SOLV Energy (NASDAQ:MWH) raised its 2026 financial outlook after reporting record third-quarter revenue and a growing backlog, as executives said demand for solar and battery storage projects remained strong despite questions about policy and project costs.
Third-quarter revenue rose 65% from a year earlier to $1.24 billion, while adjusted EBITDA reached $173 million, according to CEO George Hershman and CFO Chad Plotkin. Revenue for the first nine months increased 69% to $2.87 billion, and adjusted EBITDA rose 58% to $383 million.
Hershman attributed the results to project and service execution and said the company had performed more work during the quarter than at any point in its history. He said power demand from digital infrastructure, domestic manufacturing and electrification was creating opportunities for solar and storage providers.
Guidance rises as backlog reaches $9.2 billion
SOLV now expects 2026 revenue of $4.03 billion to $4.12 billion, adjusted gross profit of $660 million to $690 million and adjusted EBITDA of $525 million to $540 million. Plotkin said the updated outlook reflected year-to-date performance and expectations for the fourth quarter.
Adjusted gross profit for the third quarter was $215 million, representing a 17.3% margin. Adjusted EBITDA margin was 13.9%. Plotkin noted that 2025 results benefited from favorable late-stage project performance, contingency releases and a repair project with above-average margins. He also said SOLV changed the presentation of certain incentive compensation in 2026, moving it from selling, general and administrative expenses to cost of revenue.
Backlog ended the third quarter at a record $9.2 billion, including approximately $3.1 billion associated with projects containing a battery energy storage component. The total excludes verbal awards and business development activity that has not reached a contracted or limited notice to proceed stage, Plotkin said.
Hershman said the company had more than 5 gigawatts of projects larger than 600 megawatts in backlog, including its largest single award at 1.2 gigawatts. He also said all of the backlog was safe harbored and that the company’s pipeline extended through 2030.
Asked about 2027, Plotkin said SOLV would provide formal guidance on its year-end call. Based on backlog and business development activity, he said the company was positioned for “meaningful growth,” while project timing remained under review.
Acquisition adds high-voltage capabilities
SOLV acquired Texas-based ASB Energy Services on October 30 for approximately $45 million, excluding customary closing adjustments. The consideration included cash and Class A common stock.
Hershman said ASB specializes in high-voltage substations, civil construction and battery storage infrastructure. The acquisition adds to SOLV’s ability to perform more work itself, including substation construction, testing and commissioning. ASB also does some substation work for data centers, although Hershman described that exposure as limited.
Plotkin said the company would continue to assess acquisitions within its existing services ecosystem. Hershman added that SOLV was also looking at opportunities in additional power generation, including a potential combination of solar, storage and gas firming if the right opportunity arose.
SOLV ended the quarter with $609 million in total liquidity, including $422 million in cash and $187 million available under its credit facility, and had no long-term debt, Plotkin said. He said the company was prioritizing capital allocation toward growth while continuing to review its options with the board.
Executives address pricing and policy questions
Hershman said customers’ projects were moving forward and that SOLV was seeing no significant delays or cancellations associated with perceived market challenges. He described Section 232 as more of a pricing issue than a capacity issue and said he did not see a slowdown in the company’s backlog.
Asked about an analyst’s observation that engineering, procurement and construction prices had risen 5% to 10% year over year, Hershman said increases in equipment and commodity costs were “largely in line” with that range, though percentages could vary. He said SOLV was working to mitigate costs through efficiencies and purchasing scale.
Hershman also said there was more discussion about a potential extension of the solar investment tax credit following the election. Even without an extension, he said, SOLV expected its business to grow because of the cost and speed of deploying solar and storage.
About SOLV Energy (NASDAQ:MWH)
SOLV Energy is a U.S. renewable energy contractor that develops, builds and maintains utility-scale solar power and battery storage projects. Its services include engineering, procurement and construction, as well as operations and maintenance for energy facilities. The company serves customers across the United States, supporting projects from construction through ongoing operation. Its business also includes work on related electrical infrastructure. SOLV Energy traces its roots to Swinerton Renewable Energy, which became an independent company under the SOLV Energy name in 2021.
