Solar and Battery Storage EPC provider SOLV Energy set to list on Nasdaq
SOLV Energy has built more than 500 power plants representing 20 gigawatts of generating capacity. Photo Credit: SOLV Energy
Key Points
- SOLV Energy to offer 20.5 million shares at $22–$25 per share in February 2026 IPO
- Expected to raise approximately $512.5 million at midpoint pricing on Nasdaq under ticker “MWH”
- Company is projecting 2025 Revenue between $2.46 billion to $2.50 billion, up 33%-35% from 2024
- Positioned to capitalize on data center power demand surge and renewable energy infrastructure buildout
- Jefferies and J.P. Morgan leading the offering with underwriters including Goldman Sachs and Barclays
Company overview
SOLV Energy is a utility-scale solar and battery storage engineering, procurement and construction (EPC) provider serving the North American renewable energy market. Founded in 2008 and headquartered in San Diego, California, the company has established itself as a premium infrastructure services firm for power generation assets.
Since inception, SOLV Energy has built more than 500 power plants representing 20 gigawatts of generating capacity and currently provides operations and maintenance services to 146 operating power plants with over 18 GW of capacity. The company was acquired by American Securities in December 2021 and is now filing for its initial public offering to finance growth and pay down debt.
Business model and services
SOLV Energy operates across two primary revenue streams: project-based engineering, procurement and construction (EPC) services, and long-term operations and maintenance (O&M) contracts. This integrated lifecycle approach provides recurring revenue, operational leverage, and customer stickiness.
The EPC segment involves designing and constructing large-scale solar photovoltaic and battery energy storage systems, typically executed over 12–18 months under fixed-price or cost-plus LNTP (Lump-Sum Turnkey Plus) agreements. The O&M segment provides ongoing operations, preventative maintenance, and corrective services pursuant to long-term contracts with customers. Since January 2022, corrective maintenance revenues have consistently represented 70–90% of fixed operations and maintenance fees, providing substantial upside potential and operational visibility.
The company’s expansion into data center power supply, hybrid systems, foundation drilling, and transmission and distribution services demonstrates strategic diversification and positions SOLV to capture a larger share of the renewable energy infrastructure opportunity.
Financial performance
SOLV Energy demonstrated profit improvement in 2025 as operational leverage expanded. The company generated $114 million in net income on $1.7 billion in revenue for the first nine months of 2025, compared with just $139,000 in net income on $1.4 billion in revenue for the same period in 2024. This represents a significant inflection point, with the nine-month 2025 net profit margin reaching approximately 6.7%, up from essentially break-even in the prior year.
On a trailing twelve-month basis through September 30, 2025, SOLV reported $2.14 billion in revenue with $124 million in net income. Gross margins expanded to 18.88% as the company scaled operations and achieved cost efficiencies across its project portfolio. Operating profit improved materially as the company leveraged its fixed cost base and invested in automation and digital tools to enhance project delivery and O&M service quality.
For 2025, SOLV Energy is projecting revenue between $2.46 billion to $2.50 billion, up 33%-35% from 2024. Net income is estimated to be $148.2 million to $155.7 million, versus $10 million in 2024.
| Period | Revenue ($M) | Net Income ($M) | Net Margin |
|---|---|---|---|
| 9M 2024 | 1,400 | 0.1 | 0.01% |
| 9M 2025 | 1,700 | 114 | 6.7% |
| TTM through Sep 2025 | 2,140 | 124 | 5.8% |
The acceleration in profitability reflects both strong revenue growth and material operational improvements. SOLV Energy’s move upmarket toward larger, more complex utility-scale projects and data center power solutions has improved contract quality and pricing power. Additionally, the company’s integrated service model—combining EPC with long-term O&M—creates predictable, higher-margin revenue streams that are less exposed to project completion cycles.
IPO details
SOLV Energy filed its Form S-1 with the Securities and Exchange Commission on January 16, 2026, and the SEC declared it effective on January 30, 20261. The company launched its IPO roadshow on February 2, 2026, positioning the offering to price in early to mid-February 2026. The company is targeting a Nasdaq listing under the ticker symbol “MWH,” reflecting its energy infrastructure focus.
The IPO size comes in at 20.5 million shares offered at $22–$25 per share, with underwriters granted a 30-day overallotment option to purchase an additional 3.075 million shares. At the midpoint of the price range, this would generate approximately $512.5 million in gross proceeds, implying a pro forma post-IPO valuation of approximately $2.3 billion based on fully diluted equity outstanding.
Jefferies and J.P. Morgan are leading the offering, with Goldman Sachs, Barclays Capital, and other prominent financial institutions serving as underwriters. The company plans to use approximately $402.2 million of the IPO proceeds to repay term loans, with the remainder allocated to general corporate purposes and growth initiatives.
| IPO Parameter | Details |
|---|---|
| Filing Date | January 16, 2026 |
| S-1 Effective Date | January 30, 2026 |
| Ticker Symbol | MWH (Nasdaq) |
| Shares Offered | 20.5 million |
| Price Range | $22.00–$25.00 |
| Implied Proceeds (Midpoint) | $512.5 million |
| Lead Underwriters | Jefferies, J.P. Morgan |
Ownership and funding
SOLV Energy is controlled by American Securities, the private equity sponsor that acquired the company in December 2021. Post-IPO, public shareholders are expected to own approximately 56.4% economic interest in SOLV Energy Holdings LLC, while the Continuing Equity Owners (including American Securities and management) retain 43.6% economic interest.
Critically, the Continuing Equity Owners will retain approximately 75–80% of voting power post-IPO, making SOLV Energy a “controlled company” under Nasdaq rules. This structure enables founder and sponsor alignment with long-term value creation while providing public shareholders with liquidity and access to the company’s growth trajectory. The dual-class stock arrangement is common among infrastructure and industrial companies seeking to maintain operational control while accessing public capital markets.
SOLV Energy’s capital-light, project-driven business model generates strong free cash flow, which has historically been deployed to pay down debt from the 2021 acquisition and fund organic growth. The IPO provides an inflection point for the company to reduce financial leverage, invest in strategic capabilities, and pursue add-on acquisitions to expand service offerings.
Key risks
While SOLV Energy operates in a structurally favorable market with robust demand tailwinds, several material risk factors merit investor consideration before the IPO prices:
Supply chain disruption and inflation exposure. SOLV Energy’s profitability depends on timely procurement and installation of solar panels, inverters, mounting systems, and battery storage components. Global supply chains for renewable energy equipment face headwinds including raw material shortages, labor constraints, and geopolitical risks. A 30% increase in supply chain disruptions was documented in 2024, with extreme weather events up 130% year-over-year, directly threatening SOLV’s project timelines and cost structures.
Regulatory and policy uncertainty. The renewable energy market remains sensitive to federal tax credits, state-level renewable energy mandates, and utility interconnection policies. Changes to investment tax credit (ITC) rates, depreciation schedules, or renewable energy standards could materially impact customer project economics and demand for SOLV’s services. Regulatory changes saw a 185% increase in 2024, signaling heightened policy risk7. Additionally, data center power supply, a key market opportunity cited in SOLV’s prospectus, relies on evolving AI-driven power demand forecasting and potential new transmission infrastructure regulations.
Customer concentration and project execution risk. While SOLV operates across a diverse customer base including utilities, independent power producers, and corporate energy buyers, large projects represent material portions of annual revenue. Delays in customer decision-making, project cost overruns, adverse weather during construction, labor shortages, or defects in system performance could reduce profitability and challenge the company’s ability to achieve guidance.
Integration and acquisition risk. SOLV has pursued add-on acquisitions including SDI (foundation drilling) and Spartan Infrastructure (transmission and distribution services) to expand capabilities. Successfully integrating acquired companies, retaining talent, and capturing synergies requires disciplined execution. Cultural misalignment, retention failures, or lower-than-anticipated cost savings could dilute shareholder value.
Competitive intensity and pricing pressure. The renewable energy EPC market is increasingly competitive as larger engineering and construction firms (Fluor, Sunbelt, Helix Energy) expand solar and storage capabilities. Margin compression, aggressive bidding, and customer consolidation could constrain SOLV’s ability to grow profitably. The company’s premium positioning and integrated O&M offering provide differentiation, but execution risk remains in a market cycle downturn.