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SHLS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Shoals Technologies Group, Inc. Class A Common Stock (SHLS) stock moving?
Shoals reported a strong Q3 2026 on Nov 4, with revenue of $195.3M versus a $162.4M estimate and adjusted EPS of $0.14 versus $0.12. Management raised FY2026 sales guidance to $665M-$685M from $600M-$640M, and Q4 guidance of $165M-$185M sits at or slightly above consensus. On the same day, Shoals agreed to an all-stock merger with ARRAY Technologies, with Shoals holders receiving 1.6931 ARRAY shares per share and owning about 65% of the combined company. Preliminary pro forma 2027 revenue is $2.2B-$2.4B and adjusted EBITDA is $410M-$480M including year-one synergies, with more than $100M of annual synergies targeted within three years. RBC (PT $11) and Cantor Fitzgerald (PT $12) both raised targets to Outperform and Overweight after the results. Price action shows a sharp reaction: the stock rose from a 7.20 close on Oct 30 to a 10.08 close on Nov 6 on heavy volume (30.0M shares on Nov 4), then fell back to 8.13 on Nov 10 on 7.0M shares, about 19% below the Nov 6 high and near the 7.0-7.5 range seen before the news. The pullback comes alongside a law-firm investigation of the merger over possible fiduciary-duty issues, which is a reputational overhang rather than a filed lawsuit. Because SHLS holders will be paid in ARRAY stock, its price depends on ARRAY's value and on deal completion and integration risk, which the news flow does not resolve yet.
News behind the analysis
- Brodsky & Smith Announces Investigation into Array Technologies Merger with Shoals TechnologiesLaw firm Brodsky & Smith is investigating the proposed all-stock merger between Array Technologies and Shoals Technologies over potential breaches of fiduciary duty.
- RBC Capital Maintains Outperform on Shoals Technologies Group, Raises Price Target to $11RBC Capital kept its Outperform rating and raised its price target on Shoals from $10 to $11.
- Cantor Fitzgerald Maintains Overweight on Shoals Technologies Group, Raises Price Target to $12Cantor Fitzgerald kept its Overweight rating and raised its price target on Shoals to $12.
- Shoals Technologies Group and ARRAY Technologies Announce Definitive Merger AgreementShoals and ARRAY agreed to an all-stock merger in which Shoals holders receive 1.6931 ARRAY shares per share and own about 65% of the combined company; ARRAY is the legal acquirer.
- Shoals Technologies Group, Inc. Reports Third-Quarter 2026 Financial ResultsShoals reported Q3 2026 revenue of $195.3 million and adjusted EPS of $0.14, both above analyst expectations.
- Shoals Technologies Gr Q3 Adj. EPS $0.14 Beats $0.12 Estimate, Sales $195.308M Beat $162.403M EstimateQ3 adjusted EPS of $0.14 beat the $0.12 consensus, and sales of $195.3M beat the $162.4M estimate.
- Shoals Technologies Group Raises FY2026 Sales Guidance from $600.000M-$640.000M to $665.000M-$685.000M vs $628.123M EstShoals raised full-year 2026 sales guidance to $665M-$685M, above the $628.1M consensus estimate.
- Shoals Technologies Gr Sees Q4 Sales $165.000M-$185.000M vs $163.656M EstShoals guided Q4 2026 sales to $165M-$185M, with the midpoint slightly above the $163.7M estimate.
- ARRAY Technologies To Redeem $317.5M Of Series A Preferred Stock In Connection With Shoals Merger, Including $161.3M Within 90 Days Of CloseARRAY committed to redeem $317.5M of its Series A Preferred Stock tied to the merger, with $161.3M due within 90 days of closing.
- Watching Shoals Technologies; Shares Trading Lower, Traders Circulate Report From Pelican Way ResearchShares traded lower on Oct 28 as traders circulated a research report from Pelican Way Research on Shoals.
About Shoals Technologies Group, Inc. Class A Common Stock
Shoals Technologies, based in Portland, Tennessee, makes electrical balance-of-system products such as wiring harnesses, combiners, and connectors for utility-scale solar farms, battery storage sites, and data center power systems. It is best known for its plug-and-play 'big lead assembly' wiring, which makes installation faster and safer, and on November 4, 2026 it announced a stock-for-stock merger with solar tracker maker ARRAY Technologies.
How it makes money
Almost all of Shoals' revenue comes from selling electrical connection products (cable assemblies, combiners, disconnects, in-line fuses, and related parts) to engineering, procurement and construction firms and developers building large solar and battery storage projects, mostly in the US. It is also growing in international markets and in data center power. The company expected 2026 revenue of about $600–640 million. Q3 2026 revenue was about $195 million, up roughly 44% from a year earlier, and its backlog and awarded orders were about $800 million as of mid-2026.
What usually moves SHLS
- US utility-scale solar and storage construction activity
- Clean-energy tax credits, tariffs and trade policy
- Interest rates and project financing costs
- Progress and terms of the pending ARRAY Technologies merger
- Gross margins, backlog growth and product warranty issues