How Does Shoals Company Work?

The company's primary products include wiring, disconnects, combiners, inverters, and monitoring systems. These components are essential for the functional integration of renewable energy systems.

Shoals primarily serves engineering, procurement, and construction (EPC) firms involved in utility-scale solar projects. They also cater to the growing commercial and industrial (C&I) and battery energy storage systems (BESS) markets.

A key innovation is the factory-fabricated Big Lead Assembly (BLA) system. This reduces on-site labor and field connections, offering a 'plug-and-play' approach that significantly cuts installation costs.

The company emphasizes domestic manufacturing, integrating its supply chain with local partners to mitigate tariff impacts. A recent $80 million investment in Portland, Tennessee, aims to boost production capacity and create about 550 jobs.

A significant milestone for Shoals Company was the February 2024 announcement of an $80 million investment to expand its Portland, Tennessee operations. This expansion is set to create 550 new jobs, bolstering domestic manufacturing capacity and supporting the reshoring of the U.S. solar supply chain.

The company's strategic partnership with First Solar, renewed in March 2025, reinforces its market position. Shoals has also seen growing commercial success in international markets, as well as in the commercial and industrial (C&I), battery energy storage systems (BESS), and original equipment manufacturer (OEM) sectors.

Shoals has navigated near-term uncertainties in the utility-scale solar market, which have caused shifting order patterns and project delays. The company's response includes operational improvements, customer base diversification, and the introduction of new products designed for a broader range of project sizes and terrains.

Shoals Company's competitive edge lies in its premium EBOS solutions, an estimated 50% market share in the U.S. utility-scale solar sector, and its patented Big Lead Assembly (BLA) technology. The company's robust backlog, reaching a record $671.3 million as of Q2 2025, provides significant revenue visibility.

Shoals Company holds a significant market share in the utility-scale solar sector, especially in the U.S., where it is recognized as the largest EBOS provider. This strong standing is supported by its focus on premium EBOS solutions and a substantial backlog of $671.3 million as of August 5, 2025, indicating sustained demand.

The company faces margin pressures due to strategic pricing and volume discounts, leading to a gross margin of 37.2% in Q2 2025. Regulatory changes, project delays, competitive pressures, and macroeconomic factors like high interest rates also present ongoing challenges to Shoals Company operations.

Shoals Company has raised its full-year 2025 revenue guidance to between $450.0 million and $470.0 million, reflecting confidence in market opportunities. Strategic initiatives include expansion into the Battery Energy Storage Systems (BESS) market and targeting the data center sector, aligning with projected demand growth.

International expansion, particularly in South America, is a key growth avenue, exemplified by projects like the Alcones Solar Project in Chile. Shoals Company also plans to sustain profitability through operational efficiency, market diversification, and protecting its intellectual property, as seen in its patent infringement cases.