Customer concentration
A small number of customers account for a large share of revenue and receivables, increasing bargaining power and default risk.
- Scope
- Largest customer was 19.1% of revenue; five largest were 53.7%
- Materiality
- high
Shoals Technologies Group, Inc.
Shoals Technologies Group, Inc. designs and manufactures electrical infrastructure solutions for solar photovoltaic projects, battery energy storage systems, and data center power systems. The company also supplies OEM components and system solutions from its U.S. manufacturing base, with sales support in North America, Europe, Latin America, Africa, and Asia-Pacific.
14,8 %
35,0 %
7,1 %
+19,1 %
2.03
1.32
| % | |
|---|---|
| Solar EBOS system solutions | 70% Engineered electrical balance-of-systems solutions that move power from solar modules to the inverter and grid. |
| BESS electrical infrastructure | 15% Electrical infrastructure products and system solutions used in battery energy storage projects. |
| Data center power systems | 5% Electrical infrastructure solutions for data center power distribution and related applications. |
| OEM components | 10% Components and assemblies sold to original equipment manufacturers for integration into their systems. |
The company primarily sells to engineering, procurement and construction firms that build utility-scale solar and BESS...
- Engineering, procurement and construction firms (EPCs)primary
Buy EBOS and related infrastructure for large solar and BESS projects because the products reduce installation time and improve system reliability.
- Project owners and developersprimary
Influence product selection and system design for solar and storage projects where performance, safety, and long-term reliability matter.
- Original equipment manufacturers (OEMs)secondary
Buy components and assemblies that are integrated into their own electrical or energy systems.
- International utility-scale solar customerssecondary
Buy products for projects outside the U.S., especially where local code compliance and engineering support are needed.
Shoals manufactures in Tennessee and Alabama, with its main U.S. sales presence supported by engineering teams in...
- •Manufacturing facilities in Tennessee and Alabama
- •New Portland, Tennessee facility expands U.S. operations
- •U.S. is the main sales market for the company
- •Spain team supports Europe, Latin America, and Africa
- •Australia team supports Asia-Pacific markets
The company’s strategy centers on expanding its installed base of patented system solutions across solar, BESS, and...
01
Scale manufacturing and distribution capacityshort-term
Larger facilities and consolidated operations support higher volume and more efficient delivery.
02
Expand international sales coveragemedium-term
Broader geographic reach reduces dependence on the U.S. solar market and opens new project opportunities.
03
Broaden end-market exposure beyond solarmedium-term
BESS, data centers, and OEM channels can diversify demand and leverage the same engineering capabilities.
The business is exposed to project timing, customer concentration, and the cyclicality of utility-scale solar demand,...
Solar demand and project timing
The company depends heavily on utility-scale solar and BESS project development, which can be delayed by market conditions and permitting.
- Scope
- Domestic utility-scale solar project delays were highlighted as a demand headwind
- Materiality
- high
Electricity price sensitivity
Lower electricity prices can reduce the economics of solar projects and slow customer investment decisions.
- Scope
- Solar project owners and developers
- Materiality
- medium
Cybersecurity and IT disruption
Manufacturing, customer support, and commercial operations rely on IT systems and third-party vendors.
- Scope
- Operational systems and sensitive customer data
- Materiality
- medium
International expansion risk
Operating in more geographies increases regulatory, compliance, and competitive complexity.
- Scope
- Europe, Latin America, Africa, and Asia-Pacific
- Materiality
- medium
Revenue recognition over time
A point-in-time model would have increased 2025 net income by $0.4 million
Warranty liability
Relevant to EBOS system solutions and components
Goodwill impairment
Single reporting unit subject to quantitative impairment testing
Seasonality
Winter slowdowns can delay orders and shipments
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: 29/04/2026