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Good morning, welcome to SOLV Energy's first quarter earnings results conference call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Anthony Rozmus, Investor Relations of SOLV Energy. Thank you, and you may begin.

Good morning, everyone, thank you for joining us for SOLV Energy's first 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'll 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 it over to George.

Thank you, Anthony. Good morning, everyone. We're excited to be here today to give an update on our first quarter performance. Before we begin, I'd like to officially welcome Mike Adams as Vice President of Investor Relations to the SOLV Energy team. Mike brings over 20 years experience with a broad background spanning investor relations, capital markets, and corporate finance. Mike is here with us this morning, and we are thrilled to have him on board. With that, let me begin with a few key highlights from the quarter. First, safety remains top of mind across the organization. We continue to perform well against industry benchmarks, and our last 12 months results through the first quarter reflect a strong and consistent safety culture across our field operations. Our focus on safety remains steadfast, and we will continue to work across the entire organization for continued improvement in this critical area.

Turning to performance, in which Chad will provide more color, our first quarter results reflect strong execution across the business, with profitability coming in above expectations. From a market standpoint, conditions remain as constructive as we've outlined previously. We continue to see no change in the underlying outlook. Demand for power is accelerating. The need for new supply is clear, and solar batteries and battery storage remain among the most competitive solutions to meet that demand. Against that backdrop, we are executing on our growth strategy. We expanded the number of MW under O&M contracts during the quarter, further extending our long-term reoccurring revenue base. We also announced the exciting acquisition of Roberson Waite Electric, which strengthens our capabilities in utility infrastructure and supports our continued expansion into the regulated market. That execution, combined with our differentiated value proposition, continues to drive backlog momentum.

We ended the quarter with approximately $8.2 billion of backlog, providing strong visibility into future revenue. Finally, given the strength of our first quarter results, the evolving business mix, and additional projects reaching full notice to proceed, we are increasing our full year guidance for both adjusted gross profit and adjusted EBITDA. Overall, we believe the quarter underscores both the durability of the market and our continued ability to execute and capture that opportunity. As we turn to slide 5, we will give a quick reminder of who we are. SOLV Energy is a leading provider of lifecycle infrastructure services to the US power sector, with a strong position across utility scale solar, storage, O&M, and high voltage infrastructure. What differentiates us is our lifecycle model.

We support assets from initial design and build through long-term operations and future repowering opportunities, looking out over a 35-year horizon. That integrated approach drives deeper customer relations, fits, and more durable revenue streams. We build and operate at scale with over 21 gigawatts constructed to date and nearly 22 gigawatts under management. This is supported by a national footprint of a large, experienced workforce. That scale gives us strong visibility into both market demand and customer needs. Importantly, our model combines EPC execution with long-duration O&M contracts, allowing us to extend each project into a reoccurring long-term revenue opportunity. Overall, our breadth of capabilities, execution track record, and lifecycle approach positions us well to capture continued growth as investment in power infrastructure and grid reliability remains a national priority. Moving to slide 6. The demand backdrop for our business remains compelling and continues to strengthen.

We're seeing a step change in the U.S. power demand, with load expected to grow approximately 28% over the next decade, well above the roughly 5% growth seen over the prior decade. That acceleration is being driven by structural trends including AI infrastructure build-out and the reshoring of industrial manufacturing capacity. At the same time, the expectations are for over $500 billion of investment in solar and battery storage over the same period, translating to roughly 430 gigawatts of new capacity, about 3 times the level of the prior decade. Battery storage, in particular, continues to scale rapidly, with growth in the mid-20% range annually. Importantly, that build-out creates a long-duration opportunity for our lifecycle model.

We expect operating solar capacity to more than triple over the next decade, and each gigawatt deployed represents decades of ongoing operations, maintenance, upgrades, and repowering activity. Taken together, these dynamics reinforce our confidence in the long-term growth trajectory of the market and position SOLV to participate across both the upfront build cycle and reoccurring lifecycle opportunity that follows. Let's move to slide 7 for a reminder of our growth strategy. Against the market demand backdrop, we have a clear and disciplined growth strategy. First, we continue focusing on the fastest-growing segment of the U.S. PV and storage market, projects above 200 megawatts, where our scale matters most and is resulting in ongoing growth in our backlog. Second, we are expanding our O&M business to deepen our reoccurring revenue base with nearly 22 gigawatts under contract.

Third, we are leveraging our capabilities to move into adjacent markets where we can add immediate value. Fourth, we are investing in innovation, digital tools, construction methods, and predictive maintenance to accelerate growth and expand margins. Finally, strategic acquisitions that strengthen our capabilities and extend our reach will be important to our growth strategy. In fact, as we turn to the next page, we can see that following the end of first quarter, we announced the strategic acquisition of Roberson Waite Electric, which further advances our long-term positioning in utility infrastructure. Roberson Waite Electric is a California-based high voltage and utility substation contractor founded in 1975 with deep, long-standing relationships across the major California utilities. The business brings an experienced workforce of approximately 100 employees and specialized capabilities in turnkey substation construction, as well as battery energy storage system deployments.

From a strategic standpoint, this transaction expands our utility infrastructure platform and accelerates our entry into the regulated utility market, an area where we see sustained investment driven by grid modernization and resiliency priorities. Importantly, RWE adds differentiated substation capabilities across construction, testing, and commissioning. This enhances our ability to offer a more complete lifecycle-oriented solution alongside our existing solar, storage, and high-voltage infrastructure services. We also see a strong cultural and operational fit. Their experienced team and established utility relationships are highly complementary to our platform and should provide incremental operating leverage as we scale these capabilities across the business. From a transaction perspective, total consideration is approximately $45 million, subject to customary closing adjustments and will be funded with cash on hand. We currently expect the transaction to close in the third quarter of 2026. Thank you.

Now I'll turn the call over to Chad to provide a summary of our first quarter results and updated guidance.

Thank you, George. Good morning, everyone. Let's start on slide 10. I'm pleased to report that our first quarter results reflect strong momentum across the business and demonstrate the continued execution capability of the SOLV team. First quarter revenue was $677 million, an increase of 66% year-over-year. This growth was primarily driven by significant new construction revenue as our strong and growing backlog continues to convert into results. On gross profit, please note that on a go-forward basis, due to the treatment of the allocation of non-cash compensation and cost of revenue, including that which relates to legacy awards, we will be presenting an adjusted gross profit and margin figure to appropriately communicate our profitability. On that point, adjusted gross profit for the quarter was $124 million, reflecting adjusted gross margin of 18.4%.

This performance was driven by productivity gains from continued strong project execution, seasonally favorable weather conditions across several key regions, and the recovery of reserves related to favorable settlements of outstanding change orders. Adjusted EBITDA for the first quarter was $93 million, representing an increase of 174% year-over-year. Adjusted EBITDA benefited from the favorable gross margin and reflects the increasing operating leverage in our business as we scale our revenue base. I do want to address the net loss of $27 million that you will see in our reported results. This was primarily due to a one-time non-cash expense of $52 million from the modification of legacy equity awards associated with the reorganization in connection with our IPO. This is non-recurring, non-cash item and is not reflective of the underlying performance of the business.

We have provided additional information around the composition of our GAAP SG&A in the appendix section of the presentation. Before we move on, I just want to thank the entire SOLV team. These results are a direct reflection of your hard work, discipline, and commitment in the field and across the organization. Turn to the next slide to discuss our backlog. At the end of the first quarter, backlog stood at approximately $8.2 billion. This represents 82% growth over the last 12 months and a continuation of the sequential net growth in each quarter since year-end 2024. This ongoing momentum underscores our commitment to excellence, the strength of our customer relationships, and the compelling value proposition we offer as a full lifecycle service provider. On our backlog, there are a couple of important points for consideration we'd like to remind you of.

First, quarterly bookings and net backlog changes will not be linear and may be lumpy due to the nature of our sales cycle and the timelines involved in moving from LNTP to FNTP. Additionally, our reported backlog does not include verbal awards or other business development activity that has not yet been contracted or reached the LNTP stage. On this point, the pipeline outlook for activity bump beyond what is reported remains robust. With that, let's turn to slide 12 for an update on our financial outlook. Today, I'm pleased to share that based on our strong first quarter performance, continued confidence in our outlook and execution capabilities of our teams, we are updating our full year 2026 financial guidance. Revenue guidance remains unchanged at $3.72 billion-$3.82 billion.

We are updating our adjusted gross profit guidance to a range of $610 million-$650 million, which accounts for the adjustment related to the allocation of non-cash comp expense. This reflects an updated gross margin expectation with a range of 16.4%-17%. We are also increasing our adjusted EBITDA guidance to a range of $435 million-$455 million, up from our prior range of $400 million-$420 million. Lastly, we are making progress on our key financial goals and objectives. First, we expect to deliver on our financial targets, and our first quarter results were an incredible start. Second, we are executing on accretive growth opportunities to expand our service offerings as evidenced by the Roberson Waite Electric acquisition.

Third, we remain focused on driving ongoing professionalization as a public company with continued progress towards Sarbanes-Oxley compliance. With that, I'll turn it back to George for closing remarks.

Thank you, Chad, and thank you all for joining us for our first quarter earnings call. For SOLV Energy, this reflects our continued progress as we build momentum and convert our strong foundations into results. We are pleased with our performance to date and energized by the opportunities ahead, including our continued focus on disciplined and strategic M&A to enhance our capability and support long-term growth. I will end today with where it all begins, our incredibly passionate and dedicated people. I'm humbled by their passion, expertise, and consistent execution. They are committed to delivering value for all of our customers and stakeholders each and every day. With that, we are pleased to take your questions. I will hand it back over to the operator. Thank you.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your questions from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question comes from the line of Mark Strouse with J.P. Morgan. Please go ahead.

Hey, this is Michael Fairbanks on for Mark. I'm wondering if you guys could talk about the acquisition and just how it complements or adds to the existing capabilities from Spartan T&D. Also, I would just be curious to hear how the acquisition factors into the new guidance. Thank you.

I'll take that first. You know, from a strategic point of view, RWE brings a lot of expertise in high voltage and substation work, so it's complementary to our Spartan acquisition, and that really focuses on transmission and distribution. You know, our RWE's expertise is in this substation and high voltage work itself and really brings a, you know, complementary expertise to our existing high voltage services. Michael, on your other question, just given the timing of the transaction, and when we would expect to close, and obviously just the relative size of the acquisition, I'd say that it certainly informed how we looked at it. It's the dollar amounts are implicitly in the range, more than anything else.

Great. Maybe just as a follow-up, backlog's grown for at least 5 consecutive quarters now. As you look at the pipeline, Chad, I think you mentioned continued strength. Anything you can say about visibility into continued growth in the backlog or anything you see here in the pipeline? Thank you.

We are seeing, you know, continued growth in the pipeline and more opportunities that are converting throughout, you know, this quarter. I would expect to see continued growth in our backlog.

Thank you.

Thank you. Next question comes from the line of Julien Dumoulin-Smith with Jefferies. Please go ahead.

Hey, guys. Julien Dumoulin-Smith on for Julien. Really nicely done on the quarter. You know, margins clearly were the standout. I saw you noted change orders and favorable weather as drivers there. Can you help just parse out how much of the margin upside was in those items versus maybe structural bid margins on your contracts flowing through? Separately, you know, with the guide raise, should we think of this as like a new baseline for margins or more of a reflection of timing on those existing projects? Thanks.

Yeah, it's a good question, so maybe on a couple of them. On the change order one, I would look at that impact. It's, you know, the way to think about it is these were prior reserves that ultimately, for settlement reasons and stuff, I would look at that number sort of inside of the $10 million mark. I think on the rest of it's sort of a mixture of just project execution and on whether. I mean, if the way I would think about it is we all are aware of sort of the conditions across the country through the winter and the end of winter. There's areas where, such as like the southwest part of the country, where it was incredibly dry, which allows our teams to be more productive.

It helps reduce costs on sites because you've got less in things like general condition costs that are needed. I mean, not to get in the weeds, but a simple example is you don't have to bring on as much salt to help in, you know, icier conditions and stuff like that. That certainly was really helpful overall. I think on your point on margins, you know, look, we're gonna report on overperformance. We don't forecast overperformance. You know, we see the opportunity, as we've talked about in the past, to do really well on our projects. Then obviously, as we continue to expand the service business, that contribution is very accretive, as we've talked in the past.

We're optimistic about other parts of the business that we've acquired recently, where we'll see improved margin contribution as well coming out of those investments.

Awesome. Separately, you know, we've seen some mixed project updates from maybe some of your solar E&C peers. Just curious on whether you're seeing anything similar across your portfolio, whether that's scheduling delays, cost pressure, maybe even tax equity issues at the counterparty level on any of your projects. Thanks.

We aren't seeing any, you know, specific issues that you addressed. You know, obviously across the entire business, we have, you know, pressures on pricing and schedule. I will just, you know, say that, you know, our teams continue to execute and we are seeing the outperformance in a number of areas reflecting in our results. You know, we obviously understand. You know, that is part of our business, and we have to build a robust infrastructure to be able to manage and mitigate those risks.

I'll leave it there. Hey, guys, thank you so much. All the best.

Thanks, Nick.

Thank you. Next question comes from the line of Jon Windham with UBS. Please go ahead.

Perfect. Congratulations on the result, and thanks for taking the questions. I just had sort of a big picture question. I'm just wondering if you know, you're one of the larger EPC companies working on storage in the United States. There have been a number of announcements from the auto OEMs, namely General Motors, Ford, SK, and Honda, and LG with their legacy Stellantis, JV, converting battery factories in the United States from EV technologies to LFP for stationary storage. I'm just wondering, if you've already started having conversations and how you would think about having the benefits of having more available batteries in the United States. Thanks.

Yeah, thanks for the question. We think it's wonderful. It's a great tailwind for our business. Honestly, what the U.S. grid and infrastructure needs is a robust supply of batteries and energy storage. It only furthers the opportunities to place storage in, you know, urban grid locations, areas where it's hard to get transmission, and continues to drive opportunities within our PV and storage business. A robust supply chain is really a strong tailwind for our business.

Maybe just as a quick follow-up, just to be very specific. Are those players I mentioned, namely the large auto OEMs, already in the market having conversations with SOLV?

The majority of our projects, the IPPs bring the energy storage technology, but I know that those conversations are being had by our customers and with our engineering teams. We are working with our customers to ensure that we can, you know, deliver a project with OEM technology from automakers.

Perfect. George, Chad, thanks so much for doing the call.

You bet.

Thank you. Next question comes from the line of Philip Shen with the Roth Capital Partners. Please go ahead.

Hey, guys. Congrats on the great quarter. wanted to check in with you guys on the permitting freeze. you know, we wrote in mid-November last year that we could see some reprieve, and we got a bunch of projects unblocked in moving forward. Since then, my sense is, things are slowing down. I was wondering how that plays out. I know, George, you talked about how you expect a backlog to continue to grow. What are your thoughts on the outlook on this topic? Thanks.

Thanks, Philip Shen. Appreciate the question. Yes, as we've spoken about in the past, we had some significant projects that had nexus to federal government permits. At the end of the year, those projects got approved and released, one on BLM land and one with a federal interconnect requirement. Both of those are proceeding. Both of them are near GW scale. That was exciting. You know, our current backlog has limited to no exposure to federal permitting. You know, we feel very strong on the projects currently in backlog and the pipeline. It is something that we're watching, obviously working closely with our industry partners and associations to work through, you know, any government freeze around permitting.

It's a, you know, it's a huge impediment to seeing these, you know, reaching the energy goals that we need to. We're working together on it. We watch it very, very closely, right, that we limit, or minimize at all costs our exposure to federal permitting on solar and storage projects.

Got it. Okay. Thank you. Shifting over to one of your points in your growth strategy. Number four was harness innovation to grow faster and increase margins. Was wondering if you could elaborate a little bit more on that, specifically as it relates to robots. What's your sense in terms of, you know, when you could start to deploy robots more in the field to make your labor even more efficient? You know, maybe it's more of a 2027 timeframe, but could we start to see gigawatts of installations in that timeframe? What is the impact on margins?

I mean, given the testing that you've done, if you've done any thus far, could we see, you know, hundreds of basis points of improvement from these robots that might be a kind of one-time upfront CapEx with, you know, again, providing a lot of leverage for the existing highly trained labor force that you guys currently have? Thanks.

Yes, you know, we are using robotics today on a number of projects. We're working with, you know, a number of the manufacturers of, you know, anything from, you know, factories out on site, where they will build pre-built rows and move them into locations, as well as, you know, the module install robots that are in the market and pile drive, you know, autonomous pile driving. We're doing it all, working very closely with different manufacturers to see what best, you know, optimizes our workforce, drives speed of installation. I would say that, you know, we're gonna continue to do that. We have a large and, you know, robust innovation team and invest in that area to ensure that we can continue to deliver at the scale and demand that's necessary.

Because we're being asked to build faster every day. To do that, we need to, we need to use robotics, optimize our workforce, optimize how we handle logistics. All those things are in process and, quite frankly, part of our execution strategy today and, you know, are driving strong results in a number of areas.

Great. Thanks, George. I'll pass it on.

Thanks, Phil.

Thank you. Next question comes from the line of Ben Kallo with Baird. Please go ahead.

Hey. Thanks for taking my question. Congrats and welcome, Mike. Can you guys give us any kind of shaping of backlog and just, you know, as we look to next year, you know, how much of, you know, that of 27 is underpinned by current backlog? I have a follow-up.

Yeah, I think to answer your question, I mean, look, I think if We've talked in the past, we have a slide in the appendix that gives a little bit of a characterization of just sort of the makeup of backlog. Obviously, because implicitly we've got an increase in backlog, it means you have a lot more that have gone into LNTP. We've talked about backlog as sort of a 12 to 30-month window. Some projects move faster depending on where they are and what region. Some might lag a little bit.

obviously, Ben, I mean, if you look at financial guidance and revenue on where we are with what we have signed and what we expect to convert through the end of the year, and you look at the balance of that, I mean, that should hopefully give you a sense of kind of where we are in current origination without me getting in front of, like, providing, you know, a 2027 expectation. Look, we're excited about where we are as a business. Backlog is robust. We're seeing a lot of momentum, as George said. you know, we're obviously gonna continue to allocate capital prudently across the business and drive growth in the business.

Great. Just on the energy storage market, could you just talk about, you know, your interest in doing standalone storage? You guys, you know, talked about how strong that market is and just, you know, how we should think about that just on a go-forward basis, in addition to, solar plus storage. Thank you, guys.

Yes, we are. You know, we're very excited about the growth in standalone storage and the amount of standalone storage that we're currently doing and we see in the pipeline. One of the, you know, acquisition thesis around RWE was that they bring a lot of expertise in battery storage in high density, you know, population where energy standalone storage is best served, honestly, is in areas where there is load demand and difficulty with bringing in transmission. If you think about, you know, urban centers and how do you get more energy where it's needed is battery storage at, you know, existing substations in urban areas. RWE has expertise in those areas.

You know, adding that to our overall platform of understanding how to deliver energy storage at scale and their expertise of doing it in high density areas drives just a bigger opportunity for us in standalone storage. We're excited about it. Back to the earlier question about the, you know, supply chain growing and, you know, robust manufacturing in the U.S. just further drives that market.

Mr. Kallo, are you done with the questions?

Oh, yes. Thank you, guys.

Thanks, Ben.

Great. Thanks, Ben.

Thank you. Next question comes from the line of Nicholas Amicucci with Evercore ISI. Please go ahead.

Hey, George. Hey, Chad. How are you guys? Just, I wanted to kind of prod a little bit on the backlog again. Just as we kind of think about the margin profile, and sorry if I missed this, the margin profile within the backlog and kind of pricing associated with that, just how is that trending or is it similar? Like, should we be kind of thinking about that still like the long-term adjusted gross margin right around that 14%-15% level over time? Or is that kind of, are we seeing kind of upward trends in that?

Yeah. I think Nick, maybe to follow up the point, you know, I think, 1, when we think about our collective business, I think we've been very consistent that plus 15%, given all the contribution of other businesses, how we think about budgeted margins. I want to emphasize the fact on what I said earlier, which is, you know, we report on overperformance. We don't forecast that. That's an important distinction. You know, we continue to drive in our origination to optimize, you know, profit delivery across our projects. You know, I think we're certainly demonstrating in the performance of our projects on where we can drive more efficiency than, say, something that we might have underwritten.

That candidly is a benefit across the board because when we're delivering projects, better, more profitably, we're generally bringing projects online faster for our customers, which is a huge advantage for them as well. We're just optimistic about the ongoing performance of what we're seeing and the overall mix of the contribution from various parts of the business.

Perfect. Then kinda dovetailing with that too, just if we could just kinda look at the repowering opportunity. Just given, you know, you guys outlined 21 gigawatts built since 2008, what portion of the installed fleet is now or kind of approaching that repowering range, if you're able to provide it? Just how we should think about the margin profile of that, of those repowering projects relative to just a greenfield EPC.

Nick, we're really getting into that stage in the industry. If you think about our early-stage utility scale projects, they're, you know, they're just hitting their kind of half-life. We're starting to see those repowering opportunities because of, you know, technology failures or, you know, weather damage and other things that are causing, you know, significant rework within the fleet. I think that we are really in the early days of, you know, true repowering as we see that, you know, power density is becoming so much higher than it has just in the recent past and being able to, you know, get more megawatt hours out of a, you know, 1 acre of land is gonna become more and more valuable as you think about, you know, the interconnection value.

I think when you think about immediate repowering, in quotes of repowering, is probably battery augmentation to existing solar plants. We're starting to see that in many areas where solar has been built over the last decade without energy storage, and there's a good opportunity to add energy storage to the optimization of a power plant. I think that's where we're gonna see it initially, outside of just large scale technology upgrades that are necessary to drive plant performance.

Makes sense. Thanks, George. Thanks, Chad.

You bet.

Thank you. Next question comes from the line of Mark Jarvi with CIBC Capital Markets. Please go ahead.

Thanks for the great update today. Just maybe you guys could comment on the sort of mix on the backlog addition to really expand to the projects at the verbal awards today, just in terms of solar versus battery split and markets, just where you guys are on the T&D side of things as well.

Yeah. On the backlog side, I think as of the we're in and around like $1.9 billion of the backlog associated to hybrid or battery projects standalone. We're seeing, you know, ongoing momentum there. It just has to do with timing and stuff when we originate deals, which is great. I think we've got the mix in the appendix, as you've seen before. I think on the T&D side, I mean, look, that is an area that we're certainly expecting to see grow over time. It's not what I would call a materially significant part of backlog at this juncture. We've got our investment in Spartan, you know, we haven't closed the RWE deal yet, but that's definitely an area.

I mean, look, the bulk of the backlog, as you can see, is the core business, just given with the ongoing scale and momentum that we have.

Good to hear. Just on acquisitions, I know RWE itself is not a big transaction, but you look ahead and maybe do more of these deals. How do you see the integration in terms of impact on margins sort of in the 1st year? Can they be neutral? Can they actually be slightly positive given operating leverage you can bring to bear? When you think about how this impacts sort of growth rates post-integration, are you looking for businesses that enhance the organic growth rate, or is it more about breadth and resiliency of the growth across the platform?

I think it's sort of a combination of both. I think we talked about the M&A strategy previously. There's a combination of using M&A as a vehicle to expand the breadth of services we can provide or continue to expand our ability to do more self-perform work. We are definitely looking to acquire businesses that have a growth vector to them. I don't know if that answered your question, and there was the first part of your question. Forgive me.

Yeah. It was just on integration of sort of medium-sized transactions, if they'd be sort of margin neutral or can you actually drive efficiencies in the first year? Yeah.

Well, look, I think obviously doing things accretive is pretty important for underwriting. I think the integration strategy is, you know, it's always evolving, and I think every transaction will have sort of unique characteristics to it. We certainly want to drive ways to bring sort of operating leverage to the platform, but we also wanna be cognizant doing that in a means that doesn't in any way compromise the type of businesses that we're acquiring and making sure that they can continue to perform to our underwrite. We definitely put consideration into ways that we can leverage things like shared service across. There's no reason to, like, acquire businesses and have redundancy in sort of certain back office functions. There's a lot of things that we can do, and we look at that relative to our underwriting criteria.

Sounds good.

You know, our M&A strategy is to ensure that we have that, you know, we're working with companies that will enhance our overall service offering. Ensuring that, you know, RWE can provide services to our existing customer base and services that we need to deliver on our, you know, on our life cycle approach of being able to provide services across the entire life cycle of a project. That from an operational integration standpoint is always a key factor. Spartan is, you know, building transmission for projects where we're building the solar and PV. I expect that RWE will be doing substation and substation services for projects where we're doing storage or PV. From an operational integration standpoint, it is absolutely part of our strategy.

Just on that last comment, George, have you done a lot of projects in parallel with RWE before?

Not directly with RWE, but adjacent to RWE. We've known of them and the company for quite a while, and so we're looking forward to them supporting some of our projects in California where they have significant expertise.

Sounds good. Thanks for your time today.

Good.

Thank you. Next question comes from the line of Joseph Osha with Guggenheim Securities. Please go ahead.

Thank you. Good morning, folks. Two questions for you. First, I'm wondering if you can just let us know roughly what the current storage attach rate is on projects. I know we've talked about that before. Secondly, thinking about freestanding storage, obviously you're doing lots of front of the meter stuff. I'm curious whether you've looked at the behind the meter opportunity. There's lots and lots of discussion around storage for data centers, whether that might be something you're beginning to look at. Thank you.

I don't know that we have an attached rate, with, you know, energy storage to PV 'cause, you know, usually those projects are engineered together and kinda get awarded together.

Yeah.

I don't know that we have a distinct attached rate 'cause we never really see, you know, PV being awarded to one EPC and then energy storage on the same project being awarded to someone else. That just isn't an efficient way of doing it. It'd be hard to have a, you know, really solid attached rate other than when we're building PV and storage, we're building PV and storage.

Well, let me try asking it a different way. If I look at your portfolio of business, how much of it is solar only versus solar plus storage?

Yeah. I think we talked about it. I think, you know, coming out of the first quarter, I just like to look at it relative to backlog. Within backlog, we have like $1.95 billion of our backlog is attributed to-- I think I said $1.9 billion earlier. Forgive me, I'm looking at my notes. It's roughly $1.95 billion of backlog associated to standalone or hybrid projects against our, you know, the number we just reported. That compared, it's almost aligned with what we had previously. You know, we're seeing sort of a consistent, at least out of the gate, a more or less, I hate to use the word book to bill, but that's a good way to think about it on what we saw, you know, since last year.

We're seeing good attach in the sense that projects that are coming our way are with customers are, you know, are these kinda hybrid projects, and we're gonna expect that to continue, especially as, you know, the type of power needs in many of the markets that our customers are building are looking for broader firming kind of solutions.

Okay. Thank you. The other question was behind the meter. Is that something you guys have taken a look at at all? I know it's a little far afield, but I'm curious.

I don't think it's far field. I think we are starting to see, our customers are, you know, in discussions with many of the hyperscalers around opportunities that are behind the meter, both in storage and in PV. You know, currently everything we're doing is in front, but I think that, you know, as these larger data center complexes and, you know, kind of bring your own power solutions happen, we will absolutely be doing large scale behind the meter, both PV and energy storage.

Okay. Thank you very much.

Thank you. This concludes our today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Greetings. Welcome to SOLV Energy's Q4 and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A Q&A session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Anthony Rozmus with Investor Relations. Thank you. You may begin.

Good morning, everyone, and thanks for joining us for SOLV Energy's Q4 and full year 2025 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'll 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 line for your questions. As a reminder, there will be a replay of this call posted on our IR website. With that, I'll turn the call over to George.

Thank you, Anthony. Good morning, everyone. We're thrilled to be here today to give an update on our Q4 and full year 2025 performance. This also marks our first earnings call since becoming a public company, and we want to extend our sincere gratitude to everyone who supported us through this process. To our SOLV Energy team, thank you for the amazing work that you do and your tireless efforts that got us to this point. Let me start today by grounding us in something that defines who we are as a company, safety. Safety isn't just a metric to us. It's a fundamental part of how we operate. The most important job we do at SOLV is to get our people home safely every day.

A TRIR of 0.48 is 70% below the industry average, and an LTIR of 0.19 is also well below benchmarks. These results reflect disciplined process, strong leadership in the field, and the investment we've made in dedicated site and corporate safety personnel. It's why customers trust us and our employees feel valued. A safe job is a profitable job, and our track record directly contributes to loyalty and repeat business. With safety as the foundation of everything we do, let's shift to the market environment we're operating in today. Moving to the next slide. Across the U.S., we are experiencing an unprecedented surge in electricity demand driven by data center growth and reshoring of manufacturing. Digital infrastructure and manufacturing investment are running at roughly 3x historical average. Solar and storage build rates have nearly tripled, and expected load growth has increased almost fivefold.

Traditional generation, gas, and coal cannot meet this level of demand, and customers increasingly expect carbon-free solutions. Solar remains the lowest cost source of new generation with or without tax incentives. Paired with battery storage, it is uniquely positioned to meet near-term reliability needs, not to mention the speed in which it is deployed. Let me walk you through how SOLV Energy is positioned to capitalize on the rising demand on slide six. SOLV Energy is a leading provider of lifecycle infrastructure services to the U.S. power sector and is a recognized market leader in utility-scale solar, battery storage, operations and maintenance, and high-voltage substations. Our lifecycle service approach focuses on the full 35-year life of a power plant. Through delivery of services during the build, operate, maintain, and future augmentation and repowering of plants, our business model is differentiated in the industry.

Our backlog as of December 31, 2025, was over $8 billion, a strong signal of the demand environment. In 2025, we delivered nearly $2.5 billion in revenue and $342 million of adjusted EBITDA, all records for the business. These results reflect a healthy demand environment and deep trust our customers place in SOLV as a long-term partner to deliver critical solutions. We operate across all 48 continental U.S. states, supported by more than 2,600 employees, including 1,950 in the field. We also manage over 2,000 local hired or union dispatch workers on a temporary basis each day. We've completed more than 500 projects and constructed over 21 GW of capacity. Today, we are under contract to manage more than 20 GW of generation across 150 power plants.

This scale gives us deep visibility into the market and into long-term customer needs. Moving to slide 7. Our competitive advantage lies in the breadth and integration of our capabilities through the lifecycle of a power plant. Upfront, we deliver engineering, modeling, design optimization, forecasting, and environmental compliance. Through procurement, our scale across all major plant components and transmission structures help reduce costs and schedule risk for customers. On the construction side, we deliver full-scope civil, structural, mechanical, electrical, and commissioning execution, largely self-performed across most regions. Once assets are online, SOLV truly differentiates itself from other EPC peers. Our O&M business provides 24/7 monitoring, preventative maintenance, emergency response, and performance analytics. End-to-end, from design, to build, to long-term operations, we offer a full lifecycle suite of services that drives best-in-class execution and supports long-term customer partnerships. Turning to the next slide, 8.

EPC is the largest category of spend on a solar plus storage project, and it's increasingly difficult for new entrants to compete at the scale of the market today. Experience, financial stability, and execution discipline create meaningful barriers to entry. At the same time, EPC converts more EBITDA into free cash flow than any other part of the value chain. When paired with our long-duration O&M relationships, we effectively build 35-year annuities, predictable, recurring revenue streams supported by 5-year contracts with automatic annual renewals. As demonstrated in the graph on the page, and using illustrative unit economics from third-party sources, our business focuses on converting the average $0.82 per watt build in EPC into a lifecycle revenue opportunity of $1.19, an over 40% higher revenue opportunity.

This model provides meaningful upside as installed capacity grows and customers look to partner with providers who can support the full lifecycle. Let's discuss embedded revenue on slide 9. Within our installed base, the long-term revenue opportunity is significant. We now are under contract to manage more than 20 GW of operating assets. Over an expected 35-year project life, we estimate customers will spend roughly $7.4 billion on preventative maintenance, corrective maintenance, and inverter replacement. That doesn't include additional opportunities like repowering, phase expansions, battery storage additions, and transmission and distribution upgrades. Importantly, only a very small portion of this, about $540 million, is currently reflected in our backlog. That highlights just how much future revenue remains available to be captured. Importantly, this is our portfolio today. On the next slide, we highlight the growth opportunity in the O&M business.

As you can see in slide 10, since 2020, the amount of solar and storage capacity we manage has grown 2.2x. Looking forward, industry forecasts show a 3.8x increase in operating utility-scale solar and storage capacity by 2034. Every new gigawatt built today will require long-term operations and maintenance services. Given our scale and position, we are incredibly well-aligned with the rapid expansion, both in terms of construction demand and long-term O&M growth. Let's move to slide 11, our growth strategy. Given the market demand backdrop, we have a clear and disciplined growth strategy. First, we continue to focus on the fastest growing segment of the market, especially projects above 200 MW, where our scale matters most. Second, we are expanding our O&M business to deepen our recurring revenue base.

Third, we are leveraging our capabilities to move into adjacent markets where we can add immediate value. Fourth, we are investing in innovation, in digital tools, construction methods, and predictive maintenance to accelerate growth and expand margins. Finally, we continue to pursue strategic acquisitions that strengthen our capabilities and extend our reach. Together, our safety culture, scale, life cycle capabilities, and disciplined strategy positions us exceptionally well to power the next generation of U.S. industry and infrastructure. Thank you. Now I'll turn the call over to Chad to provide a summary of our Q4 and full year 2025 results. Chad?

Thank you, George. It is great to be here this morning, and thank you to everyone for taking the time. Starting on slide 13 to discuss our Q4 and full year 2025 financial results. 2025 was a record year for SOLV. Q4 revenue was up 80% year-over-year to $794 million, and we delivered approximately $2.49 billion in full year revenue, or an increase of 35% year-over-year. This performance was driven by the ongoing growth in our core EPC business, as well as our existing infrastructure or O&M services business, which contributed $113 million for the full year, an increase of nearly 55% year-over-year.

Our services business continues to grow as we are also now contracted for over 20 GW of services, which will continue to support our business through predictable cash flow. Along with our revenue growth, we also recognize record profitability across the business. Q4 and full year 2025 gross margin was over 18%, with realized gross profit of $144 million and $464 million, respectively. This performance was primarily driven by the strong productivity and cost containment across the core EPC business and ongoing contribution from our service business. As a result of this performance, adjusted EBITDA for the Q4 was $100 million, and full year adjusted EBITDA was $342 million, or a more than doubling from 2024.

Before I turn to the next slide, I just wanna say thank you to the entire SOLV team. 2025 has been a transformative year for us, and none of this success can happen without your dedication and commitment to the company. Turning to slide 14. Backlog as of the end of 2025 stood at eight billion dollars, an increase of 87% since year-end 2024, providing us meaningful visibility into future performance. As a reminder, based on conversations with our customers, 100% of our backlog is with safe harbor projects. On backlog, all signed backlog relates to fully enforceable LNTP and FNTP agreements. Awarded backlog reflects the remaining value of estimated contracts under LNTP. Our services business reflects the remaining duration of original agreements, plus an estimate for corrective maintenance.

Please note that this estimate reflects historical trends for non-covered services, which as of the end of 2025, stood at approximately 75 cents on the dollar of covered services. Now let's turn to our 2026 outlook on slide 15. With the strength of our backlog, today we are initiating full year financial guidance with revenue in the range of $3.72 billion-$3.82 billion, representing a 51% increase at the midpoint compared to 2025. We're also targeting gross margin in the range of 15.6%-16.2%, which will drive our adjusted EBITDA expectations between $400 million to $420 million, which would be further records for the company. With the IPO now behind us, SOLV is in an incredibly strong position.

Net IPO proceeds of approximately $553 million allowed us to fully delever the balance sheet with additional cash on hand. When coupled with our newly expanded credit facility to $200 million, we are now placed with significant flexibility to drive further growth into the business. As we consider this dynamic, our financial goals for the year are quite simple. We expect to meet our financial expectations. We plan to utilize our new balance sheet capacity to drive accretive growth via an expansion of our service offerings. We will be steadfast in our focus to drive the ongoing professionalization as a new public company, including meeting all of our compliance requirements such as Sarbanes-Oxley readiness. With that, I'll turn it back to George for closing remarks.

Thank you, Chad, and thank you all for joining us for our first earnings call. What an exciting step for SOLV Energy. We're proud of the foundation we've built and energized by the opportunities ahead. Our team remains focused on disciplined execution, long-term growth, and delivering value for all of our stakeholders. With that, I'd like to open the line for your questions.

Thank you. We will now be conducting a Q&A session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To ensure we have enough time to get to everybody in the queue, we ask that you please limit yourself to one question and one follow-up question. Our first question is from Julien Dumoulin-Smith with Jefferies. Please proceed.

Hey, good morning, team. Thank you guys very much, and congratulations on let's say, inaugural call. What a great step.

Great. Thank you, Julien.

Absolutely. Nice to chat with you guys. Look, let me start it off with an observation just real quickly. As I look at the gross margin guidance for 2026 and look at what you guys were able to put up last year, I mean, just a phenomenal improvement from 2024 to 2025. Obviously, a little bit of a dip here in 4Q 2025. How would you set expectations on the seasonality of gross margin? And then overall, how do you think about the gross margin expectations that you're setting here for 2026 vis-à-vis what you just did last year? How would you define, you know, the construction environment last year vis-à-vis maybe normalization in the current year? Or just how would you benchmark that?

Because certainly it stands out in terms of the guidance you put out here. Thank you again for the inaugural question.

Great. Well, thanks, Julien. Yes, you know, obviously our business has seasonality and 2025, we saw, you know, just really strong performance across every region of the country, and that reflected in a strong gross margin. We also had some large service projects, large repair projects that contributed to margin as well. Those are harder to predict, the large repair projects that are contributors. Those aren't forecasted typically into our projects, right? Or into our long-term forecasts. Those have meaningful effect if a large repair comes in that is, you know, unforecasted. I think that's kind of how we look at our forecasts for 2025 and maybe some of the adjustment to gross margin.

Julien, I'll just add, you know, bear in mind for this year, we have a lot of new starts of projects, given the scale of backlog and what we're looking at on revenue. You know, obviously, as projects start, we've got a view of how we think about underwriting. You know, I think as we spent a lot of time, you know, on the road prior to the, you know, speaking with everybody, and I think as we see performance and productivity enhancement over time, we certainly know that there is the ability to see higher margins. You know, with all these new starts and everything that comes with that, you know, we feel like we're in a range of what we view as a reasonable assumption, certainly at the start.

Excellent. Then maybe just a quick follow-up, if I can. How do you think about use of cash on the balance sheet, right? I mean, obviously, you all are on the front foot here, and certainly so post the raise here. How would you characterize or set expectations on that front as you look at 2026?

Well, I think, you know, we are looking at, you know, a lot of different options to, you know, to continue to grow our services, and we recognize that we're in a really strong position coming out of the IPO and the strength of the balance sheet. We are gonna stick to our growth strategy and recognize that we want to, you know, find areas we can strengthen our core services, add additional core services, whether, you know, inorganically. We're clearly looking for options there, and I think we are sitting in a wonderful position to do it coming out of the IPO.

Awesome. Excellent, guys. All the best. Talk soon.

Thank you.

Our next question is from Mark Strouse with J.P. Morgan. Please proceed.

Yeah, good morning, guys. Thanks for taking our questions and welcome to the public markets. Wanted to start with kind of how you're thinking about gas prices. Obviously, the prices have been going up recently. Is there a rule of thumb of how we should think about that as a percentage of your project costs, and kinda how you're baking that into your 2026 guide? Thank you.

Yeah. Yes. I mean, Mark, well, thank you first of all for the question and joining the call and all the help. We, you know, are obviously watching this in real time. The reality is that fuel costs have probably less than 1% impact on, you know, direct fuel costs on the cost of a project. Obviously, there are shipping cost impacts and other things that are also impacted.

I think that, you know, we see it as something that, you know, we need to monitor but should not have a huge impact on or significant impact on the cost of our projects today based on, you know, where fuel costs are. Obviously, disruptions in the supply chain can have impact, and we are, you know, watching that, but we don't see any issues currently with disruptions in, you know, shipping routes and supply chain. We also have force majeure in our contracts to address these type of issues.

Okay. That's great, George. A quick follow-up, maybe just kind of provide your latest thoughts on the competitive environment. I mean, clearly your backlog is surging, your visibility is extending, projects are getting bigger and more complex. Just kind of curious how you're thinking about kind of some of competitive gains and how that proceeds over the foreseeable future. Thank you.

Well, there continues to be just massive amounts of demand. I think from a competitive standpoint, you know, we're seeing that, you know, plenty of opportunities for us and so that's, you know, driving backlog. As we've said, this is, you know, projects that are because of the size of projects, we're just seeing the competitive landscape getting smaller and smaller as there are less EPC and O&M providers that can provide this service at the scale in which it's now being asked. I think that is limiting the competitiveness of the environment.

Our next question is from Philip Shen with Roth Capital Partners. Please proceed.

Hey, guys. Congrats on a successful IPO, and I'll say as well and welcome to the public markets. Hey, wanted to talk about the bookings outlook, for, you know, the coming quarters. You know, insofar as you can quantify or qualify, what can you share in terms of the momentum there? You've had really strong momentum through 2025, and how much should we expect that to continue from a booking standpoint, through 2026? Thanks.

Well, thanks, Phil. You know, we're seeing continued opportunities in our pipeline that are converting into backlog and I think quarter-over-quarter, we're continuing to see our backlog grow as we continue to obviously put work in place. You know, I don't see that the market is slowing down, I guess, from a book-to-bill standpoint.

Yeah. I think I'll just add, I mean, we appreciate the question. You've got $8 billion as of the end of the year, which gives us visibility. Obviously, we've talked about how that is, you know, call it sort of like a 12- to 30-month window into revenue realization. We're seeing a lot of demand. There is some, you know. These are not immediate sales. Like, when you think about a sales cycle, it's not like you're signing contracts daily. These are large projects with significant capital commitments. You know, but we're continuing to see great demand for our services, and outlook continues to be really robust.

Great. Hey, Sorry, George, go ahead.

I said our convergence from LNTPs to FNTPs are on schedule. We're seeing those, you know, those dates hit, which is consistent with our forecast.

Great. Okay. Thanks, guys. Hey, I was wondering if you might be able to provide a little bit of color on how much you guys think might be safe harbored out there, you know, and to what degree that can support, you know, the outlook for your business as well. You have the backlog, that's great, and then there's a substantial amount of safe harbor, I think, that is out there. I was wondering if you might be able to share any color on that topic as well. Thanks.

You know, we're hearing, I'm sure what you're hearing as well, and what has been reported is something over 200 GW of product sale of safe harbored. Obviously, that is being done at our customer level, so we don't have direct visibility into all of it, but I think those are probably realistic numbers.

Great. Thanks, George. I'll pass it on.

Our next question is from Marc Bianchi with TD Cowen. Please proceed.

Hey, hey. Thanks so much. I guess maybe following on to that last point there about the safe harbor, do you have a sense of how much of that $200 has been awarded? You know, all of your backlog is safe harbored, is that some portion of the $200? If we were to try to think about, you know, how many GW have yet to be awarded to you and your competitors, what that number might look like.

Well, all of our backlog is safe-harbored. My assumption is that most projects that are awarded today are safe-harbored because of, you know, the provisions for 2024 and 2025, and even into, you know, through the H1 of 2026. All projects I think today are being awarded are safe-harbored.

I think, Mark, I'll just add, and it's coming back to the comment George made in his prepared remarks. Obviously, safe harbor is important, and it's, you know, part of a, you know, a health driver of long-term capital formation for our customers. We're in a rising power price environment with a lot of, you know, with scarcity and, you know, with all this demand. I mean, candidly, even independent of the safe harbor, you know, our core service is still just fine and highly competitive to other forms of generation.

Yep. Yep, indeed it is. The other one I had was also related to something that was discussed before in this sort of gross margin outlook. I guess, can you The guidance has some lower gross margins, which is understandable. You've got a lot of new work, big backlog growth over the course of last year. From an on-the-ground, boots on the ground, like, can you talk to us about what you've done to prepare for this uptick in work? You know, what can you say to give investors confidence that you'll be able to execute on all this new business?

Well, the interesting part about the backlog growth is it's not in significantly more projects. The projects are just larger. You know, we get a lot of leverage out of project teams because of scale of projects. You know, we've been able to continue to grow, you know, revenue and execution through just the size of projects versus the number of projects, right? If you think about, you know, the difference between, you know, a project team from a 200-MW project to an 800-MW project isn't 4x more people. It's really, you know, the same project team with some additions. Obviously, there's labor force and other things that we have to manage, but there is scalability in this business.

We've been able to do it, you know, over the last, you know, almost 2 decades that we've been building this business. We've been managing for this, preparing for this, and building, you know, expertise and process to be able to scale the business in this way.

Great. Thanks, George. I'll turn it back.

As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Sangita Jain with KeyBanc Capital Markets. Please proceed.

Good morning. Thanks for taking my question. I just have one. Just following up on the fuel cost comment, I just wanna ask if there are any supply chain disruptions from the Middle East that you're factoring into the sequencing of your backlog. I know there's $8 billion of backlog that you're gonna burn over the next 2 years. Just trying to see how much clarity you have into equipment availability over that period.

We're not seeing any supply chain disruptions today. Obviously we're continuing to watch and monitor the situation. Again, we have contractual remedy for these type of issues if we see something in the future. Today, where we sit today, we're not seeing any supply chain disruption.

Understood. That's it for me. Thank you.

Our next question is from Ben Kallo with Baird. Please proceed.

Hey, good morning. Congratulations, guys. Just two quick ones. First on FIOC, if you're seeing anything in either panels or trackers or anything else in the supply chain, that's a bottleneck. My second question is just more on bookings, but longer term, are you having any kind of conversations for, you know, post ITC projects, now or is that too early? Thank you guys very much.

Thanks, Ben. We are not seeing, you know, direct AD/CVD impact today. I think the industry has done a lot to prepare for this, and so a lot of domestic content, a lot of, you know, manufacturing that has moved internationally, and I think there's just a lot of a robust supply chain addressing this. We're not seeing, you know, we're not seeing direct impacts because I think about the work that we've done, as an industry to prepare for this. Your second question, I'm sorry.

Yeah.

It's post, like, yeah, post ITC.

Yes. Project demand post ITC, yes. We are starting to see portfolios of customers that have you know, placed in service dates that are post ITC. They're seeing continued demand from their customers. You know, to Chad's point and to my point earlier, demand is driving this market. I think the industry is set up for post ITC. Demand is there, recognizing that you know, we'll be building. You know, there's projects now that are at least being planned post ITC. You know, based on the speed in which we deploy, we won't see those projects come into our backlog now because our backlog is really a 24- to 30-month window because of the speed in which we can deploy projects.

I wouldn't expect that we would see projects that would have, you know, COD and placed in service dates, you know, at post ITC as of yet in our backlog.

Great. Thank you, guys.

Our next question is from Dylan Nassano with Wolfe Research. Please proceed.

Hey, good morning. Thanks for taking my question. Just wanted to kind of check on the storage angle here. Could you give us a little bit of a sense of within the $8 billion, just what the mix is of solar only versus paired with storage? Then just any kind of color on how that momentum has kind of gone year to date so far.

Yeah. I mean, I think, you know, when we think about our storage, there is a lot of momentum, a lot of discussion, both for standalone and sort of, I think what we're really excited to see is just more and more projects where you've got hybrid solutions, right? Yeah. Yeah, on the backlog, you know, I think it's roughly $8 billion, kind of roughly as of the end of the year, $2 billion of that is related to either standalone or projects that are otherwise hybrid, or both, you know, solar and battery. No, I think it's a really exciting part of the business and definitely an area of focus.

Great. Thank you.

Thanks, Dylan.

Our last question is from Mark Jarvi with CIBC Capital Markets. Please proceed.

Thanks. Congrats on the progress over the last couple of months here. Just on the last question, following up, just how do you think the opportunity is to gain market share in the battery side of things versus standalone solar? Is there a concentrated focus to lean a bit more on the battery just given there's longer duration attached credit side of things?

Yeah, that is a growing portion of our business, you know, and a focus. Yes, you know, we're in customer discussions with all of our customers, honestly, are looking at battery storage as a growing part of their portfolio, which ultimately drives our business as well. It's a direct focus on both our EPC business and our O&M business because there's a lot of opportunity in the, you know, OEM services side of battery storage. It is a significant focus in our business.

Just in terms of market share gains, you feel like there's an opportunity to do greater on the battery side of things?

Yeah. No, I think that, you know, this market is growing dramatically. I think that, you know, if we continue to hold or grow our market share, we'll continue to be a market leader.

Just going back to the question about potential M&A, are you guys able to comment a little bit in terms of the opportunities that you see there today, final deal activity? Is there a likelihood that you guys feel there's opportunity to transact in 2026?

Yes, we will transact in 2026. I can't really comment on what opportunities we're looking at, but, you know, they're all in line with our strategies that we've outlined for growth.

Those would not yet be in the guidance or is there any small tuck-ins already factored in the guidance at this point?

Yeah. I mean, I think our expectations are based on where we are today. Obviously, how we allocate capital in the future is gonna be done with the right level of discipline that we need to ensure that we're putting our dollars to work prudently and accretively.

Sounds good. Thanks for your time.

Thanks, Mark.

Great. Thank you.

We have reached the end of our Q&A session. That will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. Goodbye.