SOLV Energy, Inc. Class A Common Stock 2026 Q2 Earnings Call

Thank you. Good morning, everyone, and thank you for joining us for SOLV Energy's second quarter 2026 earnings conference call. Before we begin, we would like to remind you that this conference call may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are subject to various risks, uncertainties, and assumptions, could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are detailed in this morning's press release, as well as our filings with the SEC, which can be found on our website at investors.solvenergy.com. We undertake no obligation to revise or update any forward-looking statements or information, except as required by law. During our call today, we will also reference certain non-GAAP financial information.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Reconciliations of GAAP to non-GAAP measures can be found in this morning's press release and in our SEC filings. Joining me on the call today is SOLV Energy CEO George Hershman and CFO Chad Plotkin. Following our prepared remarks, we will open the call for your questions. As a reminder, there will be a replay of this call posted on the IR website. With that, I will turn the call over to George.

Great. Thank you, Mike, and good morning, everyone. I am very excited to report that we are executing more work today than at any point in our company's history, with our largest projects to date underway and more employees working safely across the country than ever before. That is a reflection of both the scale we have achieved and the incredible strength and dedication of our teams. I am proud of where we are and even more excited about where we are going. Now let us walk through our highlights for the second quarter. I will start where we always do, with safety. Our trailing 12-month safety metrics continue to outperform industry benchmarks. A safe project is a profitable project, and most importantly, our number one responsibility is to get our people home safely every day. That commitment is embedded across our organization, and it shows across all of our results.

Let's turn to financial performance. We delivered record results for the first half of 2026. Revenue was $1.63 billion, up 72%, with adjusted EBITDA of $210 million, up 75%. These results reflect strong execution across the business and a backlog that is continuing to convert according to plan. The market environment remains very favorable. We are in the middle of a step change in the U.S. power demand, driven by growth in data infrastructure, industrial reshoring, and electrification. Solar and battery storage remain the most cost-competitive and fastest-to-market solution for adding new generation capacity, and we believe SOLV is well positioned to reap the benefits of the accelerating infrastructure build-out. We also continued executing on our M&A strategy with the closing of the Roberson Waite Electric acquisition on July 1st.

Roberson Waite Electric expanded our utility infrastructure capabilities and strengthens the range of services we can provide to our customers. We ended the quarter with approximately $8.9 billion of backlog, representing 44% growth year-over-year. Importantly, 100% of the projects in our backlog are safe harbors. Recognizing our strong performance in the first half of the year and the continued momentum in the business, we are raising our full-year financial guidance. Chad will discuss this in more detail later in the call. Overall, SOLV is in a strong position. Our backlog continues to grow, our teams are executing at the highest level, and demand across our markets remain extremely healthy. Let's turn to slide 5. I want to spend a moment here on the market because it supports the long-term opportunities we see for the business.

First, U.S. electricity demand is expected to increase approximately 28% over the next decade, compared to only 5% growth during the prior decade. We believe that this growth will be driven primarily by data infrastructure, electrification, and the continued industrial reshoring trends. Second, we expect approximately $518 billion of investment in solar and battery storage projects between 2025 and 2034, supporting roughly 430 gigawatts of new capacity, with battery storage expected to grow approximately 26% annual growth rate. I also want to highlight the domestic manufacturing build-out, because I think it is an underappreciated part of this story. The United States now has over 70 gigawatts of domestic module manufacturing capacity, up from roughly 8 gigawatts just a few years ago. Cell, wafer, and ingot capacity are growing quickly behind it, not to mention the numerous factories supporting steel fabrication, tracker, inverter, batteries, and electrical components.

A stronger domestic supply chain helps reduce risk, improves resiliency, and supports long-term investment in the industry. The more we build domestically, the more durable the demand environment becomes for our services and the SOLV ecosystem. Finally, operating solar capacity is expected to increase approximately 3.8 times over the coming decade. Importantly, every gigawatt constructed creates decades of recurring revenue opportunities in operations, maintenance, repowering, upgrades, and other life cycle services. Taken together, these market dynamics continue to provide a compelling long-term tailwind for SOLV's life cycle services platform. Moving to slide 6. One of the questions we get asked most often is how we are able to consistently execute large, complex projects while maintaining strong margins. The answer is a multilayered risk management process that has been refined over almost two decades of building solar projects.

Our process begins with disciplined pre-construction procedures, where cross-functional teams collaborate to develop project-specific pricing and execution strategies. We then utilize multiple LNTP agreements to validate site conditions, test foundation systems, and advance engineering and equipment procurement, all to further de-risk project execution for us and for our customers. Once a project is underway, performance is monitored closely through our proprietary Sunscreen platform and through daily, weekly, and monthly reviews with project teams and senior leadership. Most importantly, our regionalized workforce brings deep knowledge of the markets where we operate. This includes local permitting requirements, labor availability, weather conditions, and other factors that influence project execution. Those insights help us make better decisions before construction begins and throughout the life of the project. Consistent execution isn't the result of any one process. It's the result of applying this framework across every project, every customer, and every region we operate.

Let's talk a bit about strategy. Turning to slide 7, acquisitions remain an important part of our long-term growth strategy. When we evaluate opportunities, we're looking for businesses that strengthen our platform, expand the services we can provide, and create additional value for our customers. Every acquisition must fit strategically, complement what we already do well, and support our vision for the future of the business. When you look at this timeline, each acquisition represents a deliberate step in building that platform. CS Energy expanded our EPC capabilities. SDI Services strengthened our foundation expertise. Spartan Infrastructure expanded our transmission and distribution platform. And most recently, Roberson Waite Electric adds highly complementary utility infrastructure, substation, and battery storage capabilities. Individually, each of these businesses brings talented people, strong customer relationships, and specialized expertise.

Together, they have expanded our capabilities and strengthened our ability to support customers across a broad portion of the energy infrastructure value chain. Our most recent acquisition of Roberson Waite Electric closed on July 1st. Roberson Waite Electric brings deep, long-standing relationships with California utilities and specialized expertise in substation construction and urban battery storage deployments. These capabilities complement what we've built through Spartan and further strengthen our utility infrastructure platform. We are really excited to have them as part of the SOLV family. Looking ahead, we'll continue to evaluate opportunities across several targeted categories to support the SOLV ecosystem. Our approach remains disciplined and focused on opportunities that strengthen the business, align with our strategy, and create long-term value for our shareholders and customers. The results of this strategy is the ecosystem we're building, which is illustrated on slide 8.

Everything we do supports a simple goal, being the partner our customer can rely on throughout the life of their power plant. As energy infrastructure becomes more complex, customers increasingly value partners that can support multiple phases of an asset's life cycle. They value partners who can help solve challenges, reduce complexities, and deliver consistency over the long term. When you look at this slide, what you're seeing is the ecosystem we're building. Today, our capabilities span generation, delivery, and services, allowing us to support customers across a broad portion of the energy infrastructure value chain. From solar and storage construction, to transmission and distribution, high voltage services, foundations, O&M, and repowering. We're continuing to expand the way we can service our customers. Importantly, the value isn't in any single capability. The value comes from how these capabilities work together.

Our customers don't think about their needs in terms of individual services. They think about execution, reliability, and finding partners they can trust with a proven track record. The ecosystem we're building to meet those needs, Michael, of their assets. As more energy infrastructure gets built, we see opportunities not only during construction, but also throughout the decades that follow through O&M, upgrades, repowering, and other life cycle solutions. That's the one thing that differentiates our business model. Our objective is straightforward, continue strengthening our relationship with customers, expand the value we provide, and continue building the preferred life cycle services platform in our industry. With that, I'll turn the call over to Chad to discuss our financial results in detail.

Chad? Thank you, George, and good morning, everyone.