Q3 2025 Shoals Technologies Group Inc Earnings Call

November 4, 2025

And on the concrete side bets and Matt Trachtenberg, Vice President of Finance and Investor Relations, who will show technologies great. Thank you you may begin. Thank you Charlie and thank you everyone for joining us today hosting the call with me is our CEO Brendan loss and our CFO Domenic burritos.

Operator: Remarks and Q&A. At this time, I'd like to turn the conference over to Matt Trachtenberg, Vice President of Finance and Investor Relations for Shoals Technologies Group. Thank you. You may begin.

Matt Trachtenberg: Thank you, Charlie. Thank you everyone for joining us today. Hosting the call with me is our CEO, Brandon Moss, and our CFO, Dominic Bardos. On this call, management will be making projections or other forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties and should not be considered guarantees of performance or results. Actual results could differ materially. Those risks and uncertainties are listed for investors in our most recent SEC filings. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's Q3 press release for definitional information and reconciliations of historical non-GAAP measures to the nearest comparable GAAP financial measures. Please note that the slides you see here are available for download from the investor section of our website at investors.shoals.com. With that, let me turn the call over to Brandon.

On this call management will be making projections or other forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties and should not be considered guarantees of performance or results.

Results could differ materially.

Those risks and uncertainties are listed for investors in our most recent SEC filings.

Today's presentation also includes references to non-GAAP financial measures you should refer to the information contained in the Companys third quarter press release for definitional information and reconciliations of historical non-GAAP measures to the nearest comparable GAAP financial measures. Please note.

But the slide you see here are available for download from the investors section of our website at investors Dot Shoals Dot com.

With that let me turn the call over to Brandon.

Thank you, Matt and thanks to everyone joining us on the call I'll begin by sharing key results from the third quarter. I will then discuss the current demand environment in the U S. And finally I will review the progress on our strategic growth initiatives.

Brandon Moss: Thank you, Matt. Thanks to everyone joining us on the call. I'll begin by sharing key results from Q3. I'll discuss the current demand environment in the US. Finally, I will review the progress on our strategic growth initiatives. Dominic will dive deeper into Q3 results and provide our outlook on Q4 2025. We'll finish the call with questions from our analysts. I'm very pleased with our execution during Q3. We delivered record revenue of $135.8 million, slightly above the high end of our expected range. Revenue grew 32.9% over the prior year period and was up 22.5% sequentially over Q2 results. Our commercial team continues to drive significant growth in our book of business.

Dominic will dive deeper into the third quarter results and provide our outlook on the fourth quarter 2025.

I will then finish the call with questions from our analysts.

I am very pleased with our execution during the third quarter, we delivered record revenue of $135 8 million slightly above the high end of our expected range revenue grew 32, 9% over the prior year period and was up 22, 5% sequentially over second.

Quarter results, our commercial team continues to drive significant growth in our book of business, we added approximately $185 $4 million in new orders in the period, helping to achieve a company record for backlog and awarded orders or <unk> of 720.

Brandon Moss: We added approximately $185.4 million in new orders in the period, helping to achieve a company record for BLAO of $720.9 million, a 21% year-over-year increase. This resulted in a very strong book to bill of 1.4 this quarter and supports the continued growth we see as we look ahead toward 2026. As of 30 September 2025, approximately $575 million of our BLAO has shipment dates in the upcoming 4 quarters running through Q3 2026. Next year is shaping up to be another year of strong growth for Shoals. As you are aware, 2025 brought with it some volatility, largely a function of an uncertain and rapidly shifting political environment.

9 million.

A 21% year over year increase.

This resulted in a very strong book to Bill of one four this quarter and supports the continued growth we see as we look ahead towards 2026.

As of September 32025, approximately $575 million of our BLA Io and shipment dates in the upcoming four quarters running through the third quarter of 2026 next year is shaping up to be another year of strong growth for shoals.

As you are aware 2025 brought with it some volatility largely a function of an uncertain and rapidly shifting political environment.

As you've seen in our results thus far our business has been resilient.

Brandon Moss: As you've seen in our results thus far, our business has been resilient. The actions we've taken to attract and retain customers over the past two years are paying off. We've improved our relationships with EPCs and developers and signed new MSAs that reflect our shared objectives. Our focus on providing innovative solutions to meet customers' needs has led to new product development and additional opportunities for growth. We continue to improve our operating model to drive out inefficiencies and increase capacity. We've maintained excellent liquidity and positive free cash flow despite increased capital expenditures and warranty remediation needs over the past year.

The actions, we've taken to attract and retain customers over the past two years are paying off.

We've improved our relationships with EPC and developers and signed new Msas that reflect our shared objectives.

Our focus on providing innovative solutions to meet customers' needs has led to new product development and additional opportunities for growth we.

Operator: Pleasure to be with Mark and Q&A. At this time, I'd like to turn the conference over to Matt Tractenberg, Vice President of Finance and Investor Relations for Shoals Technologies Group. Thank you. You may begin.

We continue to improve our operating model to drive out inefficiencies and increased capacity.

And we've maintained excellent liquidity and positive free cash flow, despite increased capital expenditures and warranty remediation needs over the past year.

Matt Tractenberg: Thank you, Charlie, and thank you, everyone, for joining us today. Hosting the call with me is our CEO, Brandon Moss, and our CFO, Dominic Bardos. On this call, management will be making projections or other forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties, and should not be considered guarantees of performance or results. Actual results could differ materially. Those risks and uncertainties are listed for investors in our most recent SEC filings. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's third-quarter press release for definitional information and reconciliations of historical non-GAAP measures to the nearest comparable GAAP financial measures. Please note that the slides you see here are available for download from the investor section of our website at investors.shoals.com. With that, let me turn the call over to Brandon.

As a result of our strong Q3 results and the current demand environment. We have slightly increased the range of anticipated revenue for the full year 2025, now representing between 17% and 20% year over year growth and above the range presented at our September 2020 for Investor Day.

Brandon Moss: As a result of our strong Q3 results and the current demand environment, we have slightly increased the range of anticipated revenue for the full year 2025, now representing between 17% and 20% year-over-year growth and above the range presented at our September 2024 investor day. Adjusted gross profit percentage remained in the expected range for the quarter, landing at 37%. Gross profit was $50.3 million, the highest quarterly amount since 2023. Dominic will provide more insight into the impact of both product mix and tariffs on our margins in a few moments. The sequential increase in SG&A this quarter was largely a function of increased legal expenses. The ITC hearing during Q3 was one driver, we also had elevated legal expenses related to the pending shrink back litigation as we worked through fact discovery, depositions, and expert analysis.

Adjusted gross profit percentage remained in the expected range for the quarter landing at 37% gross profit was $53 million the highest quarterly amount since 2023, Dominic will provide more insight into the impact of the product mix and tariffs on our margins in a few moments.

The sequential increase in SG&A. This quarter was largely a function of increased legal expenses. The ITC hearing during the third quarter was one driver, but we also had elevated legal expenses related to the pending shrink back litigation as we worked through fact discovery depositions and expert analysis.

Matt Tractenberg: Thank you, Matt, and thanks to everyone joining us on the call. I'll begin by sharing key results from the third quarter. I'll then discuss the current demand environment in the US, and finally, I will review the progress on our strategic growth initiatives. Dominic will dive deeper into the third-quarter results and provide our outlook on the fourth quarter 2025. We'll then finish the call with questions from our analysts. I'm very pleased with our execution during the third quarter. We delivered record revenue of $135.8 million, slightly above the high end of our expected range. Revenue grew 32.9% over the prior year period and was up 22.5% sequentially over second-quarter results. Our commercial team continues to drive significant growth in our book of business.

And we've maintained excellent liquidity and positive free cash flow, despite increased capital expenditures and warranty remediation needs over the past year.

Our third quarter adjusted EBITDA was within our expected range at $32 million or 23, 5% of revenue.

Brandon Moss: Our Q3 adjusted EBITDA was within our expected range at $32 million or 23.5% of revenue. Finally, the remediation work for known shrink back issues progressed as expected. The probability that some additional work may be required in the coming quarters still remains. We are not changing our estimated range of expense this quarter. However, we are pleased with our ability to respond to all customers that expressed concerns thus far and resolve those issues requiring remediation. Congratulations to our customer support team. Thank you to our customers for their continued trust and patience. Turning to the broader US market, while current headlines remain distracting and somewhat disconnected from the underlying demand for solar energy, our customers remain as busy as ever. Developers have safe harbored projects for several years, with many projects confirmed through 2030.

And finally, the remediation work for known shrink back issues progressed as expected the probability that some additional work may be required in coming quarters still remains so we are not changing our estimated range of expense. This quarter. However, we are pleased with our ability to respond to all customers that express concerns thus far and resolve.

Adjusted gross profit percentage remained in the expected range for the quarter landing at 37%.

Those issues requiring remediation.

Congratulations to our customer support team and thank you to our customers for their continued trust in patients.

Gross profit was $53 million the highest quarterly amount since 2023, Dominic will provide more insight into the impact of both product mix and tariffs on our margins in a few moments.

Turning to the broader U S market, while current headlines remain distracting and somewhat disconnected from the underlying demand for solar energy our customers remain as busy as ever.

Matt Tractenberg: We added approximately $185.4 million in new orders in the period, helping to achieve a company record for backlog and awarded orders, or BLAO, of $720.9 million, a 21% year-over-year increase. This resulted in a very strong book-to-bill of 1.4 this quarter and supports the continued growth we see as we look ahead toward 2026. As of 30 September 2025, approximately $575 million of our BLAO has shipment dates in the upcoming four quarters running through the third quarter of 2026. Next year is shaping up to be another year of strong growth for Shoals. As you are aware, 2025 brought with it some volatility, largely a function of an uncertain and rapidly shifting political environment. However, as you've seen in our results thus far, our business has been resilient. The actions we've taken to attract and retain customers over the past two years are paying off.

Developers have safe harbor projects for several years with many projects confirmed through 2030.

While we do not expect a significant number of projects to be pulled forward. It is reassuring to know that the industry is healthy and growing.

Brandon Moss: While we do not expect a significant number of projects to be pulled forward, it is reassuring to know that the industry is healthy and growing. As we have discussed, the need for new energy supply is real. The massive investment cycle in AI and data centers combined with the potential industrialization and onshoring of manufacturing will result in low growth far in excess of what we've seen in recent decades. Solar is best positioned to meet these rising energy needs today and through the balance of the decade. The U.S. Department of Energy acknowledged that solar will play a notable role meeting the growing demand given its speed of deployment and favorable cost structure.

As we have discussed the need for new energy supply is real <unk>.

Our third quarter adjusted EBITDA was within our expected range at $32 million or 23, 5% of revenue.

A massive investment cycle in AI and data centers combined with the potential industrialization and onshoring of manufacturing will result in low growth far in excess of what we've seen in recent decades.

Solar is best positioned to meet these rising energy needs today and through the balance of the decade.

The U S Department of energy acknowledges solar replaying notable role meeting the growing demand given its speed of deployment and favorable cost structure.

All of those issues requiring remediation.

Gratulation as to our customer support team and thank you to our customers for their continued trust in patients.

Following the passage of HR, one in July and the Treasury guidance issued in August we believe developers will successfully navigate the tax incentive landscape and as a result have not seen material changes to project calendars less uncertainty and the unrelenting focus on bridging the power supply gap is driver.

Brandon Moss: Following the passage of H.R. 1 in July and the Treasury guidance issued in August, we believe developers will successfully navigate the tax incentive landscape and as a result, have not seen material changes to project calendars. Less uncertainty and the unrelenting focus on bridging the power supply gap is driving continued investment. Turning to our business units. Q3 was another strong period of growth within our core utility scale solar market. Customer project calendars remain tight with little excess capacity to move things around. Labor availability is a focus for the industry and will likely remain so for the foreseeable future. That said, our quote volume exceeded $900 million in Q3, a sequential increase of more than 20%. These are projects that would generate revenue in late 2026 and 2027, further supporting our long-term growth trajectory.

Turning to the broader U S market, while current headlines remain distracting and somewhat disconnected from the underlying demand for solar energy our customers remain as busy as ever.

Matt Tractenberg: We've improved our relationships with EPCs and developers, and signed new MSAs that reflect our shared objectives. Our focus on providing innovative solutions to meet customers' needs has led to new product development and additional opportunities for growth. We continue to improve our operating model to drive out inefficiencies and increase capacity. We've maintained excellent liquidity and positive free cash flow despite increased capital expenditures and warranty remediation needs over the past year. As a result of our strong Q3 results and the current demand environment, we have slightly increased the range of anticipated revenue for the full year 2025, now representing between 17% and 20% year-over-year growth and above the range presented at our September 2024 Investor Day. Adjusted gross profit percentage remained in the expected range for the quarter, landing at 37%. Gross profit was $50.3 million, the highest quarterly amount since 2023.

Developers have safe harbor projects for several years with many projects confirmed through 2030, while.

Continued investment.

Turning to our business units third quarter was another strong period of growth within our core utility scale solar market.

While we do not expect a significant number of projects to be pulled forward. It is reassuring to know that the industry is healthy and growing.

Customer project calendars remain tight with little excess capacity to move things around.

As we have discussed the need for new energy supply is real.

Labor availability is a focus for the industry and will likely remain so for the foreseeable future.

That said, our quote volume exceeded $900 million in the third quarter, a sequential increase of more than 20%.

Solar is best positioned to meet these rising energy needs today and through the balance of the decade.

These are projects that will generate revenue in late 2026, and 2027 further supporting our long term growth trajectory.

The U S Department of energy acknowledgment solar replay notable role meeting the growing demand given its speed of deployment and favorable cost structure.

Our core utility scale market is resilient and our commercial strategy continues to drive growth.

Brandon Moss: Our core utility scale market is resilient and our commercial strategy continues to drive growth. I'd like to now discuss progress we are making in other strategic areas of our business. Shoals additional growth opportunities include international, CC&I, OEM, and BESS. Our progress in each of these is meeting or exceeding our expectations. The opportunity set across international markets continues to expand. Our pipeline exceeds 20 GW and includes projects in Latin America, EMEA, and Asia Pacific. We've hired an experienced commercial leader in Australia, where the government mandate has been expanded to target 40 GW of new capacity, including 14 GW of clean energy capacity by 2027. This is expected to stimulate approximately $73 billion in overall electricity sector investment. It's a very attractive market and one we're aggressively pursuing.

I'd like to now discuss progress we are making other strategic areas of our business.

Shows additional growth opportunities include international see C&I, OEM and best our progress in each of these is meeting or exceeding our expectations.

Matt Tractenberg: Dominic will provide more insight into the impact of both product mix and tariffs on our margins in a few moments. The sequential increase in SG&A this quarter was largely a function of increased legal expenses. The ITC hearing during the third quarter was one driver, but we also had elevated legal expenses related to the pending shrinkback litigation as we worked through fact discovery, depositions, and expert analysis. Our third-quarter adjusted EBITDA was within our expected range at $32 million, or 23.5% of revenue. Finally, the remediation work for known shrinkback issues progressed as expected. The probability that some additional work may be required in the coming quarter still remains, so we are not changing our estimated range of expense this quarter. However, we are pleased with our ability to respond to all customers that expressed concerns thus far and resolve those issues requiring remediation.

The opportunity set across international markets continues to expand our pipeline exceeds 20, Gigawatts and includes projects in Latin America, EMEA and Asia Pacific.

Continued investment.

Turning to our business units third quarter was another strong period of growth within our core utility scale solar market.

Customer project calendars remain tight with little excess capacity to move things around.

We've hired an experienced commercial leader in Australia, where the government mandate has been expanded to target 40, gigawatts of new capacity, including 14 Gigawatts of clean energy capacity by 2027. This.

Labor availability is a focus for the industry and will likely remain so for the foreseeable future.

That said, our quote volume exceeded $900 million in the third quarter, a sequential increase of more than 20%.

This is expected to stimulate approximately $73 billion in overall electricity sector investment it is a very attractive market and we're aggressively pursuing.

These are projects that would generate revenue in late 2026, and 2027 further supporting our long term growth trajectory.

We recognize more than $6 million of revenue in Q3 from two ongoing projects in Latam and one in Australia, we expect to complete all three of these international projects in the fourth quarter, our team anticipates continued acceleration and diversification across our focused markets through 2002.

Brandon Moss: We recognize more than $6 million of revenue in Q3 from two ongoing projects in LatAm and one in Australia. We expect to complete all three of these international projects in Q4. Our team anticipates continued acceleration and diversification across our focus markets through 2026. In addition, our relationships with large global developers with ties to the U.S. Export-Import Bank are opening doors and growing our pipeline in developing markets outside our targets of Australia, Latin America, and Europe. Our community, commercial, and industrial or CC&I business is performing well. We are engaged with large, well-respected electrical distributors that are driving meaningful quote volume increases. While this market remains small as compared to our core utility scale opportunity, it is one that provides us a path to create lasting relationships and future growth with new customers.

Our core utility scale market is resilient and our commercial strategy continues to drive growth.

I'd like to now discuss progress we are making other strategic areas of our business.

Shows additional growth opportunities include international see C&I, OEM and thus our progress in each of these is meeting or exceeding our expectations.

Matt Tractenberg: Congratulations to our customer support team, and thank you to our customers for their continued trust and patience. Turning to the broader US market, while current headlines remain distracting and somewhat disconnected from the underlying demand for solar energy, our customers remain as busy as ever. Developers have safe harbored projects for several years, with many projects confirmed through 2030. While we do not expect a significant number of projects to be pulled forward, it is reassuring to know that the industry is healthy and growing. As we have discussed, the need for new energy supply is real. The massive investment cycle in AI and data centers, combined with the potential industrialization and onshoring of manufacturing, will result in load growth, far in excess of what we've seen in recent decades. Solar is best positioned to meet these rising energy needs today and through the balance of the decade.

26.

In addition, our relationships with large global developers with ties to the U S. Export import bank are opening doors and growing our pipeline and developing markets outside our targets of Australia, Latin America and Europe.

The opportunity set across international markets continues to expand our pipeline exceeds 20, Gigawatts and includes projects in Latin America, EMEA and Asia Pacific.

Our community commercial and industrial or C&I business is performing well, we are engage with large well respected electrical distributors that are driving meaningful volume increases.

While this market remains small as compared to our core utility scale opportunity. It is one that provides us a path to create lasting relationships and future growth with new customers.

This is expected to stimulate approximately $73 billion in overall electricity sector investment it is a very attractive market and we're aggressively pursuing.

Our OEM business is tracking ahead of expectations as our partner continues to see strong demand for their panels.

We recognized more than $6 million of revenue in Q3 from two ongoing projects in Latam and one in Australia, we expect to complete all three of these international projects in the fourth quarter, our team anticipates continued acceleration and diversification across our focused markets through 2002.

Brandon Moss: Our OEM business is tracking ahead of expectations as our partner continues to see strong demand for their panels. Our deep engineering and manufacturing relationship with the largest domestic module provider is a strategic advantage for Shoals and one we're committed to maintain and expand. The opportunity we've received the most questions about this year is our battery energy storage solutions or BESS offering. I'd like to provide a little bit more detail today. Last year, we introduced a BESS solution targeting the solar plus storage market, specifically when new solar plants were built with attached storage systems. That opportunity remains exciting for us today since it builds upon our relationships with existing customers and developers. In addition to that opportunity, there are also two additional use cases that we are now pursuing: grid firming and data centers. Let's start with grid firming solutions.

Our deep engineering and manufacturing relationship with the largest domestic module provider as a strategic advantage for Shoals, and one we're committed to maintain and expand.

Matt Tractenberg: The US Department of Energy acknowledged that solar will play a notable role meeting the growing demand given its speed of deployment and favorable cost structure. Following the passage of HR1 in July and the Treasury guidance issued in August, we believe developers will successfully navigate the tax incentive landscape and, as a result, have not seen material changes to project calendars. Less uncertainty and the unrelenting focus on bridging the power supply gap is driving continued investment. Turning to our business units, the third quarter was another strong period of growth within our core utility-scale solar market. Customer project calendars remain tight, with little excess capacity to move things around. Labor availability is a focus for the industry and will likely remain so for the foreseeable future. That said, our quote volume exceeded $900 million in Q3, a sequential increase of more than 20%.

The opportunity we have received the most questions about this year is our battery energy storage solutions or best offering so I'd like to provide a little bit more detail today.

46.

Last year, we introduced a best solution targeting the solar plus storage market, specifically when new solar plants are built with attached storage systems that opportunity remains exciting for us today since it builds upon our relationships with existing customers and developers.

Our community commercial and industrial or see C&I business is performing well we are engage with large well respected electrical distributors that are driving meaningful volume increases all.

In addition to that opportunity. There are also two additional use cases that we're now pursuing.

Grid firming and data centers, let's.

While this market remains small as compared to our core utility scale opportunity. It is one that provides us a path to create lasting relationships and future growth with new customers.

So let's start with grid firming solutions utilities are very interested in providing more reliable and consistent power to their customers. One method is to add grid scale battery storage solutions to their existing grids in order to provide real time balance between supply and demand.

Brandon Moss: Utilities are very interested in providing more reliable and consistent power to their customers. One method is to add grid scale battery storage solutions to their existing grids in order to provide real-time balance between supply and demand. Shoals product offerings can play a part in providing solutions to system integrators in this area, and we are actively quoting opportunities in this space. In addition to grid firming, there are emerging use cases with data centers. Once again, consistent and dependable energy is critical to operations. Battery storage solutions can provide uninterrupted power as well as to help regulate power demand spikes and troughs created by artificial intelligence processing. This is an area that has significant market potential in the coming years, and we are actively engaged with system integrators in this market as well.

Our OEM business is tracking ahead of expectations as our partner continues to see strong demand for their panels.

Matt Tractenberg: These are projects that would generate revenue in late 2026 and 2027, further supporting our long-term growth trajectory. Our core utility-scale market is resilient, and our commercial strategy continues to drive growth. I'd like to now discuss progress we are making in other strategic areas of our business. Shoals' additional growth opportunities include international, CC&I, OEM, and BESS. Our progress in each of these is meeting or exceeding our expectations. 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, where the government mandate has been expanded to target 40GW of new capacity, including 14GW of clean energy capacity by 2027. This is expected to stimulate approximately $73 billion in overall electricity sector investment. It's a very attractive market and one we're aggressively pursuing.

Shows product offerings can play a part in providing solutions to system integrators in this area and we are actively quoting opportunities in this space.

Our deep engineering and manufacturing relationship with the largest domestic module provider as a strategic advantage for Shoals, and one we're committed to maintain and expand.

In addition to grid firming there are emerging use cases with data centers.

The opportunity we have received the most questions about this year is our battery energy storage solutions or <unk> offering so I would like to provide a little bit more detail today.

Once again, consistent and dependable energy is critical to operations battery storage solutions can provide uninterrupted power as well as to help regulate power demand spikes and troughs created by artificial intelligence processing.

This is an area that has significant market potential in the coming years and we are actively engaged with system integrators in this market as well.

This is an exciting time in our relatively young market, but one we're investing heavily in I am pleased to share with you today that we have already signed two msas to deliver products in these emerging best markets and are in conversation with several others about providing show systems and their unique solutions at.

In addition to that opportunity. There are also two additional use cases that we're now pursuing.

Brandon Moss: This is an exciting time in a relatively young market, one we are investing heavily in. I'm pleased to share with you today that we have already signed 2 MSAs to deliver products in these emerging BESS markets and are in conversation with several others about providing Shoals systems and their unique solutions. At the end of Q3, we had approximately $18 million of BESS in our backlog and awarded orders. In summary, our domestic utility scale market is healthy and growing. We are executing our strategic framework of market diversification as anticipated, we are leveraging our expertise, engineering and manufacturing capabilities to pursue new opportunities with speed and purpose. It is an exciting time to be at Shoals. With that, I'll now turn it over to Dominic, who will discuss our Q3 financial results in more detail and our outlook for Q4. Dominic?

Grid firming and data centers, let's.

Let's start with grid firming solutions utilities are very interested in providing more reliable and consistent power to their customers. One method is to add grid scale battery storage solutions to their existing grids in order to provide real time balance between supply and demand.

The end of Q3, we had approximately $18 million of bes and our backlog and awarded orders.

Shows product offerings can play a part in providing solutions to system integrators in this area and we are actively quoting opportunities in this space.

In summary, our domestic utility scale market is healthy and growing we are executing our strategic framework of market diversification as anticipated and we are leveraging our expertise engineering and manufacturing capabilities to pursue new opportunities with speed and purpose.

Matt Tractenberg: We recognize more than $6 million of revenue in Q3 from two ongoing projects in LATAM and one in Australia. We expect to complete all three of these international projects in Q4. Our team anticipates continued acceleration and diversification across our focus markets through 2026. In addition, our relationships with large global developers, with ties to the US Export-Import Bank, are opening doors and growing our pipeline and developing markets outside our targets of Australia, Latin America, and Europe. Our community commercial and industrial, or CC&I, business is performing well. We are engaged with large, well-respected electrical distributors that are driving meaningful quote volume increases. While this market remains small as compared to our core utility-scale opportunity, it is one that provides us a path to create lasting relationships and future growth with new customers.

In addition to grid firming there are emerging use cases with data centers.

It is an exciting time to be at Shoals with that I'll now turn it over to Dominic <unk>, who will discuss our third quarter financial results in more detail and our outlook for the fourth quarter Dominic.

This is an area that has significant market potential in the coming years and we are actively engaged with system integrators in this market as well.

Thanks, Brandon and greetings to everyone on the call.

Turning to our third quarter financial results revenue increased by 32, 9% year over year to $135 8 million. The increase in revenue was primarily driven by higher domestic project volume from both new and existing customers.

Dominic Bardos: Thanks, Brandon. Greetings to everyone on the call. Turning to our Q3 financial results. Revenue increased by 32.9% year-over-year to $135.8 million. The increase in revenue was primarily driven by higher domestic project volume from both new and existing customers. As Brandon mentioned earlier, our strategic growth channels of international, CC&I, and OEM contributed to year-over-year revenue growth in the quarter. Gross profit increased to $50.3 million compared to $25.4 million in the prior year period. Our GAAP gross profit percentage was 37.0% compared to 24.8% in the prior year period, within our expected percentage range of mid to upper thirties. There are a few dynamics worth mentioning with regards to gross profit percentage. First, I'd like to discuss product mix.

In addition, as Brandon mentioned earlier, our strategic growth channels of international <unk> and OEM contributed to year over year revenue growth in the quarter.

At the end of Q3, we had approximately $18 million of bes and our backlog and awarded orders.

Gross profit increased to $53 million compared to $25 4 million in the prior year period.

Matt Tractenberg: Our OEM business is tracking ahead of expectations as our partner continues to see strong demand for their panels. Our deep engineering and manufacturing relationship with the largest domestic module provider is a strategic advantage for Shoals and one we're committed to maintain and expand. The opportunity we've received the most questions about this year is our battery energy storage solutions, or BESS offering. So I'd like to provide a little bit more detail today. Last year, we introduced a BESS solution targeting the solar-plus storage market, specifically when new solar plants are built with attached storage systems. That opportunity remains exciting for us today since it builds upon our relationships with existing customers and developers. In addition to that opportunity, there are also two additional use cases that we are now pursuing: grid firming and data centers. Let's start with grid firming solutions.

Our GAAP gross profit percentage was 37.0% compared to 24, 8% in the prior year period within our expected percentage rates of mid to upper Thirty's.

There are a few dynamics worth mentioning with regards to gross profit percentage first I'd like to discuss product mix.

With that I'll now turn it over to Dominic who will discuss our third quarter financial results in more detail and our outlook for the fourth quarter Dominic.

<unk> solutions drive more value for customers than others.

Dominic Bardos: Certain EBOS solutions drive more value for customers than others. As such, those custom and engineered solutions typically carry higher margins than other product lines. Some new products, such as Long Tail BLA, drive incremental revenue in our share wallet, but do not carry the same gross profit percentage as our traditional BLA solution. Long Tail BLA does, however, provide incremental gross profit dollars and has allowed us to capture additional share while meeting customer needs. Second, I'd like to provide some color regarding tariffs. Our supply chain team is constantly working to drive material costs out of our products. Months of work to test new raw materials, negotiate terms, and onboard new suppliers can be undone in a moment as trade policies change without notice.

As such those custom and engineered solutions typically carry higher margins than other product lines.

Thanks, Brandon and greetings to everyone on the call.

Some new products, such as long tailed BLA drive incremental revenue and our share of wallet, but do not carry the same gross profit percentage as our traditional BLA solution.

Long tail BLA does however, provide incremental gross profit dollars and has allowed us to capture additional share while meeting customer needs.

In addition, as Brandon mentioned earlier, our strategic growth channels of international <unk> and OEM contributed to year over year revenue growth in the quarter.

Second I'd like to provide some color regarding tariffs our supply chain team is constantly working to drive material costs out of our products months of work to test new raw materials negotiate terms and onboard new suppliers can be undone in a moment as trade policies change without notice Unfortunately like many.

Matt Tractenberg: Utilities are very interested in providing more reliable and consistent power to their customers. One method is to add grid-scale battery storage solutions to their existing grids in order to provide real-time balance between supply and demand. Shoals' product offerings can play a part in providing solutions to system integrators in this area, and we are actively quoting opportunities in this space. In addition to grid firming, there are emerging use cases with data centers. Once again, consistent and dependable energy is critical to operations. Battery storage solutions can provide uninterrupted power as well as to help regulate power demand spikes and troughs created by artificial intelligence processing. This is an area that has significant market potential in the coming years, and we are actively engaged with system integrators in this market as well.

Gross profit increased to $53 million compared to $25 4 million in the prior year period.

Our GAAP gross profit percentage was 37.0% compared to 24, 8% in the prior year period within our expected percentage rates of mid to upper Thirty's.

Others shows has been impacted by these policy shifts this year and as a result, some margin enhancing savings could not be realized as expected.

Dominic Bardos: Unfortunately, like many others, Shoals has been impacted by these policy shifts this year. As a result, some margin-enhancing savings could not be realized as expected. Moving on to general and administrative expenses. G&A was $29.4 million, which is $10.7 million higher than the prior year period. Our legal expenses, which accounted for approximately $5.7 million of the increase, remain elevated while we make our way through ongoing litigation matters. Approximately $6.8 million of legal expense was specifically related to the ongoing wire installation shrink back litigation. Income from operations or operating profit was $18.7 million compared to $4.5 million during the prior year period. Operating profit margin was 13.7% compared to 4.4% a year ago.

There are a few dynamics worth mentioning with regards to gross profit percentage first I'd like to discuss product mix.

Moving on to general and administrative expenses.

G&A was $29 $4 million, which is $10 $7 million higher than the prior year period, our legal.

<unk> solutions drive more value for customers than others.

As such those custom and engineered solutions typically carry higher margins than the other product lines.

<unk> expenses, which accounted for approximately $5 $7 million of the increase remained elevated while we make our way through ongoing litigation matters.

Some new products, such as long tail BLA drive incremental revenue and our share of wallet, but do not carry the same gross profit percentage as our traditional BLA solution.

Approximately $6 8 million of legal expense was specifically related to the ongoing wire insulation shrink back litigation.

Long tail BLA does however, provide incremental gross profit dollars and has allowed us to capture additional share while meeting customer needs.

Income from operations or operating profit was $18 7 million compared to $4 5 million during the prior year period.

Matt Tractenberg: This is an exciting time in a relatively young market, but one we are investing heavily in. I'm pleased to share with you today that we have already signed two MSAs to deliver products in these emerging BESS markets and are in conversation with several others about providing Shoals systems and their unique solutions. At the end of Q3, we had approximately $18 million of BESS in our backlog and awarded orders. In summary, our domestic utility-scale market is healthy and growing. We are executing our strategic framework of market diversification as anticipated, and we are leveraging our expertise, engineering, and manufacturing capabilities to pursue new opportunities with speed and purpose. It is an exciting time to be at Shoals. With that, I'll now turn it over to Dominic, who will discuss our third-quarter financial results in more detail and our outlook for the fourth quarter. Dominic?

Second I'd like to provide some color regarding tariffs our supply chain team is constantly working to drive material costs out of our products.

Operating profit margin was 13, 7% compared to four 4% a year ago.

<unk> work to test new raw materials negotiate terms and onboard new suppliers can be undone in a moment as trade policies change without notice. Unfortunately like many others shows has been impacted by these policy shifts this year and as a result, some margin enhancing savings could not be realized as expected.

Net income was $11 9 million compared to a net loss of $300000 during the prior year period.

Dominic Bardos: Net income was $11.9 million compared to a net loss of $300,000 during the prior year period. Adjusted net income was $21.0 million compared to $13.9 million in the prior year period. Adjusted EBITDA was $32.0 million compared to $24.5 million in the prior year period, representing 30% growth. Adjusted EBITDA margin was 23.5% compared to 24.0% a year ago, driven primarily by lower gross margin flow through. Adjusted diluted earnings per share of $0.12 was approximately 50% higher than the prior year period. During Q3, we spent $11.9 million on wire insulation shrink back remediation and had a remaining warranty liability on our balance sheet of $7.2 million as of 30 September.

Adjusted net income was 21.0 million compared to $13 9 million in the prior year period.

Adjusted EBITDA was 32 points here of $1 million compared to $24 5 million in the prior year period, representing 30% growth.

Moving on to general and administrative expenses.

G&A was $29 4 million.

Adjusted EBITDA margin was 23, 5% compared to 24.0% a year ago, driven primarily by lower gross margin flow through.

Which is $10 $7 million higher than the prior year period.

Our legal expenses, which accounted for approximately $5 $7 million of the increase remain elevated while we make our way through ongoing litigation matters.

Adjusted diluted earnings per share of <unk> 12 was approximately 50% higher than the prior year period.

Approximately $6 8 million of legal expense was specifically related to the ongoing wire insulation shrink back litigation.

During the third quarter, we spent $11 $9 million on wire insulation shrink back remediation and had a remaining warranty liability on our balance sheet of $7 2 million as of September 30.

Matt Tractenberg: Thanks, Brandon, and greetings to everyone on the call. Turning to our third-quarter financial results, revenue increased by 32.9% year-over-year to $135.8 million. The increase in revenue was primarily driven by higher domestic project volume from both new and existing customers. In addition, as Brandon mentioned earlier, our strategic growth channels of international, CC&I, and OEM contributed to year-over-year revenue growth in the quarter. Gross profit increased to $50.3 million compared to $25.4 million in the prior year period. Our GAAP gross profit percentage was 37.0% compared to 24.8% in the prior year period, within our expected percentage range of mid to upper 30s. There are a few dynamics worth mentioning with regards to gross profit percentage. First, I'd like to discuss product mix. Certain EBOS solutions drive more value for customers than others. As such, those custom and engineered solutions typically carry higher margins than other product lines.

Income from operations or operating profit was $18 7 million compared to $4 5 million during the prior year period.

The current portion of the remaining liability related to Sri back is now $4 2 million.

Operating profit margin was 13, 7% compared to four 4% a year ago.

Dominic Bardos: The current portion of the remaining liability related to shrink back is now $4.2 million. Operationally, we generated $19.4 million of cash in Q3, driven by higher net income, an increase in accounts payable, and higher accrued expenses. These increases were partially offset by a higher accounts receivable balance, driven by strong sales volumes and increased spend on warranty remediation. On a year-to-date basis, we have generated $21.2 million in operating cash flow. Free cash flow was $9.0 million in Q3, reflecting both the $11.9 million impact of remediation costs and elevated capital expenditures related to our new facility. These two items impacted free cash flow by a total of $22.4 million in the quarter.

Operationally, we generated $19 $4 million of cash in the third quarter driven by higher net income an increase in accounts payable and higher accrued expenses.

Net income was $11 9 million.

Compared to a net loss of $300000 during the prior year period.

<unk> net income was 21.0 million compared to $13 9 million in the prior year period.

These increases were partially offset by higher accounts receivable balance driven by strong sales volumes.

Adjusted EBITDA was 32.0 million compared to $24 5 million in the prior year period, representing 30% growth.

An increased spend on warranty remediation.

On a year to date basis, we have generated $21 2 million in operating cash flow.

Adjusted EBITDA margin was 23, 5% compared to 24.0% a year ago, driven primarily by lower gross margin flow through.

Free cash flow was $9.01 billion in the third quarter, reflecting both the $11 9 million impact of remediation costs and elevated capital expenditures related to our new facility.

Adjusted diluted earnings per share of <unk> 12 was approximately 50% higher than the prior year period.

These two items impacted free cash flow by a total of $22 4 million in the quarter.

During the third quarter, we spent $11 $9 million on wire insulation shrink back remediation and had a remaining warranty liability on our balance sheet of $7 2 million as of September 30.

Matt Tractenberg: Some new products, such as Longtail BLA, drive incremental revenue in our share of wallet but do not carry the same gross profit percentage as our traditional BLA solution. Longtail BLA does, however, provide incremental gross profit dollars and has allowed us to capture additional share while meeting customer needs. Second, I'd like to provide some color regarding tariffs. Our supply chain team is constantly working to drive material costs out of our products. Months of work to test new raw materials, negotiate terms, and onboard new suppliers can be undone in a moment as trade policies change without notice. Unfortunately, like many others, Shoals has been impacted by these policy shifts this year, and as a result, some margin-enhancing savings could not be realized as expected. Moving on to general and administrative expenses. G&A was $29.4 million, which is $10.7 million higher than the prior year period.

We received our certificate of occupancy for our new facility Importantly, Tennessee, and we began moving into the new facility in September we.

Dominic Bardos: We received our certificate of occupancy for our new facility in Portland, Tennessee. We began moving into the new facility in September. We expect to begin consolidating operations from our three existing facilities in Q4 and expect to complete the entire consolidation by mid-2026. Our balance sheet remains high quality. We ended the quarter with cash and equivalents of $8.6 million and net debt to adjusted EBITDA of 1.2x. Our net debt was $118.2 million, a slight decrease over the prior quarter. We paid an additional $5.0 million down on our revolver during the period, which had an outstanding balance of $126.8 million at the end of the quarter.

We expect to begin consolidated operations from our three existing facilities in the fourth quarter and expect to complete the entire consolidations by mid 2026.

The current portion of the remaining liability related to Sri back is now $4 2 million.

Our balance sheet remains high quality, and we ended the quarter with cash and equivalents of $8 $6 million and net debt to adjusted EBITDA of one two times.

Operationally, we generated $19 $4 million of cash in the third quarter driven by higher net income an increase in accounts payable and higher accrued expenses.

Our net debt was $118 2 million.

These increases were partially offset by higher accounts receivable balance driven by strong sales volumes and increased spend on warranty remediation.

Slight decrease over the prior quarter.

We paid an additional five points here $1 million down on our revolver during the period, which had an outstanding balance of $126 8 million at the end of the quarter.

On a year to date basis, we have generated $21 2 million in operating cash flow.

Free cash flow was $9.01 million in the third quarter, reflecting both the $11 9 million impact of remediation costs and elevated capital expenditures related to our new facility.

With regards to capital allocation given the number of competing priorities for our cash this year, including shrink back remediation and factory consolidation, we did not purchase any shares in the third quarter under our share repurchase program.

Dominic Bardos: With regards to capital allocation, given the number of competing priorities for our cash this year, including shrink back remediation and factory consolidation, we did not purchase any shares in Q3 under our share repurchase program. Backlog and awarded orders ended Q3 at a record $721 million, a sequential increase of $50 million. Backlog constitutes $298 million of the total BLAO, providing us with confidence that the growth projections we have for the upcoming periods can be achieved. As of 30 September, $575 million of our backlog and awarded orders have planned delivery dates in the coming four quarters, with the remaining $146 million beyond that. Turning now to the outlook. Quarterly pacing within the year has continued to follow the strong back half we've been communicating since February.

Matt Tractenberg: Our legal expenses, which accounted for approximately $5.7 million of the increase, remain elevated while we make our way through ongoing litigation matters. Approximately $6.8 million of legal expense was specifically related to the ongoing wire insulation shrinkback litigation. Income from operations, or operating profit, was $18.7 million compared to $4.5 million during the prior year period. Operating profit margin was 13.7% compared to 4.4% a year ago. Net income was $11.9 million compared to a net loss of $300,000 during the prior year period. Adjusted net income was $21.0 million compared to $13.9 million in the prior year period. Adjusted EBITDA was $32.0 million compared to $24.5 million in the prior year period, representing 30% growth. Adjusted EBITDA margin was 23.5% compared to 24.0% a year ago, driven primarily by lower gross margin flow-through.

These two items impacted free cash flow by a total of $22 4 million in the quarter.

Backlog and awarded orders ended the third quarter at a record $721 million.

We received our certificate of occupancy for our new facility Importantly, Tennessee, and we began moving into the new facility in September.

Sequential increase of $50 million.

Backlog constitutes $298 million of the total BLA O, providing us with confidence that the growth projections, we have for the upcoming periods can be achieved.

We expect to begin consolidated operations from our three existing facilities in the fourth quarter and expect to complete the entire consolidations by mid 2026.

As of September 3500, $75 million of our backlog and awarded orders have planned delivery dates in the coming four quarters with the remaining $146 million beyond that.

Our balance sheet remains high quality, and we ended the quarter with cash and equivalents of $8 6 million.

And net debt to adjusted EBITDA of one two times.

Turning now to the outlook.

Our net debt was $118 2 million.

Quarterly pacing within the year has continued to follow the strong back half we've been communicating since February for.

A slight decrease over the prior quarter.

We paid an additional five points here of $1 million down on our revolver during the period, which had an outstanding balance of $126 8 million at the end of the quarter.

For the quarter ending December 31, 2025, the company expects revenue now to be in the range of $140 million to $150 million, representing 36% year over year growth at the midpoint and adjusted EBITDA to be the range of $35 million to $40 million.

Dominic Bardos: For Q4 ending 31 December 2025, the company expects revenue now to be in the range of $140 to $150 million, representing 36% year-over-year growth at the midpoint and adjusted EBITDA to be in the range of $35 to $40 million. This will result in full year 2025 revenue between $467 to $477 million and adjusted EBITDA in the range of $105 to $110 million. In addition, for the full year, we expect cash flow from operations to remain in the range of $15 to $25 million, capital expenditures to remain in the range of $30 to $40 million and interest expense to remain in the range of $8 to $12 million.

This will result in full year 2025 revenue between $467 million to $477 million.

Backlog and awarded orders ended the third quarter at a record $721 million.

And adjusted EBITDA in the range of $105 million to $110 million.

Matt Tractenberg: Adjusted diluted earnings per share of $0.12 was approximately 50% higher than the prior year period. During the third quarter, we spent $11.9 million on wire insulation shrinkback remediation and had a remaining warranty liability on our balance sheet of $7.2 million as of 30 September. The current portion of the remaining liability related to shrinkback is now $4.2 million. Operationally, we generated $19.4 million of cash in the third quarter, driven by higher net income, an increase in accounts payable, and higher accrued expenses. These increases were partially offset by a higher accounts receivable balance, driven by strong sales volumes and increased spend on warranty remediation. On a year-to-date basis, we have generated $21.2 million in operating cash flow. Free cash flow was $9.0 million in the third quarter, reflecting both the $11.9 million impact of remediation costs and elevated capital expenditures related to our new facility.

Sequential increase of $50 million.

In addition for the full year, we expect cash flow from operations to remain in the range of 15% to $25 million.

Backlog constitutes $298 million of the total BLA O, providing us with confidence that the growth projections, we have for the upcoming periods can be achieved.

Capital expenditures to remain in the range of $30 million to $40 million and interest expense to remain in the range of $8 million to $12 million.

As of September 30th $575 million of our backlog and awarded orders have planned delivery dates in the coming four quarters with the remaining $146 million beyond that.

With that I'll turn it back over to Brandon for closing remarks.

Dominic Bardos: With that, I'll turn it back over to Brandon for closing remarks.

Thank you Dominic the demand environment over the last few years spend volatile driven not only by the macroeconomic and political backdrop, but also labor availability supply chain disruptions and permitted.

Brandon Moss: Thank you, Dominic. The demand environment over the last few years has been volatile, driven not only by the macroeconomic and political backdrop, but also labor availability, supply chain disruptions, and permitting. That said, 2025 appears to be playing out slightly better than we had anticipated when we provided guidance in February. The changes we've implemented, which span both commercial and operational process improvements and shifts and strategic direction and focus, are enabling exciting and visible improvements across the company. The transformation from a company with a narrow customer mix, product offering, and geographic footprint to a diversified multinational energy solutions provider is beginning to take shape. These changes do not occur overnight, but through the deployment of repeatable processes that improve productivity, visibility, and scale.

Turning now to the outlook.

Quarterly pacing within the year has continued to follow the strong back half we've been communicating since February for.

That said 2025 appears to be playing out slightly better than we had anticipated when we provided guidance in February.

The changes, we've implemented which span both commercial and operational process improvements and shifts and strategic direction and focus are enabling exciting and visible improvements across the company.

This will result in full year 2025 revenue between $467 million to $477 million.

The transformation from a company with a narrow customer mix product offering and geographic footprint to a diversified multinational energy solutions provider is beginning to take shape. These changes do not occur overnight, but through the deployment of repeatable processes that improve productivity visibility and <unk>.

And adjusted EBITDA in the range of $105 million to $110 million.

Matt Tractenberg: These two items impacted free cash flow by a total of $22.4 million in the quarter. We received our certificate of occupancy for our new facility in Portland, Tennessee, and we began moving into the new facility in September. We expect to begin consolidating operations from our three existing facilities in the fourth quarter and expect to complete the entire consolidation by mid-2026. Our balance sheet remains high quality, and we ended the quarter with cash and equivalents of $8.6 million and net debt to adjusted EBITDA of 1.2x. Our net debt was $118.2 million, a slight decrease over the prior quarter. We paid an additional $5.0 million down on a revolver during the period, which had an outstanding balance of $126.8 million at the end of the quarter.

In addition for the full year, we expect cash flow from operations to remain in the range of 15% to $25 million.

Capital expenditures to remain in the range of $30 million to $40 million and interest expense to remain in the range of $8 million to $12 million.

Rail through.

Through the hiring of seasoned business leaders, who can execute with consistency through the focus on developing new innovative product solutions for customers facing real world problems and through an unyielding focus on improving the customer experience from start to finish.

Brandon Moss: Through the hiring of seasoned business leaders who can execute with consistency, through the focus on developing new innovative product solutions for customers facing real-world problems, through an unyielding focus on improving the customer experience from start to finish. We are building the next version of Shoals, one that will deliver attractive returns for our shareholders through profitable growth and strong cash flow generation. I'm very encouraged about the progress we've made and how well we're set to continue the journey in 2026 and beyond. We want to thank our shareholders and customers for their continued trust and our employees for their hard work and dedication. Operator, we are now ready for questions.

With that I'll turn it back over to Brandon for closing remarks.

We are building the next version of shows.

One that will deliver attractive returns for our shareholders through profitable growth and strong cash flow generation.

That said 2025 appears to be playing out slightly better than we had anticipated when we provided guidance in February.

I am very encouraged about the progress we've made and how well we're set to continue the journey in 2026 and beyond.

The changes, we've implemented which spanned both commercial and operational process improvements and shifts and strategic direction and focus are enabling exciting and visible improvements across the company.

We want to thank our shareholders and customers for their continued trust and our employees for their hard work and dedication.

Operator, we are now ready for questions.

Matt Tractenberg: With regards to capital allocation, given a number of competing priorities for our cash this year, including shrinkback, remediation, and factory consolidation, we did not purchase any shares in the third quarter under our share repurchase program. Backlog and awarded orders ended the third quarter at a record $721 million, a sequential increase of $50 million. Backlog constitutes $298 million of the total BLAO, providing us with confidence that the growth projections we have for the upcoming periods can be achieved. As of 30 September 2025, $575 million of our backlog and awarded orders have planned delivery dates in the coming four quarters, with the remaining $146 million beyond that. Turning now to the outlook, quarterly pacing within the year has continued to follow the strong back half we've been communicating since February.

Thank you if you'd like to ask a question on todays call. Please press star followed by one on your telephone keypad, maybe lot to ensure your question. Please press star followed by two when preparing to ask a question. Please ensure you sit and locally.

Operator: Perfect. Thank you. If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad. If you'd like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure you're unmuted locally. As a reminder, that's star followed by one on your keypads now. Our first question comes from Christine Cho of Barclays. Christine, your line is open. Please go ahead.

As a reminder, that star followed by one on your key pads now.

Kale through.

Our first question comes from Christine Cho of Barclays. Christine. Your line is open. Please go ahead.

Good morning, Thank you for taking my question.

I just wanted to start with maybe that.

Christine Cho: Good morning. Thank you for taking my question.

Good morning, I, just wanted to start with the data center opportunity.

Brandon Moss: Thank you, Christine.

Christine Cho: Good morning. I just wanted to start with the data center opportunity. Brandon, I think in your prepared remarks you talk about conversations with system integrators. Is that how you expect the data center opportunity to materialize through integrators? If that's the case, you know, how should we expect the opportunity will show up in your bookings? Should we think something like this $18 million that you guys talked about this quarter, like, more consistently every quarter? Could we see, you know, a lumpy large booking? Also, if you could provide some more information on the MSAs, maybe size, type of counterparty, how we should expect orders from these MSAs to make it into backlog. Thank you.

We're building. The next version of shows one that will deliver attractive returns for our shareholders through profitable growth and strong cash flow generation.

Brandon I think in your prepared remarks, you talk about conversations with system integrators is that how you expect the data center opportunity materialize through integrators and if that's the case how should we expect the opportunity will show up in your Baku.

I am very encouraged about the progress we've made and how well we're set to continue the journey in 2026 and beyond.

Matt Tractenberg: For the quarter ending 31 December 2025, the company expects revenue now to be in the range of $140 to $150 million, representing 36% year-over-year growth at the midpoint, and adjusted EBITDA to be in the range of $35 to $40 million. This will result in full year 2025 revenue between $467 to $477 million. Adjusted EBITDA in the range of $105 to $110 million. In addition, for the full year, we expect cash flow from operations to remain in the range of $15 to $25 million. Capital expenditures to remain in the range of $30 to $40 million, and interest expense to remain in the range of $8 to $12 million. With that, I'll turn it back over to Brandon for closing remarks. Thank you, Dominic.

We want to thank our shareholders and customers for their continued trust and our employees for their hard work and dedication.

Should we think something like this $18 million that you guys talked about this quarter like more consistently every quarter or could we see.

Operator, we are now ready for questions.

Lumpy large bucking.

Also if you could provide some more information on MSA, maybe size type of counterparty.

Thank you if you'd like to ask a question on todays call. Please press star followed by one on your telephone keypad, maybe like to draw. Your question. Please press star followed by two unprepared to ask a question. Please ensure you're on mute locally.

How we should expect orders from these msas.

Thank you.

Thanks, Christine good morning.

<unk>.

As you mentioned, we are excited about the two new Msas, we're excited about the $18 million of backlog and awarded orders.

Brandon Moss: Thanks, Christine. Good morning. As you mentioned, we are excited about the two new MSAs. We're excited about the $18 million of backlog and awarded orders. You know, specifically our channel to market, you know, the question around system integrators. You know, we could be partnering with system integrators directly. We could be partnering with EPCs directly on the projects. We've talked about, you know, in past quarters, even a sale to a hyperscaler. You know, it's a new market or how we partner for a particular project, you know, may change from project to project. You know, I think the important thing for us is that we are engaged in some way, shape or form with these projects and are helping customers engineer solutions.

As a reminder, that star followed by one on your key pads now.

Our first question comes from Christine Cho of Barclays. Christine. Your line is open. Please go ahead.

Specifically our channel to market.

Good morning, Thank you for taking my question.

Question around system integrators.

I just wanted to start with maybe that.

We could be partnering with system integrators directly we could be partnering with epc's directly on the projects we've talked about.

Good morning, I, just wanted to start with the data center opportunity.

Matt Tractenberg: The demand environment over the last few years has been volatile, driven not only by the macroeconomic and political backdrop, but also labor availability, supply chain disruptions, and permitting. That said, 2025 appears to be playing out slightly better than we had anticipated when we provided guidance in February. The changes we've implemented, which span both commercial and operational process improvements and shifts in strategic direction and focus, are enabling exciting and visible improvements across the company. The transformation from a company with a narrow customer mix, product offering, and geographic footprint to a diversified multinational energy solutions provider is beginning to take shape. These changes do not occur overnight, but through the deployment of repeatable processes that improve productivity, visibility, and scale.

In past quarters, even a sale to a hyper scaler so.

It's a new market and.

<unk>.

How do we partner for a particular project may change from project to project.

I think the important thing for US is that we are engaged in some way shape or form with these projects and are helping our customers engineer solutions.

Quarter like more consistently every quarter or could we see.

Lumpy large bucking.

Also if you could provide some more information on Msas, maybe size type of counterparty.

Many of these solutions are data centers and I know you asked specifically about who the msas are with and the size.

Brandon Moss: You know, many of these solutions at data centers. I know you asked specifically about who the MSAs are with and the size is, you know, just one. The data centers, typically there's a level of confidentiality about where they are and who they are. Specifically with our MSAs, our partners may be deploying some proprietary system architecture, so we're limited about what we can share, you know, for those specific opportunities. You know, as we've talked about in the past

How we should expect orders from these MSA backlog. Thank you.

Yes.

Thanks, Christine good morning.

This one the data centers typically there is a level of confidentiality about where they are and who they are and specifically with our msas.

As you mentioned, we are excited about the two new Msas, we're excited about the $18 million of backlog and awarded orders.

Specifically our channel to market.

Our partners may be deploying.

Matt Tractenberg: Through the hiring of seasoned business leaders who can execute with consistency, through the focus on developing new, innovative product solutions for customers facing real-world problems, and through an unyielding focus on improving the customer experience from start to finish. We are building the next version of Shoals, one that will deliver attractive returns for our shareholders through profitable growth and strong cash flow generation. I'm very encouraged about the progress we've made and how well we're set to continue the journey in 2026 and beyond. We want to thank our shareholders and customers for their continued trust and our employees for their hard work and dedication. Operator, we are now ready for questions. Perfect. Thank you. If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad. If you'd like to withdraw your question, please press star followed by two.

Some proprietary system architecture. So we're limited about what we can share.

Question around system integrators.

We could be partnering with system integrators directly we could be partnering with epc's directly on the projects we've talked about.

For those specific opportunities.

And as we've talked about in the past.

This business for us because of the newness of it and <unk>.

In past quarters, even a sale to a hyper scaler so.

Dominic Bardos: This business for us because the newness of it and even the size and scale of some of these projects, our Backlog and Awarded Orders may at times be lumpy. You know, I wouldn't specifically count on, hey, we've booked $18 million and we're gonna continue to book that quarter after quarter. We can have some lumpy bookings. That said, as we begin recognizing revenue on this, the revenue should be somewhat stable as customers take deliveries. On this specific or these specific opportunities in our Backlog and Awarded Orders, I would anticipate revenue beginning to materialize in the beginning of Q2. You know, very young and evolving market, new product set for us. We're very excited about it.

And even the size and scale of some of these projects our backlog and awarded orders may at times be lumpy.

It's a new market and.

<unk>.

How do we partner for a particular project may change from project to project.

So.

I wouldn't specifically count on Hey, we booked $18 million and we're going to continue to book that quarter after quarter.

Yes, I think the important thing for US is that we are engaged in some way shape or form with these projects and are helping our customers engineer solutions.

We can have some lumpy bookings that said.

As we begin recognizing revenue on the revenue should be somewhat stable as customers take take deliveries.

Many of these solutions are data centers and I know you asked specifically about who the msas are with and the size.

On this specific.

Are these specific opportunities in our backlog and awarded orders.

This one the data centers typically there is a level of confidentiality about where they are and who they are and specifically with our msas are our partners may be deploying.

I would I would anticipate revenue beginning to materialize in the beginning of second quarter. So.

Matt Tractenberg: When preparing to ask your question, please ensure you're unmuted locally. As a reminder, that's star followed by one on your keypad now. Our first question comes from Christine Cho of Barclays. Christine, your line is open. Please go ahead. Good morning. Thank you for taking my question. Hi, Christine. I just wanted to start with the data center opportunity. Brandon, I think in your prepared remarks, you talk about conversations with system integrators. Is that how you expect the data center opportunity to materialize through integrators? And if that's the case, how should we expect the opportunity will show up in your bookings? Should we think something like this $18 million that you guys talked about this quarter, more consistently every quarter, or could we see a lumpy large booking? Also, if you could provide some more information on the MSAs, maybe size, type of counterparty.

Very young and evolving market new product set for us we're very excited about it and as we've commented in the past.

Some proprietary system architecture. So we're limited about what we can share.

We're dedicating about 15% of our floor space, our operating floor space here in our new facility.

Dominic Bardos: As we've commented in the past, you know, we're dedicating about 15% of our floor space, our operating floor space here in our new facility to our best product offering, and that build-out is underway. Things are progressing ahead of plans.

For those specific opportunities.

And as we've talked about in the past.

To our best product offering in that build out is underway so things are progressing.

This business for us because the newness of it and <unk>.

And even the size and scale of some of these projects our backlog and awarded orders may at times be lumpy.

Ahead of plans.

Okay great.

And then just moving onto gross margin now they.

So.

Christine Cho: Okay, great. Just moving on to gross margins. You know, they were soft this quarter despite system solutions being a bigger part of the business than it has been for a while. Can you just help us parse out how much of this is, you know, due to tariffs? You know, is it lower pricing to get back some share? You know, you talked about the lower margin BLA. Is there a margin drag from the expansion of the new manufacturing? Just kind of help us parse it out and if you can give us some idea of how we should expect it to trend over the next year.

They were soft this quarter despite system solution being a bigger part of the business than it has been for awhile.

I wouldn't specifically count on Hey, we booked $18 million and we're going to continue to book that quarter after quarter.

Can you just help us parse out how much of this is due to <unk>.

We can have some lumpy bookings that said.

Is it lower pricing to get back I'm sure you talked about the lower margin BLA is there a margin drag from the expansion of the new manufacturing just kind of help us parse it out and if you can give us some idea of how we should expect that to trend over the next year.

As we begin recognizing revenue on the revenue should be somewhat stable.

As customers take take deliveries.

On this specific.

Are these specific opportunities in our backlog and awarded orders.

Matt Tractenberg: How we should expect orders from these MSAs to make it into backlog. Thank you. Thanks, Christine. Good morning. As you mentioned, we are excited about the two new MSAs. We're excited about the $18 million of backlog and awarded orders. Specifically, our channel to market, the question around system integrators. We could be partnering with system integrators directly. We could be partnering with EPCs directly on the projects. We've talked about in past quarters, even a sale to a hyperscaler. It's a new market, and how we partner for a particular project may change from project to project. I think the important thing for us is that we are engaged in some way, shape, or form with these projects and are helping customers engineer solutions.

I would I would anticipate revenue beginning to materialize in the beginning of second quarter. So.

Sure Kristina as Dominic here, yes, so the margins have been stable this year and right within the range that we've expected. The 35 mid <unk> Upper 30, percents, so coming in at 37% was right within our expectations in my prepared remarks, I did talk about a couple of things because the new long tail BLA.

Dominic Bardos: Sure, Christine, it's Dominic here. Yeah. The margins have been stable this year and right within the range that we've expected, you know, the 35, you know, the mid-30s to upper 30s%. Coming in at 37% was right within our expectations. In my prepared remarks, I did talk about a couple of things because the new Long Tail BLA, as an example, is one where the margins will fall on a percentage basis. There's this large section of that that expands our share of wallet into the solar field for the feeder cable, and that is just not the same amount of value engineering on that section of revenue. We've talked about that, and that is part of what is going on as expected.

Very young and evolving market new product set for us we're very excited about it and as we've commented in the past.

We're dedicating about 15% of our floor space, our operating floor space here in our new facility.

As an example is one where the margins will fall on a percentage basis.

To our best product offering in that build out is underway so things are progressing.

There is a large section of that that expands our share of wallet into the solar field for feeder cable and that is just not the same amount of value engineering on that section of revenue. So we've talked about that and that is part of what's going on as expected.

Ahead of plans.

Okay great.

And then just moving onto gross margin.

They were soft this quarter despite system solution being a bigger part of the business than it has been for awhile can.

Now the tariff thing is also an interesting one for us because while we're largely protected mitigated from an increase when we're quoting jobs. We can pass those along as we do the final purchase order. There are some things that we're doing behind the scenes to drive costs out of the system and Thats, what I was referring to on the prepared remarks.

Can you just help us parse out how much of this is due to tariffs.

Dominic Bardos: Now, the tariff thing is also an interesting one for us because while we're largely protected and mitigated from, you know, an increase when we're quoting jobs, we can pass those along as we do the final purchase order. There are some things that we're doing behind the scenes to drive costs out of the system. That's what I was referring to on the prepared remarks, that all the work of our supply chain team to onboard with our engineers to test the new products and to really get new raw materials ready to go, it was actually undone for us. We did not realize the margin lift that we were expecting.

While our pricing to get back some share.

You talked about the lower margin BLA is there a margin drag from the expansion of the new manufacturing just kind of help us parse it out and if you can give us some idea of how we should expect that to trend over the next year.

Matt Tractenberg: Many of these solutions at data centers, and I know you asked specifically about who the MSAs are with and the size, is just one, the data centers. Typically, there's a level of confidentiality about where they are and who they are. And specifically with our MSAs, our partners may be deploying some proprietary system architecture, so we're limited about what we can share for those specific opportunities. As we've talked about in the past, this business for us, because of the newness of it and even the size and scale of some of these projects, our backlog and awarded orders may at times be lumpy. I wouldn't specifically count on, "Hey, we've booked $18 million, and we're going to continue to book that quarter after quarter." We could have some lumpy bookings.

That all the work of our supply chain team to onboard with our engineers to test new products and to really get new raw materials ready to go.

Sure Christine as Dominic here, yes, so the margins have been stable this year and right within the range that we've expected. The 35 mid <unk> Upper 30, percents, so coming in at 37% was right within our expectations in my prepared remarks, I did talk about a couple of things because the new long tail.

Actually undone for us so we did not realize the margin lift that we were expecting.

It was it was still within the range.

Quite honestly hope to have a more pleasant surprise on the upside there, but we were not able to achieve that due to the tariffs that changed.

Dominic Bardos: It was still within the range where I would quite honestly hope to have a more pleasant surprise on the upside there, we were not able to achieve that due to the tariffs that changed, you know, in the middle of that process for us. You know, on the tariffs alone, on that savings, we actually had forecast about a 100 to 200 basis point improvement in margin, and that was undone for us this year. While we're still have very stable margins, keep in mind that the projects that we've done thus far in 2025 were priced in 2024. They still have some of the new incentives that we provided new customers to come back to Shoals, and I do believe that our stability in the gross profit margin is fine.

As an example is one where the margins will fall on a percentage basis.

In the middle of that process for us so on the tariffs alone on that savings, we actually had forecast about a 100 to 200 basis point improvement in margin and that was undone for us. This year. So while we're still have very stable margins keep in mind that the projects that we've done thus far in 2000 <unk>.

There is a large section of that that expands our share of wallet into the solar field for Peter cable and that is just not the same amount of value engineering on that section of revenue. So we've talked about that and that is part of what's going on as expected now. The tariff thing is also an interesting one for us.

Five were priced in 2024.

Still have some of the new incentives that we provided new customers to come back to Shoals, and I do believe that our stability in the gross profit margin is fine as I mentioned, we are shifting and had been trying to focus on cash generation are strong cash flows and operating profit and we will continue to do so.

While we're largely protected mitigated from.

An increase when we're quoting jobs, we can pass those along as we do the final purchase order. There are some things that we're doing behind the scenes to drive costs out of the system and that's what I was referring to on the prepared remarks that all the work of our supply chain team to onboard with our engineers to test new products and to really get new raw materials.

Matt Tractenberg: That said, as we begin recognizing revenue on this, the revenue should be somewhat stable as customers take deliveries on this specific or these specific opportunities in our backlog and awarded orders. I would anticipate revenue beginning to materialize in the beginning of second quarter. Very young and evolving market, new product set for us. We're very excited about it, and as we've commented in the past. We're dedicating about 15% of our floor space, our operating floor space here in our new facility, to our best product offering, and that build-out is underway. So things are progressing ahead of plans. Okay. Great. And then just moving on to gross margins. They were soft this quarter despite system solutions being a bigger part of the business than it has been for a while. Can you just help us parse out how much of this is due to tariffs?

Dominic Bardos: As I mentioned, we are shifting, you know, and have been trying to focus on cash generation, our strong cash flows and operating profit. We will continue to do so going forward as well. Thank you, Christine. Charlie, next question, please.

Going forward as well.

Thank you Christine Charlie next question. Please.

Ready to go.

It was actually undone for us so we did not realize the margin lift that we were expecting it.

Brandon Moss: Thank you, Christine. Charlie, next question, please.

Of course. Thank you. Our next question comes from Julien Dumoulin Smith with Jefferies. Julien. Your line is open. Please go ahead.

It was it was still within the range.

Operator: Of course. Thank you. Our next question comes from Julien Dumoulin-Smith of Jefferies. Julian, your line is open. Please go ahead.

Quite honestly hope to have a more pleasant surprise on the upside there, but we were not able to achieve that due to the tariffs that changed.

Hey, good morning team. Thank you guys very much.

Try this from a slightly different perspective.

Julien Dumoulin-Smith: Hey, good morning, team. Thank you guys very much. I'm gonna try this from a slightly different perspective. You alluded here in your prepared remarks that you're doing slightly better than planned for 2025. I'd love to hear how you're doing against the longer-term metrics you articulated from 24 September Analyst Day, right? You've got this 20% plus year-over-year increase in backlog, the $900 million quoted here in the quarter. How are you looking at the, you know, beyond 2025 period at this point versus the targets and ranges that you implied at the time here?

You alluded to year on your prepared remarks that youre doing slightly better than plan for 2025, but I'd love to hear how youre doing against the longer term metrics you articulated from September 24 at the Analyst day right. You've got this 20% plus year over year increase in backlog the $900 million quoted here in the quarter.

How are you looking at.

Five were priced in 2024.

Beyond 25 period at this point versus the targets in the ranges that you implied at the time here.

Sure So I'll start and ask Brandon to join join Us.

As he said in his prepared remarks, all of these areas are exceeding our expectations that we laid out at.

Dominic Bardos: Sure. I'll start and ask Brandon to join in because as he said in his prepared remarks, all of these areas are exceeding our expectations that we laid out at Analyst Day. Of the metrics that we've talked about, I certainly wanna focus a little bit on the revenue growth. As we've also said, it's exceeded the expectations and the range that we laid out a year ago. Keeping in mind that a year ago, we also thought that we were victorious in our voltage case with the ITC. As we look ahead, we're not guiding to 2026 and 2027. We are certainly very encouraged at the growth in our book of business. I couldn't be more positive about, you know, our backlog and awarded orders.

Matt Tractenberg: Is it lower pricing to get back some share? You talked about the lower margin BLA. Is there a margin drag from the expansion of the new manufacturing? Just kind of help us parse it out. And if you can give us some idea of how we should expect it to trend over the next year. Sure. Christine, it's Dominic here. Yeah. So the margins have been stable this year and right within the range that we've expected, the 35, the mid-30s, upper 30%. So coming in at 37% was right within our expectations. In my prepared remarks, I did talk about a couple of things because the new longtail BLA, as an example, is one where the margins will fall on a percentage basis.

Good day.

The metrics that we've talked about I, certainly wanted to focus a little bit on the revenue growth. As we've also said it's exceeded the expectations in the range that we laid out a year ago and keeping in mind that a year ago. We also thought that we were victorious in our voltage case with the ITC.

Going forward as well.

Thank you Christine Charlie next question. Please.

Of course. Thank you. Our next question comes from Julien Dumoulin Smith with Jefferies. Julien. Your line is open. Please go ahead.

So as we look ahead, we're not guiding to 2026 and 27, we are certainly a very encouraged at the growth in our book of business.

Hey, good morning team. Thank you guys very much.

Try this from a slightly different perspective.

You alluded year on your prepared remarks that youre doing slightly better than plan for 2025.

I couldnt be more positive about our backlog and awarded orders.

And on the R&D I think it was a bit of a glitch when I was talking about the $298 million of backlog, which is approaching our records again.

Love to hear how youre doing against the longer term metrics you articulated from September 24 at the Analyst day right. You've got this 20% plus year over year increase in backlog the $900 million quoted here in the quarter.

Dominic Bardos: On our end, I think it was a bit of a glitch when I was talking about the $298 million of backlog, which is approaching records again. I believe that the metrics that we've laid out remain very strong. Of those, the metrics that we talked about in terms of the various strategic pillars, the best opportunity is the one that we believe has the opportunity to significantly exceed what we laid out a year ago. I'm gonna pause on that 'cause Brandon was talking more about that.

Matt Tractenberg: There's a large section of that that expands our share of wallet into the solar field for the feeder cable, and that is just not the same amount of value engineering on that section of revenue. So we've talked about that, and that is part of what's going on as expected. Now, the tariff thing is also an interesting one for us because while we're largely protected and mitigated from an increase when we're quoting jobs, we can pass those along as we do the final purchase order. There are some things that we're doing behind the scenes to drive costs out of the system. And that's what I was referring to on the prepared remarks, that all the work of our supply chain team to onboard with our engineers to test the new products and to really get new raw materials ready to go.

I believe that the metrics that we've laid out remained very strong.

How are you looking at.

Are those the metrics that we talked about in terms of the various strategic pillars. The best opportunity is the one that we believe has the opportunity to significantly exceed what we laid out a year ago and so I'll pause on that because Brandon was talking more about that.

Beyond 2020 period at this point versus the targets in the ranges that you implied at the time here.

Sure So I'll start and ask Brandon to join join Us.

As he said in his prepared remarks, all of these areas are exceeding our expectations that we laid out at.

Julien It's a great question, let me maybe give a big picture view and then step through some of some of the growth pillars I think holistically.

Good day.

The metrics that we've talked about I, certainly want to focus a little bit on the revenue growth. As we've also said it's exceeded the expectations in the range that we laid out a year ago and keeping in mind that a year ago. We also thought that we were victorious in our voltage case with the ITC So as we.

Brandon Moss: Julien, it's a great question. Let me maybe give a big picture view and then step through some of the growth pillars. I think holistically, the revenue generation is exceeding plan and what we laid out in our investor day, you know, effectively probably almost a year ahead of what we've said at Investor Day. We are very excited about that. You know, our core focus here has been to protect and grow our core market, return that to growth. The utility scale solar business, as Dominic mentioned, is operating at record levels. Our backlog and awarded orders, you know, fantastic at $720 million. I'm really excited when we can have a record revenue quarter and have a book to bill of 1.4 times.

Revenue the revenue generation is exceeding plan and what we laid out in our Investor day.

Effectively.

Matt Tractenberg: It was actually undone for us. So we did not realize the margin lift that we were expecting. It was still within the range where I would quite honestly hope to have a more pleasant surprise on the upside there, but we were not able to achieve that due to the tariffs that changed in the middle of that process for us. So on the tariffs alone, on that savings, we actually had forecast about a 100 to 200 basis point improvement in margin, and that was undone for us this year. So while we still have very stable margins, keep in mind that the projects that we've done thus far in 2025 were priced in 2024. They still have some of the new incentives that we provided new customers to come back to Shoals. And I do believe that our stability in the gross profit margin is fine.

Almost a year ahead of what we've said at Investor day. So we are very excited about that.

Look.

Head, we're not guiding to 2026 and 27, we are certainly very encouraged at the growth in our book of business.

Our core focus here.

It has been to protect and grow our core market return that to growth the utility scale solar business as <unk>.

I couldnt be more positive about.

Our backlog and awarded orders.

And on the R&D I think it was a bit of a glitch when I was talking about the $298 million of backlog, which is approaching our records again.

Dominik mentioned is operating at record levels, our backlog and awarded orders.

Fantastic at $720 million I'm really excited when we can have a record revenue quarter.

I believe that the metrics that we've laid out remained very strong.

Order.

Are those the metrics that we've talked about in terms of the various strategic pillars. The best opportunity is the one that we believe has the opportunity to significantly exceed what we laid out a year ago and so I'll pause on that because Brandon was talking more about that here.

And having book to Bill of one four times that is.

That is fantastic execution by our commercial team so I feel really good about our core business.

Brandon Moss: That is fantastic execution by our commercial team. I feel really good about our core business. As it relates to our pillars of growth and our diversification strategy, I think all are performing at or above our expected ranges. Our CC&I business, if you think about that alone, we're up 36% year-over-year, that is performing at very solid rates of growth. Our OEM business expanding substantially. As you guys are aware, we have a core customer in that product portfolio that is also expanding, and we are partnering and growing with them, and we're excited about that. Our international business shipping three projects in a quarter is great for us. That probably has not happened in the existence of Shoals.

As it relates to our pillars of growth in our diversification strategy I.

Julien it's a great question.

I think all are performing at or above our expected ranges. Our CNI business. If you think about that alone we're up 36% year over year.

Maybe give a big picture view and then step through some of.

Matt Tractenberg: As I mentioned, we are shifting and have been trying to focus on cash generation, our strong cash flows, and operating profit, and we will continue to do so going forward as well. Thank you, Christine. Charlie, next question, please. Of course. Thank you. Our next question comes from Julian Damoulin-Smith of Jefferies. Julian, your line is open. Please go ahead. Good morning, team. Thank you guys very much. I'm going to try this from a slightly different perspective. You alluded here in your prepared remarks that you're doing slightly better than planned for 2025, but I'd love to hear how you're doing against the longer-term metrics you articulated from 24 September 2024, analyst day, right? You've got this 20% plus year-over-year increase in backlog, the $900 million quoted here in the quarter.

Some of the growth pillars, I think holistically.

<unk> revenue the revenue generation is exceeding plan and what we laid out in our Investor day.

So that is performing.

Very solid solid rates of growth.

Our OEM business.

Effectively <unk>.

Expanding substantially as you guys are aware, we have a core customer.

Just a year ahead of what we've said at Investor day. So we are very excited about that.

And that product portfolio that is also expanding and we are partnering and growing with them and we're excited about that.

Our core focus here.

It has been to protect and grow our core market return that to growth the utility scale solar business as Dominic mentioned is operating at record levels, our backlog and awarded orders.

Our international business.

Shipping three projects in a quarter is great for us.

That probably has not happened in the existence of.

Fantastic at $720 million I'm really excited when we can have a record revenue quarter and having book to bill of one four times.

Charles.

We're excited about the two projects in Latam and one in Australia.

Brandon Moss: We're excited about the two projects in LatAm and one in Australia. Our pipeline is very strong there and we are building a team out to really focus on that Australia market and New Zealand, so great things to come there. As Dominic mentioned, couldn't be more excited about our battery energy storage program. The two MSAs for us in the quarter are big, as well as starting to really see some proof points in that business in those MSAs driving data center and grid scale opportunities. We are very excited about that. You know, our commercial team with operations driving a substantial amount of new product development this year. Quite honestly, that's what is what's driven some of the international growth.

Our pipeline is very strong there.

We are building a team out.

That is fantastic execution by our commercial team so I feel really good about our core business.

To really focus on that Australia market. So in New Zealand, so great things to come there and as Dominic mentioned.

Matt Tractenberg: How are you looking at the beyond 2025 period at this point versus the targets and ranges that you implied at the time here? Sure. So I'll start and ask Brandon to join in because, as he said in his prepared remarks, all of these areas are exceeding our expectations that we laid out at analyst day. Of the metrics that we've talked about, I certainly want to focus a little bit on the revenue growth. As we've also said, it's exceeded the expectations and the range that we laid out a year ago. And keeping in mind that a year ago, we also thought that we were victorious in our voltage case with the ITC. So as we look ahead, we're not guiding to 2026 and 2027. We certainly are very encouraged at the growth in our book of business.

As it relates to our pillars of growth in our diversification strategy.

Couldnt be more excited about our <unk>.

I think all are performing at or above our expected ranges. Our CNI business. If you think about that alone we're up 36% year over year.

Battery energy storage program, the two msas for us in the quarter are big.

As well as <unk>.

Turning to really see some proof points in that business and those msas driving data center and grid scale opportunities.

So that is performing.

Very solid solid rates of growth.

So we are very excited about that.

Our OEM business.

Expanding substantially as you guys are aware, we have a core customer.

<unk>.

Our team commercial team with operations.

Driving a substantial amount of new product development this year and quite honestly, that's what is.

And that product portfolio that is also expanding and we are partnering and growing with them and we're excited about that.

It's driven some of the international growth the three international projects that we've started shipping this past quarter, all have new products as part of those those projects, which is very excited.

Our international business.

The shipping three projects in a quarter is great for us.

Brandon Moss: The three international projects that we've started shipping this past Q all have new products as part of those projects, which is very exciting. Really finally, from an operations standpoint, our consolidation is underway. We are excited. We are actually sitting in our new facility today. Our SG&A team, our salaried staff, this is probably the first time in the history of the company since maybe its beginnings that we have all been in one building. We're excited to build that sense of community and culture within the organization. From an operations, a true operations standpoint, just to commend the ops team. We started our plan consolidation in Q3. We actually moved out of one of our facilities.

Matt Tractenberg: I couldn't be more positive about our backlog and awarded orders. And on our end, I think there was a bit of a glitch when I was talking about the $298 million of backlog, which is approaching records again. So I believe that the metrics that we've laid out remain very strong. Of those, the metrics that we talked about in terms of the various strategic pillars, the best opportunity is the one that we believe has the opportunity to significantly exceed what we laid out a year ago. And so I'm going to pause on that because Brandon was talking more about that. Yeah. Julian, it's a great question. Let me maybe give a big picture view and then step through some of the growth pillars. I think holistically the revenue generation is exceeding plan and what we laid out in our investor day.

It probably has not happened in the existence of <unk>.

And really finally from.

Charles.

We're excited about the two projects in Latam and one in Australia.

From an operation standpoint.

Our consolidation is underway. We are excited we are actually sitting in our new facility today.

Our pipeline is very strong there and.

We are building a team out.

Our SG&A team our salaried staff. This is probably the first time in the history of the company since maybe its beginnings that we have all been in one building and so we're excited.

To really focus on that Australia market. So in New Zealand, so great things to come there as Dominic mentioned.

Couldn't be more excited about our <unk>.

Autery energy storage program, the two msas for us in the quarter are big.

To build that sense of community and culture within the organization.

Well as <unk>.

Starting to really see some proof points in that business and those msas driving data center and grid scale opportunities.

From a from an operations a true operation standpoint, just just just to commend the ops team.

We started our plant consolidation in Q3, we actually moved out of one of our facilities as we previously disclosed we sold a building.

So we are very excited about that.

Our team commercial team with operations draw.

Brandon Moss: As we previously disclosed, we sold a building in Q2, I believe it would've been, and we moved out of that building. For perspective, our team moved 540 truckloads of material out of that facility and still met record production levels in Q3. Fantastic job by them and obviously, a confidence boost for us as we complete this consolidation as we can, you know, make moves in buildings and produce at record levels at the same time. I'm excited about how the company is executing for the future. Julien, did you have a follow-up?

In Q2, I believe it would have been and we moved out of that building for perspective, our team moved 540 truckloads of material out of that facility and still met record production levels in Q3, so fantastic job by them and obviously.

Driving a substantial amount of new product development this year and quite honestly, that's what is which.

Matt Tractenberg: Effectively probably almost a year ahead of what we've said at investor day. So we are very excited about that. Our core focus here has been to protect and grow our core market, return that to growth. The utility-scale solar business. As Dominic mentioned, is operating at record levels. Our backlog and awarded orders. Fantastic at $720 million. I'm really excited when we can have a record revenue quarter and have a book-to-bill of 1.4x. That is. Fantastic execution by our commercial team. So I feel really good about our core business. As it relates to our pillars of growth and our diversification strategy, I think all are performing at or above our expected ranges. Our CC&I business, if you think about that alone, we're up 36% year over year. So that is performing at very solid rates of growth. Our OEM business expanding substantially.

Which driven some of the international growth the three international projects that we've started shipping this past quarter, all have new products as part of those those projects, which is very excited.

Our confidence boost for us as we complete this consolidation as we can.

And really finally.

From an operation standpoint.

Our consolidation is underway. We are excited we're actually sitting in our new facility today.

No.

Make moves in buildings and produce at record levels at the same time, so I am excited about how the company is executing for the future.

Our SG&A team our salaried staff. This is probably the first time in the history of the company since maybe.

Julian to do a follow up.

Dominic Bardos: Julien, did you have a follow-up?

It's excellent to hear can you quantify any of these.

Beginnings that we have all been in one building and so we're excited.

[Analyst] (Jefferies): It's excellent to hear. Can you quantify any of these?

Julien Dumoulin-Smith: It's excellent to hear. Can you quantify any of these?

Could you just quantify real quickly just within the backlog addition, some of these msas.

Two to build that sense of community and culture within the organization.

Brandon Moss: Uh-

[Analyst] (Jefferies): Yeah. Can you just quantify real quickly, just within the backlog addition, some of these MSAs?

Julien Dumoulin-Smith: Yeah. Can you just quantify real quickly, just within the backlog addition, some of these MSAs?

It's the.

From a from an operations and true operation standpoint, just just just to commend the ops team.

The msas.

Brandon Moss: Uh, it's the-

Any of the bats, our datacenter wins with system integrators.

[Analyst] (Jefferies): Is it-

Julien Dumoulin-Smith: Is it-

Brandon Moss: The, the MSAs.

[Analyst] (Jefferies): Any of the BESS or data center wins with system integrators?

We started our plant consolidation in Q3, we actually moved out of one of our facilities as we previously disclosed we sold a building.

Yes.

Julien Dumoulin-Smith: Any of the BESS or data center wins with system integrators?

In our awarded orders for the quarter, we had $18 million.

Brandon Moss: Yeah. In our awarded orders for the quarter, we had $18 million. A vast majority of that is driven by the MSAs. I can say probably since quarter close, we have moved a significant portion of that $18 million to backlog and have signed purchase orders. I would think of it maybe in the range of three-quarters of that $18 million. We do have now signed purchase orders, which we're excited about. Again, we'll begin production in Q2.

Vast majority of that.

Is driven by the Msas.

I can say probably since quarter close we have moved a significant portion of that $18 million to backlog and have signed purchase orders.

Matt Tractenberg: As you guys are aware, we have a core customer in that product portfolio that is also expanding, and we are partnering and growing with them, and we're excited about that. Our international business shipping three projects in a quarter is great for us. That probably has not happened in the existence of Shoals. We're excited about the two projects in Latin America and one in Australia. Our pipeline is very strong there, and we are building a team out to really focus on that Australia market and New Zealand. So great things to come there. And as Dominic mentioned, couldn't be more excited about our battery energy storage program. The two MSAs for us in the quarter are big, as well as starting to really see some proof points in that business. And those MSAs driving data center and grid scale opportunities. So we are very excited about that.

I would think of it may be in the range of three quarters of that $18 million. So.

Our confidence boost for us as we complete this consolidation as we can.

So we do have now signed purchase orders, which were excited about and again, we will begin production.

No.

Make moves in buildings and produce at record levels at the same time, so I'm excited about how the company is executing for the future.

In in Q2.

And perhaps I can help just on the msas themselves. Unlike the Msas, where we've announced specific targets for volume. These msas do not give a specific target for volume.

Dominic Bardos: Perhaps I could help just on the MSAs themselves. Unlike the MSAs where we've announced specific targets for volume, these MSAs do not give a specific target for volume. It's the partnership. It has all the terms and conditions so that we can move with haste when purchase orders are ready to go. I don't want, you know, there is no additional backlog and awarded orders beyond where we actually have those orders, as Brandon mentioned. Nothing else from the MSAs would impact our record BLAO.

Julian to do a follow up.

It's excellent to hear can you quantify any of these.

Could you just quantify real quickly just within the backlog addition, some of these msas.

The partnership it has all the terms and conditions. So that we can move with haste when purchase orders are ready to go so I don't want.

There is no additional backlog and awarded orders beyond where we actually have those orders as Brandon mentioned, so nothing else from the Msas would impact our record BLA.

It's the.

The msas.

Or any of the bats, or data center wins with system integrators.

Yes, so in our awarded orders for the quarter, we had $18 million.

Thank you Julien Charlie.

Vast majority of that is.

Got it excellent guys. Thank you.

Brandon Moss: Thank you, Julien. Charlie?

Is driven by the Msas.

[Analyst] (Jefferies): Got it. Excellent, guys. Thank you.

Julien Dumoulin-Smith: Got it. Excellent, guys. Thank you.

I can say probably since quarter close we have moved a significant portion of that $18 million to backlog and have signed purchase orders.

Thank you of course, our next question comes from Philip Shen of Roth Capital Partners.

Matt Tractenberg: Our commercial team with operations driving a substantial amount of new product development this year. And quite honestly, that's what's driven some of the international growth. The three international projects that we've started shipping this past quarter all have new products as part of those projects, which is very exciting. And really, finally, from an operations standpoint, our consolidation is underway. We are excited. We are actually sitting in our new facility today. Our SG&A team, our salaried staff, this is probably the first time in the history of the company since maybe its beginnings that we have all been in one building. And so we're excited to build that sense of community and culture within the organization. From an operations to true operations standpoint, just to commend the ops team, we started our plant consolidation in Q3. We actually moved out of one of our facilities.

Operator: Thank you. Of course. Our next question comes from Philip Shen of Roth Capital Partners. Philip, your line is open. Please go ahead.

One is open. Please go ahead.

Hi, Thanks for taking my questions I wanted to dig into the margin topic, a little bit more.

I would think of it may be in the range of three quarters of that $18 million. So.

Philip Shen: Hi, all. Thanks for taking the questions. Wanted to dig into the margin topic a little more. Can you give us a little more color on the tariffs? Were they the Section 232 inclusion, you know, for aluminum on electric cabling that adversely impacted you? I think that came out in August. As a result, would you expect that to be relieved or, you know, would you expect to be able to pass that along? Because that was a very sudden kind of inclusion, right, of electric cabling. Do you think that tariff can be passed along in the near term to your customers?

Can you give us a little more color on the.

So we do have now signed purchase orders, which we're excited about again will begin.

The tariffs were there.

Section 232 <unk>.

Inclusion.

<unk>.

For aluminum.

In Q2.

Electric cabling.

And perhaps I can help just on the msas themselves. Unlike the Msas, where we've announced specific targets for volume. These msas do not give a specific target for volume.

Recently impacted I think that came out in August and as a result would you expect that to be.

Relieved or would you expect to be able to pass that along because that was a very sudden kind of inclusion.

The partnership it has all the terms and conditions. So that we can move with haste when purchase orders are ready to go so I don't want.

Electric cabling and so do you think.

That tariff can be passed along in the near term to your customers and then as a result.

There is no additional backlog and awarded orders beyond where we actually have those orders as Brandon mentioned, so nothing else from the Msas would impact our record BLA.

That 100 to 200 basis points.

Philip Shen: As a result, that 100 to 200 basis point operational improvement that Dominic, you highlighted can then be realized, you know, perhaps partially in Q4, or is it more in first half of next year? Wanted to see if you could map out how that might play out. Thanks.

Operational improvement that Dominic you highlighted.

And then be realized.

Thank you Julien Charlie.

Perhaps partially in Q4 or is it more first half of next year. So wanted to see if you could snapback.

Got it excellent guys. Thank you.

That might play out thanks.

Thank you of course, our next question comes from Philip Shen of Roth Capital Partners.

So Phil that's a great question.

Matt Tractenberg: As we previously disclosed, we sold a building in Q2, I believe it would have been. And we moved out of that building. For perspective, our team moved 540 truckloads of material out of that facility and still met record production levels in Q3. So fantastic job by them. And obviously a confidence boost for us as we complete this consolidation, as we can make moves in buildings and produce at record levels at the same time. So I'm excited about how the company is executing for the future. Julian, did you have a follow-up? It's excellent to hear. Can you quantify any of these? Yeah. Can you just quantify real quickly, just within the backlog addition, some of these MSAs? The MSAs. And/or any of the BESS data center wins with system integrators? Yeah. So in our awarded orders for the quarter, we had $18 million.

232 aluminum tariffs, obviously, it impacted us and others in the marketplace.

One is open. Please go ahead.

Brandon Moss: Phil, that's a great question. Section 232 aluminum tariffs, obviously, have impacted us and others in the marketplace. Think about that specifically almost in equal parts with the country-specific tariffs. We've got a pretty diverse supply chain, and, you know, the way those tariffs are calculated for wire specifically is interesting. You know, you can sort of parse out the aluminum piece of that in 232. You can also parse out the country-specific tariffs there. You know, we won't get into the granular detail of that specifically on the call here today. But what I would say, and as Dominic mentioned, we have the ability to pass on tariffs to many of our customers.

Hi, Thanks for taking my questions I wanted to dig into the margin topic, a little bit more.

Think about.

That specifically almost an equal parts with the country specific tariffs, we've got a pretty diverse supply chain.

Can you give us a little more color on the.

The tariffs where they are.

The section 232.

<unk>.

The way those tariffs are calculated for wire specifically is interesting.

<unk>.

From them for aluminum.

Electric cabling that adversely impacted and I think that came out in August and as a result would you expect that to be.

You can sort of parse out the aluminum piece of that and $2 32, you can also parse out the country specific tariffs there.

Relieved or would you expect to be able to pass that along because that was a very sudden kind of inclusion rate.

So.

We won't get into the granular detail of that specifically on the call here today, but what I, what I would say.

Electric cabling and so do you think.

That tariff can be passed along in the near term to your customers and then as a result.

And as Dominic mentioned, we have the ability to.

That 100 to 200 basis points operational improvement that Dominic you highlighted can then be realized.

To pass on tariffs to many of our customers requires tariff documentation things like that.

And we are doing so.

Brandon Moss: That requires tariff documentation, things like that, and we are doing so, and we'll continue to do so into the future. What Dominic specifically mentioned around the 100 to 200 basis points was part of our material cost out savings initiatives that we, you know, put together in our annual operating plan. You know, material cost is very important to us. It drives the profitability of our company, quite frankly. We had great cost out savings projects identified. As Dominic mentioned, by, you know, you switch a supplier, and then that supplier is potentially impacted by a tariff, that eliminates any potential savings we may have baked into our business plan.

Perhaps partially in Q4 or is it more first half of next year. So wanted to see if you could map out how that might play out. Thanks.

And we'll continue to do so.

Into the future with Dominic specifically mentioned around.

Around 100 to 200 basis points.

So Phil that's a great question section 232 aluminum tariffs, obviously has impacted us and others in the marketplace.

As part of our material cost out savings initiatives that we put together in our annual operating plan.

Matt Tractenberg: A vast majority of that is driven by the MSAs. I can say probably since quarter close, we have moved a significant portion of that $18 million to backlog and have signed purchase orders. I would think of it maybe in the range of three-quarters of that $18 million. So we do have now signed purchase orders, which we're excited about. And again, we'll begin production in Q2. And perhaps I can help just on the MSAs themselves. Unlike the MSAs where we've announced specific targets for volume, these MSAs do not give a specific target for volume. It's the partnership. It has all the terms and conditions so that we can move with haste when purchase orders are ready to go. So I don't want there is no additional backlog and awarded orders beyond where we actually have those orders, as Brandon mentioned.

And.

Material cost is very important to us it drives.

Think about that.

Specifically, almost an equal parts with the country specific tariffs, we've got a pretty diverse supply chain.

Dropped drives the profitability of our company quite frankly, and we had great cost out savings projects.

<unk>.

The way those tariffs are calculated for wire specifically is interesting.

Projects identified and as Dominic mentioned.

Bye.

Switches supplier and then not suppliers potentially impacted by tariff.

You can sort of parse out the aluminum piece of that and $2 32, you can also parse out the country specific tariffs there.

That eliminates any potential savings, we may have baked into our business plan. So.

So.

We won't get into the granular detail.

Is the tariff landscape change or if these tariffs are rude.

Specifically on the call here today, but what I, what I would say.

Brandon Moss: you know, is the tariff landscape change or if these tariffs are ruled unlawful, and we would potentially get reimbursed for tariffs paid, yeah, you through our income statement and impact us positively.

Unlawful and we would potentially get reimbursed for tariffs paid yes.

And as Dominic mentioned, we have the ability to.

Hugh.

To pass on tariffs to many of our customers requires tariff documentation things like that.

Through our through our income statement and impact us positive positively yes.

And we are doing so.

Point, Phil about are they passed along if it is something that comes along and there was an unexpected tariff we do work with the customers, but we typically look at our market based pricing for the products as we're quoting going forward and if we know that something is going to be tariff is going to be baked into the prices that we are that we're quoting so ultimately our material costs.

And we'll continue to do so.

Matt Tractenberg: So nothing else from the MSAs would impact our record BLAO. Thank you, Julian. Charlie? Got it. Excellent, guys. Thank you. Thank you. Of course, our next question comes from Philip Shen of ROTH Capital Partners. Philip, your line is open. Please go ahead. Hi, all. Thanks for taking the questions. Wanted to dig into the margin topic a little bit more. Can you give us a little bit more color on the tariffs? Were they the Section 232 inclusion for aluminum on electric cabling that adversely impacted you? I think that came out in August. And as a result, would you expect that to be relieved, or would you expect to be able to pass that along? Because that was a very sudden kind of inclusion, right, of electric cabling. And so do you think that tariff can be passed along in the near term to your customers?

Dominic Bardos: Yeah. The point, you know, Phil, about are they passed along, if it's something that comes along and there was an unexpected tariff, we do work with the customers. We typically look at our market-based pricing for the products as we're quoting going forward. If we know that something is gonna be tariffed, it is gonna be baked into the prices that we're quoting. Ultimately, our material costs will drive our profitability there, and that's why the material cost out savings are so important to us. It's probably 70% of our cost of goods sold. It is a very important initiative for the team. We'll continue to focus on that.

Into the future with Dominic specifically mentioned around.

Around 100 to 200 basis points.

As part of our material cost out savings initiatives that we put together our annual operating plan.

<unk>.

Material cost is very important to us it drives.

We will drive will drive our profitability there and that's why the material cost out savings are so important to us is probably 70% of our cost of goods sold. So it is a very important initiative for the team will continue to focus on that.

<unk> dropped drives the profitability of our company quite frankly, and we had great cost out savings projects.

Projects identified and as Dominic mentioned.

Bye.

Got it so.

Switches supplier and then not suppliers potentially impacted by tariff.

Looking ahead can we expect an improvement in the first half of next year on margins and then can you share what the margins in Europe.

Philip Shen: Got it. Looking ahead, you know, can we expect an improvement in the first half of next year on margins? Can you share what the margins in your, you know, recent bookings, might be as a comparison to the Q3 levels? Thanks.

That eliminates any potential savings, we may have baked into our business plan. So.

Recent bookings might be as a comparison to Q3 levels.

Is the tariff landscape change or if these tariffs are rude.

Yes, so Phil if you want to come to a staff meeting here that would be great. We'll talk about those internally I can't I can't obviously discuss that we do have.

Unlawful and we would potentially get reimbursed for tariffs paid yes.

Dominic Bardos: Yeah. Phil, if you wanna come to a staff meeting here, that'd be great. We'll talk about those internally. I can't obviously discuss that. We do have. You know, it's too early to guide for 2026. As I said before, our margins have been consistent and within the range that we've been talking about mid to upper 30s. We are. I think Christine asked the question, are we incurring new facilities expense? Yes, we did incur rent in September, the last month of the quarter, for our new facility, and the depreciation all starts impacting us. We're not fully operational yet. We haven't received the cost out savings there from a labor standpoint.

<unk>.

Through our through our income statement and impact on positive positively yes.

It's too early to guide for 2026.

Matt Tractenberg: And then as a result that 100 to 200 basis point operational improvement that Dominic, you highlighted, can then be realized perhaps partially in Q4, or is it more in the first half of next year? So wanted to see if you could map out how that might play out. Thanks. So Phil, that's a great question. Section 232 aluminum tariffs obviously have impacted us and others in the marketplace. Think about that specifically almost in equal parts with the country-specific tariffs. We've got a pretty diverse supply chain. And the way those tariffs are calculated for wire specifically is interesting. You can sort of parse out the aluminum piece of that in 232. You can also parse out the country-specific tariffs there. So we won't get into the granular detail of that specifically on the call here today.

As I've said before our margins are have been consistent and within the range that we've been talking about mid to upper thirty's.

And the point Phil about are they passed along if it is something that comes along and there was an unexpected tariff we do work with the customers, but we typically look at our market based pricing for the products as we're quoting going forward and if we know that something is going to be tariff is going to be baked into the prices that we are that we're quoting so ultimately our material.

We are I think Christine asked the question are we incurring new facilities expense and yes, we did incur rent in September the last month of the quarter for our new facility and the depreciation all starts impacting us and we're not fully operational yet we haven't received the cost out savings there from a labor standpoint.

Cost will drive will drive our profitability, there and Thats why the material cost out savings are so important to us is probably 70% of our cost of goods sold.

So we will guide to 2026 margins.

So it is a very important initiative for the team will continue to focus on that.

Dominic Bardos: We will guide to 2026 margins, you know, if that's really where we need to focus. My preference would be to talk about the growth of our business segments, our excitement around our new growth opportunities, our strategic pillars, and continuing to drive our operating cash. That's what we're really after. We'll guide that next quarter.

If that's really where we need to focus my preference would be to talk about the growth of our business segments, our excitement around our new growth opportunities or strategic pillows pillars, and continuing to drive our operating cash and that's what we're really after but we'll guide that next quarter.

Got it so.

Looking ahead can we expect an improvement in the first half of next year on margins and then can you share what the margins in Europe.

Phil Charlie next question. Please thank you both.

Recent bookings might be as a comparison to Q3 levels.

Brandon Moss: Thank you, Phil. Charlie, next question, please.

Yes.

Yes, so Phil if you want to come to a staff meeting here that'd be great. We'll talk about those internally I can't I can't obviously discuss that.

Philip Shen: Okay, great. Thank you both.

Of course, our next question comes from Brian Lee of Goldman Sachs. Brian. Your line is open. Please go ahead.

Brandon Moss: Yep.

Operator: Of course. Our next question comes from Brian Lee of Goldman Sachs. Brian, your line is open. Please go ahead.

We do have.

Hey, guys. Good morning, Thanks for taking the questions.

Matt Tractenberg: But what I would say and as Dominic mentioned, we have the ability to pass on tariffs to many of our customers that requires tariff documentation, things like that. And we are doing so. And we'll continue to do so into the future. What Dominic specifically mentioned around the 100 to 200 basis points. It was part of our material cost out savings initiatives that we put together in our annual operating plan. Material cost is very important to us. It drives the profitability of our company, quite frankly. And we had great cost out savings projects identified. And as Dominic mentioned, you switch a supplier, and then that supplier is potentially impacted by a tariff. That eliminates any potential savings we may have baked into our business plan.

It's too early to guide for 2026.

I guess just on the on the best opportunity again, you guys, obviously are sounding more bullish.

Brian Lee: Hey, guys. Good morning. Thanks for taking the questions. I guess just on the BESS opportunity, again, you guys obviously are sounding more bullish, have said that of all the different growth verticals here, that's probably the one that's tracking ahead of expectation more so than others. Can you guys maybe provide a bit of an updated TAM for us in terms of the BESS opportunity with the products that you have? You know, how much of that is data center tied? Are you able to kind of quantify for, you know, every 100 megawatt data center opportunity, it amounts to X dollars worth of revenue potential for Shoals given the product set? Maybe any thoughts around margin implications as well? I had a follow-up.

As I've said before our margins are have been consistent and within the range that we've been talking about mid to upper thirty's.

Said that.

Of all the different growth vertical appear that's probably the one thats tracking ahead of expectation and more so than others. So.

We are I think Christine asked the question of are we incurring new facilities expense and yes, we did incur rent in September the last month of the quarter for our new facility in the <unk>.

Can you guys, maybe provide a bit of an updated tam for us in terms of the best opportunity with the products that you have and then.

Depreciation all starts impacting us and we're not fully operational yet we haven't received the cost out savings there from a labor standpoint, So we will guide to 2026 margins.

How much of that is data center tied are you able to kind of quantify for every 100 megawatt data center.

If that's really where we need to focus my preference would be to talk about the growth of our business segments, our excitement around our new growth opportunities or strategic pillars pillars, and continuing to drive our operating cash and that's what we're really after but we'll guide that next quarter.

The opportunity amounts to X dollars, what the revenue potential for <unk>, given the product set and then maybe any thoughts around margin implications as well and I had a follow up.

Sure, Brian I'll take that.

Phil Charlie next question. Please thank you Bob.

I think when we.

Brandon Moss: Sure, Brian. I'll take that. You know, I think when we initially launched the BESS opportunity Investor Day last year, we had approximately $360 million as an available market to us in the solar plus storage space. We've since added data centers and grid firming as two market opportunities. We have internal estimates. These markets are changing rapidly, as you can imagine, particularly driven by the data center AI space. The applications of our products within some of these system architectures is proprietary. You know, a 100 megawatt data center in a specific situation may result in one use of our product, which drives significantly higher ASPs up to maybe $100,000 a unit.

When we initially launched the best opportunity to Investor Day last last year, we had approximately $360 million as an available market to us and the solar plus storage space, we've since added datacenters and grid firming as to market opportunities.

Yes.

Of course, our next question comes from Brian Lee of Goldman Sachs. Brian. Your line is open. Please go ahead.

Matt Tractenberg: So, is the tariff landscape change, or if these tariffs are ruled unlawful and we would potentially get reimbursed for tariffs paid, yeah, through our income statement and impact us positively. Yeah. And the point, Phil, about are they passed along? If it's something that comes along and there was an unexpected tariff, we do work with the customers. But we typically look at our market-based pricing for the products as we're quoting going forward. And if we know that something is going to be tariffed, it is going to be baked into the prices that we're quoting. So ultimately, our material costs will drive our profitability there. And that's why the material cost out savings are so important to us. It's probably 70% of our cost of goods sold. So it is a very important initiative for the team. We'll continue to focus on that. Got it.

Hey, guys. Good morning, Thanks for taking the questions.

I guess just on the on the best opportunity again, you guys, obviously are sounding more bullish.

We have internal estimates these markets are changing rapidly as you can imagine, particularly driven by the data center AI space.

Said that.

Of all the different growth vertical appear that's probably the one that's tracking ahead of expectation more so than others. So.

And there the.

Applications of our <unk> products.

Can you guys, maybe provide a bit of an updated tam for us in terms of the best opportunity with the products that you have and then.

Within some of these system architectures is proprietary and so on.

Our 100 megawatt data center.

How much of that is data center tight are you able to kind of quantify for every 100 megawatt data center.

In a in a specific situation.

<unk> May result, in one use of our product, which drives significantly higher asps up to maybe $100 a unit.

The opportunity amounts to X dollars, what's the revenue potential for <unk>, given the product set and then maybe any thoughts around the margin implications as well and I had a follow up.

And in other architectures, we may use a smaller product.

Brandon Moss: In other architectures, we may use a smaller product, you know, a 1,200 amp product that may carry a $25,000 ASP. It's gonna vary, architecture to architecture. You know, what is exciting for us is specifically, our engineering team is engaged with customers to design specific products for their architecture. We are building prototype products, shipping prototype products to be vetted by these customers. We are excited about, you know, the potential opportunity. As everybody knows, if you watch the news or read a newspaper, the size and scale of these data centers is changing almost on a daily basis, as is our total available market.

100, app product that may carry.

Sure, Brian I'll take that.

Matt Tractenberg: So, looking ahead, can we expect an improvement in the first half of next year on margins? And then can you share what the margins in your recent bookings might be as a comparison to the Q3 levels? Thanks. Yeah. So Phil, if you want to come to a staff meeting here, that'd be great. We'll talk about those internally. I can't obviously discuss that. We do have. It's too early to guide for 2026. As I said before, our margins have been consistent and within the range that we've been talking about, about mid to upper 30s. We are, I think Christine asked the question, are we incurring new facilities expense? And yes, we did incur rent in September, the last month of the quarter for our new facility. And the depreciation all starts impacting us. And we're not fully operational yet.

$25000 ASP.

I think when we.

So it's going to vary.

<unk> architecture.

What is exciting for us is specifically.

Our engineering team is engaged with customers to design specific products for their architecture, and we are building prototype products shipping prototype products to be vetted by these by these customers. So we are excited about.

We have internal estimates these markets are changing rapidly as you can imagine, particularly driven by the data center AI space.

The potential opportunity as everybody knows.

And there.

The applications of our products.

Washington.

Within some of these system architectures is proprietary and so.

Read a newspaper the size and scale of these data centers is changing.

100 megawatt data center.

Almost on a daily basis as is our total available market. So so more to come.

In a in a specific situation.

May result in one use of our products, which drive significantly higher asps up to maybe $100 a unit.

Matt Tractenberg: We haven't received the cost out savings there from a labor standpoint. So we will guide to 2026 margins if that's really where we need to focus. My preference would be to talk about the growth of our business segments, our excitement around our new growth opportunities, our strategic pillars, and continuing to drive our operating cash. And that's what we're really after. But we'll guide that next quarter. Thank you, Phil. Charlie, next question, please. Thank you both. Yep. Of course, our next question comes from Brian Lee of Goldman Sachs. Brian, your line is open. Please go ahead. Hey, guys. Good morning. Thanks for taking the questions. I guess just on the BESS opportunity again, you guys obviously are sounding more bullish, have said that. Of all the different growth verticals here, that's probably the one that's tracking ahead of expectation more so than others.

In coming quarters about the actual size of the market.

Brandon Moss: some more to come, you know, in coming quarters about the actual size of the market.

And in other architectures, we may use a smaller product.

Okay Fair enough, we'll look forward to hearing loss.

100, app product that may carry.

Maybe just to follow up on that.

Brian Lee: Okay. Fair enough. We'll look forward to hearing more. Maybe just to follow up on that. You mentioned, you know, the $18 million of BESS bookings this quarter and then starting to monetize that in Q2 2026. You know, it's about 3% of backlog today. Is that sort of the sales cycle and sort of the revenue recognition cycle we should be thinking about on these projects? If that's the case, are we talking sort of like a mid-single digit type of revenue mix from this opportunity next year? Because presumably all the MSAs aren't gonna ship in Q2, they just start to ship in Q2.

$25000 ASP.

You mentioned the $18 million of.

So it's going to vary.

Our best bookings this quarter and then starting to monetize that in Q2 of 2006.

The architecture of the architecture.

What is exciting for us is specifically.

It's about 3% of backlog today.

Is that sort of the sales cycle.

And sort of the Rev. Rec cycle, we should be thinking about on these projects and if thats the case.

Talking sort of like a mid single digit type of revenue mix from this opportunity next year.

Potential opportunity as everybody knows.

Because presumably all the msas arent going to ship in Q2, they just start to ship in Q2 so.

Washington REIT.

Read a newspaper the size and scale of these data centers is changing.

Assuming more bookings coming in maybe you can get to like mid single digit percent of mix next year and then it goes beyond that just trying to understand where we should be budgeting expectations on this thank you.

Brian Lee: Assuming more bookings coming in, maybe you get to like mid-single digit percent of mix next year, and then it grows beyond that. Just trying to understand where we should be budgeting expectations on this. Thank you.

Matt Tractenberg: So can you guys maybe provide a bit of an updated TAM for us in terms of the BESS opportunity with the products that you have? And then, how much of that is data center tied? Are you able to kind of quantify for every 100MW data center opportunity amounts to X dollars worth of revenue potential for Shoals given the product set? And then maybe any thoughts around margin implications as well and how to follow up? Sure, Brian. I'll take that. I think when we initially launched the BESS opportunity on Investor Day last year, we had approximately $360 million as an available market to us in the solar plus storage space. We've since added data centers and grid firming as two market opportunities. We have internal estimates. These markets are changing rapidly, as you can imagine, particularly driven by the data center AI space.

Almost on a daily basis as is our total available market. So so more to come.

Oh sure. So while we haven't specifically guided to 2026 and it is early for us to try to do that you.

In coming quarters about the actual size of the market.

Dominic Bardos: Well, sure. While we haven't specifically guided to 2026, and it is early for us to try to do that, you're right in that we're ramping up. These use cases are emerging. Now keep in mind that we have had Battery Energy Storage Solutions sold all year long. It hasn't been to the magnitude of what these two new use cases are bringing to us. That's why we're excited to share with you the $18 million and the fact that those were driven by the MSAs that have been signed with the alternative use cases. We haven't guided yet, but clearly, there'll be some cabinetry and recombiner sold all year long just in our traditional channels. We will ramp up these others as the year goes.

Youre right in that we're ramping up this is an emerging these use cases are emerging now keep in mind that we have had battery energy storage solutions sold all year long it hasn't been to the magnitude of what these two the use cases are bringing to us and so that's why we were excited to share with you the $18 million in fact that those were driven.

Okay Fair enough, we'll look forward to hearing more.

Maybe just to follow up on that.

You mentioned the $18 million.

Our best bookings this quarter and then starting to monetize that in Q2 of 2006.

It's about 3% of backlog today.

By the Msas that are designed with the alternative use cases, so we haven't guided yet, but clearly there'll be some cabinetry and recombine or sold all year long just in our traditional channels and then we will ramp up these others as the year goes we will try to provide more color.

Is that sort of the sales cycle.

And so to the Rev. Rec cycle, we should be thinking about on these projects and if that's the case.

Talking sort of like a mid single digit type of revenue mix from this opportunity next year.

Going forward next year, we actually are in discussions about how much we can share but our expectation is that this is an area of interest that will won't be as transparent as we can Brian maybe just some color around the sales cycle, we can't speak to that a bit as Dominic mentioned we've had.

Dominic Bardos: We will try to provide more color going forward next year. We've actually are in discussions about how much we can share. Our expectation is that this is an area of interest, and we want to be as transparent as we can.

Because presumably all the msas arent going to ship in Q2, they just start to ship in Q2 so.

Assuming more bookings coming in maybe you can get to like mid single digit percent of mix next year and then it goes down that just trying to understand where we should be budgeting expectations on this thank you.

Matt Tractenberg: And the applications of our products within some of these system architectures is proprietary. And so, a 100MW data center in a specific situation may result in one use of our product, which drives significantly higher ASPs up to maybe $100,000 a unit. And in other architectures, we may use a smaller product, a 1200-amp product that may carry a $25,000 ASP. So it's going to vary architecture to architecture. What is exciting for us is specifically our engineering team is engaged with customers to design specific products for their architecture. And we are building prototype products, shipping prototype products to be vetted by these customers. So we are excited about the potential opportunity. As everybody knows, if you watch the news or read a newspaper, the size and scale of these data centers is changing almost on a daily basis, as is our total available market.

Brandon Moss: Brian, maybe just some color around the sales cycle. We can speak to that a bit. As Dominic mentioned, we've had, you know, while not significant, we have recognized some revenue on BESS all year. A C&I solar and storage job would have a pretty quick sales cycle. I mean, we may book and turn an order inside of six months, whereas a larger grid firming or, you know, data center project, they probably follow more of a traditional sales cycle that would look at like a utility scale solar site. You know, we could be engaged, you know, a year, 18 months, before we're shipping a unit 1 to those individuals for inspection and validation.

While not significant we have recognized some revenue on basketball year.

Oh sure. So while we haven't specifically guided to 2026 and it is early for us to try to do that.

Our C&I solar and storage.

Who would have a pretty quick sales cycle I mean, we make book in turn.

Youre right in that we're ramping up this is an emerging these use cases are emerging now keep in mind that we have had battery energy storage solutions sold all year long it hasn't been to the magnitude of what these two the use cases are bringing to us and so that's why we're excited to share with you the $18 million and the fact that those were driven.

On order inside of six months, whereas a larger grid firming or GOR data.

Data center.

Project, they probably follow more of a traditional sales cycle that would look like a utility scale solar site. So.

We could be engaged a year 18 months.

By the Msas that are designed with the alternative use cases, so we haven't guided yet, but clearly there'll be some cabinetry and recombined or sold all year long just in our traditional channels and then we will ramp up these others as the year goes we will try to provide more color.

Before we were shipping.

Unit, one to those individuals' four for inspection and validation so longer probably obvious smaller science shorter sales cycle of larger opportunities longer sales cycle.

Brandon Moss: longer, you know, probably obvious, smaller sites, shorter sales cycle, larger opportunities, longer sales cycle.

Once we've gotten the actual designs firmed up for certain customers.

Going forward next year, we actually are in discussions about how much we can share but our expectation is that this is an area of interest and with won't be as transparent as we can Brian maybe just some color around the sales cycle, we can't speak to that a bit as Dominic mentioned we've had.

Dominic Bardos: Once we've gotten the actual designs firmed up for certain customers, the sales cycle will shorten. We've been working on these projects for the vast majority of the year. We're just excited now here sitting in November to share with you that we've got purchase orders, and revenue will start coming next year. Once we've actually landed that, if they continue to win business and award more business to us, those designs have now been approved and vetted and tested out. The sales cycle would shorten.

The sales cycle will shorten.

We've been working on these projects for the for the vast majority of the year.

And we're just excited now here sitting in November to share with you that we've got purchase orders and revenue will start coming next year, but once we've actually landed that if we continue if they continue to win business and awards more business to us those designs have now been approved embedded and test. It out. So then the sales cycle would short of trucks.

While not significant we have recognized revenue on basketball year.

Our C&I solar and storage.

Who would have a pretty quick sales cycle I mean, we make book in turn.

Matt Tractenberg: So, more to come in coming quarters about the actual size of the market. Okay. Fair enough. We'll look forward to hearing more. Maybe just to follow up on that. You mentioned the $18 million of BESS bookings this quarter and then starting to monetize that in Q2 2026. It's about 3% of backlog today. Is that sort of the sales cycle and sort of the rev rec cycle we should be thinking about on these projects? And if that's the case, are we talking sort of like a mid-single digit type of revenue mix from this opportunity next year? Because presumably, all the MSAs aren't going to ship in Q2. They just start to ship in Q2. So, assuming more bookings coming in, maybe you get to like mid-single digit percent of mix next year, and then it grows beyond that.

On order inside of six months, whereas a larger grid firming or data.

Thank you Brian Charlie.

Brandon Moss: That's right. Thank you, Brian. Charlie?

I appreciate the color guys. Thanks.

Data center.

Project, they probably follow more of a traditional sales cycle that would look like a utility scale solar side. So.

Got it.

Brian Lee: Appreciate the color, guys. Thanks.

Of course. Thank you. Our next question comes from Jon Windham of UBS. Your line is open. Please proceed.

Dominic Bardos: You got it.

Operator: Of course. Thank you. Our next question comes from Jon Windham of UBS. Jon, your line is open. Please proceed.

We could be engaged a year 18 months.

Okay. Thanks, everyone for taking the questions.

Before we were shipping.

You made some comments earlier about Latam and Australia I was wondering if you can just give a little bit more color.

Jon Windham: Hey. Thanks, everyone, for taking the questions. You'd made some comments earlier about Lat Am and Australia. I was wondering if you could just give a little bit more color on how the international business is progressing in terms of, you know, specific products being sold, margins, long-term growth, just any color you have on that. Appreciate your time today.

Unit one.

Those individuals' four for inspection and validation so longer probably obvious smaller science shorter sales cycle of larger opportunities longer sales cycle.

On how the international business is progressing in terms of.

<unk> products being sold margins long term growth just any color you have on that I. Appreciate your time today.

Once we've gotten the actual designs firmed up for certain customers.

Thanks, John.

The sales cycle will shorten.

We're excited about the international business.

We've been working on these projects for the for the vast majority of the year.

Brandon Moss: Thanks, Jon. We're excited about the international business. You know, we've carried, you know, roughly a 13% of our backlog and awarded orders has been tied to our international business. I think we're probably 10%, 11% now of our BLAO is tied. Excited to be shipping these first 3 projects. I think of our international business really in 2 buckets. You know, on an organic growth bucket in our specific targeted regions, which, you know, 2 of the 3 projects are entering in LatAm and Australia. I think of our the rest of the business in an export bucket. The margin profiles for those 2 buckets will look slightly different.

We've carried.

Roughly.

13%.

Of our backlog and awarded orders has been tied to our international business I think we're probably 10 or 11% now of our BLA Ams Todd.

Matt Tractenberg: Just trying to understand where we should be budgeting expectations on this. Thank you. Well, sure. So while we haven't specifically guided to 2026, and it is early for us to try to do that, you're right in that we're ramping up these. Use cases are emerging. Now, keep in mind that we have had battery energy storage solutions sold all year long. It hasn't been to the magnitude of what these two new use cases are bringing to us. And so that's why we're excited to share with you the $18 million and the fact that those were driven by the MSAs that have been signed with the alternative use cases. So we haven't guided yet, but clearly, there'll be some cabinetry and recombiners sold all year long just in our traditional channels. And then we will ramp up these others as the year goes.

So excited to be shipping. These first three projects I think of our international business.

<unk>.

Thank you Brian Charlie.

Really in two buckets.

I appreciate the color guys. Thanks.

On organic growth.

Got it.

Bucket in our specific targeted regions, which which.

Of course. Thank you. Our next question comes from Jon Windham of UBS. Your line is open. Please proceed.

Two of the three projects are entering in Latam and Australia, and then I think of our.

Okay. Thanks, everyone for taking the questions.

The rest of the business and an export market and.

You made some comments earlier about Latam and Australia I was wondering if you could just given a little bit more color.

So the margin profile for those those two buckets.

On how the international business is progressing in terms of.

We will look slightly different our organically developed markets, where we're playing in a region.

<unk> products being sold margins on some growth just any color you have on that I. Appreciate your time today.

Brandon Moss: Our organically developed markets where we're playing in region, we may be building products outside of the United States, which we actually did on these three projects. The margin profile will be slightly lower than our norms. That being said, our export business, which constitutes, you know, the greatest portion of our backlog and awarded orders. We expect projects to, you know, begin releasing in next year, and we've got a very strong backlog there. Those projects, for the most part, are funded by the US Exim Bank. They need to be manufactured in the United States, and the margin profiles of those jobs will look by and large like a, you know, a domestic utility scale solar job, maybe minus some shipping costs here and there, but largely the same.

We may be building products outside of the United States, which we actually did.

Thanks, John.

Matt Tractenberg: We will try to provide more color going forward next year. We've actually had discussions about how much we can share, but our expectation is that this is an area of interest, and we want to be as transparent as we can. Brian, maybe just some color around the sales cycle. We can speak to that a bit. As Dominic mentioned, we've had, while not significant, we have recognized some revenue on BESS there a year. A C&I solar and storage job would have a pretty quick sales cycle. I mean, we may book and turn an order inside of six months. Whereas a larger grid firming or data center project, they probably follow more of a traditional sales cycle that would look like a utility-scale solar site. So we could be engaged a year, 18 months, before we're shipping unit one to those individuals for inspection and validation.

We're excited about the international business.

On these three projects.

We've carried.

The margin profile will be slightly lower than our norms that being said, our export business, which constitutes.

Roughly.

13%.

Of our backlog and awarded orders has been tied to our international business I think we are.

The greatest portion of our backlog and awarded orders and we expect projects to.

10, 11% now of our BLA Airless Todd.

So excited to be shipping. These first three projects I think of our international business.

Begin releasing in next year and we've got a very strong backlog there those projects for the most part are funded by the U S ex Im bank.

<unk>.

Really in two buckets.

On organic growth.

And they need to be manufactured in the United States and the margin profiles of those jobs will look by and large like.

Bucket in our specific targeted regions, which which.

Two of the three projects are entering in Latam and Australia, and then I think of our.

Domestic utility scale solar job, maybe minus some some shipping cost here and there, but largely largely the same. So we are excited about the growth of the international business as I mentioned.

The rest of the business and an export market and.

So the margin profile for those those two buckets.

Brandon Moss: We are excited about the growth of the international business. As I mentioned, you know, maybe in the prepared remarks, we're focusing heavily on Australia. There's been a mandate there to add 40 GW of new solar in this decade, which we're very excited about. We've hired an experienced leader, and we're building out a team in Australia to capitalize on that. Australia is also a very strong BESS market, arguably probably stronger than the United States at this point. We believe there's some opportunity for us from an international perspective on our BESS product line. Tracking as planned, you know, excited that some of these export projects will finally begin to materialize in 2026, also excited about the growing pipeline there.

We will look slightly different our organically developed markets, where we're playing in a region.

Maybe in the prepared remarks.

We're focusing heavily on Australia, there's been a mandate there to add 40 gigawatts of.

We may be building products outside of the United States, which we actually did.

Matt Tractenberg: So longer. Probably obvious, smaller sites, shorter sales cycle, larger opportunities, longer sales cycle. And once we've gotten the actual designs firmed up for certain customers, the sales cycle will shorten. We've been working on these projects for the vast majority of the year. And we're just excited now here, sitting in November, to share with you that we've got purchase orders and revenue will start coming next year. But once we've actually landed that, if they continue to win business and award more business to us, those designs have now been approved, embedded, and tested out. So then the sales cycle would shorten. That tracks. Thank you, Brian. Charlie? Appreciate the call, guys. Thanks. You got it. Of course. Thank you. Our next question comes from John Wyndham of UBS. John, your line is open. Please proceed. Thanks, everyone, for taking the questions.

New solar.

And this decade, which were which were very excited about so we've hired an experienced leader and we're building out a team in Australia.

On these three projects.

The margin profile will be slightly lower than our norms that being said, our export business, which constitutes.

To capitalize on that Australia is also a very very strong bus market arguably probably stronger than the United States at this point and we believe there is some opportunity for us from an international perspective on our best product line. So.

The greatest portion of our backlog and awarded orders and we expect projects to.

Begin releasing in next year and we've got a very strong backlog there those projects for the most part are funded by the U S ex Im bank.

So tracking as planned.

Excited that some of these export projects will finally begin to materialize in 2026 and also excited about the growing pipeline there.

And they need to be manufactured in the United States and the margin profiles of those jobs will look by and large like.

Great I appreciate it.

Domestic utility scale solar job, maybe minus some some shipping cost here and there, but largely largely the same. So we are excited about the growth of the international business.

Charlie.

Dominic Bardos: Great. Appreciate it.

Jon Windham: Great. Appreciate it.

Thank you. Our next question comes from <unk> <unk> of Bank of America <unk>. Your line is open. Please go ahead.

Brandon Moss: Charlie?

Operator: Thank you. Our next question comes from Dimple Gosai of Bank of America. Dimple, your line is open. Please go ahead.

Good morning team.

Mentioned.

Maybe in the prepared remarks.

As electrical that in the.

Matt Tractenberg: You'd made some comments earlier about LatAm and Australia. I was wondering if you could just give a little bit more color on how the international business is progressing in terms of specific products being sold, margins, long-term growth, just any color you have on that. Appreciate your time today. Thanks, John. We're excited about the international business. We've carried roughly 13% of our backlog and awarded orders has been tied to our international business. I think we're probably 10, 11% now of our BLAO is tied. So excited to be shipping these first three projects. I think of our international business. Really in two buckets: an organic growth bucket in our specific targeted regions, which two of the three projects are entering in LatAm and Australia. And then I think of the rest of the business in an export bucket.

Dimple Gosai: Good morning, team. As electrical balance of system players and inverter OEMs kind of push into this BESS opportunity, can you talk a little bit more about what differentiates Shoals' architecture and go-to-market model? Like, where is your moat as the market scales? Separately, who are you having conversations with mostly today? Is it more of the alternative chemistry players and so forth, given the FIOC overhang? Thank you.

Our system players and even brought to Oems kind of push into this vast opportunity can you talk a little bit more about what differentiates shows architecture and go to market model like where is your moat as a market scales.

We're focusing on.

On Australia.

A mandate there to add 40 gigawatts.

Our new solar.

And this decade, which which we're very excited about so we've hired an experienced leader and we're building out a team in Australia two to capitalize on that Australia is also a very very strong bus market arguably probably stronger than the United States at this point and.

And separately, where are you having conversations with mostly today.

More of the alternative chemistry players and so forth given the overhang.

Thank you.

Yes, that's a good.

And we believe there is some opportunity for us from an international perspective on our best product line. So.

Great question, So I guess.

Brandon Moss: Yeah, Dimple, that's a great question. I guess, there are inverter companies that are highly engaged in data center architectures. I would say in conjunction with the products that we sell, to create potentially some alternative architectures that work more efficiently for data center, specifically AI architecture, to try to maybe balance and smooth power frequencies in those larger data centers. We don't think of them. We don't think of the inverter companies maybe as competitors. We think of them as partners in this system architecture. I think that probably answers the first question, Dominic.

Sure.

There are inverter companies that are highly engaged in.

So tracking as planned in.

We're excited that some of these export projects will finally begin to materialize in 2026 and also excited about the growing pipeline there.

In data center architectures.

I would say in conjunction with the products that we sell.

To create potentially some alternative architectures.

Great I appreciate it.

Charlie.

That work more efficiently.

Thank you. Our next question comes from <unk> <unk> of Bank of America <unk>. Your line is open. Please go ahead.

For for data Center.

Specifically AI architecture.

Good morning team.

To try to maybe balance and smooth.

As electrical that Anthos system players to Oems kind of push into this best opportunity can you talk a little bit more about what differentiates shows architecture and go to market model.

Matt Tractenberg: So the margin profiles for those two buckets will look slightly different. Our organically developed markets where we're playing in region, we may be building products outside of the United States, which we actually did on these three projects. The margin profile will be slightly lower than our norms. That being said, our export business, which constitutes the greatest portion of our backlog and awarded orders, and we expect projects to begin releasing in next year, and we've got a very strong backlog there. Those projects, for the most part, are funded by the US Export-Import Bank. And they need to be manufactured in the United States. And the margin profiles of those jobs will look, by and large, like a domestic utility-scale solar job, maybe minus some shipping costs here and there, but largely the same. So we are excited about the growth of the international business.

Frequencies in those larger data data centers.

So.

We don't think of them.

The.

We don't think of the inverter companies, maybe as competitors, we think of them as partners in this system architecture, So I think that probably answers.

Where is your moat as a market scales.

And separately, where are you having conversations with mostly today.

More of the alternative chemistry plays and so forth given the FERC overhang.

Answers the first question is.

Yes, I was just going to say that in some of these cases didn't but what we're doing is we're actually engineering the solutions in partnership with these these innovations out there so.

<unk>.

Yes.

That's a great question, so I guess.

Dominic Bardos: Yeah. I was just gonna say that in some of these cases, Dimple, what we're doing is we're actually engineering the solutions in partnership with these innovations out there. Part of that is something that some of the larger electrical companies are not gonna be interested in doing. You know, when we're working with these integrators, it's very important that our engineers can go work back and forth and come up.

There are inverter companies that are highly engaged.

Part of that is something that some of the larger electrical companies are not going to be interested in doing.

In data center architectures.

I would say in conjunction with the products that we sell.

So when we're working with these integrators is very important that our engineers can go work back and forth in Ontario custom solutions, so being first in and driving that value for them is very important to us and the chemistry, we are agnostic to the chemistry.

Sure.

To create potentially some alternative architectures.

Brandon Moss: Absolutely.

Dominic Bardos: with their custom solutions. Being first in, and driving that value for them is very important to us. You know, the chemistry, we are agnostic to the chemistry. Yes, if lithium is challenging and someone uses alternative, long-form battery discharge power, that's fine, 'cause we're agnostic to that. We are still focusing on the DC-coupled side of things with our solutions.

Work more efficiently.

For data center.

Specifically AI architecture.

Yes, if lithium is challenging as someone who uses alternative long form battery discharge.

To try to maybe balance and smooth power frequencies in those larger data data centers.

That's fine because we're agnostic to that we are still focusing on the DC coupled side of things with our solutions. That's great great great add on Dominic to be more specific about your question is are we are we talking to.

Matt Tractenberg: As I mentioned, maybe in the prepared remarks, we're focusing heavily on Australia. There's been a mandate there to add 40GW of new solar in this decade, which we're very excited about. So we've hired an experienced leader, and we're building out a team in Australia to capitalize on that. Australia is also a very, very strong BESS market, arguably probably stronger than the United States at this point. And we believe there's some opportunity for us from an international perspective on our BESS product line. So tracking is planned and excited that some of these export projects will finally begin to materialize in 2026 and also excited about the growing pipeline there. Great. Appreciate it. Charlie? Thank you. Our next question comes from Dimple Gosai of Bank of America. Dimple, your line is open. Please go ahead. Good morning, Jim.

So we don't think of them.

The.

We don't think of the inverter companies, maybe as competitors, we think of them as partners in this system architecture, So I think that probably answers.

Brandon Moss: Yeah, that's great add on, Dominic. You know, to be more specific about your questions, are we talking to, you know, folks that use alternative chemistry technologies? Yes. I mean, we certainly are. You know, we've got a, we've got a wide opportunity and quote funnel for this particular end market, and we are very excited about the growth potential. Charlie, next question. Of course. Our next question comes from Praneeth Satish of Wells Fargo. Praneeth, your line is open. Please go ahead.

Folks that use alternative chemistry technologies, yes, I mean, we.

We certainly are so we've got we've got a wide.

Answers the first question.

Yes, I was just going to say that in some of these cases, but what we're doing is we're actually engineering the solutions in partnership with these.

Our opportunity funnel for this particular.

And market and we are very excited about the growth potential.

Innovations out there so.

Part of that is something that some of the larger electrical companies are not going to be interested in doing.

Charlie next question.

Of course, our next question comes from our needs.

Operator: Of course. Our next question comes from Praneeth Satish of Wells Fargo. Praneeth, your line is open. Please go ahead.

Wells Fargo. Your line is open. Please go ahead.

Thanks, Good morning, maybe just sticking on the <unk>.

Praneeth Satish: Thanks. Good morning. Maybe just sticking on the BESS opportunity. Just kind of three quick ones here. First, maybe if you could help us understand how the sizing is trending on some of the quotes that you're looking at. Is it kind of in that 50 to 100 megawatt range or are you seeing potential for some larger installations? You did mention hyperscaler as well, so I'd assume that's kind of in the gigawatt range. Maybe as a follow-up to that, are there meaningful differences in terms of the competitive landscape at each of those different size tiers? Is there kind of a sweet spot for you where there's less competition?

The data center best opportunity just kind of three three quick ones here first maybe if you could help us understand how the sizing is trending on some of the quotes that you are looking at.

Yes, if lithium is challenging as someone who uses alternative longhorn battery discharge.

That's fine because we're agnostic to that we are still focusing on the DC coupled side of things with our solutions. That's great great Grand on Dominic can you be more specific about your question is are we are we talking to.

Is it kind of in that 50 to 100 megawatt range or.

Matt Tractenberg: As electrical balance of system players and inverter OEMs kind of push into this BESS opportunity, can you talk a little bit more about what differentiates Shoals architecture and go-to-market model? Where is your moat as the market scales? And separately, who are you having conversations with mostly today? Is it more of the alternative chemistry players and so forth, given the fiat overhang? Thank you. Yeah. That's a great question. So I guess there are inverter companies that are highly engaged in data center architectures. I would say in conjunction with the products that we sell to create potentially some alternative architectures that work more efficiently for data center, specifically AI architecture, to try to maybe balance and smooth power frequencies in those larger data centers. So we don't think of them. We don't think of the inverter companies maybe as competitors.

Are you seeing potential for some some larger installations, you did mentioned hyper scaler as well so I would assume thats kind of in the gigawatt range.

Folks that use alternative chemistry technologies, yes, I mean, we certainly are so.

And then maybe as a follow up to that are there meaningful differences in terms of the competitive landscape at each of those different sized peers.

We've got a we've got a wide.

Our opportunity funnel for this particular.

Is there kind of a sweet spot for you where there is less competition.

And market and we are very excited about the growth potential.

And then finally the third one here is in addition to kind of be.

Praneeth Satish: Finally, the third one here is, in addition to kind of the TAM for data center, new data centers, is there an opportunity maybe to displace some of the diesel generators, and drive, kind of an expanded TAM from that perspective as well?

The Tam for data center, new data centers is there an opportunity maybe to displace some of the diesel generators.

Charlie next question.

And drive kind of an expanded Tam from that perspective as well.

Of course, our next question comes from our needs.

Absolutely.

Great line of questions I think the simple answer to probably those three questions are yes, yes, and yes.

Wells Fargo. Your line is open. Please go ahead.

Brandon Moss: Absolutely. You know, great line of questions. I think the simple answer to probably those three questions are yes and yes. There is a difference I think, you know, talking about quote size, what are we seeing? Do we see 50, 100 megawatt scale opportunities? We do. Do we see significantly larger opportunities in that? We do. You know, we've got a product set, one that is, you know, standard and configurable that lends well to maybe the smaller data center opportunities that, you know, as I mentioned, I think it was Brian's question, if you think of that as more quick turn C&I business. The larger opportunities where we're partnering and designing a specific product for their proprietary architecture is also an opportunity for us.

Thanks, Good morning, maybe just sticking on the <unk>.

Data Center best opportunity just kind of three three quick ones here first maybe if you could help us understand how the sizing is trending on some of the quotes that you are looking at.

There is a difference I think talking about float size what are we saying do we see 5100 megawatt scale opportunities we do.

Do we see significantly larger opportunities and that we do.

Is it kind of in that 50 to 100 megawatt range or.

Are you seeing potential for some larger installations, you did mentioned hyper scaler as well so I would assume thats kind of in the gigawatt range.

So we've got a product set.

One that is.

Standard and Configurable that lends well to.

And then maybe as a follow up to that are there meaningful differences in terms of the competitive landscape at each of those different sized tiers.

Maybe the smaller data center opportunities that.

As I mentioned I think was Brian's Brian's question do you think of that as more quick turn C&I business.

Matt Tractenberg: We think of them as partners in this system architecture. So I think that probably answers the first question. Yeah. I was just going to say that in some of these cases, Dimple, what we're doing is we're actually engineering the solutions in partnership with these innovations out there. So, part of that is something that some of the larger electrical companies are not going to be interested in doing. So when we're working with these integrators, it's very important that our engineers can go work back and forth and come up with their custom solutions. So being first in and driving that value for them is very important to us. And the chemistry, we are agnostic to the chemistry. So yes, if lithium is challenging and someone uses alternative long-form battery discharge power, that's fine because we're agnostic to that.

And is there kind of a sweet spot for you where there's less competition.

And then the larger the larger opportunities, where we're partnering in designing a specific.

And then finally, the third one key areas in addition to kind of the the.

The Tam for data center, new data centers is there an opportunity maybe to displace some of the diesel generators.

Product.

Their proprietary architecture is also an opportunity for us so the competitive landscape varies.

And drive kind of an expanded Tam from that perspective as well.

Brandon Moss: You know, the competitive landscape varies. You know, as Dominic mentioned, we've got experience here with DC power. I think that plays well. We've got experience in really building engineered to order, highly configurable solutions at scale. That is probably our core competency if you really boiled down what Shoals does well, we are able to build engineered to order products at scale. That's what we do every single day in the solar market and that lends well into this BESS data center opportunity. We can provide both product sets. As it relates to, can these architectures potentially at some point eliminate or reduce diesel backup? Yes, potentially.

Yeah.

As Dominic mentioned.

Absolutely.

Great line of questions I think the simple answer to probably those three questions are yes, yes, and yes.

We've got experience here with DC power I think that plays well, we've got experience and.

Really building.

So.

Engineered to order highly configurable solutions at scale that is probably our core competency. If you really if you really boil down what <unk> does well we are able to.

There is a difference I think youre talking about float size what are we saying do we see 5100 megawatt scale opportunities we do.

Do we see significantly larger opportunities and that we do.

To build engineered to order products at scale.

So we've got a product set.

That's what we do every single day on the solar market and that runs well into this this past data center opportunity.

Matt Tractenberg: We are still focusing on the DC coupled side of things with our solutions. Yeah. That's a great add-on, Dominic. And to be more specific about your questions, are we talking to folks that use alternative chemistry technologies? Yes. I mean, we certainly are. So, we've got a wide opportunity and quote funnel for this particular end market, and we are very excited about the growth potential. Charlie, next question. Of course. Our next question comes from Praneeth Satish of Wells Fargo. Praneeth, your line is open. Please go ahead. Thanks. Good morning. Maybe just sticking on the data center BESS opportunity, just kind of three quick ones here. First, maybe if you could help us understand how the sizing is trending on some of the quotes that you're looking at. Is it kind of in that 50- to 100-MW range, or are you seeing potential for some larger installations?

One that is.

Standard and Configurable that lends well to me.

So we can provide both product sets as it relates to can these architectures potentially at some point eliminate eliminate or reduce.

Maybe the smaller data center opportunities that.

As I mentioned I think was Brian's Brian's question do you think of that as more quick turn C&I business.

Diesel backup, yes, potentially I think there's probably a lot of information out there in white papers.

And then the larger the larger opportunities, where we're partnering in designing a specific.

Brandon Moss: I think there's probably a lot of information out there, white papers, for instance, that talk about different data center architectures, and that's certainly something we've got our eye on.

For instance, the talk about different data center architectures, and that's certainly something we've got our Ireland.

Product.

Their proprietary architecture is also an opportunity for us so the competitive landscape varies.

Thank you.

<unk>.

So Charlie I believe thats the Thats. The last question that we have time for today, but Brandon you had some final comments before we close out at all finished yes, absolutely Matt I think look at the end of the year.

As Dominic mentioned.

Praneeth Satish: Thank you.

We've got experience here with DC power I think that plays well, we've got experience and.

Brandon Moss: Charlie, I believe that's the last question that we have time for today. Brandon, you had some final comments before we close out. Yeah. I'll finish us off. Yeah. Absolutely, Matt. I think, look, at the end of the year, and even the end of the quarter, it's always important to reflect a bit. I'm very proud of what this company has delivered and the transformation it is making over the past couple years. You know, big picture, we have navigated a complex warranty issue, and during that warranty issue, we've maintained customer relationships along the way, potentially strengthened customer relationships throughout that.

Matt Trachtenberg: Charlie, I believe that's the last question that we have time for today. Brandon, you had some final comments before we close out.

Really building.

Engineered to order highly configurable solutions at scale that is probably our core competency. If you really if you really boil down which Charles does well we are able to.

Dominic Bardos: Yeah. I'll finish us off.

Brandon Moss: Yeah. Absolutely, Matt. I think, look, at the end of the year, and even the end of the quarter, it's always important to reflect a bit. I'm very proud of what this company has delivered and the transformation it is making over the past couple years. You know, big picture, we have navigated a complex warranty issue, and during that warranty issue, we've maintained customer relationships along the way, potentially strengthened customer relationships throughout that.

And even the end of the quarter, it's always.

Always important to reflect a bit.

And I am very proud of what this company has delivered and the transformation. It is making over the past couple of years.

To build engineered to order products at scale.

That's what we do every single day on the solar market not runs well into this this past data center opportunity.

Big picture, we are we have navigated a complex warranty issue and during that warranty issue, we maintain customer relationships along the way.

So we can provide both both product sets as it relates to can these architectures potentially at some point eliminate eliminate or reduce.

Potentially strengthened customer relationships throughout that.

Matt Tractenberg: You did mention hyperscaler as well, so I'd assume that's kind of in the GW range. And then maybe as a follow-up to that, are there meaningful differences in terms of the competitive landscape at each of those different size tiers? And is there kind of a sweet spot for you where there's less competition? And then finally, the third one here is, in addition to kind of the TAM for data center, new data centers, is there an opportunity maybe to displace some of the diesel generators and drive kind of an expanded TAM from that perspective as well? Absolutely. And great line of questions. I think the simple answer to probably those three questions are yes, yes, and yes. So, there is a difference. I think talking about quote size, what are we seeing? Do we see 50- to 100-MW scale opportunities? We do.

During that period.

We have self funded that $70 million remediation projects self funded that project and the legal cost associated with the ongoing <unk> litigation and while that's a great accomplishment on its own.

Brandon Moss: During that period, we have self-funded that $70 million remediation project, self-funded that project, and the legal cost associated with the ongoing Prysmian litigation. While that's a great accomplishment on its own, we've also invested heavily in our business during that time. If you think about this year alone, we'll invest probably 3x on a normal CapEx rate. While it's great to spend that money, we also have to implement that CapEx. We are creating a sustainable operations platform for the future, and I'm very, very proud of what we're building. Additionally, during the period, a $25 million share repurchase, and we've paid down $50 million of our debt. I believe this company is very well positioned for the future. We've got a leading market position with a blue-chip customer base.

Diesel backup, yes, potentially I think there's probably a lot of information out there white papers.

For instance that talk about different data center architectures, and that's certainly something we've got our Ireland.

We've also invested heavily in our business during that time.

Thank you.

So Charlie I believe thats the Thats. The last question that we have time for today, but Brandon you had some final comments before we close out at all finished yourself, yes, absolutely Matt I think look at the end of the year.

You think about this year alone, we'll invest probably three axon or normal capex rate and well, it's great to spend that money.

We also have to implement that capex and so we are creating sustainable operations platform for the future and I'm very very proud of what we're building.

And even the end of the quarter, it's always.

Additionally, during the period of $25 million share repurchase and we've paid down $15 million of our debt. So.

Always important to reflect a bit.

And I'm very proud of what this company has delivered and the transformation. It is making over the past couple of years.

So I believe this company is very well positioned for the future, we've got a leading market position with a blue chip customer base.

Big picture, we are we have navigated a complex warranty issue and during that warranty issue, we've maintained customer relationships along the way.

Matt Tractenberg: Do we see significantly larger opportunities in that? We do. So we've got a product set, one that is standard and configurable that lends well to maybe the smaller data center opportunities that, as I mentioned, I think was Brian's question, you think of that as more quick turn C&I business. And then the larger opportunities where we're partnering and designing a specific product for their proprietary architecture is also an opportunity for us. So the competitive landscape varies, as Dominic mentioned. We've got experience here with DC power. I think that plays well. We've got experience in really building engineered-to-order, highly configurable solutions at scale. That is probably our core competency. If you really boil down what Shoals does well, we are able to build engineered-to-order products at scale.

We've got a very strong balance sheet and the ability to generate strong free cash flow.

Brandon Moss: We've got a very strong balance sheet and the ability to generate strong free cash flow. Our diversification strategy, as we mentioned on this call, is meeting or exceeding plans, and we're excited about the new end markets we're entering. We've built a fantastic management team here that's going to guide this company into the future. You know, very exciting for both our salaried and hourly staff. We've got one heck of a nice new facility to support our growth for the future. It's a fantastic time to be with this organization. I'm excited about the market backdrop we have. We look forward to fantastic results in the future. I wanna thank everybody that has joined our call today and supports this company. Thank you.

<unk> strengthened customer relationships throughout that.

Our diversification strategy as we mentioned on this call is meeting or exceeding plans and were excited about the new end markets, where we're entering we built a fantastic fantastic management team here, that's going to guide this company into the future.

During that period.

We have self funded that $70 million remediation project self funded that project and the legal cost associated with the ongoing <unk> litigation and while that's a great accomplishment on its own. We've also invested heavily in our business during that time.

And.

Very exciting for both our salaried and hourly staff, we've got one heck of a nice new facility to support our growth for the future. So it's.

If you think about this year alone, we'll invest probably three axon or normal capex rate and while it's great to spend that money.

It's a fantastic time to be with this organization and I am excited about the market backdrop, we have.

We look for look forward to fantastic results in the future. So I want to thank everybody that has joined our call today and supports this company. Thank you.

We also have to implement that capex and so we are creating sustainable operations platform for the future and I'm very very proud of what we're building.

And then just I just want to remind our audience that out before we let them go that we have a very active IR calendar throughout the end of the year, we announced those events a few weeks back via press release. They are listed on our on the Investor section of our website. So if you are attending any conferences through November and December if you'd like to meet with US. Please let us know we'd love to speak with you.

Additionally, during the period of $25 million share repurchase and we paid down $15 million of our debt.

Brandon Moss: I just wanna remind our audience that before we let them go, that we have a very active IR calendar throughout the end of the year. We announced those events a few weeks back via press release. They're listed on the investor section of our website. If you're attending any conferences through November or December, and you'd like to meet with us, please let us know.

Matt Trachtenberg: I just wanna remind our audience that before we let them go, that we have a very active IR calendar throughout the end of the year. We announced those events a few weeks back via press release. They're listed on the investor section of our website. If you're attending any conferences through November or December, and you'd like to meet with us, please let us know.

So I believe this company is very well positioned for the future, we've got a leading market position with a blue chip customer base.

We've got a very strong balance sheet and the ability to generate strong free cash flow.

Can help me further please reach out to investors at Shoals Dot com with any questions have a good day everyone. Thanks al. Thank you.

Matt Tractenberg: That's what we do every single day in the solar market, and that lends well into this BESS data center opportunity. So we can provide both product sets. As it relates to, can these architectures potentially at some point eliminate or reduce diesel backup? Yes, potentially. I think there's probably a lot of information out there, white papers for instance, that talk about different data center architectures, and that's certainly something we've got our eye on. Thank you. So, Charlie, I believe that's the last question that we have time for today. But Brandon, you had some final comments before we close out, and then I'll finish this off. Yeah. Absolutely, Matt. I think, look, at the end of the year and even the end of the quarter, it's always important to reflect a bit.

Matt Trachtenberg: We'd love to speak with you. If we can help you further, please reach out to Investors@shoals.com with any questions. Have a good day, everyone.

Our diversification strategy as we mentioned on this call.

Is meeting or exceeding plans and were excited about the new end markets. We're entering we built a fantastic fantastic management team here, that's going to guide this company into the future.

[Company Representative] (Shoals Technologies Group): Thanks all.

Brandon Moss: Thanks all.

[Analyst] (Jefferies): Thank you.

Dominic Bardos: Thank you.

Thank you all for joining today's call you may now disconnect your lines.

Praneeth Satish: Thank you all for joining today's call. You may now disconnect your lines.

Operator: Thank you all for joining today's call. You may now disconnect your lines.

Very exciting for both our salaried and hourly staff, we've got one heck of.

A nice new facility to support our growth for the future. So it's it's.

It's a fantastic time to be with this organization I am excited about the market backdrop, we have.

Look for look forward to fantastic results in the future. So I want to thank everybody that has joined our call today and supports this company. Thank you.

I just want to remind our audience that up before we let them go that we have a very active IR calendar throughout the end of the year, we announced those events a few weeks back via press release. They are listed on our on the investors section of our website. So if you are attending any conferences through November and December if you'd like to meet with US. Please let us know.

Matt Tractenberg: And I'm very proud of what this company has delivered and the transformation it is making over the past couple of years. Big picture, we have navigated a complex warranty issue, and during that warranty issue, we've maintained customer relationships along the way, potentially strengthened customer relationships throughout that during that period. We have self-funded that $70 million remediation project, self-funded that project and the legal cost associated with the ongoing Prisma litigation. And while that's a great accomplishment on its own, we've also invested heavily in our business during that time. If you think about this year alone, we'll invest probably 3x our normal CapEx rate. And while it's great to spend that money, we also have to implement that CapEx. And so we are creating a sustainable operations platform for the future, and I'm very, very proud of what we're building.

We'd love to speak with you. If we can help you further please reach out to investors at Shoals Dot com with any questions have a good day everyone. Thanks al. Thank you.

Thank you all for joining today's call you may now disconnect your lines.

Matt Tractenberg: Additionally, during the period, a $25 million share repurchase, and we've paid down $50 million of our debt. So I believe this company is very well positioned for the future. We've got a leading market position with a blue-chip customer base. We've got a very strong balance sheet and the ability to generate strong free cash flow. Our diversification strategy, as we mentioned on this call, is meeting or exceeding plans, and we're excited about the new end markets we're entering. We've built a fantastic management team here that's going to guide this company into the future. And very exciting for both our salaried and hourly staff. We've got one heck of a nice new facility to support our growth for the future. So it's a fantastic time to be with this organization. I'm excited about the market backdrop we have. We look forward to fantastic results in the future.

Matt Tractenberg: So I want to thank everybody that has joined our call today and supports this company. Thank you. I just want to remind our audience before we let them go that we have a very active IR calendar throughout the end of the year. We announced those events a few weeks back via press release. They're listed on the investor section of our website. So if you're attending any conferences through November, and December and you'd like to meet with us, please let us know. We'd love to speak with you. If we can help you further, please reach out to investors@shoals.com with any questions. Have a good day, everyone. Thanks, all. Thank you. Thank you all for joining today's call. You may now disconnect your lines.

Q3 2025 Shoals Technologies Group Inc Earnings Call

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