SOLV Energy, Inc. Class A Common Stock

SOLV reported Q2 2026 revenue of $951 million, up 77% year over year; adjusted gross profit was $145 million, up 28%; and adjusted EBITDA was $117 million. For the first half of 2026, revenue was about $1.63 billion, up 72%; adjusted gross profit was $269 million, up 56%; and adjusted EBITDA was $210 million, up 75%. First-half adjusted gross margin was 16.5%, and backlog ended the quarter at approximately $8.9 billion, up 44% year over year. Management raised full-year 2026 guidance to revenue of $3.87 billion to $3.97 billion, adjusted gross profit of $620 million to $660 million, and adjusted EBITDA of $485 million to $505 million. The updated adjusted EBITDA margin outlook is 12.5% to 12.7%, while adjusted gross margin guidance is 16% to 16.6%, down from 16.4% to 17% mainly because of a presentation change for incentive compensation.

George Hershman emphasized that SOLV is executing more work than ever, with its largest projects underway and safety metrics outperforming industry benchmarks. He framed the business as benefiting from a strong multi-year demand backdrop tied to data infrastructure, electrification, reshoring, solar, and storage. Strategically, he highlighted the company’s expanding ecosystem across generation, delivery, and services, and said acquisitions are meant to deepen capabilities and make SOLV the preferred life-cycle services platform.

Chad Plotkin said the quarter reflected strong execution, with revenue growth driven by new construction and M&A, plus some revenue pulled forward from the second half because projects accelerated ahead of schedule. He noted adjusted gross profit rose to $145 million in Q2 and $269 million in the first half, while the first-half adjusted gross margin of 16.5% was reduced by more than 60 basis points from a compensation accounting reclassification that does not affect EBITDA, net income, or cash flow. He also said backlog reached about $8.9 billion, average project size in new backlog was about 450 megawatts versus just over 200 megawatts a year ago, and the company has no long-term debt.

Analysts focused on backlog conversion, the impact of Section 232 on module costs and project timing, the size of the Roberson Waite contribution, and whether guidance seemed conservative relative to backlog. Management said backlog continues to move from a large funnel into LNTP and then backlog, with much of the portfolio already late-stage and that they do not expect near-term project slips from Section 232 because most projects are late-stage and modules are largely secured. On the RWE deal, management said it is embedded in guidance but did not disclose the specific contribution, and on the back half of the year Chad said Q3 should be larger than Q4 because of holidays and typical seasonality.