Accelevation Q3 Earnings Call Highlights

Key Points

• Revenue rose 66% year over year to about $202 million, while bookings climbed more than 350% to roughly $770 million. Backlog reached a record $1.7 billion, with most expected to ship over the next 12 to 18 months.
• Accelevation forecast 2026 revenue of $905 million to $915 million and adjusted EBITDA of $155 million to $165 million, implying more than 100% revenue growth at the midpoint. Gross margin improved to 29.3%, and management sees a path to mid-20% adjusted EBITDA margins over the medium term.
• The company is ramping modular production and expanding capacity, including a new Dayton facility expected to open in 2027. Quarterly operating cash flow was about $63 million; following its IPO and refinancing, pro forma net leverage was below three times.

Accelevation NASDAQ: ACCV reported a 66% increase in third-quarter revenue and a record $1.7 billion backlog, as demand for data center infrastructure and modular products fueled orders in its first quarter as a public company.

The company generated approximately $202 million in revenue, up more than 11% from the second quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $38 million, or 18.7% of revenue, compared with about $25 million in the preceding quarter.

Bookings reached approximately $770 million, up more than 350% from a year earlier. Orders were about 3.8 times revenue, marking the second consecutive quarter with a book-to-bill ratio above 3, management said.

“Program timing, designs and site schedules can and will change,” founder and CEO Michael Rubiera said, adding that the company’s short lead times, in-house engineering and domestic manufacturing help it adapt.

Guidance and profitability

Accelevation introduced full-year 2026 guidance for revenue of $905 million to $915 million and adjusted EBITDA of $155 million to $165 million. At the midpoint, the forecasts imply revenue growth of more than 100% and adjusted EBITDA growth of more than 75% from 2025, Chief Financial Officer Ken Krause said.

The outlook incorporates current backlog, expected program timing, production capacity and normal fourth-quarter seasonality, including fewer working days around the December holidays. Krause said the company expects to provide 2027 guidance when it reports fourth-quarter results in the first quarter of next year.

Gross margin rose to 29.3% from 26.7% in the second quarter, helped by higher volume, pricing and a more favorable project mix. Those gains were partly offset by inefficiencies associated with the initial ramp-up of modular production and certain legacy projects.

Net income was approximately $3 million, compared with a net loss of about $2.5 million in the second quarter. Adjusted net income rose to $21 million from $15 million.

Krause said Accelevation incurred approximately $23 million of losses in the first nine months of 2026 that it does not expect to repeat next year, as it transitioned toward modular production and wound down legacy contracts. He said the company sees a path to recurring adjusted EBITDA margins in the mid-20% range over the medium term, while noting that quarterly margins will vary with project timing and mix.

Orders and customer expansion

Accelevation designs, manufactures and installs thermal infrastructure and electrical distribution products, primarily for U.S. data centers. Its work is focused on the server hall, or “white space,” where its systems help power, cool and support computing equipment.

The company added seven significant accounts during the quarter and received its largest-ever order from a new customer, with delivery expected over the following six to 12 months, Rubiera said. The customer also provided a significant upfront deposit.

Rubiera said one frontier cloud customer was already on its fourth project with Accelevation. The customer behind the record order has also engaged the company on another large campus build planned for 2027, he said.

No single customer accounted for more than 20% of third-quarter revenue. Krause said customer concentration in the backlog was also improving, though it could be closer to 30% for one customer. He expects most of the backlog to ship over the next 12 to 18 months.

The company’s pipeline is a multiple of its backlog, according to management. Rubiera said projects enter the pipeline only when a site has begun construction and Accelevation’s engineering team is actively designing a solution for it. Krause said the company has historically seen very few backlog cancellations, although he did not provide a cancellation forecast.

Modular production and cash flow

Accelevation began shipping its SkyBridge modular solution in late August. Rubiera said the company shipped close to 200 megawatts of capacity in September and was considering a second shift for modular production. Krause said he expects the modular business to be in “full swing” by the second quarter of 2027, while some traditional on-site construction continues in the meantime.

The company opened its Second Flight facility during the quarter and broke ground on Third Flight in Dayton. The new facility is expected to add approximately 286,000 square feet and become operational by late summer 2027. Accelevation’s U.S. operating footprint has grown to approximately 1.5 million square feet, from less than 170,000 square feet at the start of 2025, Rubiera said.

Operating cash flow was approximately $63 million in the quarter, and free cash flow was $55 million. Working capital benefited from the customer deposit, Krause said. The company is working to align customer billing and collections with its manufacturing cycle.

Accelevation ended September with approximately $109 million in cash and $665 million in total debt. Those figures preceded its October initial public offering and refinancing. Pro forma for those transactions, net leverage was below three times, versus four times at quarter-end, Krause said. The company plans to continue reducing leverage toward a level below two times before considering a more balanced approach to capital allocation.

About Accelevation (NASDAQ:ACCV)

Accelevation Holdings Corp. designs, manufactures and installs customized structural, electrical and mechanical systems for mission-critical infrastructure. The company primarily serves data centers, including facilities supporting artificial intelligence, cloud computing, hyperscale computing and other high-density technology applications. The company's products and solutions include power distribution equipment, modular infrastructure systems, structural support components, thermal management products and related electrical systems.

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