Q2 2024 Shoals Technologies Group Inc Earnings Call Transcript
Key Points
- Second-quarter results exceeded expectations both on revenue and adjusted EBITDA.
- Gross margins expanded 10 basis points sequentially.
- Record backlog and awarded orders of $642.3 million, with $126 million added in Q2.
- Positive long-term outlook driven by AI growth, US manufacturing renaissance, and transportation electrification.
- Strong customer relationships, including an expanded master supply agreement with Blattner.
- Q2 revenue declined 16.7% year-over-year due to broader market disruptions.
- Gross margins declined by 210 basis points year-over-year due to lower sales volumes and higher labor costs.
- Adjusted EBITDA was down $20.5 million from the prior year period.
- Significant project delays, with 56% of planned installations experiencing delays of six months or more.
- Reduced full-year 2024 outlook due to continued project delays and minimal book-and-bill business expected for the remainder of the year.
Good afternoon, and welcome to the Shoals Technologies Group second-quarter 2024 earnings conference call. Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A.
At this time, I would 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.
Thank you, operator, 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, which should not be considered guarantees of performance or results. Actual results could differ materially from our forward-looking statements.
Risk factors include, among other things, those described in our filings with the Securities and
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