Shoals Technologies Group, Inc. (NASDAQ:SHLS) is one of them 10 Best Renewable Energy Stocks to Buy Now. On February 25, 2026, UBS lowered its price target on Shoal Technology Group from $11 to $12 while maintaining a buy rating. According to the company’s note, the fourth quarter results reflect a significant deterioration in Shawal’s gross margin profile from a changing product mix, increased internal costs, and increased competition. UBS also said there is significant long-term upside potential in the company’s battery energy storage solutions segment as demand from data center customers increases.
For context, Schulz reported fourth-quarter 2025 revenue of $148.3 million, up 39% year-over-year, driven by higher sales volume associated with demand for utility-scale solar projects. Gross profit increased from $40.2 million to $46.9 million, but gross margin fell from 37.6% to 31.6%. The company said the margin decline was due to higher material costs and $3.3 million in duties and tariffs that were not incurred in the year-ago quarter. Adjusted EBITDA increased from $26.4 million to $30.3 million, while adjusted diluted EPS increased from $0.08 to $0.10.
Copyright: kadmy / 123RF Stock Photo
For the full year 2025, revenue rose 19% to $475.3 million, while backlog and delivered orders reached $747.6 million. Schulz said the increase in returns reflects continued demand for its solar products, including the growth of new domestic and international markets. For 2026, the company has guided for revenue of $560 million to $600 million and adjusted EBITDA of $110 million to $130 million. It also released first-quarter guidance, citing headwinds in the utility-scale solar market that have changed some customer order patterns.
Shoals Technologies Group, Inc. (NASDAQ: SHLS) provides power balancing system solutions for solar energy, battery energy storage, and energy-related infrastructure applications.
While we acknowledge the potential of SHLS as an investment, we believe that some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
Read more: Read more: 30 stocks that should double in 3 years and 11 hidden AI stocks to buy right now.
Disclosure: None. Follow the inside port on Google News.
