SOLV Energy, Inc. (MWH)

Price$25.27Cached quoteAs of 2026-09-08 13:06 UTC

AI: Undervalued

Price checkThe shares look undervalued if raised guidance converts into durable earnings and stronger cash generation.

SOLV's market value is about $5.0 billion and enterprise value, which includes debt and subtracts cash, is about $4.7 billion. Against management's $485-$505 million 2026 adjusted operating-profit-before-depreciation guidance, that is roughly 9.6 times the midpoint; external estimates also put forward earnings near 13 times. Those multiples look attractive beside rapid growth and net cash. The discount is justified partly by weak recent cash conversion and project risk, but current pricing appears to leave a reasonable margin of safety.

Big pictureRevenue and backlog are growing rapidly, while cash generation has not yet matched reported operating momentum.

The supplied history shows revenue rising from $1.85 billion in 2024 to $2.49 billion in 2025, while net income improved from $10 million to $150 million. First-half 2026 revenue then jumped 72% to $1.63 billion and adjusted operating profit before depreciation reached $210 million. However, first-half operating cash flow was only about $46 million before roughly $16 million of capital spending. Project working capital can create timing swings, but sustained cash conversion remains the clearest missing piece in the growth story.

Business strengthA large backlog and net-cash balance provide protection, though project cancellations and compensation dilute quality.

Backlog reached $8.9 billion, up 44% year over year, and more than 23 gigawatts are under operations-and-maintenance contracts, giving SOLV meaningful future visibility beyond new construction. June financial data also show roughly $280 million more cash than total debt. The weaknesses are specific: customers can cancel or delay projects on relatively short notice, so backlog is not guaranteed revenue, and first-half stock compensation was substantial. SOLV has no established buyback program, while its recent public-market restructuring has expanded the tradeable share base.

What could change the storyBacklog conversion and grid expansion could drive upside; project delays or weak cash conversion would undermine it.

The bull case is management delivering nearly $4 billion of 2026 revenue, converting the $8.9 billion backlog through 2028 and expanding utility work through Roberson Waite Electric. Energy storage alone represents about $2.5 billion of backlog. The bear case is that tariff-driven customer costs, permitting delays or cancellations push projects out while working capital continues consuming cash. Management reported no near-term project schedule impact from current trade-policy concerns, but those risks remain. Free cash flow approaching reported operating-profit growth would materially strengthen the undervaluation case.

AI: News

Guidance raised sharplyRecord second-quarter growth and a higher annual outlook triggered a strong positive market reaction.

On August 13, SOLV reported quarterly revenue of $951 million, up 77%, and adjusted operating profit before depreciation of $117 million. Backlog reached $8.9 billion, and management raised full-year revenue guidance to $3.87-$3.97 billion and adjusted operating-profit-before-depreciation guidance to $485-$505 million. Shares closed about 8.8% higher that day. The timing strongly supports a favorable earnings reaction, although it does not prove the report was the only driver.

Follow-on offering pricedA large sponsor-linked share offering increased public supply and created a notable near-term valuation overhang.

On May 28, SOLV priced an upsized offering of 15 million Class A shares, later expanded through the underwriters' option, at $36 per share. Roughly half were sold by existing holders; company-issued shares were used to redeem corresponding private LLC interests, so the transaction primarily increased public float rather than funding operations. Shares declined about 4% the following session according to contemporaneous market reporting. The timing suggests offering pressure mattered, though broader trading could also have contributed.

Loading local price history

Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.49B	$1.85B	$2.10B	$2.32B
Gross profit	$464.2M	$259.2M	$110.0M	$97.9M
Gross margin	18.64%	14.03%	5.24%	4.22%
Operating expenses	$268.8M	$194.2M	$162.9M	$180.2M
Operating income	$195.4M	$64.9M	−$52.9M	−$82.3M
Operating margin	7.85%	3.51%	−2.52%	−3.55%
EBITDA	$291.6M	$150.8M	$31.9M	$6.2M
EBITDA margin	11.71%	8.16%	1.52%	0.27%
Net income	$149.7M	$9.9M	−$109.8M	−$121.8M
Net profit margin	6.01%	0.54%	−5.23%	−5.25%
Basic EPSper basic share	$0.75	$0.09	-$0.98	-$1.08
Diluted EPSper diluted share	$0.75	$0.05	-$0.98	-$1.08

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

67.01%of listed shares

AMERICAN SECURITIES LLC82.92M shares · Jun 30, 2026

View holders

Top 20 reported holders of MWH
Holder	% owned
AMERICAN SECURITIES LLC	67.01%82.92M shares
BlackRock, Inc.	2.24%2.77M shares
Robeco Schweiz AG	2.13%2.64M shares
Driehaus Capital Management LLC	1.92%2.38M shares
FRED ALGER MANAGEMENT, LLC	1.84%2.27M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.31%1.62M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.23%1.52M shares
Balyasny Asset Management L.P.	1.19%1.47M shares
Handelsbanken Fonder AB	1.05%1.3M shares
JENNISON ASSOCIATES LLC	0.94%1.17M shares
TWO SIGMA INVESTMENTS, LP	0.84%1.04M shares
BNP PARIBAS ASSET MANAGEMENT Holding S.A.	0.81%996.35K shares
JPMORGAN CHASE & CO	0.75%923.81K shares
Aventail Capital Group, LP	0.69%853.96K shares
SCOPUS ASSET MANAGEMENT, L.P.	0.65%801.01K shares
UBS Group AG	0.62%767.55K shares
Yaupon Capital Management LP	0.61%750K shares
Electron Capital Partners, LLC	0.61%749.39K shares
GEODE CAPITAL MANAGEMENT, LLC	0.60%737.12K shares
FRANKLIN RESOURCES INC	0.58%715.34K shares

Percentages use 123.75M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)10$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 4, 2026Form 4	SOLV Energy Management Holdings LPTenPercentOwner	SellSOLV Energy Holdings LLC Interests · derivative	315.4K	—	—	22.65M
Jun 4, 2026Form 4	AMERICAN SECURITIES LLC +1TenPercentOwner	SellClass A common stock · indirect	1.15M	—	—	82.92M
Jun 4, 2026Form 4	AMERICAN SECURITIES LLC +1TenPercentOwner	SellSOLV Energy Holdings LLC Interests · derivative · indirect	727.8K	—	—	52.26M
Jun 4, 2026Form 4	ASP Endeavor Investco LP +9TenPercentOwner	SellClass A common stock · indirect	1.15M	—	—	82.92M
Jun 4, 2026Form 4	ASP Endeavor Investco LP +9TenPercentOwner	SellSOLV Energy Holdings LLC Interests · derivative · indirect	727.8K	—	—	52.26M

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about MWH yet. Start the conversation.

Write the first post

SOLV Energy, Inc. (MWH)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.