SOLV Energy, Inc.

What they do

SOLV Energy provides infrastructure services to the power industry, including new construction activity, operations and maintenance (O&M) services and corrective maintenance on energy infrastructure. The company operates through SOLV Energy Holdings LLC, of which SOLV Energy, Inc. holds approximately 61.1% of the LLC Interests, with the remaining interests held by Continuing Equity Owners. It is a Delaware corporation incorporated with IRS identification number 33-4537250, trading on Nasdaq under the symbol MWH.

Revenue drivers

• New construction activity — The company attributed second quarter 2026 revenue growth primarily to an increase in new construction activity and the contribution from M&A activity; no further segment-level revenue breakdown was provided in the excerpts.
• Operations and maintenance (O&M) services — The company reported over 23 GW now under contract for O&M services as of the second quarter 2026 earnings release, indicating a recurring services revenue stream.
• Corrective maintenance backlog — SOLV reports a separate Estimated Corrective Maintenance Backlog alongside Total Backlog; the filings describe historical 2025 contribution from large repair projects, but no separate revenue figure for this line was disclosed.
• M&A contribution — Revenue growth in the second quarter of 2026 reflected contribution from M&A activity, including the July 1, 2026 acquisition of Roberson Waite Electric, although the company does not disclose the standalone revenue contribution of acquisitions.

Recent performance

Second quarter 2026 revenue was $951.2 million, up 77% from $536.0 million in the prior-year quarter, bringing first half 2026 revenue to $1.628 billion, up 72% year over year. Gross profit was $139.6 million in the second quarter of 2026 (14.7% margin) versus $113.1 million (21.1% margin) a year earlier; first half gross margin was 15.9% versus 18.2%. Adjusted EBITDA was $117 million in the second quarter of 2026 (12.4% margin) and $210 million for the first half (12.9% margin). Net income before non-controlling interest was $67 million for the second quarter of 2026, compared to $45 million in the prior-year period, helped by higher operating income and lower interest expense after term debt repayment in February 2026. The company noted the margin decline reflected the prior-year contribution from large repair projects and a prospective classification change moving certain annual bonus compensation into cost of revenue, worth over 60 basis points in the first half of 2026.

Strategy

Management highlighted strong execution across the business and continued customer demand to build, maintain and enhance critical energy infrastructure. The company closed the acquisition of Roberson Waite Electric on July 1, 2026, which management said strengthens the platform and expands the solutions offered to customers. SOLV is focused on growing backlog, which reached approximately $8.9 billion as of June 30, 2026, up 44% year over year, and on expanding contracted O&M services, now over 23 GW. Management stated the company is well positioned for the remainder of the year and is raising full-year financial guidance. Following the February 2026 transactions, SOLV Energy, Inc. is taxed as a corporation and holds a majority of LLC Interests in SOLV Energy Holdings LLC, which is treated as a partnership for U.S. federal income tax purposes.

Risks

• Margin compression — Gross margin fell to 14.7% in the second quarter of 2026 from 21.1% a year earlier, partly because prior-year results included large repair projects no longer in ordinary course operations.
• Backlog conversion uncertainty — The company warns its backlog methodology may not be comparable to other companies' and that backlog differs from remaining performance obligations, so the $8.9 billion figure may not translate directly into future revenue.
• Accounting presentation change — Beginning in the second quarter of 2026, certain annual incentive compensation was reclassified from selling, general and administrative expense to cost of revenue, reducing reported gross margin by over 60 basis points in the first half of 2026.
• Complex tax and ownership structure — SOLV Energy, Inc. is a corporation taxed at prevailing corporate rates on its allocable share of Holdings' taxable income while holding only about 61.1% of LLC Interests, with the remainder held by Continuing Equity Owners and a portion of net income allocated to non-controlling interest.

Outlook

Management said it is raising full-year financial guidance and is well positioned for the remainder of the year, citing growing backlog, strong momentum across operations and continued focus on execution. The company pointed to the Roberson Waite Electric acquisition, closed July 1, 2026, as strengthening its platform, and to over 23 GW under contract for O&M services. It also noted last-twelve-month safety metrics tracking well below industry benchmarks. No specific guidance figures were disclosed in the excerpts provided.