Shoals Technologies jumps 7% after ITC ruling favors patent claims
Initial determination confirms Voltage LLC infringed on Big Lead Assembly technology, with final ruling expected in June
Shoals Technologies Group shares surged 6.6% on Friday after the U.S. International Trade Commission issued an initial determination finding that Voltage LLC infringed on the company's patented solar technology, a significant legal victory that could block competitors from importing infringing products into the United States.
The administrative law judge's initial determination, issued February 6, confirms that Voltage violated Section 337 of the Tariff Act of 1930 by importing LYNX trunk bus products that infringe on Shoals' Big Lead Assembly ("BLA") patents. The stock closed at $10.29, adding $0.64 in value and bringing the company's market capitalization to approximately $1.7 billion.
"This initial ruling is a significant step toward protecting American innovation and the domestic energy supply chain," said Brandon Moss, chief executive officer of Shoals Technologies Group, in a statement announcing the decision. "We remain committed to defending our intellectual property, investing in domestic production, and creating American jobs."
The BLA solution represents Shoals' flagship technology for utility-scale solar projects. The U.S.-invented and manufactured system is designed to minimize material requirements, accelerate installation timelines, reduce labor costs, and ensure long-term reliability for solar deployments. Protecting this intellectual property is critical for Shoals, which has positioned itself as a leading provider of Electric Balance of System (EBOS) solutions in the rapidly expanding solar energy sector.
The ITC's final determination, which may be subject to presidential review, is anticipated by June 2026. If upheld, the ruling would prevent the unlawful importation of trunk bus solutions that infringe on Shoals' intellectual property, potentially removing a competitive threat in the U.S. market.
Friday's gain represents a notable turnaround for the stock, which had previously faced pressure in January 2025 when the ITC cleared Voltage in an earlier patent infringement case. Shoals subsequently filed a new Section 337 case involving different patents, with trial expected in the fourth quarter of 2025 and an initial determination targeted for the first quarter of 2026—a timeline that played out as anticipated.
The ruling comes amid increased patent litigation activity across the solar energy sector. In October 2024, Trina Solar filed a patent infringement complaint against Canadian Solar over TOPCon technology, with the ITC formally instituting an investigation in December 2024. Earlier this week, Maxeon Solar Technologies and Aiko Solar reached a global settlement resolving all ongoing patent litigation between the two companies.
Shoals has demonstrated strong financial performance, with revenue growth of 32.9% year-over-year and quarterly earnings growth of 15.2% for the period ending September 30, 2025. The company's trailing twelve-month revenue reached $434 million, with gross profit of $159.8 million. Analysts have maintained a generally positive outlook on the stock, with an average target price of $10.15 and 13 analysts rating it as a buy or strong buy, compared to six hold ratings and two strong sell ratings.
The stock remains below its 52-week high of $11.36 but has recovered significantly from its 52-week low of $2.71. Friday's rally pushed the stock above its 50-day moving average of $8.83 and well above its 200-day moving average of $7.02, suggesting improving technical momentum following the legal development.
Beyond the Voltage case, Shoals noted it continues to vigorously pursue an ongoing appeal of an earlier ITC decision regarding another of the company's patents at the U.S. Court of Appeals, underscoring the company's broader strategy of aggressive intellectual property defense.
For investors, the ITC ruling removes a key overhang on the stock while highlighting the competitive moat provided by Shoals' proprietary technology. As utility-scale solar deployment accelerates across the United States, protecting the BLA solution's market position could prove increasingly valuable for the Tennessee-based company.