SOLV Energy Q2 Earnings Call Highlights

SOLV Energy (NASDAQ:MWH) reported record first-half results for 2026, citing increased new-construction activity, project execution and contributions from prior acquisitions. The company also raised its full-year revenue and adjusted EBITDA outlook while reporting a 44% year-over-year increase in backlog.

Chief Executive Officer George Hershman said the company is executing more work than at any prior point in its history, with its largest projects underway and a larger workforce deployed across the country. He added that the company’s trailing 12-month safety metrics continued to outperform industry benchmarks.

Record first-half revenue and EBITDA

For the second quarter, revenue rose 77% year over year to $951 million. First-half revenue reached nearly $1.63 billion, up 72% from the first half of 2025. CFO Chad Plotkin said the growth was driven primarily by a significant increase in new construction and contributions from the company’s M activity.

Plotkin said some projects moved ahead of schedule, pulling revenue that had been expected in the second half into the second quarter. About 75% of second-quarter new-construction revenue came from projects that were less than 50% complete, he said.

Second-quarter adjusted gross profit increased 28% to $145 million, while first-half adjusted gross profit increased 56% to $269 million. Adjusted EBITDA was $117 million in the second quarter, bringing first-half adjusted EBITDA to $210 million, a 75% year-over-year increase. First-half adjusted EBITDA margin was nearly 13%.

The company changed the presentation of a portion of annual incentive-based cash compensation expense beginning in the second quarter. That expense, which was previously reflected in selling, general and administrative costs, is now partly reported in cost of revenue. Plotkin said the change reduced planned first-half adjusted gross margin by more than 60 basis points, but had no impact on adjusted EBITDA, net income or cash flow.

Backlog reaches $8.9 billion

SOLV ended the quarter with approximately $8.9 billion in backlog, up 44% over the previous 12 months. Hershman said all projects in backlog are safe harbored. The company’s average project entering backlog during the second quarter was approximately 450 megawatts, compared with just over 200 megawatts in the year-earlier period.

Battery-storage-related backlog, including hybrid and standalone projects, increased to about $2.5 billion from $1.9 billion at the end of the first quarter. Hershman said the majority of the company’s projects are now solar-plus-storage projects, contributing to the increase.

Management said the reported backlog typically provides a 24- to 30-month view of activity, giving the company visibility into 2027 and part of 2028. Hershman said a large portion of 2027 appears strong based on backlog and signed awards.

On recent Section 232 developments, Hershman said the company was working with customers to assess implications but did not see substantial near-term effects. He said many projects are in late-stage development with modules already secured. Because customers procure modules directly, SOLV is discussing their upstream contractual positions with them, he said. Management said it was not seeing project schedules slip or direct indications that late-stage or contracted projects would be delayed.

Guidance raised for 2026

Based on first-half performance, SOLV raised its full-year 2026 outlook. The company now expects:

• Revenue of $3.87 billion to $3.97 billion;
• Adjusted gross profit of $620 million to $660 million; and
• Adjusted EBITDA of $485 million to $505 million.

The updated guidance includes the expected contribution from Roberson Waite Electric, acquired July 1, as well as project pacing, costs and new conversions not included in the company’s original assumptions.

SOLV now expects adjusted gross margin of 16% to 16.6%, compared with its prior range of 16.4% to 17%. Plotkin said the lower gross-margin range primarily reflects the compensation-expense presentation change rather than portfolio performance. Adjusted EBITDA margin is now projected at 12.5% to 12.7% for the full year.

Plotkin said third-quarter revenue is expected to provide a greater contribution than the fourth quarter, when holiday-related workday reductions typically affect activity.

M and life-cycle services strategy

The acquisition of Roberson Waite Electric adds utility infrastructure, substation construction and urban battery-storage capabilities, according to Hershman. The business also brings longstanding relationships with California utilities. The transaction follows earlier acquisitions that expanded SOLV’s EPC, foundation, transmission-and-distribution and utility-infrastructure capabilities.

Management said previous acquisitions have performed well relative to underwriting expectations. Plotkin said the company has benefited from using acquired businesses within its self-performance model, rather than viewing them solely as standalone operations.

Hershman said SOLV will continue evaluating acquisitions that add regional electrical labor capacity, trade expertise, operations and maintenance services, and other capabilities that support its energy-infrastructure platform. He said the company is also discussing customers’ longer-term requirements, including potential hybrid generation facilities incorporating other forms of generation.

The company has constructed more than 22 gigawatts of capacity across over 500 projects since its founding and manages more than 23 gigawatts under operations and maintenance contracts, Hershman said. He added that recurring services opportunities can emerge after construction through operations and maintenance, equipment repairs, upgrades and repowering.

Management said SOLV has no long-term debt and remains focused on disciplined growth as it seeks to capitalize on demand tied to data infrastructure, electrification, industrial reshoring, solar, storage and grid investment.

About SOLV Energy (NASDAQ:MWH)

SOLV Energy (NASDAQ: MWH) is a renewable energy company that develops, constructs and operates solar and energy storage projects. The firm provides solutions aimed at reducing customers’ reliance on traditional grid power by pairing photovoltaic systems with battery storage where appropriate. SOLV’s activities are centered on delivering commercial-scale and distributed generation projects for business, institutional and public sector clients.

The company’s services encompass multiple phases of project delivery, including site assessment, system design, procurement, engineering and construction, and ongoing operations and maintenance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Source MarketBeat