Financial Performance - SOLV Energy, Inc. recognized total revenue of $2.49 billion for the year ended December 31, 2025, an increase of 35% from $1.85 billion in 2024[490]. - The company reported a gross profit of $464.2 million in 2025, compared to $259.2 million in 2024, reflecting a gross margin improvement[490]. - Operating income for 2025 was $195.4 million, significantly up from $64.9 million in 2024, indicating strong operational efficiency[490]. - The net income attributable to controlling interests for 2025 was $149.2 million, a significant increase from $9.9 million in 2024[490]. - Net income for 2025 was $149.7 million, a significant increase from $9.9 million in 2024 and a recovery from a loss of $109.8 million in 2023[495]. - The company reported a consolidated income before income taxes of $153,346 for 2025, a substantial increase from $10,522 in 2024 and a recovery from a loss of $109,639 in 2023[568]. - Total revenue for 2025 reached $2,490,496, representing a 34.8% increase compared to $1,847,803 in 2024 and an 18.6% increase from $2,100,643 in 2023[568]. - Segment Adjusted EBITDA for 2025 was $341,677, a significant increase of 106.6% from $165,133 in 2024 and up from $52,608 in 2023[568]. Capital Structure and Financing - The company completed its IPO on February 12, 2026, raising gross proceeds of $589.4 million by selling 23,575,000 shares at $25.00 per share[23]. - The company has a new revolving credit facility of $200.0 million, maturing on February 12, 2031[21]. - The company repaid approximately $405.6 million of amounts due under Term Loans using proceeds from the IPO, with remaining funds allocated for general corporate purposes, including potential growth initiatives and M&A opportunities[31]. - The company utilized approximately $552.5 million of net proceeds from the IPO to purchase 23,575,000 newly issued LLC Interests[468]. - SOLV Energy Holdings LLC repaid approximately $401.1 million of outstanding indebtedness under existing term loan facilities following the IPO[472]. - A new revolving credit facility was established with an aggregate principal amount of $200 million, secured by substantially all assets of SOLV Energy Holdings LLC[473]. - Long-term debt as of December 31, 2025, was $397,128, an increase from $369,017 in 2024, with net long-term debt at $391,988 after accounting for unamortized issuance costs[571]. Operational Risks and Challenges - The company faces risks related to changes in government incentives for renewable energy, which could adversely affect financial performance[16]. - The company is subject to various operational hazards, including severe weather conditions, which may impact project costs and timelines[19]. - The company utilizes Artificial Intelligence technologies, which involve significant technological and legal risks[19]. - The company’s business is labor-intensive, and challenges in attracting and retaining qualified employees could impact operational efficiency[16]. - The company’s backlog may not accurately represent future revenue, posing risks to revenue realization[15]. - The company may incur liabilities related to warranty and engineering claims, which could negatively affect financial condition[19]. - The company is exposed to interest rate risk, with a potential annual interest expense change of approximately $4.1 million for a 100 basis point fluctuation in interest rates on variable rate debt[444]. Growth and Future Outlook - The company anticipates significant growth in future operations, although specific growth percentages are not disclosed[12]. - The company specializes in utility-scale solar and battery storage projects, indicating a focus on renewable energy infrastructure[496]. - The aggregate amount of transaction price allocated to remaining performance obligations was $2,023,670 as of December 31, 2025, expected to be recognized over the next 12 to 18 months[557]. - The Company anticipates recognizing substantially all remaining performance obligations under contracts over the next 12 to 18 months[557]. Cash Flow and Liquidity - Net cash provided by operating activities reached $331.6 million in 2025, up from $117.6 million in 2024 and $50.3 million in 2023, indicating strong operational performance[495]. - The company reported a cash and cash equivalents balance of $394.9 million at the end of 2025, compared to $208.0 million in 2024 and $178.0 million in 2023, reflecting improved liquidity[495]. Share-Based Compensation - The company recorded share-based compensation expenses of $830 million and $905 million for the years ended December 31, 2024 and 2023, respectively[600]. - A one-time incremental expense of approximately $776 million was recognized for the vested awards in the statement of operations for the year ended December 31, 2024[611]. - The company granted 70,715 time-vested units in 2025, with an average exercise price of $357.05, resulting in a total of 216,187 outstanding units by the end of the year[615]. - Compensation expense related to Legacy SOLV time-vested units was $2,761 million in 2025, with $12,554 million of unrecognized compensation expense expected to be recognized through 2029[615]. - The company recorded $555 million in compensation expense related to performance-vested units for the year ended December 31, 2025[617].
SOLV Energy(MWH) - 2025 Q4 - Annual Report