From Operations $9.0M Q3 Free Cash Flow $10.4M Q3 Capital Expenditures Elevated capex resulting from build- out of our new manufacturing facility Driven by higher topline growth and effective A/R management Includes $11.9M of warranty remediation costs and capex Positive YTD cash flow despite increased warranty remediation spend
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13 13Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Debt & Liquidity Net Debt-to- Adjusted EBITDA 1.2X 1 Net Debt equals Total Long-Term Debt minus Cash and Cash Equivalents 2 Total Liquidity equals Cash and Cash Equivalents plus available borrowing capacity on Revolving Credit Facility minus Letters of Credit Compared to 3.6X in Q3 2022 “Our balance sheet remains high quality.” “We paid an additional $5.0M down on our revolver during Q3 2025.” Q3 2024 Q2 2025 Q3 2025 Cash & Cash Equivalents $11.1 $4.7 $8.6 Total Long-term Debt $141.8 $131.8 $126.8 Less: Cash & Cash Equivalents $11.1 $4.7 $8.6 Net Debt1 $130.7 $127.1 $118.2 Adjusted EBITDA $24.5 $24.5 $32.0 LTM Adjusted EBITDA $111.8 $88.2 $95.6 Total Long-term Debt-to-Adjusted EBITDA 1.3 1.5 1.3 Net Debt-to-Adjusted EBITDA 1.2 1.4 1.2 Total Liquidity2 $69.1 $72.9 $81.8
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14 14Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Backlog & Awarded Orders As of September 30, 2025 in record backlog & awarded orders $720.9M 21%YoY $574.8M $146.1M to deliver in Future Four Quarters Beyond Q3 2026 An increase of $297.8M As of September 30, 2025 in backlog
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15 15Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Financial Outlook $467-477M 2025 Full Yr Revenue $30-40M 2025 Capital Expenditures $15-25M 2025 Full Yr Operating Cash Flow $8-12M 2025 Interest Expense 2025Full year expectations: 1A reconciliation of Adjusted EBITDA guidance which is a forward-looking measure that is non-GAAP, to the most closely comparable GAAP measure is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, amortization of intangible assets and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future. $105-110M 2025 Adj. EBITDA1 $140-150M $35-40M Q4 2025 Revenue Q4 2025 Adj. EBITDA1
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16 16Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Closing Thoughts “We are building the next version of Shoals – one that will deliver attractive returns for shareholders through profitable growth and strong cash flow generation.” Business strategy initiatives taking hold at Shoals: + Commercial and operational process improvements, and shifts in strategic direction and focus, are enabling exciting and visible improvements across Shoals + The transformation from a company with a narrow customer mix, product offering, and geographic footprint to a diversified, multi-national, energy solutions provider is beginning to take shape + Developing new, innovative product solutions for customers facing real-world problems + An unyielding focus on improving the customer experience from start to finish “We want to thank our shareholders and customers for their continued trust, and our employees for their hard work and dedication.”
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17 17Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report
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Appendix 18 18Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report
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19 19Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Non-GAAP Reconciliations, Adjusted Gross Profit Adjusted Gross Profit Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $ 135,804 $ 102,165 $ 327,006 $ 292,221 Cost of revenue 85,552 76,789 207,412 190,388 Gross profit $ 50,252 $ 25,376 $ 119,594 $ 101,833 Gross profit percentage 37.0% 24.8% 36.6% 34.8% Wire insulation shrinkback expenses (a) — 13,298 — 13,765 Adjusted gross profit $ 50,252 $ 38,674 $ 119,594 $ 115,598 Adjusted gross profit percentage 37.0% 37.9% 36.6% 39.6% (a) For the three and nine months ended September 30, 2025, represents no wire insulation shrinkback warranty expenses related to the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback, nor any inventory write-downs of wire in connection with wire insulation shrinkback. For the three and nine months ended September 30, 2024 represents $0.5 million of inventory write-downs of wire and $13.3 million in connection with the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback. We consider expenses incurred in connection with the identification, repair and replacement of the impacted wire harnesses distinct from normal, ongoing service identification, repair and replacement expenses that would be reflected under ongoing warranty expenses within the operation of our business, which we do not exclude from our non-GAAP measures. In the future, we also intend to exclude from our non-GAAP measures the benefit of liability releases, if any. We believe excluding expenses from these discrete liability events provides investors with a better view of the operating performance of our business and allows for comparability through periods.
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20 20Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Non-GAAP Reconciliations, Adjusted EBITDA Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ 11,879 $ (267) $ 25,452 $ 16,309 Interest expense 2,832 3,173 7,483 10,913 Interest income (38) (85) (232) (400) Income tax expense 3,991 1,703 9,405 7,867 Depreciation expense 1,466 1,254 4,296 3,643 Amortization of intangibles 1,909 1,897 5,710 5,689 Equity-based compensation 2,421 1,282 7,675 10,392 Gain on sale of asset 7 — (3,127) — Wire Insulation Shrinkback related expenses (a) — 13,298 — 13,765 Wire Insulation Shrinkback litigation expenses (b) 6,831 2,278 11,906 4,499 Plant optimization expenses 676 — 676 — Adjusted EBITDA $ 31,974 $ 24,533 $ 69,244 $ 72,677 (a) For the three and nine months ended September 30, 2025, represents no wire insulation shrinkback warranty expenses related to the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback, nor any inventory write-downs of wire in connection with wire insulation shrinkback. For the three and nine months ended September 30, 2024 represents $0.5 million of inventory write-downs of wire and $13.3 million in connection with the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback. We consider expenses incurred in connection with the identification, repair and replacement of the impacted wire harnesses distinct from normal, ongoing service identification, repair and replacement expenses that would be reflected under ongoing warranty expenses within the operation of our business, which we do not exclude from our non-GAAP measures. In the future, we also intend to exclude from our non-GAAP measures the benefit of liability releases, if any. We believe excluding expenses from these discrete liability events provides investors with a better view of the operating performance of our business and allows for comparability through periods. (b) For the three and nine months ended September 30, 2025, represents $6.8 million and $11.9 million, respectively, of expenses incurred in connection with the lawsuit initiated by the Company against the supplier of the defective wire. For the three and nine months ended September 30, 2024, represents $2.2 million and $4.4 million of expenses incurred in connection with the lawsuit initiated by the Company against the supplier of the defective wire. We consider this litigation distinct from ordinary course legal matters given the expected magnitude of the expenses, the nature of the allegations in the Company’s complaint, the amount of damages sought, and the impact of the matter underlying the litigation on the Company’s financial results. In the future, we also intend to exclude from our non-GAAP measures the benefit of recovery, if any. We believe excluding expenses from these discrete litigation events provides investors with a better view of the operating performance of our business and allows for comparability through periods.
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21 21Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Non-GAAP Reconciliations, Adjusted Net Income Adjusted Net Income Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ 11,879 $ (267) $ 25,452 $ 16,309 Amortization of intangibles 1,909 1,897 5,710 5,689 Amortization / write-off of deferred financing costs 156 156 467 2,937 Equity-based compensation 2,421 1,282 7,675 10,392 Gain on sale of asset 7 — (3,127) — Wire insulation shrinkback expenses(a) — 13,298 — 13,765 Wire insulation shrinkback litigation expenses (b) 6,831 2,278 11,906 4,499 Plant optimization expenses 676 — 676 — Tax impact of adjustments (c) (2,880) (4,709) (5,594) (9,209) Adjusted Net Income $ 20,999 $ 13,935 $ 43,165 $ 44,382 (a) For the three and nine months ended September 30, 2025, represents no wire insulation shrinkback warranty expenses related to the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback, nor any inventory write-downs of wire in connection with wire insulation shrinkback. For the three and nine months ended September 30, 2024 represents $0.5 million of inventory write-downs of wire and $13.3 million in connection with the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback. We consider expenses incurred in connection with the identification, repair and replacement of the impacted wire harnesses distinct from normal, ongoing service identification, repair and replacement expenses that would be reflected under ongoing warranty expenses within the operation of our business, which we do not exclude from our non-GAAP measures. In the future, we also intend to exclude from our non-GAAP measures the benefit of liability releases, if any. We believe excluding expenses from these discrete liability events provides investors with a better view of the operating performance of our business and allows for comparability through periods. (b) For the three and nine months ended September 30, 2025, represents $6.8 million and $11.9 million, respectively, of expenses incurred in connection with the lawsuit initiated by the Company against the supplier of the defective wire. For the three and nine months ended September 30, 2024, represents $2.2 million and $4.4 million of expenses incurred in connection with the lawsuit initiated by the Company against the supplier of the defective wire. We consider this litigation distinct from ordinary course legal matters given the expected magnitude of the expenses, the nature of the allegations in the Company’s complaint, the amount of damages sought, and the impact of the matter underlying the litigation on the Company’s financial results. In the future, we also intend to exclude from our non-GAAP measures the benefit of recovery, if any. We believe excluding expenses from these discrete litigation events provides investors with a better view of the operating performance of our business and allows for comparability through periods. (c) Shoals Technologies Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes. Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.
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22 22Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Non-GAAP Reconciliations, Adjusted Diluted EPS Adjusted Diluted EPS Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Adjusted diluted weighted average shares outstanding 168,750 167,381 167,725 169,310 Adjusted Net Income $ 20,999 $ 13,935 $ 43,165 $ 44,382 Adjusted Diluted EPS $ 0.12 $ 0.08 $ 0.26 $ 0.26
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23 23Shoals © 2025 Shoals Technologies GroupQ3 Earnings Report Please reach out to investors@shoals.com with any further questions. THANK YOU!