Shoals-ARRAY merger targets up to $2.4 bn 2027 revenue

Shoals Technologies Group projected $2.2 billion to $2.4 billion in 2027 revenue from its planned merger with ARRAY Technologies, according to a Q3 2026 earnings-call summary published Nov. 4.

The Nov. 4 call summary matters because management framed the stock-for-stock deal as a scale transaction, with 2027 adjusted EBITDA, including synergies, estimated at $410 million to $480 million against about $3.4 billion of backlog and awarded orders as of Sept. 30.

“ARRAY and Shoals are merging in a stock-for-stock transaction… each Shoals shareholder will receive 1.6931 shares of ARRAY stock for each share of Shoals they own,” Shoals Chief Executive Brandon Moss said, according to the Seeking Alpha summary.

Shoals shareholders would own about 65% of the combined company’s basic shares outstanding, while ARRAY holders would own about 35%, Moss said. He said he would become chief executive of the combined company after closing, and that the companies plan to announce a new corporate name and ticker symbol in coming months.

Management put cost savings from duplicate public-company expenses and other overhead at more than $20 million a year. Moss said the combined company expects $35 million of run-rate synergies in year one, rising to more than $100 million by year three.

The figures are drawn from a Seeking Alpha item that the publisher said was automatically generated by an AI tool from material on its website and not reviewed by humans. The summary quotes executives and analysts from the company’s Q3 2026 earnings call.

Shoals also reported Q3 2026 revenue of $195.3 million, up 44% from the prior year, with adjusted EBITDA of about $40 million, or 20.4% of revenue. Moss said operating cash flow was $28.9 million, allowing the company to reduce its revolving credit facility by $33 million.

Management said the revenue outlook is based on organic growth, according to the Q&A summarized by Seeking Alpha. Moss told Goldman Sachs analyst Brian Lee that “there is obviously some overlap for the AWM business,” but described the revenue range as organic.

Cross-selling is central to the case presented by management. Moss said about 80% of projects used only one of the companies’ products, creating a $2.5 billion opportunity; he also said one gigawatt of additional tracker sales could represent about $100 million of revenue and $30 million of EBITDA.

The transaction still needs approval from a majority of both ARRAY and Shoals shareholders, as well as regulatory clearances, Moss said. Management expects the transaction to close in the first quarter of 2027.

Balance-sheet questions also surfaced on the call. Moss said the combined company is expected to have net debt to EBITDA, a debt measure compared with earnings before interest, taxes, depreciation and amortization, of 2.6 times on a pro forma 2026 basis and less than 2 times on a 2027 basis.

Guggenheim Securities analyst Joseph Osha pointed in Q&A to “about $30 million in cash post-transaction,” according to the summary. Moss said the company would act after closing to ensure “ample liquidity,” and said both businesses are “strong cash generators.”

Management also outlined preferred-stock redemptions tied to the merger, including $161.3 million within 90 days of closing and another $156.3 million over the following three years.

Investors can first test the timetable against management’s expectation that Shoals and ARRAY will complete the merger by the end of Q1 2027, after shareholder and regulatory approvals.

If the transaction closes, the next balance-sheet marker is the planned redemption of $161.3 million of preferred stock within 90 days of closing, followed by another $156.3 million over the next three years.

The integration benchmark then shifts to the synergy targets management set for the combined company: $35 million of run-rate synergies in year one and more than $100 million by year three.

Source: AI-generated earnings-call summary, Seeking Alpha, Nov. 4, 2026