MWH

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. SOLV Energy (MWH) drew attention on August 13, 2026, after raising full year revenue guidance and releasing second quarter results that showed higher sales alongside lower net income compared with the prior year period. See our latest analysis for SOLV Energy. Despite the upgraded guidance and recent acquisition, SOLV Energy's share price return has been pressured, with the stock falling 11.64% over the past week and 24.77% over the past 90 days, while the year to date share price return is down 5.71%. If you are reassessing your exposure to energy infrastructure and related themes, it could be a good time to look at other grid focused opportunities using the 39 power grid technology and infrastructure stocks SOLV Energy now trades at a sizeable discount to both analyst targets and some intrinsic value estimates, even after the guidance lift and share price pullback. Is this caution about earnings quality and execution risk misplaced? On the latest close at $28.92, SOLV Energy screens as undervalued on several fronts, including a P/E of 30x that sits below both peer and industry reference points. The P/E ratio compares the company’s share price with its earnings per share. For a business like SOLV Energy that provides infrastructure services to the power industry, investors often use P/E to gauge how the market is weighing current earnings against expectations for future profit growth. SOLV Energy is currently labelled as good value based on this 30x P/E relative to the estimated fair P/E of 37.1x. It is also described as good value when compared with the US Construction industry average P/E of 35.2x and a peer average P/E of 36.9x. This combination suggests the market is assigning a lower earnings multiple than the level some models indicate it could move towards if forecasts and quality indicators hold. Explore the SWS fair ratio for SOLV Energy Result: Price-to-earnings of 30x (UNDERVALUED) However, SOLV Energy still faces risks if revenue growth of 10% and net income growth of 21.35% slow, or if US heavy construction activity weakens. Find out about the key risks to this SOLV Energy narrative. Alongside the P/E comparison, the SWS DCF model values SOLV Energy at $57 per share, which is well above the recent $28.92 trading price. That points to a very large implied discount. This gap could reflect genuine concern about future cash flows or a potential mispricing. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SOLV Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals around SOLV Energy, it makes sense to move quickly and review the underlying data yourself. To see what investors view as the key bright spots, take a closer look at the 5 key rewards. If SOLV Energy has sharpened your focus on valuation and quality, now is a smart moment to widen your watchlist using targeted stock ideas. Target potential upside by checking companies that appear attractively priced through the 50 high quality undervalued stocks. Strengthen your income stream by reviewing established payers in the 12 dividend fortresses. Prioritise resilience by scanning companies with strong finances in the solid balance sheet and fundamentals stocks screener (50 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MWH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:30 a.m. ET Investor Relations - Mike Adams Chief Executive Officer - George Hershman Chief Financial Officer - Chad Plotkin Operator: Greetings, and welcome to SOLV Energy's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Adams with Investor Relations. Thank you. You may begin. Mike Adams: Thank you. Good morning, everyone, and thank you for joining us for SOLV Energy's Second Quarter 2026 Earnings Conference Call. Before we begin, we would like to remind you that this conference call may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are subject to various risks, uncertainties and assumptions, could cause our actual results to differ materially from these statements. These risks, uncertainties and assumptions are detailed in this morning's press release as well as our filings with the SEC, which can be found on our website at investors.solvenergy.com. We undertake no obligation to revise or update any forward-looking statements or information, except as required by law. During our call today, we will also reference certain non-GAAP financial information. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Reconciliations of GAAP to non-GAAP measures can be found in this morning's press release and in our SEC filings. Joining me on the call today is SOLV Energy's CEO, George Hershman, and CFO, Chad Plotkin. Following our prepared remarks, we'll open the call for your questions. As a reminder, there will be a replay of this call posted on the IR website. With that, I'll turn the call over to George. George Hershman: Great. Thank you, Mike, and good morning, everyone. I'm very excited to report that we are executing more work today than at any point in our company's history with our largest projects to date underway and more employees working safely across the country than ever before. That is a reflection of both the scale we have achieved and the incredible strength and dedication of our teams. I'm proud of where we are and even more excited about where we are going. Now let's walk through our highlights for the second quarter. I'll start where we always do, with safety. Our trailing 12-month safety metrics continue to outperform industry benchmarks. A safe project is a profitable project. And, most importantly, our #1 responsibility is to get our people home safely every day. That commitment is embedded across our organization, and it shows across all of our results. So let's turn to financial performance. We delivered record results for the first half of 2026. Revenue was $1.63 billion, up 72% with adjusted EBITDA of $210 million, up 75%. These results reflect strong execution across the business and a backlog that is continuing to convert according to plan. The market environment remains very favorable. We are in the middle of a step change in the U.S. power demand, driven by growth in data infrastructure, industrial reshoring and electrification. Solar and battery storage remain the most cost competitive and fastest-to-market solution for adding new generation capacity, and we believe SOLV is well positioned to reap the benefits of the accelerating infrastructure build-out. We also continued executing on our M&A strategy with the closing of the Roberson Waite Electric acquisition on July 1. Roberson Waite Electric expanded our utility infrastructure capabilities and strengthens the range of services we can provide to our customers. We ended the quarter with approximately $8.9 billion of backlog, representing 44% growth year-over-year. Importantly, a 100% of the projects in our backlog are safe harbor. Recognizing our strong performance in the first half of the year and the continued momentum in the business, we are raising our full year financial guidance. Chad will discuss this in more detail later in the call. Overall, SOLV is in a strong position. Our backlog continues to grow. Our teams are executing at the highest level and demand across our markets remain extremely healthy. So let's turn to Slide 5. I want to spend a moment here on the market because it supports the long-term opportunities we see for the business. First, U.S. electricity demand is expected to increase approximately 28% over the next decade compared to only 5% growth during the prior decade. We believe that this growth will be driven primarily by data infrastructure, electrification and the continued industrial reshoring trends. Second, we expect approximately $518 billion of investment in solar and battery storage projects between 2025 and 2034, supporting roughly 430 gigawatts of new capacity with battery storage expected to grow approximately 26% annual growth rate. I also want to highlight the domestic manufacturing build-out because I think it is an underappreciated part of this story. The United States now has over 70 gigawatts of domestic module manufacturing capacity, up from roughly 8 gigawatts just a few years ago. Cell, wafer and ingot capacity are growing quickly behind it. Not to mention the numerous factories supporting steel fabrication, tracker, inverter, batteries and electrical components. A stronger domestic supply chain helps reduce risk, improves resiliency and supports long-term investment in the industry. The more we build domestically, the more durable the demand environment becomes for our services and the SOLV ecosystem. And finally, operating solar capacity is expected to increase approximately 3.8x over the coming decade. Importantly, every gigawatt constructed creates decades of recurring revenue opportunities in operations, maintenance, repowering, upgrades and other life cycle services. Taken together, these market dynamics continue to provide a compelling long-term tailwind for SOLV's lifecycle services platform. Moving to Slide 6. One of the questions we get asked most often is how we are able to consistently execute large, complex projects while maintaining strong margins. The answer is a multilayered risk management process that has been refined over almost 2 decades of building solar projects. Our process begins with disciplined preconstruction procedures, where cross-functional teams collaborate to develop project-specific pricing and execution strategies. We then utilize multiple LNTP agreements to validate site conditions, test foundation systems and advance engineering and equipment procurement, all to further derisk project execution for us and for our customers. Once a project is underway, performance is monitored closely through our proprietary Sunscreen platform and through daily, weekly and monthly reviews with project teams and senior leadership. Most importantly, our regionalized workforce brings deep knowledge of the markets where we operate. This includes local permitting requirements, labor availability, weather conditions and other factors that influence project execution. Those insights help us make better decisions before construction begins and throughout the life of the project. Consistent execution isn't the result of any one process. It's the result of applying this framework across every project, every customer and every region we operate. Let's talk a bit about strategy. Turning to Slide 7. Acquisitions remain an important part of our long-term growth strategy. When we evaluate opportunities, we're looking for businesses that strengthen our platform, expand the services we can provide and create additional value for our customers. Every acquisition must fit strategically, complement what we already do well and support our vision for the future of the business. When you look at this time line, each acquisition represents a deliberate step in building that platform. CS Energy expanded our EPC capabilities, SDI Services strengthened our foundation expertise, Spartan Infrastructure expanded our transmission and distribution platform and most recently, Roberson Waite Electric adds highly complementary utility infrastructure, substation and battery storage capabilities. Individually, each of these businesses brings talented people, strong customer relationships and specialized expertise. Together, they have expanded our capabilities and strengthened our ability to support customers across a broad portion of the energy infrastructure value chain. Our most recent acquisition of Roberson Waite Electric closed on July 1. Roberson Waite Electric brings deep, long-standing relationships with California utilities and specialized expertise in substation construction and urban battery storage deployments. These capabilities complement what we've built through Spartan and further strengthen our utility infrastructure platform. We are really excited to have them as part of the SOLV family. Looking ahead, we'll continue to evaluate opportunities across several targeted categories to support the SOLV ecosystem. Our approach remains disciplined and focused on opportunities that strengthen the business, align with our strategy and create long-term value for our shareholders and customers. The results of this strategy is the ecosystem we're building, which is illustrated on Slide 8. Everything we do supports a simple goal, being the partner our customer can rely on throughout the life of their power plant. As energy infrastructure becomes more complex, customers increasingly value partners that can support multiple phases of an asset's life cycle. They value partners who can help solve challenges, reduce complexities and deliver consistency over the long term. When you look at this slide, what you're seeing is the ecosystem we're building. Today, our capabilities span generation, delivery and services, allowing us to support customers across a broad portion of the energy infrastructure value chain. From solar and storage construction to transmission and distribution, high-voltage services, foundations, O&M and repowering, we're continuing to expand the way we can service our customers. Importantly, the value isn't in any single capability. The value comes from how these capabilities work together. Our customers don't think about their needs in terms of individual services. They think about execution, reliability and finding partners they can trust with a proven track record. The ecosystem we're building to meet those needs [Audio Gap] cycle of their assets. As more energy infrastructure gets built, we see opportunities not only during construction but also throughout the decades that follow through O&M, upgrades, repowering and other life cycle solutions. That's the one thing that differentiates our business model. Our objective is straightforward: continue strengthening our relationship with customers, expand the value we provide and continue building the preferred life cycle services platform in our industry. With that, I'll turn the call over to Chad to discuss our financial results in detail. Chad? Chad Plotkin: Thank you, George, and good morning, everyone. Turning to Slide 10. The second quarter marks a continuation of the strong execution across the company, resulting in record first half results for SOLV. Revenue was up 77% year-over-year to $951 million, bringing first half revenue to near $1.63 billion or up 72% as compared to the first half of 2025. This performance was primarily driven by a significant increase in new construction and the contribution from last year's M&A activity. Notably, and another example of our project team's strong execution, we also pulled forward revenue from the second half of 2026 as certain projects accelerated ahead of schedule with approximately 75% of new construction revenue in the second quarter from projects at less than 50% complete. Moving to adjusted gross profit. Year-over-year, we saw an increase of 28% in the second quarter to $145 million, leading to an increase of 56% in the first half of 2026 to $269 million. On a percentage basis, 2025 adjusted gross margin in the second quarter and first half benefited from the contribution of higher-margin repair work in our O&M business and the sale of some legacy development projects. Additionally, in 2026, we now have a prospective change in how we present our accrual for incentive-based cash compensation expense. Beginning in the second quarter, a portion of our annual incentive expense previously reflected in SG&A is now reported in cost of revenue. We believe this change is a better presentation for the business going forward. For context, while this modification did reduce planned adjusted gross margin by over 60 basis points through the first half of the year as reflected in the 16.5% adjusted gross margin, it has no impact on adjusted EBITDA, net income or cash flows as there was a direct offset in SG&A expense. For adjusted EBITDA, second quarter results were $117 million, bringing first half adjusted EBITDA to $210 million, an increase of 75% year-over-year. This brings adjusted EBITDA margin to nearly 13% through the first half of 2026, a great reflection of overall profitability performance for the business. Turning to Slide 11 to discuss our backlog. Backlog at the end of the second quarter grew to approximately $8.9 billion, representing 44% growth over the last 12 months. Over this time, the scale of the project continues to grow as the average project size originating into backlog during the second quarter was approximately 450 megawatts as compared to just over 200 megawatts in the same period last year. Additionally, and providing evidence of further market momentum, we now see approximately $2.5 billion of the reported backlog relating to projects associated with storage, either on a hybrid or stand-alone basis. This compares to $1.9 billion at the end of the first quarter. Now let's turn to Slide 12 to discuss our outlook. Based on the strength of our first half execution, we are increasing our full year 2026 financial guidance. We now expect full year revenue of $3.87 billion to $3.97 billion, adjusted gross profit of $620 million to $660 million and an adjusted EBITDA of $485 million to $505 million. This update reflects the expected contribution from the Roberson Waite acquisition, which closed on July 1, and our current plan for project pacing and costs, including new conversions not in our original assumptions. On an adjusted gross margin, our updated range is now 16% to 16.6% versus our prior range of 16.4% to 17%. This modification is primarily driven by the prospective accounting change related to the geography of certain cash compensation expense. Therefore, this update to adjusted gross margin guidance should not be construed as a signal of overall portfolio performance, but rather a signal that results are tracking better than previously forecasted as evidenced by the strength in our current outlook for adjusted EBITDA margin, which is now forecasted at 12.5% to 12.7% for the full year. And with that, I'll turn it back to George for closing remarks. George Hershman: Great. Thank you, Chad. Let me wrap with why we're so confident in the opportunities ahead. First, the market fundamentals remain strong. Demand for power continues to grow, driven by data infrastructure, electrification and industrial expansion. We believe solar, battery storage and grid infrastructure will continue to play a critical role in meeting that demand, creating significant opportunities across the markets we serve. Second, our competitive position is strong and getting stronger. We have constructed over 22 gigawatts of capacity across more than 500 projects since our founding, and we currently manage over 23 gigawatts under O&M contract. As projects become large and more complex, fewer providers have the ability to execute at the scale our customers require. And third, our teams are executing at the highest level. We delivered strong growth in the second quarter. Our backlog continues to expand, and we're raising our full year financial guidance. At the same time, we maintain a strong balance sheet with no long-term debt and remain focused on disciplined growth. Overall, we believe SOLV is well positioned to capitalize on the long-term demand for energy infrastructure. The results we discussed today reflect the hard work, commitment and execution of our employees across the organization. I'm proud of what our teams have built, and I'm even more excited about the opportunities in front of us. With that, operator, let's open the line for questions. Operator: Thank you. [Operator Instructions] The first question is from Julien Dumoulin-Smith from Jefferies. Julien Dumoulin-Smith: Nicely done genuinely here. Maybe just to follow up here a little bit to the comments. The backlog increased nicely here, $8 billion, $9 billion despite a big revenue quarter itself. What drove the gross additions, right? So LNTP conversions, new awards, incremental scope or just faster customer decisions? Can you add a little bit more granularity to the backlog to start with here? And then maybe talk a little bit more about the base backlog, what drove that increase in particular here? George Hershman: Yes, Julien, thank you. The backlog is continuing to grow. As we have spoken about before, we have a large funnel above the backlog that we report. We have a lot of projects that are in later-stage discussions and moving into LNTP, which is when we show them as backlog. So we are seeing a significant portfolio of projects and opportunities. And so those are continuing to move in, getting executed really on plan. So I think this -- you will continue to see our backlog grow as we move through this cycle. So I don't think there's anything unique to this. Other than there's a large subset of opportunity out there that sit above our backlog really in our overall project funnel. To your point on energy storage, we're just seeing a lot of energy storage opportunities, both in stand-alone opportunities and hybrid. The majority of our projects are solar plus storage now, and that is driving the backlog number specific to energy storage. Julien Dumoulin-Smith: Okay. Fair enough. A couple of more specific ones, if I can. Just first, Section 232, very recent here, just your early opinions. I suspect not too much there, but I just wanted to make -- double check with you here. And then any comments or any lumpier awards or projects here or any specific comments on the Big Rooter in particular that you'd want to flag just as it pertains to backlog and margin profile? George Hershman: Well, first, on 232, we are working with our customers as we work through the implications of it. Early on, we see that not a lot of near-term impact as most of our projects are in late-stage development, modules secured and moving forward. So we'll continue to work on that and update it as we work with our customers who procure the actual modules. And then to your point on Big Rooter, that's a great project, wonderful award. And it's been in backlog for a while as we've moved the project through LNTP and into final notice to proceed. So a great project for us and our customer, and we're excited to move it forward, but it has been in backlog for a while as we move through the preconstruction and LNTP process. Operator: The next question is from Mark Strouse from JPMorgan. Michael Fairbanks: It's Michael Fairbanks on for Mark Strouse. Curious, as the backlog stands today, can you talk about just how much visibility that gives you into maybe 2027 and also 2028 at this point? And how much of '27 would you characterize as being booked out? George Hershman: So our backlog traditionally is about a 24 to 30-month look. And so that has stayed pretty traditional over the years. And so I think that gives us good visibility into '27 and into '28. I think that a large portion of '27 looks really strong based on backlog and signed awards. And so we have -- we're optimistic on '27 outlook. But I think from a percentage basis, we're comfortable. Michael Fairbanks: Great. And then as a follow-up, when you look at these new project awards and the mix of customers, how would you expect O&M attach rates to trend over time? And should we see an uptick in that part of the backlog as some of these projects reach completion? Chad Plotkin: Michael, it's Chad. It's a great question. I think as you can see, we did increase the megawatts we have under contract to 23 gigs as of the end of the second quarter. It's important to note that unlike traditional EPC, if you do have an attachment that the revenue lags because you don't start getting paid for O&M services until the projects are in operation. I think our attachment rates, as we've talked about in the past, they do tend to oscillate subject to who we're working with. But we're seeing that attachment for certainly a subset of the projects, and we've seen some continued incremental growth in that, which has contracted quarter-over-quarter. So that part of the business is certainly materializing. And as we stated in the past, it also then begins to present a lot of optionality for us as it relates to, sort of, less routine preventative maintenance contracts, other nonrecurring type of activity that also can come with attractive economics. Operator: The next question is from Philip Shen from ROTH Capital Partners. Philip Shen: As a follow-up on the 232, George, you said no near-term impacts. Your Slide 16 shows more than half of your backlog is awarded backlog. How much of your awarded backlog may be subject to any poly 232 risk because some of those projects may need to renegotiate some of those PPAs? George Hershman: Well, we've been reaching out with our customers and working very closely with our customers through this process. And I think that a number of them have -- kind of, all of us have recognized this was coming and have worked through it. So what we're seeing that there's no real impact into near term. But as this continues to unfold and we recognize how challenging the price increases are to customers, then we'll get more insight into understanding their contractual relationships upstream. Obviously, because the module procurement is all handled directly with our customer and not us. So we're having those discussions. We're not seeing project schedules slip. We're not seeing any direct discussions with our customers regarding that yet and don't expect the projects that we have in late term or signed contracts to slip. Philip Shen: Okay. All right. And then back on the backlog, it's substantial. Your bookings were meaningful in the quarter. Your guidance raise on revenue is smaller relative to the size of the backlog. Is that just due to conservatism or timing or something else? And then on the EBITDA margin improvement, it's been healthy over the -- just going forward over the long term, is there an opportunity to drive that higher, especially with more visibility on crews and less lag time? Chad Plotkin: Yes, Phil, it's Chad. Maybe on your first question on the backlog. As you think about additions to backlog as you move through the course of the year, as you move to, sort of, the second half, a lot of the backlog we will sign obviously starts with LNTPs. So direct revenue generation tends to be smaller until you actually get to notice to proceed. So when we looked at the revenue raise relative to our visibility, part of that, as we said, we did pull forward, and we've seen some additional pacing come in from some acceleration. But these backlogs are really setting us up for beyond '26 into '27 and '28, as George had mentioned. I think on your margin point, we're obviously continue to be quite disciplined on project execution. The stage of projects matter as we move through the life cycle of a project. As we've stated before, in the early part of the projects, you tend to start more at budgeted margins and as execution increases over time, that's when we'll see the outperformance subject to being executed. We continue to also be very focused on building the operating leverage in the business. I think it's important to note from my prepared remarks, in the second quarter, the average project size that came into the business was 450 megawatts versus what we had in prior periods. So revenue growth is heavily driven by size of project. And on that point, we see a lot of sort of fixed cost operating leverage because we don't need to add as much in the way of incremental support costs to support revenue growth given the project sizes have gotten larger. So this is something we obviously work on across the board, both at efficiency within the projects and how we can bring in permanent efficiency within our fixed cost structure. Operator: The next question is from Jon Windham from UBS. Jonathan Windham: George, Chad, thanks for all the commentary on the broader policy and the backlog. Maybe just a quick housekeeping one for me. I see the tax receivable agreement remeasurement and the adjusted EBITDA. There's obviously a lot of moving parts in the cash flow statement with the IPO earlier this year. Can you tell me if there were any cash disbursements around the TRA in the second quarter? Chad Plotkin: Thanks, Jon. So the movement on the TRA and that revaluation measure is primarily driven to the secondary transaction. As far as disbursements under the TRA, the answer is no. The provisions under the TRA kind of drags out until you would get past the first period of corporate tax return. So actual TRA payments probably don't really manifest until 2028 because you'd have to get through the 2026 filing, which I think after you think about the timing of when you would do your tax returns, it ends up being in like late '27. And then the provisions under the LLC are later. So there is time under the payments for the TRA. Operator: The next question is from Dylan Nassano from Wolfe Research. Dylan Nassano: Sorry if I missed this, but could you just clarify or quantify how much of the backlog increase and guidance increase came from the RWE closing? Chad Plotkin: Yes. We didn't provide that specifically. It's embedded in the number. I think one way to think about it is the revenue guide, if you look at the increase, there's a portion that was pulled over, and you can see that the range increased a little bit. So there is part of that in there. I think given the relative size of RWE, you can assume that the EBITDA contribution is sort of at the margin, but it is embedded in our number, but we didn't disclose that specifically. Dylan Nassano: Got you. Okay. Just a quick follow-up. When I look at Slide 8 on the M&A, can you just, kind of, refresh us what's, kind of, missing from this Venn diagram? What other, kind of, parts of the business are you looking to bolster, maybe, through M&A? George Hershman: I think we're continuing to look at areas where we can add additional expertise, whether that's in electrical direct labor work in certain regions as well as continuing to enhance our services through expansion of our O&M business and, kind of, direct services business. So I don't think there's anything outside of that diagram that we're looking for specifically. I think that really highlights the areas of focus for us. And obviously, the closer we can hit areas in the center that allow us to optimize across all 3 sectors, the more valuable those acquisitions would be to us. Operator: The next question is from Nick Amicucci from Evercore ISI. Nicholas Amicucci: Just wanted to, kind of, touch upon on the O&M -- on the services side, if you could. Just as we, kind of, think about, kind of, any potential slowdown in the EPC market, just especially on the solar side, when we think about these Section 232 credits, kind of, what that implies for just people, kind of, focusing in on productivity and then how that could -- and the opportunity that, that presents you guys on the services side? George Hershman: Well, Nick, I think that our business model being unique in that we have the EPC and O&M side of the business allows us to really optimize if there is a slowdown in one sector or the other. We're obviously not seeing any near-term or even kind of short, long-term slowdown in our EPC business. So that is actually providing more growth opportunity in our O&M and services business. But we absolutely have the ability to flex more into O&M services. One of the things that we see on a very regular basis is that large equipment repair happens. We have the resources and expertise to be able to do that -- those projects, and we're seeing those -- and those come in on a very kind of random period where they -- sorry, we're getting some feedback. But we -- those come in and we're able to deliver with our services and EPC resources. So we'll continue to expand in those areas and focus efforts on O&M, but we don't see any slowdown in our EPC business. Nicholas Amicucci: Great. Yes, I wasn't trying to imply any slowdown. I was just trying to frame the opportunity on the services side. That's clear. And then, Chad, if we -- as we just kind of think about the back half, I know we don't want to kind of infer guidance on 2027 just yet. But as we think about the back half of the year and kind of the implied $2.3 billion of revenue, just how should we -- how would you kind of guide folks on thinking about kind of just the breakdown between 3Q and 4Q and just the ramp over the balance of the year? Chad Plotkin: Normally, Nick, I'd say we always look at the fourth quarter as a quarter where you would generally see a lower amount of revenue simply because you have less workdays because of the holidays, and that's even independent of potential weather, et cetera. So I would definitely say that we would expect the third quarter to be a bigger lift on the realization of that through what ideally is an optimal time for our teams to work. So I think it's a little -- you might see a little bit of lumpiness between the third and fourth quarter. Operator: The next question is from Mark Jarvi from CIBC Capital Markets. Mark Jarvi: Just going back to Slide 7 and the completed acquisitions, and the ones before Roberson Waite, but just how those panned out versus the base plan? And if they've underperformed or overperformed, what's generally been sort of the key drivers of that? Chad Plotkin: Mark, it's a great question. I think with the CS Energy deal because that was done under a merger under common control, that one is a little bit of a different dynamic because there, we saw the ability to really scale up and deliver on larger projects up in the Northeast. I think it relates to the other 2 -- the other 2 acquisitions, without getting into the specifics, I think what we'd say is they've performed very well relative to our underwrite. And I think what we've seen across both, which has been a really big focus, and you can actually see it aligned in George's or on Slide 9 on the schematic, what's really we've seen the value is the ability to not just look at these businesses on a stand-alone basis, but to actually use these businesses within the construct of our self-performance. And that is really what's allowed us to see some strong -- candidly strong returns above our underwrite. So we've been really excited about the performance of these assets. And I think it sets us up well because while each acquisition on a stand-alone basis, I wouldn't necessarily say is material relative to the size of our business, it does set up a great operating model for us as we think about scaling up to larger transactions. Mark Jarvi: And do you see the same benefits as you continue to add those complementary tuck-in deals? Or some of the benefits you've realized on these previous acquisitions kind of capture some of the low-hanging fruits of the revenue synergies and there's not as much upside on future acquisitions? George Hershman: No, this is George. No, I think we absolutely see similar synergies and upside. Back to our Slide 8 really represents kind of our ecosystem and the way that we want our acquisitions to all work together. To Chad's point is that what we've seen is that each of these businesses and expertise have brought additional support to our core businesses, and we're going to continue down that path. We're going to continue to look at businesses that help us across all of our sectors. And so we believe that there's absolutely continued opportunity in those areas. So I mean, our areas of focus, we still have plenty of target opportunities to fill in additional expertise. And so we would expect to continue to kind of work this playbook and bring in companies that enhance our overall services. Mark Jarvi: That's great to hear. Last question for me. Just you mentioned how the backlog is largely protected by safe harbor at your customer level. Just as you have conversations with customers, how are they feeling as you look out into the 2030s? You're hearing some developers say that they feel like they can go beyond 2030 with safe harbor equipment and continuation of progress. Just curious in terms of how your customers are feeling about longevity of the demand and the solar build-out. George Hershman: The conversations we're having with our customers are really positive on demand. And so I don't think that demand is going to slow down based on all of the electrification demand and build-out. So our customers are feeling really bullish on the market going forward, and it gives us a lot of a lot of visibility into long-term pipeline. So I think that those discussions based on the way our backlog burns off, we wouldn't see projects necessarily out into those latter years anyway because we burn through backlog projects move in and move out fairly quickly when you think about infrastructure projects. I think that is one of the benefits of solar and storage is the speed to deployment and allows projects to come in, start and be fully executed within 24 to 30 months. So we wouldn't see a project in the pipeline or in the backlog necessarily that's stretched out into 2030 anyway. But we are seeing customer pipelines that go well into the '30s. Mark Jarvi: I guess that's what I was trying to get to, George, is certainly, there's lots in the funnel that can convert to backlog. I'm just curious in terms of how the funnel continues to go from here. Do you feel like it expands at this point? Or do you, kind of, just keep the current funnel and just keep that, sort of, flat going forward? George Hershman: I think it continues to expand because demand is there. Operator: The next question is from Ben Kallo from Baird. Ben Kallo: Just I don't want to beat a dead horse twice, but just with bookings being lumpy anyway, should we expect, like, there's a pause around 232 while people, like, assess this as we look to very near term next quarter? Chad Plotkin: Yes, Ben, it's a good question. I think not necessarily in the sense of if you think about bookings, even as our customers may go through how they think about their own procurement of modules, I think there's a couple of things. One, there's a lot of evidence of a significant amount of modules already in the country. As George mentioned, there is domestic supply. And we work with a lot of very sophisticated and large-scale developers that have been planning for this for quite some time. And also bear in mind, with the amount of demand in the market, our customers are also wanting to advance projects to secure capacity. So as we think about moving forward and getting into the LNTP phase, that part of the phase will continue to advance overall. So we feel good about the state of the business and the ability to grow. Obviously, to your point, there is going to be lumpiness in originations, but there is continued to be a lot of momentum in the business. Ben Kallo: I think -- Chad, you also -- I think the M&A, there was a slight nuance in how you talked about, like, stepping up in size and I think even scope with George. I'm just wondering if you guys -- like what that means like you're going to get outside of like solar and T&D and storage into other forms of generation or other areas. And then how you think about valuations right now? Obviously, it's an important piece of the puzzle and things are at very good valuations right now. And so how do you think about that versus opportunity? Chad Plotkin: Yes, Ben, maybe I'll hit on the size point, and I'll turn to George to think about the strategic part. I think in, kind of, what I was signaling, the transactions that we've done thus far -- they haven't -- they've been fantastic transactions, but relative to the size of our business, they haven't been what I would deem as an overly material transaction. And what I was getting to is that we're going to continue to look at size of transactions across the board. And it was really more about the road map because we're continuing to think and perfect an operating model. We've done 3 acquisitions thus far. So this is a process, and there's a discipline of pacing ourselves to make sure we execute because the act of doing the deal is a lot easier than the execution and implementation of it. So that was the point of my comment is we're building out an operating model for success that we're excited about. And then George can talk about the strategy. George Hershman: Yes. I think -- and the strategy of these acquisitions probably outsizes their financial metric size, they really have brought expertise into areas of our business that allow us to grow and expand and in some areas, allow us to derisk things like foundations and other things that allow our business to be more successful. So I don't want to undersell their strategic significance over their size. But we are continuing to look at areas where we need expertise to continue to deliver our services, whether that is because of regional support or specific trade expertise. And so we're going to continue to look at those. To your point about expansion of other generation and those things, we are having discussions with our customers of what their long-term needs are so that we continue to shape our business to deliver the needs of our customers. So as we look at hybrid generation plants that have other forms of generation, we're absolutely looking at how do we support that long term within, because we feel that really fits still within our ecosystem and the ability to deliver services to our customers. So we are actively involved in those conversations and looking at what are the needs of our customers in '27 and '28 so that we continue to build the preferred service provider. Operator: This concludes the question-and-answer session as well as today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Solv Energy. The Motley Fool has a disclosure policy. SOLV Energy (MWH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: Second-quarter revenue was $951 million, up 77% year-over-year; first-half 2026 revenue reached $1.63 billion, up 72%. Adjusted Gross Profit: Second-quarter adjusted gross profit was $145 million, up 28% year-over-year; first-half adjusted gross profit was $269 million, up 56%. Adjusted Gross Margin: First-half 2026 adjusted gross margin was 16.5%, impacted by a prospective accounting change for incentive-based cash compensation expense. Adjusted EBITDA: Second-quarter adjusted EBITDA was $117 million; first-half adjusted EBITDA was $210 million, up 75% year-over-year. Adjusted EBITDA Margin: First-half 2026 adjusted EBITDA margin was nearly 13%. Backlog: Ended the quarter with approximately $8.9 billion in backlog, up 44% year-over-year; approximately $2.5 billion of backlog relates to storage projects. Full-Year 2026 Guidance: Revenue expected at $3.87 billion to $3.97 billion; adjusted gross profit of $620 million to $660 million; adjusted EBITDA of $485 million to $505 million; adjusted gross margin of 16% to 16.6%; adjusted EBITDA margin of 12.5% to 12.7%. Warning! GuruFocus has detected 6 Warning Signs with BOM:500570. Is MWH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record first-half 2026 results with revenue up 72% to $1.63 billion and adjusted EBITDA up 75% to $210 million. Backlog grew 44% year-over-year to approximately $8.9 billion, with 100% of projects Safe Harbor protected. Raised full-year 2026 guidance for revenue, adjusted gross profit, and adjusted EBITDA, reflecting strong execution and momentum. Completed the Roberson Waite Electric acquisition, expanding utility infrastructure and battery storage capabilities. Strong market tailwinds: US electricity demand expected to grow 28% over the next decade, with $518 billion in solar and storage investment projected through 2034. Adjusted gross margin guidance was lowered to 16%-16.6% from 16.4%-17%, partly due to a reclassification of incentive compensation expense. Section 232 tariffs on modules could create uncertainty for customers, though near-term impact is limited. Revenue guidance increase was modest relative to backlog growth, partly due to timing of project conversions and LNTP phases. O&M attach rates remain variable and revenue from O&M lags construction, limiting near-term contribution. M&A integration risks persist, especially as the company scales up to larger transactions. Q: What drove the significant increase in backlog to approximately $8.9 billion, and can you provide more granularity on the drivers of the gross additions? A: George Hershman, CEO, stated that the backlog growth is driven by a large funnel of opportunities above the reported backlog, with projects moving into LNTP (Limited Notice to Proceed) as planned. He highlighted that the majority of projects are now solar plus storage, which is driving the increase in the energy storage portion of the backlog, which grew to approximately $2.5 billion from $1.9 billion at the end of the first quarter. Q: How much visibility does the current backlog provide into 2027 and 2028, and what portion of 2027 would you characterize as booked out? A: George Hershman, CEO, explained that the backlog traditionally provides a 24 to 30-month look, giving good visibility into 2027 and 2028. He noted that a large portion of 2027 looks strong based on backlog and signed awards, and the company is optimistic about the 2027 outlook. Q: What is your early opinion on the impact of Section 232 tariffs, and how much of your awarded backlog may be subject to risk? A: George Hershman, CEO, stated that there is no near-term impact as most projects are in late-stage development with modules secured. He noted that module procurement is handled directly by customers, and the company is working closely with them. They are not seeing project schedules slip or direct discussions regarding the tariffs, and do not expect signed contracts to slip. Q: The guidance raise on revenue is smaller relative to the size of the backlog. Is that due to conservatism or timing? And is there an opportunity to drive EBITDA margins higher over the long term? A: Chad Plotkin, CFO, explained that revenue generation from new backlog is smaller until projects reach notice to proceed, so the raise reflects current visibility. On margins, he highlighted that the average project size entering backlog was 450 megawatts versus 200 megawatts last year, creating significant fixed-cost operating leverage. The company remains disciplined on project execution and focused on building operating leverage in the business. Q: Were there any cash disbursements around the Tax Receivable Agreement (TRA) in the second quarter? A: Chad Plotkin, CFO, confirmed there were no disbursements under the TRA. He explained that actual TRA payments likely won't manifest until 2028, as they need to get through the 2026 corporate tax return filing, which would occur in late 2027, with provisions under the LLC coming later. Q: Can you clarify or quantify how much of the backlog and guidance increase came from the Roberson Waite Electric (RWE) closing? A: Chad Plotkin, CFO, did not provide a specific number but noted that the revenue guide increase includes a portion pulled forward and a portion from RWE. He stated that given the relative size of RWE, the EBITDA contribution is at the margin, but it is embedded in the numbers without specific disclosure. Q: What parts of the business are you looking to bolster through M&A, and what is missing from the ecosystem diagram? A: George Hershman, CEO, stated they are looking to add expertise in electrical direct labor work in certain regions and expand their O&M and direct services business. He noted that acquisitions closer to the center of the ecosystem diagram, which optimize across all three sectors, would be the most valuable. Q: How have the previous acquisitions (CS Energy, SDI Services, Spartan Infrastructure) performed versus the base plan, and what were the key drivers? A: Chad Plotkin, CFO, stated that the acquisitions have performed very well relative to the underwrite. The key driver of outperformance has been the ability to use these businesses within the construct of self-performance, not just on a stand-alone basis. This has allowed the company to see strong returns above the underwrite and sets up a great operating model for scaling up to larger transactions. Q: As you have conversations with customers, how are they feeling about the longevity of demand and the solar build-out into the 2030s? A: George Hershman, CEO, stated that conversations with customers are positive on demand, driven by electrification and build-out. He noted that customer pipelines go well into the '30s, and the funnel continues to expand because demand is there. He also highlighted that solar and storage projects move quickly, with a 24 to 30-month execution timeline. Q: Should we expect a pause in bookings around Section 232 as people assess the impact in the near term? A: Chad Plotkin, CFO, stated that a pause is not necessarily expected. He noted that there is a significant amount of modules already in the country, domestic supply is available, and customers are sophisticated and have been planning for this. He added that customers want to advance projects to secure capacity, so the LNTP phase will continue to advance, though originations may be lumpy. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SAN DIEGO, Aug. 13, 2026 (GLOBE NEWSWIRE) -- SOLV Energy, Inc. (“SOLV” or the “Company”) (Nasdaq: MWH), a leading provider of infrastructure services to the power industry, today announced financial results for the second quarter ended June 30, 2026. Financial Summary 1) Beginning with the second quarter of 2026, the Company classified certain annual incentive compensation within Cost of Revenue instead of Selling, general & administrative expense. This change affects the presentation of Gross Profit, Gross Margin and Adjusted Gross Margin but has no impact on Net Income, Adjusted EBITDA, or cash flows.2) Represents Net Income before Non-Controlling Interest.3) Adjusted Gross Profit and Adjusted Gross Margin exclude the impact of the allocation of non-cash compensation expense to cost of revenue. Financial and Business Highlights Last twelve month safety metrics continue to track well below industry benchmarks Record financial performance in the first half of 2026, with revenue up 72% year over year Total backlog as of June 30, 2026 of approximately $8.9 billion, or 44% growth year over year Over 23 GW now under contract for O&M services Closed acquisition of Roberson Waite Electric on July 1, 2026 “SOLV delivered record financial results through the first half of 2026, driven by strong execution across the business and continued demand from customers who rely on us to build, maintain, and enhance critical energy infrastructure,” said George Hershman, Chief Executive Officer of SOLV Energy. “The addition of Roberson Waite Electric further strengthens our platform and expands the solutions we can provide to our customers. With a growing backlog, strong momentum across our operations, and continued focus on execution, we are well positioned for the remainder of the year and are raising our full-year financial guidance.” Results of Operations Revenue for the second quarter of 2026 increased 77% year over year to $951 million, bringing first half revenue to $1.628 billion, or an increase of 72% year over year. This growth was primarily driven by an increase in new construction activity and the contribution from M&A activity. During the second quarter of 2026, gross profit was $140 million, bringing first half results to $259 million. On an adjusted basis, or excluding non-cash compensation expense in cost of revenue, Adjusted Gross Profit was $145 million, bringing first half 2026 results to $269 million. Gross and Adjusted Gross Margin in the second quarter of 2026 was 14.7% and 15.2%, respectively, compared to 21.1% in the prior-year period. Through the first half of 2026, Gross and Adjusted Gross Margin was 15.9% and 16.5%, respectively, as compared to 18.2% in the prior year period. The year over year variance in margin includes the contribution in 2025 from large repair projects relative to existing infrastructure services and development-related sales that are no longer part of ordinary course business operations. Additionally, and commencing in the second quarter of 2026, Gross and Adjusted Gross Margin now reflect a prospective classification change of certain annual bonus compensation expense to cost of revenue from selling, general and administrative expense; the impact of which is over 60 basis points to Gross and Adjusted Gross Margin in the first half 2026. Net income was $67 million for the second quarter of 2026, compared to $45 million in the prior-year period, reflecting higher operating income driven by revenue growth and a reduction in interest expense following the repayment of term debt in connection with the February 2026 IPO. Net income for the first half was $39 million, compared to $44 million in the prior-year period. First-half net income reflects the benefit of higher operating income and substantially lower interest expense, partially offset by a $11 million non-cash loss on extinguishment of the term debt repaid at the IPO and a $52 million one-time non-cash compensation charge related to the modification and accelerated vesting of legacy equity awards in connection with the IPO. Adjusted EBITDA for the second quarter of 2026 was $117 million bringing first half performance to $210 million, or 12.4% and 12.9% of revenue, respectively. See the reconciliation of net income to Adjusted EBITDA in the financial tables included in this press release. Closed the Acquisition of Roberson Waite Electric On July 1, 2026, the Company completed the previously-announced acquisition of Roberson Waite Electric, a California-based provider of utility substation construction, testing, commissioning, and related infrastructure services, for $40.9 million in cash, including closing adjustments, and up to $9.0 million payable in subsequent years, subject to certain performance criteria. Roberson Waite Electric brings deep, long-standing relationships with major California utilities and specialized expertise in turnkey substation construction and battery storage deployments, capabilities that directly complement SOLV’s existing transmission and distribution platform. Financial Outlook The Company is updating its financial outlook for 2026 reflecting first half results, the anticipated contribution from the Roberson Waite Electric acquisition, the full-year impact of the prospective classification change in certain annual performance based compensation from SG&A to cost of revenue, and the current view of project performance from new construction activity in the second half of 2026. The Company’s updated full-year 2026 financial guidance for the year ending December 31, 2026 is as follows: 1) As previously presented on the Company’s first quarter 2026 earnings press release.2) Adjusted Gross Profit and Adjusted Gross Margin exclude the impact of the allocation of non-cash compensation expense to cost of revenue. Conference Call and Webcast Information Management will present results during a conference call today, August 13, 2026, at 8:30 a.m. Eastern time. A live webcast of the conference call, including presentation materials, can be accessed through the Company’s website at https://investors.solvenergy.com and clicking on “News & Events” under the Investor Relations section. The webcast will be archived on the site for those unable to listen in real time. About SOLV SOLV Energy (Nasdaq: MWH) is a leading provider of infrastructure services to the power industry, including engineering, procurement, construction, testing, commissioning, operations, maintenance and repowering. Since 2008, we have built more than 500 power plants, representing over 22 GW of generating capacity. SOLV Energy also provides operations and maintenance (O&M) services to 152 power plants, representing over 23 GW of generating capacity. In addition to EPC and O&M for utility-scale power plants and related T&D infrastructure, we offer large-scale repair, emergency response and repowering services and install end-to-end SCADA and network infrastructure solutions to maximize project performance and energy availability. Forward-Looking Statements This press release contains forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact contained in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “outlook,” “potential,” “project,” “projection,” “plan,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed herein, in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at https://investors.solvenergy.com/financial-information/sec-filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: a wide range of factors, many that are beyond our control, can impact the timing, performance or profitability of our projects, any of which can result in additional costs to us, reductions or delays in revenues, the payment of liquidated damages by us or project termination; our results of operations, financial condition and other financial and operational disclosures are based upon estimates and assumptions that may differ from actual results or future outcomes; changes in estimates related to revenues and costs associated with our contracts with customers could result in a reduction or elimination of revenues, a reduction of profits or the recognition of losses; backlog may not be realized or may not result in profits and may not accurately represent future revenue; the imposition of additional duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments; our results of operations may vary significantly from quarter to quarter; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy and battery storage specifically; limitations on the availability or an increase in the price of materials, equipment and subcontractors that we and our customers depend on to complete and maintain projects; our business is labor-intensive, and we may be unable to attract and retain qualified employees or we may incur significant costs in the event we are unable to efficiently manage our workforce or the cost of labor increases; the loss, or reduction in business from, certain significant customers; many of our contracts may be canceled or suspended on short notice or may not be renewed upon completion or expiration, and we may be unsuccessful in replacing our contracts; we may fail to adequately recover on contract modifications against project owners for payment or performance; the nature of our business exposes us to potential liability for warranty, engineering and other related claims; during the ordinary course of our business, we are subject to lawsuits, claims and other legal proceedings, as well as bonding claims and related reimbursement requirements; we can incur liabilities or suffer negative financial or reputational impacts relating to health and safety matters; disruptions to our information technology systems or our failure to adequately protect critical data, sensitive information and technology systems; we have identified material weaknesses in our internal control over financial reporting and if our remediation of the material weaknesses is not effective, or if we otherwise fail to maintain effective internal control over financial reporting in the future, we may not be able to accurately or timely report our financial condition or results of operations; any deterioration in the quality or reputation of our brands, which can be exacerbated by the effect of social media or significant media coverage; the loss of, or our inability to attract or keep, key personnel could disrupt our business; our inability to successfully execute our acquisition strategy; we may be unable to compete for projects if we are not able to obtain surety bonds, letters of credit or bank guarantees; we are generally paid in arrears for our services and may enter into other arrangements with certain of our customers, which could subject us to potential credit or investment risk and the risk of client defaults; insurance and claims expenses, as well as the unavailability or cancellation of third-party insurance coverage; our business and results of operations are subject to physical risks including those associated with climate change; our business is subject to operational hazards, including, among others, damage from severe weather conditions and electrical hazards, that can result in significant liabilities, and we may not be insured against all potential liabilities; increasing scrutiny and changing expectations from various stakeholders with respect to corporate sustainability practices may impose additional costs on us or expose us to reputational or other risks; our unionized workforce and related obligations; our inability to maintain, protect or enforce our rights in intellectual property; we may be subject to intellectual property rights claims by third parties, which are extremely costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies; we use artificial intelligence technologies in our business, and the deployment, use, and maintenance of these technologies involve significant technological and legal risks; negative macroeconomic conditions and industry-specific market conditions; fluctuations in economic, political, financial, industry and market conditions on a regional, national or global basis, including as a result of, among other things, inflationary pressure that impacts our costs associated with labor, equipment and materials, increased interest rates, default or threat of default by the U.S. federal government with respect to its debt obligations, U.S. government shutdowns, natural disasters and other emergencies (e.g., wildfires, weather-related events or pandemics), deterioration of global or specific trade relationships, or acts of war, including but not limited to conflicts in the Middle East, geopolitical conflicts and political unrest; projects in our industry can have long sales cycles requiring significant upfront investment of resources; our revenues and profitability can be negatively impacted if our customers encounter financial difficulties or file for bankruptcy or disputes arise with our customers; the highly competitive nature of our business; technological advancements in other forms of power generation could negatively affect our business; regulatory requirements applicable to our industry and changes in current and potential legislative and regulatory initiatives may adversely affect demand for our services; we are subject to complex federal, state and other environmental, health and safety laws and regulations that could adversely affect the cost, manner or feasibility of conducting our operations or expose us to significant liabilities; we are subject to various specific regulatory regimes and requirements that could result in significant compliance costs and liabilities; any actual or perceived failure to comply with new or existing laws, regulations or other requirements relating to the privacy, security and processing of personal information; changes in tax laws or our tax estimates or positions; failure to comply with anti-corruption, anti-bribery and/or international trade laws; violations of export control and/or economic sanctions laws and regulations to which we are subject and changes to U.S. foreign trade policy; immigration laws, including our inability to verify employment eligibility; our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly; our failure to comply with the covenants contained in the credit agreement could result in an event of default that could cause repayment of our debt to be accelerated; we may incur substantial additional indebtedness in the future and may not be able to generate sufficient cash to service such indebtedness, and may be forced to take other actions to satisfy our obligations under such indebtedness, which may not be successful; and the expenses that are required in order to operate as a public company could be material. For additional discussion of factors that could impact our operational and financial results, please refer to our filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at https://investors.solvenergy.com/financial-information/sec-filings. The Company assumes no responsibility to update forward-looking statements made herein or otherwise. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements. Non-GAAP Information Included in this press release are certain financial measures, including EBITDA, Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Gross Margin that are not required by or prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and are designed to supplement, and not substitute, the Company’s financial information presented in accordance with GAAP. Our board of directors, management and investors use EBITDA, Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Gross Margin to assess our financial performance because such measures allow them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income taxes). The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results, cash flows or leverage will be unaffected by other unusual or nonrecurring items. Please see the financial tables included with this press release for reconciliations thereof to the most directly comparable GAAP measures. The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as provisions for income taxes necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot predict all of the components of the adjusted calculations and the GAAP measures may be materially different than the non-GAAP measures. Investor Contact:Mike [email protected] Media Contact:Ashley [email protected] (financial tables to follow)

Interested in SOLV Energy Inc.? Here are five stocks we like better. SOLV Energy reported record 2026 first-half results, with second-quarter revenue up 77% year over year to $951 million and first-half adjusted EBITDA rising 75% to $210 million. Growth was driven by stronger new-construction activity, earlier project execution and prior acquisitions. Backlog grew 44% to approximately $8.9 billion, including $2.5 billion tied to battery-storage projects. Management said the backlog provides visibility through 2027 and into 2028, while late-stage projects have not been materially affected by recent Section 232 developments. The company raised its 2026 outlook to $3.87 billion–$3.97 billion in revenue and $485 million–$505 million in adjusted EBITDA. The outlook includes the Roberson Waite Electric acquisition and reflects SOLV’s continued focus on acquisitions, utility infrastructure and recurring operations and maintenance services. 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. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be 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&A 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. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand 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. → On Holding's Price Stumble May Be an Opening for a Company Built to Run 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. 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. 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. 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]. The article "SOLV Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SOLV Energy Inc (NASDAQ:MWH) reported a 66% year-over-year increase in first-quarter revenue, reaching $677 million, driven by significant new construction revenue. The company achieved an adjusted gross profit of $124 million, reflecting a strong adjusted gross margin of 18.4%, due to productivity gains and favorable weather conditions. SOLV Energy Inc (NASDAQ:MWH) increased its full-year guidance for adjusted gross profit and adjusted EBITDA, indicating confidence in continued strong performance. The acquisition of Roberson Waite Electric is expected to strengthen SOLV Energy Inc (NASDAQ:MWH)'s capabilities in utility infrastructure and support expansion into the regulated market. The company's backlog grew to approximately $8.2 billion, providing strong visibility into future revenue and reflecting ongoing momentum and customer demand. SOLV Energy Inc (NASDAQ:MWH) reported a net loss of $27 million for the first quarter, primarily due to a one-time non-cash expense related to legacy equity awards. The company faces pressures on pricing and scheduling across its business, which could impact future project execution. There are concerns about potential permitting freezes that could slow down project approvals and impact backlog growth. The integration of acquisitions like Roberson Waite Electric may present challenges in terms of operational integration and margin impact. SOLV Energy Inc (NASDAQ:MWH) must navigate risks associated with federal permitting, which could impede progress on certain projects. Warning! GuruFocus has detected 10 Warning Signs with RAL. Is MWH fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss how the acquisition of Roberson Waite Electric complements your existing capabilities and how it factors into the new guidance? A: From a strategic point of view, RWE brings expertise in high-voltage and substation work, complementing our Spartan acquisition, which focuses on transmission and distribution. The acquisition timing and size informed our guidance, but the dollar amounts are implicitly in the range more than anything else. - George Hirschman, CEO & Chad Plotkin, CFO Q: Backlog has grown for five consecutive quarters. Can you provide visibility into continued growth in the backlog? A: We are seeing continued growth in the pipeline and more opportunities converting throughout the quarter. We expect to see continued growth in our backlog. - George Hirschman, CEO Q: Margins were a standout this quarter. Can you break down the margin upside and whether this is a new baseline for margins? A: The margin upside was partly due to favorable settlements of change orders and favorable weather conditions. We report on overperformance but do not forecast it. We see opportunities to do well on projects and expect improved margin contributions from recent acquisitions. - Chad Plotkin, CFO Q: Are you seeing any issues similar to your solar EPC peers, such as scheduling delays or cost pressures? A: We aren't seeing specific issues like those mentioned. Our teams continue to execute well, and we are seeing outperformance in several areas. We have built a robust infrastructure to manage and mitigate risks. - George Hirschman, CEO Q: How do you view the impact of more available batteries in the U.S. on your business? A: A robust supply of batteries and energy storage is a great tailwind for our business. It enhances opportunities for placing storage in urban grid locations and drives opportunities within our PV and storage business. - George Hirschman, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.