SOLV Energy raises 2026 forecast, but Q3 profit misses estimates
SOLV Energy raised its 2026 adjusted EBITDA forecast to $525 million to $540 million. Diluted EPS of 53 cents missed the 59 cents consensus estimate; revenue of $1.24 billion topped the $1.21 billion estimate.
Key takeaways
- SOLV Energy (MWH) raised its full-year 2026 adjusted EBITDA forecast to $525 million to $540 million. Third-quarter revenue rose 65% to $1.24 billion, above the $1.21 billion consensus estimate. Diluted EPS of 53 cents missed the 59 cents consensus estimate. The company also completed its acquisition of ASB Energy Services on Oct. 30.
SOLV Energy (MWH), which has built over 24 GW of generating capacity since 2008, raised its full-year 2026 adjusted EBITDA forecast after third-quarter revenue rose 65% from a year earlier.
Shares fell 1.1% at 9:37 a.m. ET, from a $27.58 close.
Revenue of $1.24 billion topped the $1.21 billion estimate.
Here's how the company did:
- Revenue: $1.24 billion vs. $753 million a year earlier
- Diluted EPS: 53 cents vs. 59 cents consensus estimate
- Net income: $123 million vs. $70 million a year earlier
- Adjusted EBITDA: $173 million vs. $122 million a year earlier
- Adjusted gross profit: $215 million vs. $148 million a year earlier
Year to date, revenue reached $2.87 billion, up 69% from a year earlier.
Gross margin was 17.8%, against 19.7% a year earlier, partly reflecting a shift of certain annual incentive compensation into cost of revenue from selling, general and administrative expense in 2026.
Revenue has risen in each of the last three quarters, from $407.8 million to $951.2 million.
CEO George Hershman said: "We are raising our full-year guidance and remain focused on disciplined execution, responsible growth, and expanding the value we provide to our customers."
2026 guidance
SOLV raised each of its four full-year 2026 guidance measures.
| Metric | Revised 2026 guidance | Prior guidance |
|---|---|---|
| Adjusted gross profit | $660 million to $690 million | $620 million to $660 million |
| Adjusted gross margin | 16.4% to 16.7% | 16.0% to 16.6% |
| Adjusted EBITDA | $525 million to $540 million | $485 million to $505 million |
| Adjusted EBITDA margin | 13.0% to 13.1% | 12.5% to 12.7% |
Prior ranges are from the second-quarter release on Aug. 13, 2026.
Acquisition and liquidity
On Oct. 30, SOLV completed its acquisition of ASB Energy Services, a Texas-based contractor specializing in substation foundations, civil construction and battery energy storage system infrastructure. Consideration included about $36 million in cash, net of cash acquired, and 376,836 shares of Class A common stock.
Liquidity ended the quarter at about $609 million, including $422 million of cash and $187 million of availability under its revolving credit facility, after about $13 million of letters of credit. That excludes ASB.
Year-to-date net income of $162 million reflected lower interest expense after term debt was repaid at the February 2026 IPO. That was partly offset by an $11 million loss on extinguishment of that debt and a $77 million one-time non-cash compensation charge tied to legacy equity awards.