Shoals Technologies Upgraded on Solar Recovery and Data Center Growth Prospects December 24, 2025 Shoals Technologies Group, Inc., a leading provider of electrical balance of systems (EBOS) for solar energy projects, has been upgraded by analysts citing a recovering solar market and its strategic expansion into the data center sector. The upgrade reflects a broader industry trend where renewable energy infrastructure and power-intensive data centers are increasingly converging, highlighting the critical role of specialized component suppliers in enabling this growth. The company, which holds an estimated 45% to 50% market share in the U.S. for solar EBOS, is positioned to capitalize on expanding domestic and international opportunities. Its growth is underpinned by proprietary technology, strong customer retention, and a robust project backlog. While the firm faces short-term pressures from ongoing litigation and capital expenditure requirements, its forward price-to-earnings ratio of 15.9 and a price/earnings-to-growth ratio of 0.7 have been cited as key factors supporting a bullish outlook. One analyst noted, "I expect SHLS to outperform the market through 2026, driven by secular solar demand and operational leverage from new initiatives." The implications for the industry are significant. Shoals' move into data center power solutions represents a strategic diversification as demand for reliable, high-capacity power management soars. The company's performance is increasingly viewed as a bellwether for the health of both the solar installation market and the energy infrastructure supporting the digital economy. Its ability to leverage its core technology across these two high-growth verticals could set a precedent for other suppliers in the renewable energy ecosystem. Source: seekingalpha
Shoals Technologies Upgraded on Solar Recovery and Data Center Growth Prospects
