SOLV Energy Reports First Quarter 2026 Results
Rhea-AI Summary
SOLV Energy (Nasdaq:MWH) reported Q1 2026 revenue of $677 million, up 66% year over year, with gross profit of $119 million and gross margin of 17.6%. Adjusted EBITDA rose to $93 million. Net loss was $27 million, largely tied to a one-time, non-cash $521 million equity-award modification expense.
Backlog reached $8.2 billion with nearly 22 GW under O&M contract. SOLV agreed to acquire Roberson Waite Electric for up to $45 million and raised 2026 guidance, including revenue of $3.72–$3.82 billion and Adjusted EBITDA of $435–$455 million.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue grew 66% year over year to $677 million
- Q1 gross profit more than doubled to $119 million, 17.6% margin
- Adjusted EBITDA increased 174% year over year to $93 million
- Backlog reached $8.2 billion with nearly 22 GW under O&M contract
- Raised 2026 revenue guidance to $3.72–$3.82 billion
- Raised 2026 Adjusted EBITDA guidance to $435–$455 million
- Agreement to acquire Roberson Waite Electric for up to $45 million expands utility services reach
Negative
- Reported Q1 2026 net loss of $27 million versus $1 million a year earlier
- Results include a one-time, non-cash $521 million expense from legacy equity award modifications
- Approximately $65 million of non-cash compensation expense impacted Q1 2026 cost of revenue and SG&A
Key Figures
Market Reality Check
Peers on Argus
No peers with flagged momentum or same-day headlines; the 4.04% move in MWH appears stock-specific to its earnings and guidance update.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 19 | Quarterly earnings | Positive | -5.8% | Record 2025 results, IPO completion, and initial 2026 guidance introduced. |
Limited earnings history shows the last earnings report was positive fundamentally but met with a -5.85% decline, while the current positive report coincides with a gain, indicating mixed reaction patterns.
Recent news flow has focused on strong growth and expanding scale. The prior earnings on Mar 19, 2026 reported record 2025 revenue of $2,490M, gross profit of $464M, and backlog of $8B, plus initial 2026 guidance. Today’s Q1 2026 report shows continued revenue and margin expansion, backlog of about $8.2B, and higher 2026 Adjusted EBITDA guidance, reinforcing a trajectory of rapid growth and rising profitability.
Historical Comparison
In the past 6 months, MWH had 1 earnings release with an average move of -5.85%. Today’s +4.04% reaction to stronger Q1 results and raised 2026 guidance contrasts with that prior selloff.
Earnings communication has progressed from initial 2026 guidance of Adjusted EBITDA $400M–$420M in March to updated guidance of $435M–$455M, alongside a backlog increase from about $8.0B to roughly $8.2B and continued revenue growth.
Market Pulse Summary
This announcement highlights robust Q1 2026 growth, with revenue of $677M, gross margin improving to 17.6%, and Adjusted EBITDA reaching $93M. Backlog stood at about $8.2B, and the company agreed to acquire Roberson Waite Electric for $45M to broaden utility services. Updated 2026 guidance lifts Adjusted EBITDA to $435M–$455M. Investors may watch guidance execution, acquisition closing by Q3 2026, and backlog conversion into revenues.
Key Terms
adjusted gross profit financial
adjusted gross margin financial
adjusted ebitda financial
o&m services technical
ipo financial
non-cash compensation expense financial
sg&a financial
AI-generated analysis. Not financial advice.
SAN DIEGO, May 12, 2026 (GLOBE NEWSWIRE) -- SOLV Energy, Inc. (“SOLV” or the “Company”) (Nasdaq: MWH), a leading provider of infrastructure services to the power industry, today announced financial results for the first quarter ended March 31, 2026.
Financial Summary
| (in $ millions except percentages) | Three Months Ended March 31, | ||
| 2026 | 2025 | ||
| Revenue | 677 | 408 | |
| Gross Profit | 119 | 59 | |
| Gross Margin | |||
| Net Loss1 | (27) | (1) | |
| Adjusted Gross Profit2 | 124 | 59 | |
| Adjusted Gross Margin2 | |||
| Adjusted EBITDA | 93 | 34 | |
1) Represents Net Loss before Non-Controlling Interest
2) Adjusted Gross Profit and Adjusted Gross Margin exclude the impact of the allocation of non-cash compensation expense to cost of revenue
First Quarter 2026 Financial and Recent Business Highlights
- Revenue of
$677 million , up66% year over year - Gross Profit of
$119 million , up102% year over year - Adjusted Gross Profit of
$124 million , up110% year over year - Net loss of
$(27) million - Primarily a result of a one-time, non-cash expense of
$52 1 million related to the modification of legacy equity awards from the reorganization in the IPO
- Primarily a result of a one-time, non-cash expense of
- Adjusted EBITDA of
$93 million , up174% year over year - Total backlog as of March 31, 2026 at
$8.2 billion - Nearly 22 GW under contract for O&M services
- Announced the acquisition of Roberson Waite Electric (“RWE”) providing the Company additional capabilities and growth opportunities in the utility services market
1) Included in total non-cash compensation expense in cost of revenue and SG&A of approx.
“With our IPO complete, our focus remains on execution and delivering exceptional services to our customers; a commitment reflected in continued strength of our backlog which is now approximately
Acquisition of Roberson Waite Electric
On April 30, 2026, the Company entered into an agreement to acquire Roberson Waite Electric (“RWE”), a California-based provider of utility substation construction, testing, commissioning, and related infrastructure services, for total consideration of
Announcing New Vice President of Investor Relations
Mike Adams joined the Company in May as Vice President of Investor Relations. He brings over 20 years of experience primarily in the energy sector, with a broad background spanning investor relations, capital markets, and corporate finance. Throughout his career, Mike has held senior finance and advisory roles encompassing investor engagement, project and structured finance, treasury, and corporate strategy.
Financial Guidance
Today, the Company is updating its full year 2026 financial guidance for the year ending December 31, 2026, with expected ranges of:
- Revenue of
$3.720 billion to$3.820 billion - Adjusted Gross Profit of
$610 million to$650 million - Adjusted Gross Margin of
16.4% to17.0% - Adjusted EBITDA of
$435 million to$455 million
Conference Call and Webcast Information
Management will present results during a conference call today May 12, 2026 at 8:30 a.m. Eastern time.
A live webcast of the conference call, including presentation materials, can be accessed through the Company’s website at https://investors.solvenergy.com and clicking on “News & Events” under the Investor Relations section. The webcast will be archived on the site for those unable to listen in real time.
About SOLV
SOLV Energy (Nasdaq: MWH) is a leading provider of infrastructure services to the power industry, including engineering, procurement, construction, testing, commissioning, operations, maintenance and repowering. Since 2008, we have built more than 500 power plants, representing 21 GW of generating capacity. SOLV Energy also provides operations and maintenance (O&M) services to 155 power plants, representing nearly 22 GW of generating capacity. In addition to EPC and O&M for utility-scale power plants and related T&D infrastructure, we offer large-scale repair, emergency response and repowering services and install end-to-end SCADA and network infrastructure solutions to maximize project performance and energy availability.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact contained in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “outlook,” “potential,” “project,” “projection,” “plan,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed herein, in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at https://investors.solvenergy.com/financial-information/sec-filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: a wide range of factors, many that are beyond our control, can impact the timing, performance or profitability of our projects, any of which can result in additional costs to us, reductions or delays in revenues, the payment of liquidated damages by us or project termination; our results of operations, financial condition and other financial and operational disclosures are based upon estimates and assumptions that may differ from actual results or future outcomes; changes in estimates related to revenues and costs associated with our contracts with customers could result in a reduction or elimination of revenues, a reduction of profits or the recognition of losses; backlog may not be realized or may not result in profits and may not accurately represent future revenue; the imposition of additional duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments; our results of operations may vary significantly from quarter to quarter; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy and battery storage specifically; limitations on the availability or an increase in the price of materials, equipment and subcontractors that we and our customers depend on to complete and maintain projects; our business is labor-intensive, and we may be unable to attract and retain qualified employees or we may incur significant costs in the event we are unable to efficiently manage our workforce or the cost of labor increases; the loss, or reduction in business from, certain significant customers; many of our contracts may be canceled or suspended on short notice or may not be renewed upon completion or expiration, and we may be unsuccessful in replacing our contracts; we may fail to adequately recover on contract modifications against project owners for payment or performance; the nature of our business exposes us to potential liability for warranty, engineering and other related claims; during the ordinary course of our business, we are subject to lawsuits, claims and other legal proceedings, as well as bonding claims and related reimbursement requirements; we can incur liabilities or suffer negative financial or reputational impacts relating to health and safety matters; disruptions to our information technology systems or our failure to adequately protect critical data, sensitive information and technology systems; we have identified material weaknesses in our internal control over financial reporting and if our remediation of the material weaknesses is not effective, or if we otherwise fail to maintain effective internal control over financial reporting in the future, we may not be able to accurately or timely report our financial condition or results of operations; any deterioration in the quality or reputation of our brands, which can be exacerbated by the effect of social media or significant media coverage; the loss of, or our inability to attract or keep, key personnel could disrupt our business; our inability to successfully execute our acquisition strategy; we may be unable to compete for projects if we are not able to obtain surety bonds, letters of credit or bank guarantees; we are generally paid in arrears for our services and may enter into other arrangements with certain of our customers, which could subject us to potential credit or investment risk and the risk of client defaults; insurance and claims expenses, as well as the unavailability or cancellation of third-party insurance coverage; our business and results of operations are subject to physical risks including those associated with climate change; our business is subject to operational hazards, including, among others, damage from severe weather conditions and electrical hazards, that can result in significant liabilities, and we may not be insured against all potential liabilities; increasing scrutiny and changing expectations from various stakeholders with respect to corporate sustainability practices may impose additional costs on us or expose us to reputational or other risks; our unionized workforce and related obligations; our inability to maintain, protect or enforce our rights in intellectual property; we may be subject to intellectual property rights claims by third parties, which are extremely costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies; we use artificial intelligence technologies in our business, and the deployment, use, and maintenance of these technologies involve significant technological and legal risks; negative macroeconomic conditions and industry-specific market conditions; fluctuations in economic, political, financial, industry and market conditions on a regional, national or global basis, including as a result of, among other things, inflationary pressure that impacts our costs associated with labor, equipment and materials, increased interest rates, default or threat of default by the U.S. federal government with respect to its debt obligations, U.S. government shutdowns, natural disasters and other emergencies (e.g., wildfires, weather-related events or pandemics), deterioration of global or specific trade relationships, or acts of war, including but not limited to conflicts in the Middle East, geopolitical conflicts and political unrest; projects in our industry can have long sales cycles requiring significant upfront investment of resources; our revenues and profitability can be negatively impacted if our customers encounter financial difficulties or file for bankruptcy or disputes arise with our customers; the highly competitive nature of our business; technological advancements in other forms of power generation could negatively affect our business; regulatory requirements applicable to our industry and changes in current and potential legislative and regulatory initiatives may adversely affect demand for our services; the unavailability, reduction or elimination of government and economic incentives; we are subject to complex federal, state and other environmental, health and safety laws and regulations that could adversely affect the cost, manner or feasibility of conducting our operations or expose us to significant liabilities; we are subject to various specific regulatory regimes and requirements that could result in significant compliance costs and liabilities; any actual or perceived failure to comply with new or existing laws, regulations or other requirements relating to the privacy, security and processing of personal information; changes in tax laws or our tax estimates or positions; failure to comply with anti-corruption, anti-bribery and/or international trade laws; violations of export control and/or economic sanctions laws and regulations to which we are subject and changes to U.S. foreign trade policy; immigration laws, including our inability to verify employment eligibility; our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly; our failure to comply with the covenants contained in the credit agreement could result in an event of default that could cause repayment of our debt to be accelerated; we may incur substantial additional indebtedness in the future and may not be able to generate sufficient cash to service such indebtedness, and may be forced to take other actions to satisfy our obligations under such indebtedness, which may not be successful; and the expenses that are required in order to operate as a public company could be material. For additional discussion of factors that could impact our operational and financial results, please refer to our filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at https://investors.solvenergy.com/financial-information/sec-filings. The Company assumes no responsibility to update forward-looking statements made herein or otherwise. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements.
Non-GAAP Information
Included in this press release are certain financial measures, including EBITDA, Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Gross Margin that are not required by or prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and are designed to supplement, and not substitute, the Company’s financial information presented in accordance with GAAP. Our board of directors, management and investors use EBITDA, Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Gross Margin to assess our financial performance because such measures allow them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as carrying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income taxes). The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results, cash flows or leverage will be unaffected by other unusual or nonrecurring items. Please see the financial tables included with this press release for reconciliations thereof to the most directly comparable GAAP measures.
The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as provisions for income taxes necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot predict all of the components of the adjusted calculations and the GAAP measures may be materially different than the non-GAAP measures.
Investor Contact:
Solebury Strategic Communications / Anthony Rozmus
InvestorRelations@solvenergy.com
Media Contact:
Ashley McCarthy
media@solvenergy.com
(Financial Tables to Follow)
| Condensed Consolidated Statements of Operations (In thousands, unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenue | $ | 676,805 | $ | 407,847 | |||
| Cost of revenue | 557,732 | 348,748 | |||||
| Gross profit | 119,073 | 59,099 | |||||
| Selling, general and administrative expenses (including non-cash compensation expense of | 111,375 | 36,070 | |||||
| Amortization expense | 14,879 | 13,768 | |||||
| Total operating expenses | 126,254 | 49,838 | |||||
| Operating income (loss) | (7,181 | ) | 9,261 | ||||
| Loss on debt extinguishment | 10,688 | - | |||||
| Interest expense | 6,897 | 12,691 | |||||
| Interest income | (1,450 | ) | (3,272 | ) | |||
| Other (income) loss, net | (68 | ) | 82 | ||||
| Loss before income taxes | (23,248 | ) | (240 | ) | |||
| Income tax expense | 4,166 | 262 | |||||
| Net loss | $ | (27,414 | ) | $ | (502 | ) | |
| Less: net income (loss) attributable to non-controlling interests and LLC members prior to IPO | (4,056 | ) | 212 | ||||
| Net loss attributable to SOLV Energy, Inc. | $ | (23,358 | ) | $ | (714 | ) | |
| Period from February 12, 2026 to March 31, 2026 | |||||||
| Net loss per share: | |||||||
| Basic | $ | (0.20 | ) | ||||
| Diluted | $ | (0.20 | ) | ||||
| Weighted average shares outstanding: | |||||||
| Basic | 115,348,571 | ||||||
| Diluted | 115,348,571 | ||||||
| Condensed Consolidated Balance Sheets (In thousands, unaudited) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 384,911 | $ | 394,876 | |||
| Accounts receivable, net | 285,039 | 269,044 | |||||
| Contract assets | 157,875 | 156,744 | |||||
| Capitalized project development costs | 13,297 | 17,734 | |||||
| Prepaid and other current assets | 105,528 | 60,887 | |||||
| Total current assets | 946,650 | 899,285 | |||||
| Property and equipment, net | 116,137 | 106,383 | |||||
| Operating lease right-of-use assets | 7,598 | 8,010 | |||||
| Goodwill | 429,035 | 429,279 | |||||
| Intangible assets, net | 347,511 | 362,390 | |||||
| Deferred tax assets | 101,302 | — | |||||
| Other long-term assets | 8,373 | 10,925 | |||||
| Total assets | $ | 1,956,606 | $ | 1,816,272 | |||
| LIABILITIES AND STOCKHOLDERS'/MEMBERS' EQUITY | |||||||
| Accounts payable and accrued expenses | $ | 524,898 | $ | 562,218 | |||
| Contract liabilities | 346,295 | 308,619 | |||||
| Due to related party | — | — | |||||
| Current portion of equipment financing | 6,617 | 6,526 | |||||
| Current portion of lease liabilities | 14,461 | 12,978 | |||||
| Current portion of long-term debt | — | 2,498 | |||||
| Total current liabilities | 892,271 | 892,839 | |||||
| Term debt, long term | — | 391,988 | |||||
| Equipment financing, long-term | 19,703 | 21,317 | |||||
| Lease liabilities, long-term | 39,742 | 36,559 | |||||
| Tax receivable agreement | 172,344 | — | |||||
| Other long-term liabilities | 21,322 | 18,344 | |||||
| Total liabilities | 1,145,382 | 1,361,047 | |||||
| Commitments and Contingencies - See Note 12 | |||||||
| Member's equity: | |||||||
| Total member's equity | — | 550,334 | |||||
| Stockholders' equity | |||||||
| Class A common stock, | 12 | — | |||||
| Class B common stock, | 9 | — | |||||
| Additional paid-in capital | 455,857 | — | |||||
| Accumulated deficit | (23,358 | ) | (98,139 | ) | |||
| Total stockholders' equity to SOLV Energy, Inc. | 432,520 | (98,139 | ) | ||||
| Non-controlling interest | 378,704 | 3,030 | |||||
| Total members’/stockholders’ equity | 811,224 | 455,225 | |||||
| Total liabilities and stockholders'/member's equity | $ | 1,956,606 | $ | 1,816,272 | |||
| Condensed Consolidated Statements of Cash Flows (In thousands, unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (27,414 | ) | $ | (502 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities | |||||||
| Depreciation and amortization | 23,730 | 19,572 | |||||
| Non-cash compensation expense | 64,874 | 712 | |||||
| Loss on extinguishment of debt (non-cash portion) | 6,676 | - | |||||
| Write off of project development costs | 3,939 | - | |||||
| Other | 152 | 7 | |||||
| Change in operating assets and liabilities | (57,716 | ) | 386 | ||||
| Net cash provided by operating activities | 14,241 | 20,175 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (10,440 | ) | (2,778 | ) | |||
| Cash paid for acquisitions, net of cash acquired | - | (10,756 | ) | ||||
| Net cash used in investing activities | (10,440 | ) | (13,534 | ) | |||
| Cash flows from financing activities: | |||||||
| Issuance of Class A common stock in IPO, net of underwriting discount | 552,542 | - | |||||
| Repayment of term debt | (405,203 | ) | (1,015 | ) | |||
| Payment of deferred acquisition consideration | (5,500 | ) | - | ||||
| Payment of offering costs | (3,536 | ) | - | ||||
| Proceeds on debt | - | 32,500 | |||||
| Payment of debt issuance costs | (2,800 | ) | - | ||||
| Payments for finance leases | (2,901 | ) | (1,979 | ) | |||
| Proceeds on equipment financing | - | 14,500 | |||||
| Payments on equipment financing | (1,523 | ) | (1,764 | ) | |||
| Distributions to members of SOLV Energy Holdings LLC | (144,845 | ) | (47,844 | ) | |||
| Net cash used in financing activities | (13,766 | ) | (5,602 | ) | |||
| Net increase (decrease) in cash and cash equivalents | (9,965 | ) | 1,039 | ||||
| Cash and cash equivalents, beginning of period | 394,876 | 207,987 | |||||
| Cash and cash equivalents, end of period | $ | 384,911 | $ | 209,026 | |||
| Reconciliation of Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (in thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net loss | $ | (27,414 | ) | $ | (502 | ) | |
| Interest expense | 6,897 | 12,691 | |||||
| Interest income | (1,450 | ) | (3,272 | ) | |||
| Provision for income taxes | 4,166 | 262 | |||||
| Depreciation and amortization | 23,730 | 19,572 | |||||
| EBITDA | 5,929 | 28,751 | |||||
| Non-cash compensation expense | 64,874 | 712 | |||||
| Gain on the disposal of property and equipment | (10 | ) | — | ||||
| Loss on the extinguishment of debt | 10,688 | — | |||||
| Change in the fair value of derivative | — | 82 | |||||
| Non-recurring private equity management fees, transaction, integration and transition costs, and other non-cash costs(1) | 11,034 | 4,486 | |||||
| Adjusted EBITDA | $ | 92,515 | $ | 34,031 | |||
| Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit (in thousands) | |||||
| Three Months Ended March 31, | |||||
| 2026 | 2025 | ||||
| Gross profit | $ | 119,073 | $ | 59,099 | |
| Non-cash compensation expense | 5,314 | — | |||
| Adjusted gross profit | $ | 124,387 | $ | 59,099 | |
