# Shoals Technologies Group, Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/Shoals Technologies Group, Inc.). ## Overview 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. ## Products & services • EBOS system solutions for solar PV projects • Electrical infrastructure for battery energy storage systems • Data center power system solutions • OEM electrical components and assemblies • Custom-engineered, patented system solutions - **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. - EBOS system solutions for solar PV projects - Electrical infrastructure for battery energy storage systems - Data center power system solutions - OEM electrical components and assemblies - Custom-engineered, patented system solutions ## Customers The company primarily sells to engineering, procurement and construction firms that build utility-scale solar and BESS projects, with project owners and developers also influencing product selection. It also serves OEM customers and, internationally, customers involved in solar and energy infrastructure projects across multiple regions. Purchases are driven by installation efficiency, reliability, safety, and the need for customized system-level solutions. - **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 developers** (primary) — 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 customers** (secondary) — Buy products for projects outside the U.S., especially where local code compliance and engineering support are needed. - EPC firms building utility-scale solar and BESS projects - Project owners and developers influencing product specification - OEMs buying components for integration into their equipment - Utility-scale solar customers seeking faster installation - Customers needing patented, customized EBOS designs ## Geography Shoals manufactures in Tennessee and Alabama, with its main U.S. sales presence supported by engineering teams in Tennessee. The company also maintains sales personnel in Spain and Australia, which support Europe, Latin America, Africa, and Asia-Pacific. Management notes that substantially all sales are currently in the U.S., so the business remains heavily tied to domestic solar and energy project activity. - 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 ## Strategy The company’s strategy centers on expanding its installed base of patented system solutions across solar, BESS, and adjacent power applications while preserving its engineering-led selling model. It is also investing in manufacturing capacity and distribution infrastructure to support growth, and in sales coverage outside the U.S. to broaden its addressable market. - **Scale manufacturing and distribution capacity** (short-term) — Larger facilities and consolidated operations support higher volume and more efficient delivery. - **Expand international sales coverage** (medium-term) — Broader geographic reach reduces dependence on the U.S. solar market and opens new project opportunities. - **Broaden end-market exposure beyond solar** (medium-term) — BESS, data centers, and OEM channels can diversify demand and leverage the same engineering capabilities. - Expand patented system solutions across solar and storage - Use engineering support to win system-level specifications - Increase manufacturing capacity and distribution scale - Grow sales coverage in Europe, Latin America, Africa, and APAC - Support adjacent applications such as data centers and OEMs ## Risks The business is exposed to project timing, customer concentration, and the cyclicality of utility-scale solar demand, all of which can move orders and revenue materially from period to period. It also faces execution risks tied to manufacturing expansion, cybersecurity, international growth, and the possibility that changes in electricity economics or project delays reduce demand for solar infrastructure. - **Customer concentration** [high] — A small number of customers account for a large share of revenue and receivables, increasing bargaining power and default risk. - **Solar demand and project timing** [high] — The company depends heavily on utility-scale solar and BESS project development, which can be delayed by market conditions and permitting. - **Electricity price sensitivity** [medium] — Lower electricity prices can reduce the economics of solar projects and slow customer investment decisions. - **Cybersecurity and IT disruption** [medium] — Manufacturing, customer support, and commercial operations rely on IT systems and third-party vendors. - **International expansion risk** [medium] — Operating in more geographies increases regulatory, compliance, and competitive complexity. - Customer concentration can pressure pricing and order volume - Solar project delays can shift revenue timing materially - Demand depends on utility-scale solar and electricity economics - Cybersecurity incidents could disrupt operations or data access - International expansion adds regulatory and competitive complexity ## Accounting Revenue recognition is a key accounting judgment because the company often recognizes revenue over time using an output method based on units manufactured, but in some cases recognizes revenue at customer acceptance. Investors should also watch warranty liabilities, goodwill impairment testing, and the accounting effects of seasonality, capital spending, and debt-related interest expense. - **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 - Over-time revenue recognition based on units manufactured - Point-in-time recognition when products have alternative use - Warranty liability estimates affect cost of revenue - Goodwill impairment depends on market and industry conditions - Seasonality affects quarterly comparability of revenue and margins --- *Last updated: 2026-04-29T04:58:24.822344+00:00*