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Solv Energy
(NASDAQ:MWH)
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Rating:66Neutral
Price Target:
$23.50
▼(-5.17% Downside)
Action:N/A
Date:10/17/26
The score is driven primarily by improved financial performance (notably strong cash flow and profitability rebound) and a positive earnings call with raised guidance and a growing backlog. These positives are tempered by weak technicals (below major moving averages with negative MACD) and a stretched valuation (P/E ~99.8), which together increase near-term risk and reduce margin of safety.
Positive Factors
Backlog Visibility
The 44% backlog increase provides meaningful multi-year revenue visibility and supports continued project activity beyond the current reporting period. Larger average projects and a substantial contracted pipeline can improve operating scale, although recognition will still depend on project timing and execution.
Negative Factors
Meaningful Leverage
Debt roughly in line with equity leaves less financial flexibility if project results weaken, costs rise, or cash conversion is delayed. The leverage profile could constrain capital allocation and increase sensitivity to weaker operating periods, despite the company’s reported improvement in profitability.
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Positive Factors
Negative Factors
Backlog Visibility
The 44% backlog increase provides meaningful multi-year revenue visibility and supports continued project activity beyond the current reporting period. Larger average projects and a substantial contracted pipeline can improve operating scale, although recognition will still depend on project timing and execution.
Read all positive factors
Solv Energy (MWH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.64B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)54.1
Beta (1Y)1.25
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,600
SectorGeneral
Sector StrengthN/A
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.43
Shares Outstanding123,745,400
10 Day Avg. Volume1,370,203
30 Day Avg. Volume1,370,300
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)13.84
Price to Sales (P/S)2.51
P/FCF Ratio20.18
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue2.19
Enterprise Value/Gross Profit13.87
Enterprise Value/Ebitda24.16
Forecast
1Y Price Target
$39.20Price Target Upside58.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.08
Revenue Forecast (FY)$3.93B
Solv Energy Business Overview & Revenue Model
Company Description
SOLV Energy, Inc. provides infrastructure services to the power industry in the United States. It offers engineering, procurement, construction, testing, commissioning, operations, maintenance, and repowering services. The company engages in desig...
Solv Energy Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call communicated strong operational execution and robust financial results: record revenue, significant adjusted EBITDA growth, a materially expanded backlog (44% YoY) with larger average project sizes, growing storage exposure, and an upgraded full-year guidance range. Strategic M&A (Roberson Waite Electric) and a debt-free balance sheet were highlighted as strengths. The primary negatives were a prospective accounting presentation change that reduced reported adjusted gross margin by ~60 basis points, ongoing monitoring of Section 232-related procurement risk (with no near-term impact identified), and the inherently lumpy timing of backlog conversion which moderates how much of the large backlog can be recognized in 2026. Overall, the positive operational and financial momentum and the guidance raise outweigh the modest margin presentation change and external procurement uncertainties.Positive Updates
Record Revenue and Strong Top-Line Growth
First half 2026 revenue of $1.63 billion, up 72% year-over-year; Q2 2026 revenue of $951 million, up 77% year-over-year. Management also reported pulling forward revenue as projects accelerated, with ~75% of new construction revenue in Q2 from projects <50% complete.
Negative Updates
Adjusted Gross Margin Impact from Accounting Change
A prospective presentation change moved a portion of annual incentive-based cash compensation from SG&A into cost of revenue, reducing planned adjusted gross margin by over 60 basis points through H1 (resulting reported H1 adjusted gross margin ~16.5%). Management noted this change has no impact on adjusted EBITDA, net income or cash flows due to an offset in SG&A.
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Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
First half 2026 revenue of $1.63 billion, up 72% year-over-year; Q2 2026 revenue of $951 million, up 77% year-over-year. Management also reported pulling forward revenue as projects accelerated, with ~75% of new construction revenue in Q2 from projects <50% complete.
Read all positive updates
Company Guidance
SOLV raised full‑year 2026 guidance to revenue of $3.87–$3.97 billion, adjusted gross profit of $620–$660 million and adjusted EBITDA of $485–$505 million (implying an adjusted EBITDA margin of ~12.5%–12.7%), while updating adjusted gross margin guidance to 16.0%–16.6% (from 16.4%–17.0%) largely due to a prospective reclassification of incentive compensation; the raise reflects strong H1 execution (H1 revenue $1.63B, +72%; H1 adjusted EBITDA $210M, +75%; H1 adjusted gross profit $269M), contribution from the Roberson Waite acquisition (closed July 1), and an ending backlog of ~ $8.9B (up 44% YoY, 100% safe‑harbor, including ~$2.5B storage‑related) with 23 GW under O&M.Solv Energy Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 3.17B | 2.49B | 1.85B | 2.10B |
| Gross Profit | 502.30M | 406.49M | 259.16M | 110.00M |
| EBITDA | 288.33M | 280.99M | 150.75M | 31.89M |
| Net Income | 87.37M | 149.18M | 49.92M | -109.84M |
Balance Sheet | ||||
| Total Assets | 2.13B | 1.82B | 1.48B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 363.97M | 394.88M | 207.99M | 178.02M |
| Total Debt | 83.62M | 471.87M | 422.43M | 436.22M |
| Total Liabilities | 1.28B | 1.36B | 1.08B | 1.19B |
| Stockholders Equity | 496.78M | 452.19M | 390.94M | 388.33M |
Cash Flow | ||||
| Free Cash Flow | 291.99M | 310.23M | 109.04M | 35.89M |
| Operating Cash Flow | 324.05M | 331.64M | 117.61M | 50.29M |
| Investing Cash Flow | -31.63M | -76.74M | -8.27M | -13.86M |
| Financing Cash Flow | -91.87M | -68.01M | -79.37M | -34.88M |
Solv Energy Peers Comparison
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.