SOLV Energy NASDAQ: MWH reported sharply higher first-quarter revenue and adjusted earnings, raised its full-year profit outlook and said demand for solar, storage and grid infrastructure remains strong as U.S. power needs accelerate.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer George Hershman said the quarter showed “strong execution across the business,” with profitability above expectations. Chief Financial Officer Chad Plotkin said revenue rose 66% year over year to $677 million, driven primarily by new construction revenue as backlog converted into results.
Adjusted gross profit was $124 million, representing an adjusted gross margin of 18.4%. Adjusted EBITDA increased 174% from the prior year to $93 million. Plotkin said the margin performance reflected productivity gains from project execution, favorable weather in several regions and the recovery of reserves tied to settlements of outstanding change orders.
The company reported a net loss of $27 million. Plotkin said that result was primarily due to a one-time, non-cash $52 million expense from the modification of legacy equity awards connected to the company’s IPO-related reorganization. He said the item was non-recurring and “not reflective of the underlying performance of the business.”
Backlog Reaches $8.2 Billion
SOLV ended the quarter with approximately $8.2 billion in backlog, up 82% over the last 12 months. Plotkin said backlog has grown sequentially in each quarter since the end of 2024, supported by customer relationships and the company’s lifecycle service model.
Management cautioned that quarterly bookings and backlog changes may be uneven because of the sales cycle and the timing of projects moving from limited notice to proceed to full notice to proceed. Plotkin also noted that reported backlog excludes verbal awards and business development activity that has not yet reached the contracted or limited-notice stage.
During the question-and-answer session, Hershman said the company is seeing continued growth in its pipeline and expects backlog to continue expanding. In response to questions about visibility into 2027, management described backlog as generally representing a 12- to 30-month window, though timing varies by project and region.
Management also said roughly $1.95 billion of the backlog is associated with standalone storage or hybrid solar-and-storage projects.
Company Raises Adjusted EBITDA Guidance
Based on the first-quarter results and management’s confidence in execution, SOLV raised its full-year 2026 adjusted EBITDA guidance to a range of $435 million to $455 million, up from a prior range of $400 million to $420 million.
The company maintained its full-year revenue outlook of $3.72 billion to $3.82 billion. It also introduced adjusted gross profit guidance of $610 million to $650 million, reflecting an expected adjusted gross margin range of 16.4% to 17%.
Asked whether the stronger first-quarter margin should be viewed as a new baseline, management said some of the quarter’s upside was tied to execution, weather and reserve recoveries. Hershman said the benefit from change-order reserve recoveries was “inside of the $10 million mark,” while dry conditions in parts of the country helped productivity and reduced costs. He added that the company reports overperformance but does not forecast it.
Roberson Waite Electric Acquisition Expands Utility Infrastructure Push
Hershman highlighted SOLV’s planned acquisition of Roberson Waite Electric, a California-based high-voltage and utility substation contractor founded in 1975. The deal has total consideration of approximately $45 million, subject to customary closing adjustments, and is expected to be funded with cash on hand. The company expects the transaction to close in the third quarter of 2026.
Roberson Waite Electric brings about 100 employees and capabilities in turnkey substation construction, testing and commissioning, as well as battery energy storage system deployments. Hershman said the acquisition expands SOLV’s utility infrastructure platform and accelerates its entry into the regulated utility market, where the company sees investment tied to grid modernization and resiliency.
In response to a question from JPMorgan analyst Michael Fairbanks, Hershman said Roberson Waite Electric’s focus on substations and high-voltage work complements SOLV’s prior Spartan T&D acquisition, which is focused on transmission and distribution. Management said the acquisition is reflected within the updated guidance range, though its impact is limited by the expected timing and relative size of the deal.
Power Demand, Storage and Grid Investment Remain Key Themes
Hershman said SOLV continues to see a constructive market backdrop, with accelerating power demand and solar and storage remaining among the most competitive ways to meet new supply needs. He cited expectations for U.S. load growth of approximately 28% over the next decade, compared with roughly 5% growth over the prior decade, driven by artificial intelligence infrastructure and reshoring of manufacturing capacity.
Management also pointed to expected investment of more than $500 billion in solar and battery storage over the same period, representing about 430 gigawatts of new capacity. Hershman said battery storage continues to scale rapidly, with annual growth in the mid-20% range.
On standalone storage, Hershman said SOLV is “very excited” about market growth and sees opportunities in urban areas where load demand is high and transmission access can be difficult. He said Roberson Waite Electric’s experience in dense population areas should support SOLV’s storage opportunities, especially around substations.
Asked about automakers converting U.S. battery factories toward stationary storage technologies, Hershman called a more robust domestic battery supply chain “a great tailwind” for the business. He said SOLV’s independent power producer customers generally bring the storage technology to projects, but the company’s engineering teams are working with customers on projects involving automaker-supplied equipment.
Permitting, Innovation and Repowering Discussed in Q&A
On permitting, Hershman said two large projects with federal permitting exposure were approved and released at the end of last year, including one on Bureau of Land Management land and one with a federal interconnection requirement. He said both are proceeding and are near gigawatt scale. He added that SOLV’s current backlog has “limited to no exposure” to federal permitting.
Hershman also discussed the company’s use of robotics and other construction innovations. He said SOLV is already using robotics on several projects, including module installation robots, autonomous pile driving and systems that can build pre-assembled rows on-site. He said the company is investing in innovation to improve workforce productivity and construction speed.
On repowering, management said the industry is in the early stages, with some utility-scale projects reaching their mid-life period. Hershman said near-term opportunities include technology-related rework, weather-related damage and battery augmentation at existing solar plants, particularly where solar projects were built over the past decade without storage.
Hershman closed the call by emphasizing SOLV’s workforce and said the company remains focused on disciplined strategic acquisitions, expanding capabilities and supporting long-term growth.
About SOLV Energy NASDAQ: MWH
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 contact@marketbeat.com.
Before you consider SOLV Energy, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SOLV Energy wasn't on the list.
While SOLV Energy currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
Get This Free Report
