Shoals Technologies Group Inc (SHLS) 2025 Q1 法說會逐字稿

Good morning, and welcome to the Shoals Technologies Group first-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'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 now begin.

早安，歡迎參加 Shoals Technologies Group 2024 年第一季財報電話會議。今天的電話會議正在錄音，我們預留了一個小時的時間來準備好的發言和問答。現在，我想將會議交給 Shoals Technologies Group 財務和投資者關係副總裁 Matt Tractenberg。謝謝。現在你可以開始了。

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. Those risks and uncertainties are listed for interested investors in our most recent SEC filings. Actual results could differ materially from our forward-looking statements.

謝謝查理，也謝謝大家今天加入我們。與我一起主持電話會議的是我們的執行長布蘭登·莫斯 (Brandon Moss)；以及我們的財務長 Dominic Bardos。在本次電話會議上，管理層將根據當前的預期和假設做出預測或其他前瞻性陳述，這些預測或其他陳述受風險和不確定性的影響，不應被視為對業績或結果的保證。我們在最近提交給美國證券交易委員會的文件中為有興趣的投資者列出了這些風險和不確定性。實際結果可能與我們的前瞻性陳述有重大差異。

Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's first 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 Relations section of our website at investors.shoals.com. With that, let me turn the call over to Brandon.

今天的演示也提到了非公認會計準則財務指標。您應該參考公司第一季新聞稿中包含的信息，以獲取定義信息以及歷史非 GAAP 指標與最接近的可比較 GAAP 財務指標的對帳。請注意，您在此處看到的幻燈片可從我們網站 investors.shoals.com 的投資者關係部分下載。說完這些，讓我把電話轉給布蘭登。

Thank you, Matt, and good morning everyone. I'll begin by sharing some thoughts on the most recent quarter. We'll discuss the current market and demand environment for US-utility scale solar, and I'll review progress on our strategic growth initiatives. Dominic will dive deeper into the first quarter results and provide our outlook on the second quarter in full year 2025. We'll then close it out with questions from our analysts.

謝謝你，馬特，大家早安。首先，我想分享一些關於最近一個季度的想法。我們將討論美國公用事業規模太陽能的當前市場和需求環境，我將回顧我們的策略成長計畫的進展。多明尼克將深入探討第一季的業績，並對 2025 年全年第二季做出展望。最後，我們將以分析師的提問來結束本次會議。

The business performed well in the first quarter, delivering revenue of $80.4 million slightly above the high end of our expected range. Bookings were very strong in the period as momentum continues with approximately $91 million in new orders.

該業務在第一季表現良好，實現了 8,040 萬美元的收入，略高於我們預期範圍的高端。本期間的預訂量非常強勁，新訂單量持續成長，約 9,100 萬美元。

This resulted in a robust backlog and awarded orders, or BLAO of $645.1 million in a book-to-bill of $1.13 supporting the growth we see in the coming quarters. As of March 30, 2025, approximately $500 million of that BLAO has shipment dates in the upcoming four quarters running through Q1 of 2026.

這導致積壓訂單和已授予訂單量強勁，或訂單出貨比為 6.451 億美元，訂單出貨比為 1.13 美元，支持了我們在未來幾季看到的成長。截至 2025 年 3 月 30 日，其中約 5 億美元的 BLAO 將於未來四個季度內發貨，直至 2026 年第一季。

As a reminder, given the volume of project delays we experienced in 2024, we continue to allow for potential project timeline changes from our customers this year. That said, while it's still early in the year and uncertainty is somewhat elevated, we have not seen any concerning behavior from our customers.

提醒一下，鑑於我們在 2024 年遇到的專案延誤數量，我們今年將繼續允許客戶更改潛在的專案時間表。儘管如此，雖然今年還處於初期階段，不確定性有所增加，但我們尚未看到客戶有任何令人擔憂的行為。

As expected and discussed on the last call, adjusted gross profit percentage in the quarter was softer than normal at 35%, driven by product mix, strategic pricing initiatives, and reduced fixed cost leverage on lower volume.

正如上次電話會議所預期和討論的那樣，本季度調整後的毛利率低於正常水平，為 35%，這主要是由於產品組合、戰略定價舉措以及銷量下降導致的固定成本槓桿降低。

As previously discussed, we may occasionally leverage price to engage with customers who utilized alternative solutions in the past to secure long-term agreements or as we enter new market segments or geographies. While the impact of those price actions are expected to lessen over time, these strategic actions are enabling us to win new projects and customers.

如前所述，我們可能偶爾會利用價格與過去使用替代解決方案的客戶接觸，以達成長期協議，或在我們進入新的細分市場或地區時進行接觸。雖然這些價格行動的影響預計會隨著時間的推移而減弱，但這些策略行動使我們能夠贏得新的專案和客戶。

We expect ongoing productivity initiatives that we are aggressively pursuing to begin to take hold. While we believe that 40%-plus gross margins are appropriate and achievable in the long run for the remainder of 2025, we expect to deliver gross margin in the mid to high 30% range. And finally, we delivered first quarter adjusted EBITDA within our expected range at $12.8 million.

我們期望我們正在積極推行的生產力措施能夠開始發揮作用。雖然我們認為從長遠來看，在 2025 年剩餘時間內實現 40% 以上的毛利率是合適的並且可以實現，但我們預計毛利率將在 30% 中高水準。最後，我們第一季的調整後 EBITDA 達到預期範圍，為 1,280 萬美元。

As we are all aware, today's headlines are dominated by geopolitical uncertainty, and we understand that creates volatility for the investor community. At times like this, we find it helpful to focus on the underlying drivers of our business and what makes Shoals unique.

眾所周知，今天的頭條新聞主要集中在地緣政治的不確定性上，我們知道這會為投資者群體帶來波動。在這種時候，我們發現專注於業務的根本驅動力以及 Shoals 的獨特之處很有幫助。

Low growth is increasing. Energy sources are limited and costly, and solar is best positioned to deliver the energy we need quickly in a cost effective manner. Our value proposition of combining high quality products with exceptional engineering support and service is bringing customers back to the table.

低成長正在加劇。能源有限且昂貴，而太陽能最適合以經濟有效的方式快速提供我們所需的能源。我們將高品質的產品與卓越的工程支援和服務相結合的價值主張正在吸引客戶重新光臨。

Newly launched innovative products are solving real business problems. Domestic manufacturing capabilities are resonating. Improved commercial and operational initiatives are driving tangible results. And the quality of our balance sheet and ability to generate attractive levels of free cash flow in a wide variety of market climates sets Shoals apart from most others in the clean energy space.

新推出的創新產品正在解決實際的業務問題。國內製造能力正引起共鳴。改進的商業和營運措施正在帶來切實的成果。我們的資產負債表品質以及在各種市場環境下產生有吸引力的自由現金流的能力使 Shoals 在清潔能源領域中脫穎而出。

We are excited by the progress we made and the strength of the underlying markets we participate in, but we're also acutely aware of today's headlines, which are dominated by tariffs and domestic energy policy. We continue to evaluate how these shifts in policy may or may not impact our business and industry.

我們對所取得的進展和所參與的基礎市場的實力感到興奮，但我們也敏銳地意識到今天的頭條新聞主要是關稅和國內能源政策。我們將繼續評估這些政策變化是否會對我們的業務和產業產生影響。

That said, given what we know today, we believe Shoals has limited direct exposure to many of these risks in the near term. You may recall that we do not participate in 45x credits, and we have a robust supply chain with strong domestic partners. While no business is immune to market disruptions, we remain flexible and will work to identify opportunities to further protect our customers from the potential impact of tariffs.

儘管如此，根據我們目前掌握的情況，我們認為 Shoals 在短期內直接暴露於這些風險的可能性有限。您可能還記得，我們​​不參與 45x 積分，我們擁有強大的供應鏈和強大的國內合作夥伴。雖然沒有任何一家企業能夠免受市場波動的影響，但我們仍將保持靈活性，努力尋找機會進一步保護我們的客戶免受關稅的潛在影響。

We are proud to be a US manufacturer and have invested heavily to improve our domestic manufacturing footprint. We're investing in technologies that will increase productivity through automation. Shoals is in a strong competitive position, and we believe these improvements are resonating with new and existing EPCs and developers as they navigate a complex economic climate.

我們很自豪能成為美國製造商，並投入大量資金來改善我們的國內製造足跡。我們正在投資能夠透過自動化提高生產力的技術。Shoals 處於強大的競爭地位，我們相信這些改進將與新舊 EPC 和開發商產生共鳴，並幫助他們應對複雜的經濟環境。

We are encouraged by the progress we've made within our commercial organization and the strength we see this year within our core utility scale solar market. External sources reported some softness in fourth quarter 2024 construction, likely driven by a number of factors including weather, labor availability, and geopolitical uncertainty.

我們在商業組織內的進展以及今年我們在核心公用事業規模太陽能市場中看到的實力令我們感到鼓舞。外部消息稱，2024 年第四季建築業出現一些疲軟，可能是由天氣、勞動力可用性和地緣政治不確定性等多種因素造成的。

As we enter 2025, project construction and tracker installations resumed a healthy pace. As EBOS tends to follow tracker installations by one to two quarters, which aligns with the cadence of our four year guidance offered on our February call. Our customers' 2025 construction calendars are full and projects are moving forward as scheduled.

進入2025年，專案建造和追蹤器安裝恢復了健康的步伐。由於 EBOS 往往會追蹤追蹤器安裝一到兩個季度，這與我們在二月電話會議上提供的四年指導節奏一致。我們客戶的2025年施工日程已排滿，專案正按計畫推進。

We're also driving a more diverse customer base across all product lines. As seen in our recent filings, we now recognize two additional customers responsible for 10% or more of our business. The strategies we've been executing commercially are taking hold.

我們也致力於在所有產品線上打造更多樣化的客戶群。正如我們最近的文件所示，我們現在確認了另外兩個客戶，他們占我們業務的 10% 或更多。我們在商業上執行的策略正在發揮作用。

We are identifying and cultivating relationships with EPCs that previously did little to no business with Shoals, and the progress is very encouraging to see. The investment that we made in our commercial and product management functions are paying dividends as evidenced in both the growth and quality of our order book. Today, more than 15% of our BLAO includes projects with at least one new product released in the last four quarters.

我們正在尋找並培養與先前與 Shoals 幾乎沒有業務往來的 EPC 的關係，所取得的進展令人非常鼓舞。我們在商業和產品管理職能所做的投資正在獲得回報，訂單的成長和品質就是明證。如今，我們超過 15% 的 BLAO 包括在過去四個季度內至少發布過一款新產品的項目。

These new products are instrumental in Shoals winning business, particularly within the 30% of the market we haven't competed for in the past, and several of the customers buying these new products are new or have recently returned to Shoals. It's a very promising sign of what's to come. As we have previously discussed, there has been intense focus on how we have engaged with our customers over the last 12 months.

這些新產品對於 Shoals 贏得業務起到了重要作用，特別是在我們過去沒有競爭過的 30% 的市場中，而且購買這些新產品的許多客戶都是新客戶或最近才回到 Shoals 的。這是對未來非常有希望的跡象。正如我們之前所討論的，過去 12 個月我們一直非常關注如何與客戶互動。

In addition to revitalizing our sales, product management, and marketing functions, we have also stood up a world class customer care team. This engagement in pre-project planning, project startup, training, golden rail inspection, and post-project care, I believe is unmatched in the solar industry.

除了重振我們的銷售、產品管理和行銷職能之外，我們還建立了一支世界一流的客戶服務團隊。我相信，這種對專案前期規劃、專案啟動、培訓、黃金軌道檢查和專案後維護的參與在太陽能產業是無與倫比的。

I'm excited to pair that customer facing team with the operational improvements we are currently making in both talent and physical assets. This includes the startup of a state-of-the-art facility this year. Our ongoing investments in both the US supply chain and manufacturing base will continue to provide the highest quality products and service in our industry.

我很高興將面向客戶的團隊與我們目前在人才和實體資產方面所做的營運改善結合起來。其中包括今年啟動一座最先進的設施。我們對美國供應鏈和製造基地的持續投資將繼續為我們行業提供最優質的產品和服務。

Shoals additional growth opportunities we laid out in our strategic plan, International, CC&I, OEM and BESS are progressing well. We are building on our recent international project wins in Australia and Chile and are proud to announce the signing of an MOU with UGT Renewables. This leading global developer and their subsidiary, Sun Africa, are driving massive infrastructure projects within emerging global markets and a selected Shoals to help deliver up to 12 gigawatts of international solar power in the coming years. That decision was made based on our quality and support, fast deployment speeds, and the ability to avoid skilled labor for installation.

我們在策略計畫中列出的其他成長機會、國際、CC&I、OEM 和 BESS 均進展順利。我們最近在澳洲和智利贏得了國際項目，並自豪地宣布與 UGT Renewables 簽署了諒解備忘錄。這家全球領先的開發商及其子公司 Sun Africa 正在新興全球市場和選定的淺灘地區推動大規模基礎設施項目，以幫助在未來幾年內輸送高達 12 千兆瓦的國際太陽能。該決定是基於我們的品質和支援、快速的部署速度以及避免使用熟練勞動力進行安裝的能力而做出的。

Many of these projects have been granted significant funding from the US EXIM Bank, which often requires domestic content. It puts Shoals in an attractive and competitive position. We're excited to share more as major projects are announced.

許多此類項目都獲得了美國進出口銀行的大量資金，而這些銀行通常需要國內內容。這使得 Shoals 處於極具吸引力和競爭力的地位。隨著重大項目的宣布，我們很高興能分享更多消息。

Our community, commercial, and industrial business continues to gain momentum. Wood Mackenzie has recently increased their estimate of growth within the commercial market, which aligns with what we are seeing through our engagement with new and prospective customers. There is an enormous opportunity to serve smaller EPCs and owners building projects behind the meter. Sales cycles are relatively short. Quoting activity is very strong, and our value proposition is resonating with customers.

我們的社區、商業和工業業務繼續蓬勃發展。Wood Mackenzie 最近提高了對商業市場成長的預期，這與我們透過與新客戶和潛在客戶的接觸所看到的情況一致。為小型 EPC 和電錶後建設專案業主提供服務有著巨大的機會。銷售週期相對較短。報價活動非常活躍，我們的價值主張引起了客戶的共鳴。

Our OEM business is performing well. Our close partnership with First Solar enables visibility and consistency, valuable elements, and today's business climate. You may have seen our joint press release during the quarter with First Solar expressing our belief that US manufacturing is a unique differentiator in the US utility scale solar market. Road maps are aligned and the growth you see at First Solar is fueling attractive growth at Shoals.

我們的OEM業務表現良好。我們與 First Solar 的密切合作實現了可見性和一致性、有價值的元素以及當今的商業環境。您可能已經看到我們本季與 First Solar 聯合發布的新聞稿，其中表達了我們的信念：美國製造業是美國公用事業規模太陽能市場的一個獨特差異化因素。路線圖已對齊，而您在 First Solar 看到的成長正在推動 Shoals 實現可觀的成長。

Battery energy storage solutions is an area of particular excitement at Shoals. While we've been selling products into this market for some time, the current strategy began to come together in 2024. According to Wood Mackenzie, the best market is expected to grow at 15% CAGR through 2029.

電池儲能解決方案是 Shoals 特別感興趣的領域。雖然我們已經向這個市場銷售產品一段時間了，但目前的策略是在 2024 年開始成形的。根據 Wood Mackenzie 的預測，到 2029 年，最佳市場預計將以 15% 的複合年增長率成長。

We will serve this market via three distinct paths. First, via traditional solar EPCs. We have seen notable interest in our standardized approach to combiners and recombiners and our booking orders as we speak. Second, by partnering with providers of prefabricated storage solutions, I'm pleased to announce that we've secured a very exciting partnership with a large battery energy storage provider in the US. More to come on that. And third, by directly selling to developers and owners requiring energy storage solutions. During the quarter, we want a project to provide a custom solution to a well-known hyper scalar, a very good first step.

我們將透過三種不同的途徑服務這個市場。首先，透過傳統的太陽能EPC。正如我們所說，我們看到了人們對我們對組合器和重組器的標準化方法以及我們的預訂訂單的濃厚興趣。其次，透過與預製儲存解決方案供應商合作，我很高興地宣布，我們與美國一家大型電池儲能供應商建立了非常令人興奮的合作夥伴關係。對此，我們還會做更多介紹。第三，直接向需要儲能解決方案的開發商和業主銷售。在本季度，我們希望一個專案能夠為知名的超標量提供客製化解決方案，這是一個非常好的第一步。

The Shoal's addressable best market is massive in size and growing at a very fast pace. Remember, Best has applications across all energy sources, not just solar. We are thoughtfully allocating resources to capture this opportunity and believe it could materially change the customer and product mix of the company over the coming fve years.

Shoal 的最佳目標市場規模龐大，且成長速度非常快。請記住，Best 可應用於所有能源，而不僅僅是太陽能。我們正在精心分配資源來抓住這個機會，並相信它可能會在未來五年內徹底改變公司的客戶和產品組合。

In summary, we are executing our strategic framework of market penetration and diversification as anticipated. Customers are looking for a US source of high quality, innovative solutions that allow them to manage labor costs, speed time of deployment, and ensure their assets perform over a timeline that spans not years but decades.

總之，我們正在按預期執行我們的市場滲透和多樣化策略框架。客戶正在尋找美國的高品質、創新解決方案，使他們能夠管理勞動力成本、加快部署時間，並確保他們的資產在跨越數年而不是數十年的時間內發揮作用。

That balance between low material cost today first total cost of ownership over the useful life of the project is why EPCs and developers are more engaged than ever. With that, I'll now turn it over to Dominic, who will discuss our first-quarter financial results in more detail in our outlook for 2025. Dominic.

當今低材料成本與專案使用壽命內的總擁有成本之間的平衡是 EPC 和開發商比以往更加投入的原因。現在，我將把時間交給 Dominic，他將在 2025 年展望中更詳細地討論我們第一季的財務表現。多米尼克。

Thanks, Brandon, and good morning to everyone on the call. Turning to our first quarter financial results, net revenue declined 11.5% year over year to $80.4 million. The decline in net revenue was driven by product mix, strategic pricing actions, and customer mix.

謝謝，布蘭登，各位電話裡的各位早安。回顧我們的第一季財務業績，淨收入年減 11.5% 至 8,040 萬美元。淨收入的下降是由產品組合、策略定價行動和客戶組合造成的。

Gross profit decreased to $28.1 million compared to $36.5 million in the prior year period. This resulted in GAAP gross profit percentage of 35.0% compared to 40.2% in the prior year period. The decline in margin was due to product mix, strategic pricing actions, and a loss of fixed cost leverage on lower sales volume.

毛利從去年同期的 3,650 萬美元下降至 2,810 萬美元。這使得 GAAP 毛利百分比為 35.0%，而去年同期為 40.2%。利潤率的下降是由於產品組合、策略定價行動以及銷售量下降導致的固定成本槓桿損失。

General and administrative expenses were $21.7 million which is $1.1 million lower than the prior year period. We remain focused on controlling operating expenses and believe we are allocating resources in a reasonable and thoughtful manner.

一般及行政開支為 2,170 萬美元，比去年同期減少 110 萬美元。我們仍然專注於控制營運費用，並相信我們正在以合理和周到的方式分配資源。

Approximately $2.5 million of G&A expense was specifically related to the ongoing wire insulation shrink back litigation. Income from operations or operating profit was $4.3 million compared to $11.6 million during the prior year period. Operating profit margin was 5.4% compared to 12.8% a year ago, driven primarily by the decline in gross profit and reduced leverage on general and administrative expenses.

約 250 萬美元的 G&A 費用與正在進行的電線絕緣層收縮訴訟有關。營業收入或營業利潤為 430 萬美元，而去年同期為 1,160 萬美元。營業利益率為 5.4%，而去年同期為 12.8%，這主要由於毛利下降以及一般和行政費用槓桿率降低。

Net loss was $0.3 million compared to net income of $4.8 million during the prior year period. Adjusted net income was $5.2 million compared to $12.6 million in the prior year period.

淨虧損為 30 萬美元，而去年同期的淨收入為 480 萬美元。調整後的淨收入為 520 萬美元，而去年同期為 1,260 萬美元。

Adjusted EBITDA was $12.8 million compared to $20.5 million in the prior year period. Adjusted EBITDA margin was 15.9% compared to 22.5% a year ago, driven primarily by lower sales and the reduced gross profit percentage.

調整後的 EBITDA 為 1,280 萬美元，而去年同期為 2,050 萬美元。調整後的 EBITDA 利潤率為 15.9%，而去年同期為 22.5%，主要原因是銷售額下降和毛利率下降。

During the first quarter, we spent $9.5 million on wire insulation shrink back remediation and had a remaining warranty liability on our balance sheet of $30.4 million as of March 31. The current portion of the remaining liability related to Shrink Back is now $25 million.

在第一季度，我們花了 950 萬美元用於電線絕緣收縮修復，截至 3 月 31 日，我們的資產負債表上剩餘的保固責任為 3,040 萬美元。與 Shrink Back 相關的剩餘負債的當前部分現在為 2500 萬美元。

As a reminder, this represents the amount of cash we estimate we will consume during the next four quarters as we continue remediation efforts. This does not reflect any potential litigation recovery or increased reserves if our assumptions or knowledge of facts change. Our legal case against Prysmian is progressing at this time. We expect written discovery and fact depositions to be completed in the third quarter.

提醒一下，這代表了我們估計在接下來的四個季度中繼續補救工作將消耗的現金數量。如果我們的假設或事實知識發生變化，這並不反映任何潛在的訴訟恢復或增加的儲備。我們針對普睿司曼的法律案件目前正在進行中。我們預計書面調查和事實證詞將在第三季完成。

Cash flow from operations in the first quarter came in at $15.6 million a solid performance driven by stronger collections activity and the timing of some outflows. Free cash flow was $12.4 million which reflects both the $9.5 million dollar impact of remediation costs and $2.5 million of legal expenses related to the shrinkback issue in the period.

第一季的營運現金流為 1,560 萬美元，這一穩健表現得益於更強勁的收款活動和一些現金流出的時機。自由現金流為 1,240 萬美元，反映了該期間補救成本的 950 萬美元影響和與收縮問題相關的 250 萬美元法律費用。

Excluding the impact of these two items, free cash flow would have been $24.4 million in the quarter. Capital expenditures were $3.2 million in the period. On the subject of capital investment, the build out of our new 1,500 Shoals Way factory is progressing well.

除去這兩項的影響，本季的自由現金流將達到 2,440 萬美元。本期間資本支出為 320 萬美元。在資本投資方面，我們位於 1,500 Shoals Way 的新工廠的建設進展順利。

This state of the art plant, totaling more than 635,000 square feet, will allow for the consolidation of multiple manufacturing and warehouse facilities in Tennessee. It will enable an unprecedented level of efficiency and collaboration for us at Shoals.

該最先進的工廠總面積超過 635,000 平方英尺，將整合田納西州的多個製造和倉庫設施。它將使 Shoals 的效率和協作達到前所未有的水平。

We currently expect to begin moving into the new facility at the end of the third quarter. Additionally, we've recently completed the construction of our own solar demonstration site, referred to as the Shoal's Innovation Field. Located on our campus on Shoals Way, this real world research and development laboratory incorporates a variety of panels and trackers paired with different Shoal's EBOS solutions.

我們目前預計將於第三季末開始遷入新工廠。此外，我們最近完成了我們自己的太陽能示範場的建設，稱為淺灘創新場。這個現實世界的研究和開發實驗室位於我們位於 Shoals Way 的校園內，配備了各種面板和追蹤器以及不同的 Shoal EBOS 解決方案。

It is providing our engineering, safety, commercial teams a hands-on environment to test our innovative new products, showcase our value proposition, demonstrate installation techniques, and educate our stakeholders about the key products in the Shoals portfolio.

它為我們的工程、安全和商業團隊提供了一個實踐環境，以測試我們創新的新產品、展示我們的價值主張、演示安裝技術，並向我們的利害關係人介紹 Shoals 產品組合中的關鍵產品。

Our balance sheet remains high quality, and we entered the quarter with cash and equivalent of $35.6 million and net debt to adjusted EBITDA of 1.2 times. Our net debt of $106.1 million is the lowest level for Shoals in four years as a public company.

我們的資產負債表仍保持高品質，進入本季時，我們的現金及等價物為 3,560 萬美元，淨負債與調整後 EBITDA 比率為 1.2 倍。我們的淨債務為 1.061 億美元，這是 Shoals 作為上市公司四年來的最低水準。

With regards to capital allocation, given a number of competing priorities for our cash, including shrink-back remediation and factory consolidation, we did not purchase any shares in the first quarter under our share repurchase program. We have $125 million currently remaining under the share repurchase authorization. We will continue to evaluate investment opportunities that we believe yield the highest return for shareholders.

關於資本配置，考慮到我們的現金面臨多項優先競爭，包括縮減補救和工廠合併，我們在第一季沒有根據股票回購計畫購買任何股票。目前我們的股票回購授權餘額為 1.25 億美元。我們將繼續評估我們認為能為股東帶來最高回報的投資機會。

Backlog and awarded orders ended the first quarter at $645.1 million a sequential increase of $10 million. Backlog constitutes $202.2 million of the total BLAO, providing us with confidence that the growth projections we have for the upcoming period can be achieved. As of March 31, approximately $500 million of our backlog and awarded orders have planned delivery dates in the coming four quarters, with the remaining $145 million beyond that.

第一季末積壓訂單和已授予訂單總額為 6.451 億美元，季增 1,000 萬美元。積壓訂單佔 BLAO 總額的 2.022 億美元，這使我們有信心實現未來期間的成長預測。截至 3 月 31 日，我們約有 5 億美元的積壓訂單和已授予訂單計劃在未來四個季度內交付，其餘 1.45 億美元的訂單計劃在此之後交付。

Turning now to the outlook. While quarterly pacing within the year normally follows a strong back half, we mentioned on the previous earnings call that we expect this to be slightly more pronounced in 2025, and that remains true today. The production calendar is largely driven by when and where customers need us to deliver our solutions. And as you've likely seen from both industry data and peer reports, project calendars are very busy as we move into the warmer months. We expect between 40% and 45% of annual revenue in the first half of the year and 55% to 60% in the second half.

現在來談談展望。雖然一年中的季度成長步伐通常遵循強勁的下半年，但我們在上次收益電話會議上提到，我們預計 2025 年的這一趨勢將更加明顯，今天仍然如此。生產日程很大程度上取決於客戶需要我們何時何地提供解決方案。正如您可能從行業數據和同行報告中看到的那樣，隨著天氣變暖，專案日程變得非常繁忙。我們預計上半年營收佔全年營收的40%至45%，下半年營收佔全年營收的55%至60%。

Based on what I just walked through, for the quarter ending June 30, 2025, the company expects revenue to be in the range of $100 million to $110 million and adjusted EBITDA to be in the range of $20 million to $25 million. For the full year 2025, the company continues to expect revenue to be in the range of $410 million to $450 million and adjusted EBITDA to be in the range of $100 million to $115 million.

根據我剛才介紹的情況，對於截至 2025 年 6 月 30 日的季度，公司預計營收將在 1 億美元至 1.1 億美元之間，調整後的 EBITDA 將在 2,000 萬美元至 2,500 萬美元之間。對於 2025 年全年，該公司繼續預計營收將在 4.1 億美元至 4.5 億美元之間，調整後的 EBITDA 將在 1 億美元至 1.15 億美元之間。

In addition for the full year, we continue to expect cash flow from operations to be in the range of $30 million to $45 million, capital expenditures to be in the range of $25 million to $35 million, and interest expense to be in the range of $8 million to $12 million.

此外，我們繼續預計全年營運現金流將在 3,000 萬美元至 4,500 萬美元之間，資本支出將在 2,500 萬美元至 3,500 萬美元之間，利息支出將在 800 萬美元至 1,200 萬美元之間。

And finally, we want to candidly share what we are seeing and hearing from customers. Many of you have asked about potential changes to the regulatory framework, including the IRA, PTC, and ITC and how they might impact industry growth. These items may drive elevated market volatility for the remainder of the year.

最後，我們想坦誠地分享我們從客戶那裡看到和聽到的訊息。你們中的許多人詢問監管框架的潛在變化，包括 IRA、PTC 和 ITC，以及它們可能如何影響產業成長。這些因素可能會導致今年剩餘時間內市場波動加劇。

While it clearly occupies the headlines, our customers are less distracted, and as a result, we do not see an increased rate of project delays relative to when our full year guidance was constructed. The range provided to you allowed room for heightened volatility and market disruptions. Therefore, even if we assume sustained uncertainty within our markets in 2025, we believe our guidance is reasonable and achievable. With that, I'll turn it back over to Brandon for closing remarks.

雖然它顯然佔據了頭條新聞，但我們的客戶卻不那麼分心，因此，相對於我們制定全年指導時的情況，我們並沒有看到專案延遲率的增加。向您提供的範圍為加劇波動和市場混亂留出了空間。因此，即使我們假設 2025 年市場仍存在持續的不確定性，我們也相信我們的指引是合理且可實現的。最後，我將把發言權交還給布蘭登，請他作最後發言。

Thank you, Dominic. In this environment of heightened uncertainty, our team is doing a great job on what we can control and influence, improving the resiliency of our supply chain, exceeding customer service requirements, hitting delivery timelines, providing exceptional quality, solving real business problems with new products. The changes we are making and the team we have in place positions us exceptionally well. It is exciting to be a part of.

謝謝你，多米尼克。在這種高度不確定的環境中，我們的團隊在我們能夠控制和影響的領域做得很好，提高了供應鏈的彈性，超越了客戶服務要求，滿足了交貨時間，提供了卓越的品質，並用新產品解決了實際的業務問題。我們正在進行的變革和我們現有的團隊使我們處於非常有利的地位。能夠參與其中是令人興奮的。

At the same time, we cannot ignore the market data we are seeing, strong growth across both the core and new markets driven by the continued need for energy around the world. Despite the volatile political environment, Wood Mackenzie projects the US will add between 41 and 50 gigawatts of average annual solar installations from 2025 to 2035. This leads us to be incrementally more constructive on the market, both 2025 and beyond.

同時，我們不能忽視我們看到的市場數據，受全球持續的能源需求推動，核心市場和新興市場都出現了強勁成長。儘管政治環境動盪，伍德麥肯茲預計，2025 年至 2035 年間，美國每年平均太陽能裝置容量將增加 41 至 50 吉瓦。這使得我們在 2025 年及以後的市場上變得更加建設性。

While noise around energy policy remains, the data supports our thesis that markets in which we play are moving past the challenges we experienced in 2024. It's shaping up to be a good year. 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 to take questions.

儘管圍繞能源政策的噪音仍然存在，但數據支持我們的論點，即我們所處的市場正在擺脫我們在 2024 年所經歷的挑戰。看起來這將會是美好的一年。我們要感謝股東和客戶的持續信任，感謝員工的辛勤工作和奉獻精神。接線員，我們現在可以回答問題了。

(Operator Instructions) Mark Strouse, JPMorgan.

（操作員指示）摩根大通的馬克‧斯特勞斯 (Mark Strouse)。

Hey, good morning. This is Michael Fairbanks on for Mark. Maybe if you guys could just start with talking about how the competitive landscape may have shifted given the uncertainty around tariffs? Thank you.

嘿，早安。我是麥可‧費爾班克斯，代替馬克。或許你們可以先談談，鑑於關稅的不確定性，競爭格局可能發生了怎樣的變化？謝謝。

Good morning. This is Brandon. Great question. Look, there is certainly no doubt we have seen an increase in our customer inquiries. Our commercial team is very active in the marketplace. And I think while the tariff landscape is playing a part of that, you know, most of the conversations that we’re having with customers are still centered around our quality, our service, our capabilities, really speaking specifically to engineering and helping customers solve business problems with our new products. So, we continue to be very, very excited about our commercial execution, and I think it’s going to lead to great things to come.

早安.這是布蘭登。好問題。瞧，毫無疑問，我們看到客戶諮詢量增加。我們的商業團隊在市場上非常活躍。我認為，雖然關稅狀況是其中的一部分，但我們與客戶的大部分對話仍然圍繞著我們的品質、我們的服務、我們的能力，具體來說就是工程以及幫助客戶用我們的新產品解決業務問題。因此，我們對我們的商業執行仍然感到非常興奮，我認為這將帶來偉大的事情。

Great. And then maybe just to follow up you guys mentioned the the two big ones in the best product line. Could you maybe give some more color on those two projects?

偉大的。然後也許只是為了跟進，你們提到了最佳產品線中的兩個大產品。您能否更詳細地介紹一下這兩個項目？

Yeah, we're very excited about BESS, first and foremost because of the total market opportunity. Look for context, that market is essentially the same size or slightly larger, even than our core domestic utility scale solar market. So we're at the early stages as we talked about in the prepared remarks. We've really got three channels to market there.

是的，我們對 BESS 感到非常興奮，首先是因為它的整體市場機會。從背景來看，該市場的規模基本上與我們的核心國內公用事業規模太陽能市場相同或略大。正如我們在準備好的演講中談到的，我們目前處於早期階段。我們實際上有三個管道在那裡進行行銷。

And it's not only just two wins. We're seeing wins across the board in those three channels. We are winning business with our core channel to market, solar EPCs that are pairing solar and storage projects. We are winning in alternative channels. We called out specifically, more of the industrial market that's supported by data center and AI, which is a fantastic growth opportunity.

這不僅僅是兩次勝利。我們看到這三個管道都取得了全面勝利。我們憑藉核心市場管道——將太陽能與儲能項目配對的太陽能 EPC 贏得了業務。我們在替代管道上取得了勝利。我們特別指出，更多由資料中心和人工智慧支援的工業市場是一個絕佳的成長機會。

And then specifically, partnering with -- through an OEM relationship through folks building skid-based solutions. And that opportunity that we referred to has the potential to be sizable for Shoals in years to come, and there's others in that pipeline. So, aligned with our commercial execution on the solar side, the company is doing well in its path to diversify.

然後具體來說，透過與建立基於滑軌的解決方案的人員建立 OEM 關係進行合作。我們提到的這個機會在未來幾年內對 Shoals 來說具有巨大的潛力，而且還有其他機會正在籌備中。因此，與我們在太陽能方面的商業執行一致，公司在多元化道路上進展順利。

Brian Lee, Goldman Sachs.

高盛的 Brian Lee。

Hey guys, good morning. Kudos on the solid results and thanks for taking the questions here. I guess maybe as a follow up to the first question here, if you could -- Brandon, maybe, it was a bit more of the lay of the land, maybe even quantify it a little bit like how many of your peers, like voltage, who you've obviously been in some IP hand to hand combat with? How much exposure do your peers have to China tariffs?

大家好，早安。對可靠的結果表示讚賞，並感謝您在這裡回答問題。我想也許作為對第一個問題的後續回答，如果你可以的話——布蘭登，也許，這更多的是關於地形，甚至可以量化一下，比如你有多少同行，比如電壓，顯然與誰進行過 IP 肉搏戰？您的同行受到中國關稅的影響有多大？

You know what percent market share in the US would you say they represent? And then, what are kind of customer conversations like given the state of the state in terms of tariffs? It just seems like your US footprint and US supply chain should be giving you a huge leg up whether it's in the ability to capture share or price or both or just any visibility around those trends potentially becoming bigger tailwind here as we move forward through the rest of this year.

您知道他們在美國佔據多少市場份額嗎？那麼，考慮到關稅方面的狀況，客戶會進行什麼樣的對話呢？看起來，您的美國足跡和美國供應鏈應該會給您帶來巨大的優勢，無論是在獲取市場份額還是價格方面，還是兩者兼而有之，或者只是對這些趨勢的任何可見性，都可能成為我們在今年剩餘時間內前進的更大順風。

Yeah, Brian. Great to hear from you. And thanks for the question. Look, I don't want to comment specifically on any one competitor in the marketplace, but I want to reiterate, our investment in US manufacturing and supply chain started 12, 18 months ago. This is not a new phenomenon for Shoals .

是的，布萊恩。很高興收到你的來信。感謝您的提問。聽著，我不想具體評論市場上的任何一個競爭對手，但我想重申，我們對美國製造業和供應鏈的投資始於 12 到 18 個月前。對 Shoals 來說，這並不是什麼新鮮現象。

You wake up each morning to a headline of so and so is building infrastructure in the United States as a result of these tariffs, and that is not the story of Shoals. We've been doing this for the history of the company and are continuing to do it here with our investment at 1,500 Shoals Way.

每天早上醒來，你都會看到這樣的新聞頭條：由於這些關稅，某某公司正在美國建設基礎設施，但這並不是 Shoals 的故事。我們在公司歷史上一直這樣做，並將繼續在 1,500 Shoals Way 進行投資。

As far as our competitive advantage in the marketplace, look, it's good for us, obviously. Anybody that is importing, a finished product from outside of the country has absolute tariff exposure, whereas folks that are building here may have some tariff exposure because they could be using some imported materials.

就我們在市場上的競爭優勢而言，這顯然對我們有利。任何從國外進口成品的人都面臨絕對的關稅風險，而在這裡建造房屋的人可能會面臨一些關稅風險，因為他們可能會使用一些進口材料。

And while we have largely a domestic supply chain, we too do have some imported materials like others. There's some materials where there is no other domestic alternative when you think about some of the connectors that are specific to panel types.

雖然我們的供應鏈主要以國內為主，但我們也和其他國家一樣，有一些進口材料。當您考慮某些特定於面板類型的連接器時，有些材料在國內是沒有其他替代品的。

That being said, I like our position versus any others. And again, look, I -- to reference the last question again, I want to reiterate that the engagement that we're having with customers right now is not centered around tariffs. They're not coming to us because they need a US alternative. They are coming to us because we've made some really material changes in how we go to market and service the customer. And that is being recognized across our entire customer landscape.

話雖如此，我喜歡我們的立場，而不是其他人的立場。再說一遍，我——再次提到最後一個問題，我想重申，我們現在與客戶的接觸並不以關稅為中心。他們來找我們並不是因為他們需要美國的替代方案。他們之所以來找我們，是因為我們在行銷和客戶服務方式上做出了一些實質的改變。我們整個客戶群都認識到了這一點。

Okay, that's great. Appreciate the call. And maybe just a follow up. On the model here, I know you guys said that the second half for the balance of the year kind of mid to high 30%s for gross margin, but you're still backing. It sounds like the view to be a 40% to 45% gross margin of business structurally. Can you give us a bit of the bridge to what gets you back there whether it's specific productivity measures? Is it a customer and market mix?

好的，太好了。感謝您的來電。或許只是後續行動。在這裡的模型上，我知道你們說過今年下半年的毛利率將在 30% 左右，但你們仍然支持這個預測。從結構來看，這聽起來像是 40% 至 45% 的業務毛利率。您能否向我們稍微介紹一下是什麼讓您回到那裡，是否是具體的生產力措施？它是客戶和市場的組合嗎？

Is it just more volume demand? Like what takes you from the levels? You're in the high 30%s to back to 40%-plus, and is that something you achieve in even the early part of '26.

僅僅是數量需求增加嗎？例如什麼讓你脫離了那個水平？您的回報率已從 30% 多上升至 40% 以上，這是您在 26 年初就實現的嗎？

Yeah, Brian. So thanks. This is Dominic. Yeah, great questions and you answered a lot of it with your question itself. There are a number of things right now with a lower revenue production level where product mix and customer mix is certainly having an impact on margins here in the short term.

是的，布萊恩。所以謝謝。這是多明尼克。是的，問題很棒，你的問題本身就回答了很多問題。目前存在許多因素，收入生產水平較低，產品組合和客戶組合肯定會在短期內對利潤率產生影響。

As we've talked, we do believe that this first quarter was going to be the low point for our year 2025 as we continue to migrate up. We do have visibility to what we're quoting in the future. Some of the projects that we're quoting, and as we mentioned in our prepared remarks, we have about $500 million worth of quotes that do carry us through the first quarter actually of 2026. So we do have visibility to what we're quoting.

正如我們所說的，我們確實相信，隨著我們繼續向上遷移，第一季將成為 2025 年的低谷。我們確實能夠預見未來所引用的內容。我們正在報價的一些項目，正如我們在準備好的演講中提到的那樣，我們有價值約 5 億美元的報價，這些報價確實可以讓我們度過 2026 年第一季。因此我們確實能夠看到我們所引用的內容。

We have great visibility into new products that are starting to take shape and hold, and there are creative margins to our base. So as we've described our margins, there's some things that we're doing from a commercial standpoint with our products. There are things that we're doing internally from an efficiency standpoint, and that is something that we really want to focus on.

我們對開始成型和保持的新產品有很好的了解，並且我們的基礎具有創造性的利潤空間。正如我們所描述的利潤率，我們從商業角度對我們的產品做了一些事情。從效率的角度來看，我們在內部做了一些事情，這是我們真正想要關注的事情。

There are some products that might be new that increase our share of wallet, but they might be perhaps a lower percentage of of gross margin. So I want to -- it's not that I'm trying to deemphasize gross margin. We put cash dollars in the bank. I'm focusing on operating profit. I'm focusing on shareholder returns. And I want to make sure that we always tell the story. But if I can go after an additional segment of EBOS that we haven't participated in the past, we absolutely will do that if that can drive profitable dollars to the bottom line.

有些新產品可能會增加我們的收入份額，但它們的毛利率百分比可能會較低。所以我想──我並不是想淡化毛利率。我們把現金存入銀行。我關注的是營業利潤。我關注的是股東回報。我想確保我們始終講述這個故事。但如果我可以進軍我們過去沒有參與過的 EBOS 的額外領域，我們絕對會這麼做，只要這能為公司帶來利潤。

Colin Rusch, Oppenheimer.

奧本海默的科林·拉什。

Thanks so much guys. Could you talk a little bit about how the portfolio is evolving in other geographies? Obviously you moved into Europe with some new products and you're moving into Africa with this announcement. I'm just curious how different are the designs? How quickly can those things come to market, and how much traction are you getting outside of some of your core traditional markets?

非常感謝大家。您能否談談該投資組合在其他地區的發展？顯然，你們帶著一些新產品進入了歐洲，並且帶著這項公告進入了非洲。我只是好奇這些設計有何不同？這些東西多久能進入市場？除了一些核心傳統市場之外，你們還能獲得多大的關注？

Yeah, good morning. Great question. Those projects, obviously, being international, there's -- can be longer development lead timelines for those projects. Just they're more complex environments than here in the States if that's possible, but I guess it is.

是的，早安。好問題。顯然，這些項目是國際性的，因此這些項目的開發週期可能會更長。如果可能的話，那裡的環境比美國這裡更複雜，但我想是的。

So, a little bit longer lead times. The product by and large, speaking specifically to the MOU that we signed with UGT and Sun Africa are very similar to what we're selling in the States. They're solutions-based products. And one of the reasons that we have partnered with them, not only because they're financed by -- many of the projects are financed via EXIM Bank and require domestic content, or the fact that we have an easy to use solution for areas that have a lack of skilled labor.

因此，交貨時間會稍微長一點。總體而言，根據我們與 UGT 和 Sun Africa 簽署的諒解備忘錄，該產品與我們在美國銷售的產品非常相似。它們是基於解決方案的產品。我們與他們合作的原因之一不僅是因為他們的資金來源——許多項目都是透過進出口銀行融資並需要國內內容，還因為我們為缺乏熟練勞動力的地區提供了易於使用的解決方案。

So, we called out in the press release yesterday a project in Angola that is roughly 600 megawatts column. That design would look very similar to a design that we would have here in the US and will be made here in Tennessee.

因此，我們在昨天的新聞稿中提到了安哥拉的一個約 600 兆瓦的項目。該設計看起來與我們在美國的設計非常相似，並將在田納西州生產。

Thanks so much. And given what we're seeing in terms of investment in long cycle industrials, can you talk a little bit about some of the supply chain -- the non-copper supply chain and how much that's shifting around and if there's an opportunity for you guys to start driving some policy savings there?

非常感謝。鑑於我們在長週期工業投資方面所看到的情況，您能否談談一些供應鏈 - 非銅供應鏈以及其變化幅度以及是否有機會讓您開始在那裡推動一些政策節約？

Yeah, look. We are unbelievably engaged with our suppliers right now given the tariff environment. And thank you to them for being flexible during this turbulent time. Look, we're trying to drive cost savings across the the business, whether it's material cost savings or via labor efficiency projects on our platform that come through lien process or automation.

是的，看。考慮到目前的關稅環境，我們目前與供應商的合作非常密切。感謝他們在這段動盪時期表現出的靈活性。你看，我們正在努力推動整個業務的成本節約，無論是材料成本節約，還是透過我們平台上的留置權流程或自動化實現的勞動力效率項目。

So, there's a lot of opportunity for Shoals as we move into this new facility from a raw material standpoint, being in one production facility and and really being able to consolidate our inventory nodes and also becoming more efficient because of the fact that we're under one roof and adding some new automation.

因此，從原材料的角度來看，當我們搬進這個新工廠時，Shoals 有很多機會，因為我們在一個生產設施中，並且能夠真正整合我們的庫存節點，而且由於我們在同一個屋簷下並增加了一些新的自動化設備，我們的效率也更高。

So, we're excited we've got a great op operations team. As you know, we brought in Kirsten Moen, a new COO. She's been in the chair along with her team that she's building and is driving a real impact across our organization. So great things to come.

因此，我們很高興擁有一支出色的營運團隊。如您所知，我們聘請了新的營運長 Kirsten Moen。她和她所組建的團隊一直擔任主席，並正在對我們整個組織產生真正的影響。美好的事情即將發生。

Philip Shen, ROTH Capital Partners

羅仕證券（ROTH Capital Partners）的沈飛（Philip Shen）

Thanks for taking my questions. What are you seeing in terms of bookings velocity for your business on projects looking for construction starts in the back half of next year and 2027? To what degree has the tariff environment impacted what you could be doing in the coming quarters? Thanks.

感謝您回答我的問題。對於計劃在明年下半年和 2027 年開始施工的項目，您認為貴公司的預訂速度如何？關稅環境對您未來幾季的工作有多大影響？謝謝。

Sure. Thanks, Phil. Look, too early to call the ball on '26 and '27, obviously. What I can say is, I think, it's probably undisputed at this point that the underlying demand environment driven by data centers. And AI is going to be a force that continues to drive the solar industry. I know there's a lot of uncertainty out there right now with tariffs and what will or will not happen.

當然。謝謝，菲爾。瞧，顯然現在就宣布 26 和 27 的比賽結果還為時過早。我可以說的是，我認為，目前這一點可能是無可爭議的，也就是由資料中心驅動的底層需求環境。人工智慧將成為持續推動太陽能產業發展的力量。我知道目前關稅問題以及將會發生什麼或不會發生什麼存在很多不確定性。

With ITC, PTC, 45X, but even through that, we are seeing a strengthening market. We saw a softer Q4 in 2024 in terms of starts. And tracker installations and that trend is reversed going into 2025. We're seeing an uptick across the Board.

有了 ITC、PTC、45X，但即使如此，我們也看到市場正在走強。就開工率而言，我們預計 2024 年第四季將會較為疲軟。到 2025 年，追蹤器的安裝趨勢將會逆轉。我們看到整個董事會都在不斷進步。

And you see that in our backlog and awarded orders and maybe more importantly, our conversion from awarded order to backlog. We had roughly, $50 million increase quarter to quarter there.

您可以在我們的積壓訂單和已授予訂單中看到這一點，也許更重要的是，我們從已授予訂單到積壓訂單的轉換。我們每季的銷售額大約增加了 5000 萬美元。

The great thing that we are hearing talking to our EPC partners and and developers, they're confirming our feeling of strength in the marketplace. They're not seeing a slowdown. And I think you're seeing that picked up by other industry sources that provide data.

我們在與 EPC 合作夥伴和開發商交談時聽到的一個好消息是，他們證實了我們在市場上的實力。他們沒有看到經濟放緩。我認為您會看到其他行業提供的數據來源也採用了這種方法。

So our '25 guidance contemplates some uncertainty. And as we said on the last call, if that uncertainty doesn't happen, we will finish at the high side or above our guidance. So we're excited about the market in general with what we see.

因此，我們的 25 年指導考慮了一些不確定性。正如我們在上次電話會議上所說的那樣，如果這種不確定性沒有發生，我們的業績將達到預期的高位或高於預期。因此，我們對所看到的整個市場感到興奮。

Thank you very much, Brandon. Yeah, a quick follow up here on the BESS outlook. You talked about your new products there and that is exciting and how it can serve a variety of markets or situations beyond just solar.

非常感謝，布蘭登。是的，這裡快速跟進一下 BESS 的前景。您在那裡談到了您的新產品，這令人興奮，以及它如何服務太陽能以外的各種市場或情況。

With the 145% China tariff, there's a big impact to battery cell tax based on our check. And I think there's a slowdown for US utility scale solar batteries. And so to what degree is that being factored into your best business plan for your profit line there? But also for the projects that -- the solar projects that are tied with best for '25 and '26 projects and construction starts, how much impact could this tariff, that's already in place, have on your solar deliveries because that solar project may be tied to a best project that may not be getting sales supply. Thanks.

根據我們的檢查，由於中國徵收145%的關稅，對電池稅產生了很大影響。我認為美國公用事業規模的太陽能電池的發展正在放緩。那麼，在您制定的最佳利潤線商業計劃中，這一點在多大程度上被考慮進去了呢？但是對於那些與 25 年和 26 年最佳項目和開工項目掛鉤的太陽能項目，這種已經實施的關稅會對您的太陽能交付產生多大影響，因為這些太陽能項目可能與可能無法獲得銷售供應的最佳項目掛鉤。謝謝。

Sure, yeah, Phil, I'll answer the second question first, maybe. Just again to reiterate, talking to EPC customers and talking to developers, this is our sales team talking to them and me talking to them personally, we are not seeing any change -- the abnormal changes in project timelines, the balance of '25 and even in '26.

當然，菲爾，也許我會先回答第二個問題。再次重申，與 EPC 客戶和開發商交談，這是我們的銷售團隊在與他們交談，也是我個人在與他們交談，我們沒有看到任何變化——專案時間表的異常變化，25 年甚至 26 年的平衡。

I think those projects are locked and loaded. So I know there's some potential volatility with raw materials related to to battery storage. We're not seeing an impact of that currently as it relates to our best business.

我認為這些項目已經準備就緒。所以我知道與電池儲存相關的原材料存在一些潛在的波動。目前我們還沒有看到它對我們最擅長的業務產生影響。

I guess two things I'd point out there. One, this is a new business for us. We have very little market share, so we can drive strong growth virtually in any market climate because we're starting from scratch essentially. So, we do see some growth there.

我想指出兩點。首先，這對我們來說是一項新業務。我們的市佔率很小，因此我們幾乎可以在任何市場環境下實現強勁成長，因為我們基本上是從零開始。所以，我們確實看到了一些成長。

The other thing to point out is there are other battery technologies that may not be as impacted by these tariffs than others. And I think those will see some success and grow in the near term.

另一點需要指出的是，其他電池技術可能不會像其他技術那樣受到這些關稅的影響。我認為這些將在短期內取得一些成功並實現成長。

Maheep Mandloi. Mizuho.

馬希普·曼德洛伊。瑞穗。

Hey, thanks for taking a question. One thing I think on the call and prepared remarks, you talked about a contract with Hyperscalar. Could you talk more about that? I know it's like somewhat long dated plan for you, but just curious what that product is related to. And I had a follow-up.

嘿，謝謝你回答問題。我認為在電話會議和準備好的發言中，您談到了與 Hyperscalar 簽訂的合約。你能進一步談談這個嗎？我知道這對你來說就像是一個長期計劃，但我只是好奇該產品與什麼有關。我進行了後續跟進。

Look, I'm not going to specifically disclose the customer. Obviously, we can't do that. But, the products that we're supplying to the market, whether it's into the data center space or to a traditional solar and storage project are relatively similar. We are providing large DC combiners and recombiners as part of the electrical balance of systems.

聽著，我不會具體透露客戶的資訊。顯然我們不能這麼做。但是，我們向市場供應的產品，無論是資料中心領域還是傳統的太陽能和儲存專案都相對相似。我們提供大型直流組合器和重組器作為系統電氣平衡的一部分。

If you think about our traditional product portfolio, these are -- they're larger -- they're much larger in size, higher ASP than typical range ASP for a unit is probably between $40,000 and $80,000. So significantly different than what what you've seen, maybe traditionally come from Shoals with a combiner box.

如果你考慮我們的傳統產品組合，它們更大——它們的尺寸要大得多，平均售價 (ASP) 也比典型範圍要高，一個單位的平均售價大概在 40,000 美元到 80,000 美元之間。與您所見的有很大不同，可能傳統上來自帶有組合箱的 Shoals。

If you think back to our investor day and we're in our plant during the tour, you would have seen some of these products being built in our plant for while you were on that tour. So, we're excited about the opportunity.

如果您回想一下我們的投資者日，我們在參觀期間在我們的工廠，您會看到在參觀期間我們的工廠正在生產一些產品。因此，我們對這個機會感到非常興奮。

And I think we can take our core competency of being fast, being flexible, really building variability at scale, which is a bit of an oxymoron. We're able to do that, and I think that's the core strength of Shoals. We believe we've got a right to win in the best space.

我認為我們可以發揮我們的核心競爭力，即快速、靈活，真正實現規模化的可變性，這有點矛盾。我們能夠做到這一點，我認為這是 Shoals 的核心優勢。我們相信我們有權在最佳領域獲勝。

Kevin, thanks. And maybe just one housekeeping on the shrink back litigation cost, how do we should we think about that in Q2 and the rest of the year?

凱文，謝謝。也許只是訴訟成本縮減的一個整理，我們該如何看待第二季和今年剩餘時間的這個問題？

Sure, this is Dominic. Yeah, the litigation, as I mentioned in the remarks, we're actually moving forward with the fact-based, depositions and data discovery phases of it. The deadlines for moving through all that would mean that in the fourth quarter we're actually probably going to have the real sit down, ability to sit down with and try to do some mediation, figure out if we can come to a resolution there.

當然，這是多明尼克。是的，正如我在評論中提到的，訴訟實際上正在推進基於事實的證詞和數據發現階段。完成所有這些工作的最後期限意味著，在第四季度，我們實際上可能會真正坐下來，嘗試進行一些調解，看看我們是否能夠達成解決方案。

If that is unsuccessful, a trial date is in 2026. So that is going to be a longer process. We're still actively in depositions. I imagine our legal expenditures will continue until we get through this back phase at this point in time.

如果不成功，審判日期為 2026 年。所以這將是一個更長的過程。我們仍在積極進行取證工作。我想我們的法律支出將持續下去，直到我們度過目前的後期階段。

Jordan Levy, Truist Securities.

喬丹·利維（Jordan Levy），Truist Securities。

Morning guys. It's Mo of Jordan. Two questions for me. First, as you expand your international business, are you seeing more of these large scale agreements like the one you did with UGT in Africa? And how do you think about approaching supply chain for your international volumes and that has become a bigger piece of the pie. I have a follow up.

大家早安。是喬丹的莫。我有兩個問題。首先，隨著你們國際業務的拓展，你們是否看到更多像你們與非洲 UGT 達成的那種大規模協議？您如何看待國際業務的供應鏈，以及這已成為一個更大的份額。我有一個後續行動。

Yeah, sure. Great question. Yeah, I mean, obviously we're very excited about this MOU. It's a 12 gigawatt opportunity for Shoals in the near to midterm. That is really a path to market that is largely via export as many of the projects are financed by the US EXIM Bank and require domestic content. So we feel like we are obviously in prime position to support those projects with Sun Africa in UGT.

是的，當然。好問題。是的，我的意思是，我們顯然對這份諒解備忘錄感到非常興奮。這對 Shoals 來說是一個近期至中期 12 千兆瓦的機會。這實際上是一條主要透過出口進入市場的途徑，因為許多項目都是由美國進出口銀行資助的，並且需要國內內容。因此，我們覺得我們顯然處於有利地位，可以支持 Sun Africa 在 UGT 開展的這些計畫。

There may be some other projects that are not built in the states to satisfy both this relationship and potential projects and relationships in the future. We've discussed that in the past that in any strong international business, we've got to have the commercial resources and operational resources in specific regions on the ground to be successfully long-term. And some more to come there. That continues to be our intention, and you'll hear more, is that strategy unfolds.

可能還有一些其他項目不在美國境內建設，以滿足當前關係以及未來的潛在項目和關係。我們過去曾討論過，任何強大的國際業務都必須在特定地區擁有商業資源和營運資源才能長期成功。還有一些即將到來。這仍然是我們的目的，而且您會聽到更多，這就是策略的展開。

Thanks. Yeah, so regarding the 12 gigawatt contract, can you talk broadly to the margin profile of this contract versus your current backlog? I think previously you mentioned international projects usually carry lower margin compared to US. Is that statement still true given that now you have project wings in Australia, Chile, and Africa. Thank you.

謝謝。是的，關於 12 千兆瓦的合同，您能否大致談談該合約的利潤狀況與您目前的積壓訂單相比如何？我認為您之前提到過，與美國項目相比，國際項目的利潤通常較低。鑑於現在你們在澳洲、智利和非洲都有計畫分支，這種說法仍然正確嗎？謝謝。

Yeah, I won't commit specifically on that arrangement and in the margin profiles. But again, I would remind projects that are funded by the EXIM Bank have to be domestically produced or have to require some level of domestic content. And those projects will look look and feel similar to our typical US projects.

是的，我不會具體承諾該安排和邊際概況。但我再次提醒，由進出口銀行資助的計畫必須是國內生產，或必須包含一定程度的國內內容。這些項目看起來和感覺起來與我們典型的美國項目類似。

Praneeth Satish, Wells Fargo.

富國銀行的 Praneeth Satish。

Thanks. Good morning, just kind of given your comment here that customers 2025 construction calendars are full, projects are moving forward as scheduled, has your underlying assumption for project schedules and the cushion around has changed at all relative to the prior guidance range?

謝謝。早安，鑑於您在此處的評論，即客戶 2025 年的施工日曆已滿，項目正在按計劃進行，您對項目進度和緩衝的基本假設相對於之前的指導範圍是否有所改變？

I mean, I see the assumption now is 78% of the backlog and awarded orders convert to revenue in the next 12 months, and that is up from last quarter. So it does seem like the overall environment here is improving, despite all the IRA uncertainty.

我的意思是，我看到現在的假設是，78% 的積壓訂單和已授予訂單將在未來 12 個月內轉化為收入，這一數字高於上一季。因此，儘管愛爾蘭共和軍存在著許多不確定性，但這裡的整體環境似乎確實正在改善。

So I'm just trying to get a sense of the underlying assumption for project delays. And I guess indirectly if the current conditions persist, which seem positive, then would you be tracking towards the high end of guidance?

所以我只是想了解專案延遲的潛在假設。我想，如果目前的情況持續下去，並且看起來是積極的，那麼您會追蹤指導的高端嗎？

Thank you for that question. This is Dominic. Yes, so I remain very cautiously optimistic. As we said, both prior earnings call and today, we are seeing very positive momentum here in 2025 and I'm very excited about what we're seeing.

謝謝你的提問。這是多明尼克。是的，所以我仍然保持非常謹慎樂觀的態度。正如我們所說的那樣，無論是上次收益電話會議還是今天，我們都看到了 2025 年非常積極的勢頭，我對我們所看到的一切感到非常興奮。

Yes, we do have more uncertainty in the back half because as you see, our backlog, which is where we have the purchase orders, has now climbed to $200 million but we still have to convert some business in the back half of the year. We still have to get those purchase orders.

是的，我們在下半年確實面臨更多不確定性，因為如您所見，我們的積壓訂單（即我們的採購訂單）現已攀升至 2 億美元，但我們仍需在下半年轉換一些業務。我們仍然需要取得那些採購訂單。

But to your point, if those things all come through the way we have visibility, then yes, the high end of the range and a very strong year for us in 2025 is in the cards. But I do need to be prudent and say that there is some uncertainty out there. We haven't gotten all the purchase orders to complete the year yet and so our guide for the full year still remains intact.

但正如您所說，如果這些事情都透過我們的可見性實現，那麼是的，2025 年對我們來說將是高端且非常強勁的一年。但我確實需要謹慎，並指出存在一些不確定性。我們尚未收到全年所需的所有採購訂單，因此我們的全年指南仍然保持不變。

Yeah, I do have a quick follow up just going back to the to the hyperscalar BESS win, I guess first, like, do you think there's more opportunities with this hyperscalar? I guess you're going through OEM it sounds like I'm not sure, but just any more opportunities in that in that pipeline. What does the margin profile look like versus your traditional EBOS offerings.

是的，我確實有一個快速的跟進，回到超標量 BESS 的勝利，我想首先，您是否認為這種超標量有更多機會？我猜你正在經歷 OEM，聽起來我不太確定，但那條管道中還有更多機會。與您的傳統 EBOS 產品相比，利潤狀況如何？

And then just kind of philosophically and at high level, are you seeing any more interest from data center customers to use solar and storage or wind and storage because predominantly they're using natural gas now?

那麼從哲學和高層次來說，您是否看到資料中心客戶對使用太陽能和儲能或風能和儲能更感興趣，因為他們現在主要使用天然氣？

So, yeah, let me hit the first one, The channel to market for the specific data center hyperscale customer that we reference is a direct channel to market, right? That is not through an OEM. So three distinct channels. One, essentially selling to our EPC customers that we're working with every day. Two, is an OEM relationship with those folks that are building skid-based solutions. So think of a containerized solution or or a containerized configuration that is pairing batteries with our products and our products are on board those solutions.

那麼，是的，讓我來談談第一個問題，我們所指的特定資料中心超大規模客戶的市場管道是直接市場管道，對嗎？這不是透過 OEM。所以有三個不同的管道。第一，本質上是向我們每天合作的 EPC 客戶銷售產品。二是與那些建立基於滑軌的解決方案的人員建立 OEM 關係。因此，請考慮一個貨櫃解決方案或貨櫃配置，將電池與我們的產品配對，並且我們的產品也搭載在這些解決方案上。

And thirdly, is into the more industrial market data center AI specifically where essentially the same products are used to balance their electrical systems, whether they be driven by gas or genset backups to balance that electrical system.

第三，是進入更工業化的市場資料中心人工智慧，其中基本上使用相同的產品來平衡其電氣系統，無論它們是由燃氣還是發電機組備用驅動來平衡該電氣系統。

Our products can be used in that environment, which is fantastic for us, obviously. So we plan to penetrate via all three channels to market, and we are seeing activity across all three again. We're excited about this particular opportunity and expect that business to continue to flourish.

我們的產品可以在那種環境中使用，這對我們來說顯然非常棒。因此，我們計劃透過所有三個管道滲透到市場，我們再次看到這三個管道的活動。我們對這個特殊機會感到非常興奮，並希望業務繼續蓬勃發展。

The second part of the question, I think, was around the margin profile, or battery energy storage business. I mean, we think of that business as having the ability to generate a creative margins for the enterprise. Did I answer all the questions, or was there one more?

我認為，問題的第二部分是關於利潤率狀況或電池儲能業務。我的意思是，我們認為該業務有能力為企業創造利潤。我是否回答了所有問題？還是還有一個問題？

That's good. Appreciate it. Thank you.

那挺好的。非常感謝。謝謝。

Derek Soderberg, Cantor Fitzgerald.

德里克索德伯格、康托費茲傑拉。

Yeah, hey guys, just one question for me around C&I. Any visibility into what's sort of driving demand in the end markets for C&I? Is there a positive trend on Made in America, companies securing their grids. Can you talk about what's driving some of that quoting activity in C&I and any of some of those trends may be driving that? Thanks.

是的，嘿夥計們，我只想問一個關於 C&I 的問題。您是否了解，是什麼因素推動了 C&I 終端市場的需求？美國製造、公司保護其電網的趨勢是否正面？您能否談談是什麼推動了 C&I 中的一些報價活動以及哪些趨勢可能推動了這些活動？謝謝。

Yeah, thanks a great question. Look, we're excited about our C&I business. When you can look at a business where quote activity is up, bookings are up, revenue is up, that's a pretty good signal. What we have is working.

是的，謝謝，這個問題問得非常好。看，我們對我們的 C&I 業務感到興奮。當你看到一家企業的報價活動增加、預訂量增加、收入增加時，這是一個非常好的訊號。我們所擁有的正在發揮作用。

I think people more and more are understanding our hidden solution in the field, and what value that we can offer to smaller projects where labor is at a premium, their supply chains are disaggregated, and we offer a fantastic solution for them. We are excited as more potential behind the meter opportunities arise that these EPCs may be the individuals that are doing those smaller behind the meter projects.

我認為人們越來越了解我們在該領域隱藏的解決方案，以及我們可以為勞動力稀缺、供應鏈分散的小型專案提供什麼價值，我們為他們提供了絕佳的解決方案。隨著越來越多的潛在電錶後機會出現，我們感到很興奮，這些 EPC 可能是負責那些規模較小的電錶後專案的個人。

So, we're starting to execute commercially and operationally very well in that area and we're seeing business accelerate as result of it.

因此，我們開始在該領域很好地執行商業和運營，我們看到業務因此而加速發展。

Kashy Harrison, Piper Sandler.

卡西·哈里森、派珀·桑德勒。

Thanks, for sliding me in here. I'm sorry I joined late. So apologies again if you've already addressed us on the call. But just one quick one for me. Coming into 4Q earnings, I think you flagged you had about 10% to 20% of revenues in book and ship. And then another key assumption you had was, the level of delays this year would be not as bad as last year but not as good -- but not back to normal, call it 2023.

謝謝您讓我來到這裡。很抱歉我加入晚了。如果您已經在電話中向我們表達了歉意，我們再次向您表示歉意。但對我來說，這只是一個快速步驟。進入第四季度收益，我認為您標記了約 10% 到 20% 的收入來自帳面和航運。然後，你的另一個關鍵假設是，今年的延誤程度不會像去年那麼糟糕，但也不會那麼好——但不會恢復正常，那就叫 2023 年吧。

Just how are those two key assumptions shaping up relative to your expectations? Do you feel good -- do you still feel good about booking ship? And then are you seeing better delays than expected? Are delays worse than expected relative to what was in the original guidance? Thank you.

這兩個關鍵假設相對於您的預期而言如何？您感覺良好嗎—您對預訂船隻仍然感覺良好嗎？那麼，您是否看到延誤的情況比預期的要好？與最初的指導相比，延誤情況是否比預期的更嚴重？謝謝。

Sure, so, yeah, as I said the first earnings call of the year, we definitely wanted to allow for some project delays. And projects do move all the time. That's a part of our business. So we do work with customers. Sometimes they have construction issues, sometimes they're moving things around.

當然，是的，正如我在今年第一次財報電話會議上所說的那樣，我們肯定希望允許一些專案延遲。而且專案確實一直在進展。這是我們業務的一部分。所以我們確實與客戶合作。有時他們會遇到施工問題，有時他們會移動東西。

But as you see from the strength of our, current book of business and the purchase orders that are coming through, you can tell that we're very cautiously optimistic about where the year is headed. We have not seen the level of activity of delays that we saw in 2024. We keep hearing from our customers when we directly ask them if their projects are sliding, and the answer is no.

但正如您從我們目前的業務實力和收到的採購訂單中看到的那樣，您可以發現我們對今年的前景非常謹慎樂觀。我們尚未看到 2024 年那樣的延誤活動程度。當我們直接詢問客戶他們的專案是否正在下滑時，我們得到的答案都是否定的。

So we remain very cautiously optimistic that perhaps the the the allowance that we have for delays may not come through. So I'm excited, but I do want to hold our annual guide. I do think that's prudent in this environment.

因此，我們仍然非常謹慎樂觀地認為，我們為延誤所預留的餘地也許不會實現。所以我很興奮，但我確實想保留我們的年度指南。我確實認為在這種環境下這是謹慎的做法。

There are some moving pieces on the macro. We do have to understand what happens with tariffs, and some projects that we're looking at may have a dependency on imported panels, they may slide out of the back half of the year. So we are definitely cautiously optimistic. It's still my term, but we do want to hold our guide where it is.

宏觀上有一些移動的部分。我們確實需要了解關稅會發生什麼，我們正在考慮的一些項目可能依賴進口面板，它們可能會在今年下半年退出。因此我們絕對持謹慎樂觀的態度。這仍然是我的任期，但我們確實希望將我們的指南保留在原處。

Great, thank you. So we're going to make that our last question for today. I want to note, that we have a very active IR calendar in May and June. We're out on the road quite a bit. We've announced that in the last couple of weeks, via press release. It's on our website.

太好了，謝謝。這是我們今天的最後一個問題。我想指出的是，我們在五月和六月的 IR 日程非常活躍。我們經常在路上。我們已在過去幾週透過新聞稿宣布了這一消息。它在我們的網站上。

So join us at one of those events. We'd love to see you. If we can help further, please reach out to us at investors@shoals.com with any questions. Thanks for joining us today. Have a great day, everyone.

歡迎參加我們的其中一項活動。我們很高興見到你。如果我們可以提供進一步的協助，請透過 investors@shoals.com 與我們聯繫並提出任何問題。感謝您今天加入我們。祝大家有個愉快的一天。

Ladies and gentlemen, this concludes today's call. Thank you for joining me, and I'll disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的加入，我將斷開您的線路。