SOLV Energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the three months ended June 30, 2026, was $951 million, a 77% increase year-over-year from $536 million; first-half revenue reached $1.628 billion, up 72% year-over-year from $944 million.
• Gross profit for the quarter was $140 million (14.7% margin) compared to $113 million (21.1% margin) in the prior-year period; first-half gross profit was $259 million (15.9% margin) versus $172 million (18.2% margin).
• Adjusted gross profit for the quarter was $145 million (15.2% margin) compared to $113 million (21.1% margin) in the prior-year period; first-half adjusted gross profit was $269 million (16.5% margin) versus $172 million (18.2% margin).
• Net income attributable to SOLV Energy, Inc. was $37.6 million for the quarter and $14.3 million for the first half; net income before non-controlling interests was $67 million for the quarter and $39 million for the first half.
• Adjusted EBITDA for the quarter was $117 million (12.4% margin) compared to $86 million (16.1% margin) in the prior-year period; first-half adjusted EBITDA was $210 million (12.9% margin) versus $120 million (12.7% margin).
• Cash and cash equivalents were $364 million as of June 30, 2026, down from $395 million as of December 31, 2025.
• Term debt was fully repaid as of June 30, 2026, with no current or long-term term debt reported, compared to $392 million in long-term term debt at December 31, 2025.
• A $11 million non-cash loss on extinguishment of term debt and a $52 million one-time non-cash compensation charge related to legacy equity awards impacted first-half net income.
• Interest expense for the first half was $8.3 million, down significantly from $26.8 million in the prior-year period.

Guidance and Future Outlook

• Updated full-year 2026 revenue guidance is $3.87 billion to $3.97 billion, raised from the previous range of $3.72 billion to $3.82 billion.
• Updated full-year 2026 adjusted gross profit guidance is $620 million to $660 million, raised from $610 million to $650 million.
• Updated full-year 2026 adjusted gross margin guidance is 16.0% to 16.6%, lowered from 16.4% to 17.0%.
• Updated full-year 2026 adjusted EBITDA guidance is $485 million to $505 million, raised from $435 million to $455 million.
• Updated full-year 2026 adjusted EBITDA margin guidance is 12.5% to 12.7%, raised from 11.7% to 11.9%.
• The guidance update reflects first-half results, anticipated contributions from the Roberson Waite Electric acquisition, the full-year impact of classifying certain annual compensation in cost of revenue, and project performance expectations for the second half.

Business Segments and Product Lines

• Total backlog as of June 30, 2026, was approximately $8.9 billion, representing 44% growth year-over-year.
• Over 23 GW of generating capacity is now under contract for operations and maintenance (O&M) services.
• Revenue growth was primarily driven by increased new construction activity and contributions from M&A activity.
• The company closed the acquisition of Roberson Waite Electric on July 1, 2026, for $40.9 million in cash (including closing adjustments) plus up to $9.0 million in contingent consideration.
• Roberson Waite Electric adds capabilities in utility substation construction, testing, commissioning, and battery storage deployments, complementing SOLV's transmission and distribution platform.

Market and Competitive Landscape

• Last twelve-month safety metrics continue to track well below industry benchmarks.
• The company serves the power industry with engineering, procurement, construction, testing, commissioning, O&M, and repowering services.
• Since 2008, the company has built more than 500 power plants representing over 22 GW of generating capacity.

Risks and Challenges

• Forward-looking statements are subject to risks including project timing delays, cost overruns, liquidated damages, and contract cancellations.
• Risks include labor availability and cost increases, material price fluctuations, and supply chain disruptions.
• The company faces risks related to regulatory changes, government incentives, and environmental laws.
• Potential risks include intellectual property claims, cyber-security breaches, and failures in internal controls over financial reporting.
• The company is subject to interest rate risk on variable rate indebtedness and potential covenant violations.
• Specific risks include the inability to obtain surety bonds, letters of credit, or bank guarantees, and client defaults.

Management Commentary and Tone

• CEO George Hershman stated the company delivered record financial results in the first half of 2026 driven by strong execution and continued customer demand.
• Management expressed confidence in the platform's strength following the Roberson Waite Electric acquisition and cited a growing backlog and strong operational momentum.
• Management raised full-year financial guidance, indicating a positive outlook for the remainder of the year.

Other Key Points

• The company completed the repayment of term debt in connection with its February 2026 IPO.
• A prospective classification change beginning in Q2 2026 moved certain annual incentive compensation from SG&A to Cost of Revenue, impacting gross margin presentation by over 60 basis points in the first half.
• The company reported a $240.7 million tax receivable agreement liability as of June 30, 2026.
• Non-cash compensation expense for the first half was $79.7 million, significantly higher than $2.0 million in the prior-year period.
• The company holds a Tax Receivable Agreement liability of $240.7 million as of June 30, 2026.