SOLV Energy (NasdaqGM:MWH) Q4 2025 Earnings call March 19, 2026 08:30 AM ET Company ParticipantsAnthony Rozmus - Investor RelationsChad Plotkin - CFODylan Nassano - Senior Vice PresidentGeorge Hershman - CEOMarc Bianchi - Managing DirectorMark Strouse - Executive DirectorConference Call ParticipantsBen Kallo - Senior Research AnalystJulien Dumoulin-Smith - Research AnalystMark Jarvi - Equity Research AnalystPhilip Shen - Senior Research AnalystSangita Jain - Senior Equity Research AnalystOperatorGreetings. ...

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 80% year-over-year to $794 million, with full-year revenue reaching approximately $2.49 billion, a 35% increase year-over-year [15] - Adjusted EBITDA for Q4 was $100 million, and for the full year, it was $342 million, more than doubling from 2024 [16] - Gross margin for Q4 and full year 2025 was over 18%, with gross profit of $144 million and $464 million respectively [16][17] - Backlog as of the end of 2025 stood at $8 billion, an increase of 87% since year-end 2024 [17] Business Line Data and Key Metrics Changes - The core EPC business drove revenue growth, while the O&M services business contributed $113 million for the full year, an increase of nearly 55% year-over-year [15] - The company is contracted for over 20 gigawatts of services, supporting predictable cash flow [16] Market Data and Key Metrics Changes - The U.S. is experiencing unprecedented electricity demand driven by data center growth and reshoring of manufacturing, with solar and storage build rates nearly tripling [6][7] - Solar remains the lowest cost source of new generation, uniquely positioned to meet near-term reliability needs [7] Company Strategy and Development Direction - The company focuses on the fastest-growing market segments, especially projects above 200 megawatts, and is expanding its O&M business to deepen recurring revenue [13][14] - Investment in innovation, digital tools, and strategic acquisitions is part of the growth strategy [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the ability to capitalize on it, with a clear growth strategy in place [14][19] - The company initiated full-year financial guidance for 2026 with revenue expected in the range of $3.72 billion to $3.82 billion, representing a 51% increase at the midpoint compared to 2025 [18] Other Important Information - The company has fully deleveraged its balance sheet with net IPO proceeds of approximately $553 million, providing significant flexibility for growth [19] - The company operates across all 48 continental U.S. states, supported by over 2,600 employees [8] Q&A Session Summary Question: Gross margin guidance for 2026 and seasonality - Management acknowledged seasonality in the business and noted that strong performance in 2025 was due to large service projects contributing to margins [25][26] Question: Use of cash on the balance sheet - Management indicated they are exploring options to grow services and strengthen core offerings, leveraging the strong balance sheet post-IPO [28][29] Question: Impact of gas prices on project costs - Management stated that fuel costs have less than 1% impact on project costs, and they are monitoring supply chain disruptions [33][35] Question: Competitive environment and backlog - Management noted that the competitive landscape is shrinking as fewer EPC and O&M providers can meet the scale of current demand [36][37] Question: Bookings outlook for 2026 - Management reported continued opportunities in the pipeline, with backlog growing quarter-over-quarter and no signs of market slowdown [39][40] Question: Safe harbor projects - Management confirmed that all backlog is safe-harbored, and most projects awarded today are also safe-harbored [48][49] Question: Market share in battery storage - Management indicated a growing focus on battery storage as part of their business strategy, with ongoing discussions with customers [74][75]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 80% year-over-year to $794 million, while full-year revenue reached approximately $2.49 billion, a 35% increase year-over-year [14] - Gross margin for Q4 and full year 2025 was over 18%, with gross profit of $144 million and $464 million respectively, driven by strong productivity and cost containment [15] - Adjusted EBITDA for Q4 was $100 million, and for the full year, it was $342 million, more than doubling from 2024 [15] Business Line Data and Key Metrics Changes - The core EPC business continued to grow, contributing significantly to revenue, while the O&M services business contributed $113 million for the full year, an increase of nearly 55% year-over-year [14] - The backlog as of December 31, 2025, was over $8 billion, an increase of 87% since year-end 2024, providing visibility into future performance [16] Market Data and Key Metrics Changes - The U.S. is experiencing an unprecedented surge in electricity demand driven by data center growth and reshoring of manufacturing, with solar and storage build rates nearly tripling [5] - The expected load growth has increased almost fivefold, indicating a strong market environment for solar solutions [5] Company Strategy and Development Direction - The company focuses on the fastest-growing segment of the market, especially projects above 200 megawatts, and is expanding its O&M business to deepen recurring revenue [11] - The strategy includes leveraging capabilities to move into adjacent markets, investing in innovation, and pursuing strategic acquisitions to strengthen capabilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for solar and storage solutions, noting that traditional generation methods cannot meet the rising demand [6] - The company is well-positioned to capitalize on market opportunities, with a strong backlog and a disciplined growth strategy [12] Other Important Information - The company has fully deleveraged its balance sheet with net IPO proceeds of approximately $553 million, providing significant flexibility for growth [18] - The company is committed to meeting compliance requirements as a new public company, including Sarbanes-Oxley readiness [18] Q&A Session Summary Question: How to set expectations on the seasonality of gross margin? - Management noted that 2025 saw strong performance across regions, with large service projects contributing to margins, which are harder to predict [24][25] Question: How to characterize the use of cash on the balance sheet? - Management indicated they are exploring options to grow services and strengthen core offerings, recognizing their strong position post-IPO [27] Question: How to think about gas prices and their impact on project costs? - Management stated that fuel costs have less than 1% impact on project costs, and they are monitoring the situation without current disruptions [32][34] Question: What is the outlook for bookings in the coming quarters? - Management sees continued opportunities in the pipeline, with backlog growing quarter-over-quarter and no signs of market slowdown [39][41] Question: How much of the backlog is related to safe harbor projects? - Management confirmed that all backlog is safe-harbored, with most projects awarded today being safe-harbored due to provisions for 2024 and 2025 [49][50] Question: What is the mix of solar only versus paired with storage in the backlog? - Management indicated that approximately $2 billion of the $8 billion backlog is related to standalone or hybrid projects involving battery storage [70]

Fourth Quarter and Year End 2025 Earnings MARCH 19, 2026 Disclaimer Forward Looking Statements This presentation 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 are forward-looking statem ...

SOLV Energy Reports Fourth Quarter and Full Year 2025 Results SAN DIEGO, California – March 19, 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 fourth quarter and full year ended December 31, 2025. Financial Summary | (in $ millions except percentages) | Three Months Ended | | Twelve Months Ended | | | --- | --- | --- | --- | --- | | | December 31, | | December 31 ...

Core Insights - SOLV Energy, Inc. reported record financial performance for the fourth quarter and full year ended December 31, 2025, driven by strong demand for infrastructure services in the power industry [3][4] - The company successfully completed its IPO, raising $552.5 million in net proceeds, which has strengthened its financial foundation [7] - SOLV Energy anticipates 2026 to be a foundational year for disciplined and scalable growth, with a focus on executing its strategy and deepening customer relationships [4] Financial Summary - For Q4 2025, SOLV Energy achieved revenue of $794 million, a significant increase from $441 million in Q4 2024, representing an 80% year-over-year growth [2] - Gross profit for Q4 2025 was $144 million, up from $82 million in Q4 2024, with a gross margin of 18.1% compared to 18.5% in the previous year [2] - The net income for Q4 2025 was $36 million, compared to $10 million in Q4 2024, while adjusted EBITDA rose to $100 million from $53 million [2] Year-End Performance - For the full year 2025, SOLV Energy reported total revenue of $2.49 billion, up from $1.85 billion in 2024, marking a 35% increase [2] - The gross profit for the full year was $464 million, compared to $259 million in 2024, with a gross margin improvement to 18.6% from 14.0% [2] - The net income for 2025 was $149 million, a substantial increase from $10 million in 2024, and adjusted EBITDA reached $342 million, up from $165 million [2] Business Highlights - The company ended 2025 with a backlog of $8 billion, an 87% increase from the previous year, indicating strong future revenue potential [7] - SOLV Energy has over 20 GW under contract for operations and maintenance services, showcasing its significant market presence [7] - The management expressed confidence in the company's long-term vision and the positive reception from the investment community [3][4] Financial Guidance for 2026 - SOLV Energy has initiated financial guidance for 2026, projecting revenue between $3.720 billion and $3.820 billion, with gross profit expected to be between $580 million and $620 million [8] - The company anticipates a gross margin of 15.6% to 16.2% and adjusted EBITDA in the range of $400 million to $420 million for the year [8]

SAN DIEGO, March 16, 2026 (GLOBE NEWSWIRE) -- SOLV Energy, Inc. (“SOLV” or the “Company”) (Nasdaq: MWH) plans to report fourth quarter and full year 2025 results on Thursday, March 19, 2026. Management will present results during a conference call 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 ...

Group 1: Oil and Gas Sector - Oil stocks experienced a decline, with Sinopec (00386) down 3.89%, PetroChina (00857) down 3.17%, and CNOOC (00883) down 2.79%. This follows a drop in WTI crude oil futures by 2.77% to $62.84 per barrel and Brent crude by 2.71% to $67.52 per barrel [1] Group 2: Renewable Energy Sector - Solar stocks fell collectively, with Xinyi Solar (00968) down 3.62% and New Special Energy (01799) down 3.61%. The rise in silver prices has increased silver paste costs, impacting the battery and component sectors [1] Group 3: Precious Metals Sector - Lao Poo Gold (06181) saw a nearly 5% drop. Bank of America Securities reported that the company is expected to benefit from rising gold prices, with a projected revenue increase of 165% year-on-year for the second half of last year [1] Group 4: Pharmaceuticals - Zai Lab (09688) rose by 7% after its injection drug ZL-1310 was proposed for breakthrough therapy designation for extensive-stage small cell lung cancer (ES-SCLC), showing promising early clinical data [2] Group 5: Precision Manufacturing - China High Precision (00591) fell over 18% after issuing a profit warning, expecting a profit of approximately RMB 2.5 million to RMB 4.5 million for the six months ending December 31, 2025, due to project delays in the oil and petrochemical sectors [2] Group 6: Non-Ferrous Metals - Non-ferrous stocks faced significant declines, with China Nonferrous Mining (01258) down 5.08% and Zijin Mining (02899) down 5.29%. This is attributed to a "de-risking" sentiment in global financial markets, leading to a sell-off in precious metals [3] Group 7: Biotechnology - Xiansheng Pharmaceutical (02096) increased over 4.4% after announcing a licensing agreement with AbbVie for the investigational drug SIM0500, which includes upfront payments and potential milestone payments totaling up to $1.055 billion [3] Group 8: Gaming Sector - Gaming stocks declined, with Melco International Development (00200) down 6.21%. Wynn Macau reported a 7% year-on-year drop in EBITDA for Q4 2025, which was below market expectations [4] Group 9: Oilfield Services - Anton Oilfield Services (03337) rose over 9% after announcing a profit forecast of approximately RMB 360 million to RMB 380 million for 2025, representing a significant year-on-year increase of 48.4% to 56.6% [4] Group 10: U.S. Market Movements - Arko Petroleum (APC.US) opened with a 2.5% decline after its market debut. The company delivered 1.5 billion gallons of fuel in the nine months ending September 30, 2025 [5] - Albemarle (ALB.US) fell 9.41% despite a 16% year-on-year increase in Q4 sales to $1.4 billion, reporting a net loss of $414 million [5] - Boeing (BA.US) rose 1.31% as it plans to increase the monthly production of its 737 series aircraft to 63 units in the coming years [5] Group 11: Technology Sector - Cisco (CSCO.US) dropped 12.32% as it projected a decline in adjusted gross margin for Q3, indicating a worsening trend compared to previous quarters [7] - Storage stocks saw gains, with SanDisk (SNDK.US) up 5.16% and Western Digital (WDC.US) up 3.78% [7]

Core Viewpoint - SOLV Energy, Inc. has successfully closed its initial public offering (IPO) of 23,575,000 shares of Class A common stock at an offering price of $25.00 per share, including the full exercise of the underwriters' option for an additional 3,075,000 shares [1] Company Overview - SOLV Energy is a prominent provider of infrastructure services to the power industry, specializing in engineering, procurement, construction, testing, commissioning, operations, maintenance, and repowering [5] - Since its inception in 2008, the company has constructed over 500 power plants, totaling 20 GW of generating capacity, and provides operations and maintenance services to 146 operating power plants, representing over 18 GW of generating capacity [5] - The company also offers large-scale repair, emergency response, and repowering services, along with end-to-end SCADA and network infrastructure solutions to enhance project performance and energy availability [5] IPO Details - The shares began trading on the Nasdaq Global Select Market under the ticker symbol "MWH" on February 11, 2026 [2] - Jefferies and J.P. Morgan served as joint lead book-running managers for the offering, with several other firms acting as bookrunners and co-managers [2]

Core Viewpoint - SOLV Energy, Inc. has successfully closed its initial public offering (IPO) of 23,575,000 shares of Class A common stock at an initial price of $25.00 per share, including the full exercise of the underwriters' option for an additional 3,075,000 shares [1]. Company Overview - SOLV Energy is a prominent provider of infrastructure services to the power industry, specializing in engineering, procurement, construction, testing, commissioning, operations, maintenance, and repowering [5]. - Since its inception in 2008, the company has constructed over 500 power plants, totaling 20 GW of generating capacity, and provides operations and maintenance services to 146 operating power plants, representing over 18 GW of generating capacity [5]. - The company also offers large-scale repair, emergency response, and repowering services, along with end-to-end SCADA and network infrastructure solutions to enhance project performance and energy availability [5]. IPO Details - The shares began trading on the Nasdaq Global Select Market under the ticker symbol "MWH" on February 11, 2026 [2]. - Jefferies and J.P. Morgan served as joint lead book-running managers for the offering, with several other firms acting as bookrunners and co-managers [2].