Accelevation Holdings Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue grew 65.9% year-over-year to $202.2 million for the quarter; nine-month revenue reached $639.7 million, up 128.0% year-over-year.
• Net income was $3.2 million for the quarter, a decline of $10.5 million (76.9%) compared to the prior year period; net income margin was 1.6%.
• Adjusted net income was $20.9 million, a 7.0% decline year-over-year; adjusted net income margin was 10.3%.
• Adjusted EBITDA increased by 30.8% year-over-year to $37.7 million; adjusted EBITDA margin was 18.7% (down 502 basis points from 23.7% in the prior year).
• Operating cash flow improved significantly to $62.5 million from an outflow of $0.6 million in the prior year.
• Free cash flow was $55.0 million for the quarter, compared to an outflow of $3.3 million in the prior year.
• Gross profit was $59.2 million, up 40.4% year-over-year.
• SG&A expenses were $26.6 million, up 68.5% year-over-year; adjusted SG&A was $22.0 million, up 49.9% year-over-year.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance is set at $905 million to $915 million, representing 103% year-over-year growth at the midpoint.
• Full-year 2026 adjusted EBITDA guidance is $155 million to $165 million, representing 76% year-over-year growth at the midpoint.
• Management expects to deliver robust growth, an improving margin profile, and strong cash flow in the fourth quarter and into 2027.
• The company is investing in scaling modular capabilities and broadening its power product offering to meet shifting market demand.

Business Segments and Product Lines:

• Bookings reached $768.9 million, an increase of 364% year-over-year.
• Backlog totaled $1.7 billion, an increase of 329% year-over-year and 51.0% over the prior quarter.
• The book-to-bill ratio was 3.8x.
• The company is expanding its addressable market through product innovation and diversifying its customer base while growing with existing blue-chip customers.
• Accelevation is shifting toward modular, factory-built infrastructure in response to strong customer demand.

Market and Competitive Landscape:

• End markets are accelerating, driving strong demand for customized structural, electrical, and mechanical systems for mission-critical infrastructure.
• The company is gaining market share due to its ability to deliver customized solutions at scale with speed and certainty.
• The industry is seeing a shift toward modular, factory-built infrastructure.

Risks and Challenges:

• Forward-looking statements are subject to risks including reductions in demand or slowdowns in data center growth drivers.
• Risks include dependence on a limited number of large-scale data center customers and hyperscale/colocation clients.
• Potential challenges include backlog adjustments, cancellations, and competition on speed-to-capacity, delivery, customization, and price.
• Operational risks include cost overruns, schedule penalties, labor availability, equipment failure, and supply chain disruptions.
• Financial risks include indebtedness, financing conditions, and the inability to remediate material weaknesses in internal controls.
• Regulatory and geopolitical risks include AI-related legislation, trade policy shifts, and macroeconomic volatility.

Management Commentary and Tone:

• CEO Michael Rubiera described the results as reflecting the strength of the operating model and underlying markets, noting robust demand and strong market share gains.
• CFO Ken Krause highlighted strong growth, profitability, and cash generation, noting that operating cash flow represented cash conversion well in excess of 100% of net income.
• Management expressed confidence in the balance sheet position following the IPO and new credit facilities, citing ample capacity and reduced leverage.
• The tone is confident regarding the company's ability to scale operations, execute on productivity, and deliver sustained, profitable growth.

Other Key Points:

• The company completed its Initial Public Offering (IPO) on October 1, 2026, selling 30,000,000 shares at $18.00 per share.
• Accelevation received net proceeds of approximately $170.6 million from the IPO, which were used to purchase newly issued units of Accelevation Holdings LLC to repay outstanding indebtedness.
• Subsequent to the quarter end, the company entered into a new $650 million senior secured credit agreement consisting of a $400 million revolving credit facility and a $250 million Term Loan A, with significant pricing improvements.
• The new credit facilities significantly decreased pro forma net leverage following the IPO.
• The company's Class A common stock began trading on the Nasdaq Global Select Market under the ticker symbol "ACCV" on September 30, 2026.
• A conference call to discuss results was scheduled for November 13, 2026, at 8:30 a.m. Eastern Time.