Shoals Technologies Group (SHLS) expanded its presentation beyond solar at Barclays' 40th Annual Energy-Power Conference, detailing progress across battery storage and a new data-center power-delivery product while celebrating a major intellectual-property win.
Chief Executive Officer Brandon Moss outlined three strategic pillars for the company: solar electrical balance-of-systems (EBOS) featuring the Big Lead Assembly (BLA) product, battery energy storage solutions (BESS), and data-center power delivery through the newly introduced AirLink system.
AirLink is a cable-based power delivery solution designed to replace traditional on-site fabricated busways in server racks. The product addresses speed-to-power, scalability for higher power densities—with requests for 1,500V capability—and safety through insulated aluminum that avoids exposed conductors. Management said the current market opportunity for AirLink sits between $2 billion and $4 billion and is projected to reach $4 billion by the end of the decade.
The commercialization and Underwriters Laboratories (UL) file completion for AirLink are expected in the first quarter of 2025.
On storage, Shoals reported BESS revenue of approximately $20 million in the latest quarter, with $60 million in bookings stemming from its partnership with ON.energy. Meaningful BESS production began in Q2 2024 following limited pilot runs in Q1. Management noted that 2027 is expected to be "materially stronger than 2026" for the storage business as it matures and sees broader adoption in data-center applications.
Shoals also secured a $96 million willful patent infringement judgment against competitor Voltage in a North Carolina district court, following an earlier International Trade Commission (ITC) import ban on Voltage's competing products.
Financial metrics presented included roughly 30% year-to-date revenue growth—described as well above the "high teens" market growth rate—alongside a 32% gross profit margin for the last twelve months. The company reported a current ratio of 2.25 and a debt-to-equity ratio of 0.38. Since Moss joined, the OEM business has grown 3.5 times.
The domestic solar market is forecast to reach the high 30s to low 40s gigawatts through the end of the decade, according to Wood Mackenzie and BloombergNEF forecasts cited by management. Historical solar-only gross margins were in the low 40s in 2023.
Partnership updates included a memorandum of understanding signed last quarter with TerraFlow. ON.energy holds a 5-gigawatt deployment agreement with Crusoe Energy.
Federal regulatory developments were also referenced, including a follow-up executive order from the Federal Communications Commission issued by the end of August addressing power equipment and grid impacts.
