Shoals Technologies Group, Inc.

Hello everyone. Thank you for joining us and welcome to the Scholz Technologies Group's first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Matt Trochtenberg, VP of Finance and Investor Relations. Matt, please go ahead.

Thank you, Christine, 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. 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 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.scholes.com. With that, let me turn the call over to Brandon. Thank you, Matt.

And thanks to everyone joining us on the call. First quarter revenue was above our guidance at $141 million of 75% over the prior year period. Our commercial team continued their strong performance by adding approximately $151 million of new orders in the period. This resulted in another company record backlog and awarded orders or BLAO of $758 million, an increase of almost 18% year over year. As of quarter end, approximately $628 million of our BLAO has shipment dates in the upcoming four quarters for Q1 of 2027. Quarter adjusted gross profit percentage came in slightly below our expected range at 29.6%. This was driven by product mix, tariffs, increased freight costs, and some temporary labor inefficiencies as we train additional employees to meet the strong demand on new business lines in our factory. We believe that this is the low point of gross margin and that it will improve as we make our way through the year. SG&A, including all legal expense, was $31 million, representing 22% of revenue, a 500 basis point decline as compared to 27% last year, and highlighting the operating leverage inherent in our business model. First quarter adjusted EBITDA of approximately $21 million came in at the high end of our guided range and grew 56% year over year. We've also seen some positive movement on our IP infringement case against Voltage. Last week, the International Trade Commission declined to review any contested issues in the ALJ's initial ruling. The Commission is still expected to issue its final determination in early June, but it's encouraging news for our shareholders and US manufacturers in general. We are pleased with how the market is evolving and our competitive position of strength, and as a result, are increasing both our revenue and adjusted EBITDA guidance for the year. Dominic will step through the updated guidance later in the call. Briefly turning to our various business lines, the first quarter was another strong period of growth within our core utility-scale solar market. Our port volume in the quarter exceeded a billion dollars of unique projects, adding to our strong pipelines. I'm also encouraged by the progress we are making in key international markets like Australia, as evidenced by our increased quote activity and customer engagement. International BLAO now totals almost $100 million, driving continued growth and diversification in 2027 and beyond. Our community, commercial, and industrial, or CC&I business, which remains a small piece of our overall mix, continues to perform well. Our OEM business continues to provide a stable and visible revenue stream, growing at 33% on a year-over-year basis. And finally, we added approximately $9 million to BESS VLAO in the quarter, which ended the period at $75 million. You may recall that we announced a recent partnership with On Energy in the last quarter. On Energy is rapidly assuming market leadership in AI data center power infrastructure with its first-of-a-kind medium voltage AI UPS. That architecture is being deployed in what will be the largest battery project in an AI data center in the U.S. Shoals is very proud to be a partner in this project. In Q1, we celebrated the first of these units produced in our new facility, recognizing more than a million dollars in revenue and paving the way for a healthy ramp through Q2. We're excited about increasing production and gaining visibility as we continue to build this business. Overall, the quarter played out as expected, but the year appears to be stronger than we anticipated on our February call. New orders in Q1 for 2026 delivery were very strong and we have not seen significant project delays thus far. We are executing well, finishing the movement to our new facility, and expanding capacity and capabilities. The underlying demand drivers remain intact, and our competitive position has strengthened. Our business is in a great place today. Dom, I'll hand it to you for a deeper dive into our financial performance and guidance.