Shoals Technologies Group, Inc. (NASDAQ:SHLS) is among the 11 Most Undervalued Renewable Energy Stocks to Invest In.
On February 25, Mizuho raised its price target on Shoals Technologies Group, Inc. (NASDAQ:SHLS) to $8 from $7 while maintaining a Neutral rating on the shares. The firm said the company’s sales performance continues to exceed expectations, although margins declined to 31.6% in the fourth quarter due to tariffs, legal expenses, and higher logistics costs. The same day, Guggenheim Partners analyst Joseph Osha lowered the firm’s price target to $11 from $12 while maintaining a Buy rating. Guggenheim updated its financial estimates following the company’s fourth-quarter report, but suggested that the market reaction to the results may be overly negative.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) reported fourth-quarter 2025 revenue of $148.3 million, representing a 39% year-over-year increase driven primarily by stronger demand for utility-scale solar projects. Gross profit rose to $46.9 million from $40.2 million in the prior-year quarter, although the gross margin declined to 31.6% from 37.6%. The company said the margin contraction was largely caused by higher material costs as well as approximately $3.3 million in duties and tariffs that were not present in the previous year. Adjusted EBITDA increased to $30.3 million from $26.4 million, while adjusted diluted earnings per share rose to $0.10 compared with $0.08 a year earlier.
For the full-year 2025, Shoals Technologies Group, Inc. (NASDAQ:SHLS) reported revenue growth of 19%, reaching $475.3 million. The company also ended the year with record backlog and awarded orders totaling $747.6 million, reflecting sustained demand for its solar infrastructure products across both domestic and international markets. Looking ahead, the company expects revenue between $560 million and $600 million in 2026, along with adjusted EBITDA ranging from $110 million to $130 million. Management also issued first-quarter guidance, noting that changing customer order patterns in the utility-scale solar market could create short-term headwinds.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) provides electrical balance-of-system solutions for solar power installations, battery storage systems, and related energy infrastructure projects.
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