Shoals Technologies Group, Inc.

Good morning and welcome to the Scholz Technologies Group fourth quarter 2025 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 Trachtenberg, Vice President of Finance and Investor Relations for Scholz Technologies Group. Thank you. You may begin.

Thank you, Karina. 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. Actual results could differ materially. Those risks and uncertainties are listed for investors in our most recent SEC filings. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's fourth 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.scholes.com. With that, let me turn the call over to Brandon.

Thank you, Matt, and thanks to everyone joining us on the call. I'll begin by sharing key results from the fourth quarter and our full year key wins and milestones. We'll then discuss the current demand environment and review progress on our strategic growth initiatives. Dominic will dive deeper into the fourth quarter results and provide our first quarter and full year 2026 outlook. We'll finish the call with questions from our analysts. Fourth quarter revenue was in line with our expectations at approximately $148 million, up 38.6% over the prior year period. Our commercial team also drove significant growth in our book of business, adding approximately $175 million in new orders in the period. This resulted in a company record backlog in awarded orders or BLAO, of approximately $748 million, an 18% year-over-year increase. We delivered a seasonally strong book to bill of 1.2 this quarter, which continues to support the growth we see in 2026. As of year end, approximately $603 million of our BLAO has shipment dates in the upcoming four quarters or full year 2026. We are set up very well for another successful year of growth. Commercially, we are achieving our objectives of growth and diversification. Profitability, however, was softer than anticipated in the fourth quarter. Our fourth quarter adjusted EBITDA of approximately $30 million grew by 15% year over year, representing 20.4% of revenue. This was largely driven by higher legal expenses, the ongoing impact of tariffs, product mix, and high labor and shipping costs in the period. As we discussed with you last year, we see very strong underlying demand drivers across the markets we serve. This, when paired with the incremental capacity we will have at our new facility, warrants a more flexible and agile approach to how we determine which projects and which customers to engage with. Opening the lens with which we look at the opportunity set to drive higher revenue in 2026 and beyond, while remaining within a reasonable margin range, will ultimately result in higher profit dollars and free cash flow, which will be reinvested back into the business. This approach removes self-imposed constraints, enabling us to make the right decisions for the long-term health of the business. Again, I'm very proud of our performance in 2025. It was a busy but exciting year for us. After a challenging 2024, we came back strong and grew top-line revenue by 19%, exceeding our initial expectations and the long-term range shared with you at our 2024 Investor Day. Our U.S. utility-scale solar business grew by almost 11% for the full year, accelerating in the back half of the year and growing 30% when compared to the second half of 2024. International revenue expanded from less than a million in 2024 to approximately $13 million in 2025. Our CC&I and OEM businesses exceeded expectations, and we've laid the foundation for our best business that is poised for rapid growth in 2026. Engaging with our customers, we introduced multiple new products in 2025, effectively expanding our addressable market and capturing additional share. We continue to diversify our customer list to include several new EPCs. For example, in 2023, we had three customers that accounted for less than $6 million of revenue. Today, those same customers account for almost $140 million of our BLAO. And we've made big, meaningful operational changes as well, including our ongoing move into a consolidated, state-of-the-art manufacturing facility. This will enable critical improvements to productivity and scalability as we continue to grow and diversify our business. Given the industry growth we see, it couldn't happen at a better time. During the year, we also completed remediation for all reported instances of the defective Prismian wire. This effort was funded through our own cash flow and reinforced our commitment to customers that we stand behind our products and services. So in summary of the full year, we're pleased with our performance. We've come a long way in the last few years. Our strategy of protecting and growing our core business while diversifying our offering and exposure to end markets is yielding results. Our focus on improving our operating capabilities while maintaining the commercial momentum you've seen is how we intend on driving attractive returns for our shareholders. Turning to our various business lines, I'd like to provide some context to our performance in the fourth quarter. The fourth quarter was another strong period of growth within our core utility scale solar market. Our quote volume in the quarter exceeded $700 million of unique projects, adding to our strong pipeline. Note that these are projects that would generate revenue in 2027 and beyond, further supporting our long-term growth trajectory. And also related to the core U.S. utility scale solar market, in early 2025, Scholz brought a second patent infringement case against Voltage before the U.S. International Trade Commission, utilizing our new and expanded patent portfolio. While the legal process will likely continue for another quarter or two, we're very pleased that the court recently issued its initial determination in our favor. It's a great first step and will remain patient for the Commission's final ruling in early June. I'm also encouraged by the progress we are making in international markets, as evidenced by our increased quote activity and customer engagement. The products introduced in 2024 are generating interest with key decision makers, while our experience and reputation for quality is winning projects. We recognize approximately $13 million of revenue in 2025 from international projects and have a record $90 million of international BLAO, which will drive continued growth in 2026 and beyond. Our community, commercial and industrial, or CC&I business is performing well. We are engaged with large, well-respected electrical distributors that are driving meaningful quote volume increases. Our OEM business is tracking ahead of expectations, growing at 47% for the full year as our partner continues to see strong demand for their panels. We expect to continue in 2026 with another year of attractive growth. We began disclosing our best backlog in awarded orders last quarter, which at the end of Q3 stood at $18 million. That information was designed to provide a starting point that you can use to track our progress against a rapidly evolving market opportunity. I'm excited to share with you that as of year end, we have $67 million in BLAO. a testament to the upfront engineering competencies and future manufacturing capabilities Scholz offers. We would expect more than half of this amount to be recognized as revenue in 2026. We continue to invest in scalable production capabilities for BESS. We expect our first new production line to be operational within the coming weeks. And I'm pleased to announce a partnership with On Energy, a leading developer of advanced power systems for grid safe data centers. Together, we will address a fast emerging constraint for AI driven infrastructure, securing resilient backup power at scale while enabling data centers to operate as grid interactive and firming assets. Our partnership brings together two U.S. innovators with complementary strengths and power architecture and execution on energy will parents medium voltage uninterrupted power supply systems with shoals advanced DC recombiners to deliver a solution for Ai data centers that accelerates deployment timelines safeguards operational continuity and future proofs energy infrastructure. 2025 saw a return to growth at Shoals. Our markets have been resilient and our competitive position continues to improve. We've entered new markets with new products, made meaningful progress on our legal actions, and began our move to our new consolidated facility. While the regulatory landscape has been distracting to many, we remain focused on executing our strategy. With that, I'll now turn it over to Dominic, who will discuss our fourth quarter financial results in more detail and our outlook for the first quarter and full year 2026. Dom?