Greetings and welcome to the Solve Energy third quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Mike Adams, Investor Relations. Thank you. You may begin.

Hi, everyone, and thank you for joining us for Solve Energy's third 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 may 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, including adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EBITDA margin. 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 in our SEC filings. and in the appendix of the earnings presentation posted on our investor relations website. Joining me on the call today is Solve Energy CEO George Hershman and CFO Chad Plotkin. Following our prepared remarks, we'll 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'll turn the call over to George.

Thank you, Mike, and good morning, everyone. I want to start with the people who make it happen, our employees. This quarter, we executed more work than at any point in our history, including the largest project we have ever taken on. We did it with safety at the center of every decision. That takes discipline, that takes commitment, and it is exactly what our customers count on from us and what is driving exceptional performance at Solve. I'm incredibly proud of what this team accomplished and even more excited about what is ahead. So let's go to slide four. Safety is where I will begin every time. Our goal is simple. Everyone goes home safe every day, whether they are Solve employees or our partners in the field. That commitment shapes how we plan, train, and hold ourselves accountable on every site because a safe project is a well-planned and successful project. That discipline is how we deliver for our customers and shareholders. Our trailing 12-month Q3 safety metrics continue to be below industry benchmarks. Now moving to our financial highlights, our SOLVE team continues to set performance records. Our third quarter revenue was a record $1.2 billion, up 65% year over year. And revenue through the first nine months reached a record $2.9 billion, up 69%. The biggest driver this quarter continues to be exceptional project and service execution. We have opportunities in front of us, but opportunities only matter if you can deliver on it, and our teams are delivering. To everyone in the field, in the office, and across every project and site, I want to thank you for your dedication. Your focus, safety, and professionalism is what turned this opportunity into results. including an adjusted EBITDA of $173 million in the quarter and $383 million for the first nine months of the year. A record result for the business. So now to address some near-term topics. I know the last few weeks have brought a lot of questions from the election to the debate over data centers. So let me tell you how we see it. Demand for power continues to accelerate. Never in my 20 years in the power business have I seen demand for our services at such an unprecedented level. Digital infrastructure is part of the story, but so is the resurgence of domestic manufacturing and the electrification of our everyday lives. Utilities and independent power producers need new supply, and they need it now, not years from now. This is where solar and storage stand out from other forms of generation. They are among the fastest resources to deploy, and as importantly, when affordability of energy is on the ballot, solar and storage wins as the lowest cost of energy. Projects can move from commitment to construction to power on the grid faster than any other form of generation, which matters when customers are waiting for capacity. Customers are making practical decisions about price and schedule and solar and storage deliver on both. That combination of speed, cost, and scale is driving lasting demand for what we do, and you can see it in our growing backlog. As of September, our backlog has grown again to a record $9.2 billion to end the quarter. That backlog gives us strong visibility into opportunities ahead and ensures that our business continues to grow. With our backlog near-term opportunities not in backlog and our deep pipeline of opportunities, our confidence is high that the business will continue to see strong growth in revenue into 2027 and beyond. Now to deliver on this activity, we will keep investing in the business. At the end of October, we acquired ASB Energy Services, which adds additional high voltage expertise to our self-performed work. With the tailwinds of the market and the continued exceptional performance of our teams, we are raising our 2026 guidance again across all core metrics. And Chad will walk you through the details later in this presentation. So let's move to slide five. Let me take a few minutes to explain why this market increasingly favors scaled EPCs and service providers and why Solve, the leading lifecycle service provider, is so well positioned to continue our leadership. As I have noted, power demand is rising and the projects needed to meet it are getting bigger and more complex. Today, we have more than five gigawatts of projects larger than 600 megawatts in our backlog. That includes our largest single award ever at 1.2 gigawatts. As projects increase in scale and complexity, customers need partners with the experience, resources, and operating discipline to deliver at such a scale. That plays directly to our strengths. Since 2008, we've built over 24 gigawatts of power plants. And we are recently named the number one solar contractor in the United States by Engineering News Record. That experience matters. Customers plan with us years in advance because they know we can execute at scale and deliver with certainty. A big part of our advantage is how much of a project lifecycle we manage ourselves. Our self-performed capabilities give us greater control over the critical path of all phases of a project, from engineering through operations. And because we can stay with an asset through operations and maintenance, customers get one partner for the entire project's life. We now have more than 24 gigawatts of contracted O&M across the country. The capabilities we've added through acquisition are continuing to contribute to our performance and expanding what we can deliver. We also engage with our customers early. Our limited notice to proceed model lets us address site conditions, foundation, and design challenges upfront. So both Solve and our customers have great visibility before start of construction. That paired with disciplined project selection and contracting helps us manage risk and execute consistently as projects grow in scale and complexity. Our customer relationships run deep and many come back to us for their next project year after year. With our O&M platform, we stay close to customers throughout the life of their asset, and that positions us for what they need to build next. Opportunities are great, but our people bring all this together. We're growing and training our workforce to meet industry demands, and we're introducing robotics and automation to make the work safer and more productive. These tools support our teams and help us execute consistently as projects get larger and more complex. At our scale, planning our resources and managing logistics well in advance is critical to project success. Our years of experience ensures the execution our customers demand. So that brings me to what we see ahead. Through the end of the decade, safe harbor projects and a growing pipeline of customer opportunity gives us meaningful visibility into demand. As domestic manufacturing and supply chains continue to expand, we believe greater optionality and operating scale should help offset some of the cost pressures that come with that transition. So while the market will keep evolving, We remain confident in the long-term role of solar and storage as the lowest cost of energy in meeting the country's growing need for power. That demand is being reinforced by the growth of large loads. There is a growing focus on having large load customers help support the generation and infrastructure needed to serve their facilities. That creates opportunities across generation, battery storage, substations, and interconnection, all areas where Solve has significant capabilities. The takeaway is simple. The market is moving towards larger, more complex power programs, and Solve has the scale, capabilities, and track record to continue our leadership. So let's move to slide six. I'm really excited to discuss ASB Energy Services, which we acquired on October 30th. ASB is a Texas-based contractor specializing in high voltage substations, civil construction, and battery energy storage infrastructure. Founded in 2007, The company has built a strong reputation for safely delivering complex projects across energy storage, renewable energy, industrial and data center markets. What ASB does is highly complementary to what we've built at Solve. They provide turnkey substation construction, testing and commissioning, and they install battery storage systems across both civil and electrical scopes. They also bring additional capabilities in concrete, foundation drilling and earthwork. This continues the disciplined approach you've seen from us. We have been successfully acquiring capabilities that strengthen our platform, expand what we can self-perform and make us a more valuable partner to our customers. ASB fits this strategy well. You may recognize this graphic from our second quarter call. It is what we refer to as our Solve ecosystem. With ASB added alongside Spartan, we can support customers across a broader portion of the project. And every capability we add brings us closer to our goal of being the preferred full scope Lifecycle Service Partner for our customers. We acquired ASB for approximately $45 million, excluding customary closing adjustments consisting of both cash and shares of our Class A common stock. We executed the transaction at an attractive entry point and it is accretive to our business. We are really excited to welcome ASB the ASB team to our Solve family. Looking ahead, we'll continue to be disciplined and focus on opportunities that strengthen the business, align with our strategy, and create long-term value for our shareholders and customers. With that, I'll turn the call over to Chad to discuss our financial results in detail. Chad?

Thank you, George. It's great to be here, and thank you to everyone for joining us today. Starting on slide eight, I am pleased to report another strong quarter in a record first nine months for Solve. The business continues to perform well, and the financial results reflect that, with third quarter revenue of $1.24 billion, bringing year-to-date revenue to $2.87 billion, or up 69% year-over-year. This growth was primarily driven by a significant increase in new construction activity and higher existing infrastructure revenue as our services business continues to expand. Reflecting our project execution excellence, adjusted gross profit for the third quarter was $215 million, or a margin of 17.3%. For the first nine months, adjusted gross profit was $484 million, or a margin of 16.9%. When comparing year over year, we would remind you that 2025 benefited from favorable late-stage project performance and associated contingency releases, as well as a significant repair project that carried above-average margins. Additionally, beginning in 2026, we have prospectively changed the presentation of certain incentive compensation from SG&A to cost of revenues. For adjusted EBITDA, the company realized $173 million in the third quarter, or a margin of 13.9%. Through the first nine months, adjusted EBITDA was $383 million, up 58% year-over-year. This performance is attributed to the adjusted gross margin performance and also a continued operating leverage with SG&A declining as a percentage of revenue year-over-year. Before I move on, let me echo George's comments to the entire Solve team. These are record results and are a direct reflection of your execution, commitment, and hard work across the business. Turning to slide nine, I'd like to take a moment to focus on a core soft value proposition, which is our robust cash flow and balance sheet strength. As noted in the material, you can see that we have converted adjusted EBITDA to operating cash flow in the 80% range. as evidenced by our trailing 12-month operating cash flow of $386 million relative to $483 million of adjusted EBITDA over the same period. On the balance sheet, we ended the quarter with $609 million of total liquidity comprised of $422 million in cash and $187 million of available capacity under our credit facility with no long-term debt. Simply put, Our business generates strong cash flow with an unlevered balance sheet providing us significant flexibility in capital allocation initiatives. Turning to slide 10 for an update on our backlog. We ended the third quarter with record backlog near $9.2 billion. This marks another quarter of sequential backlog growth and is a strong demonstration of continued market demand and our ability to convert customer activity into contracted work. Within backlog, approximately $3.1 billion relates to projects that include a best component, either in hybrid form or standalone, reflecting the accelerating customer demand for storage integrated solutions. As a reminder, our reported backlog does not include verbal awards or any business development activity, not yet at a contracted or LNTP stage, an activity that continues to be robust. Now let's turn to the next page for our updated 2026 outlook. Based on year-to-date performance and our outlook for the fourth quarter, we are raising full-year 2026 financial guidance. We now expect full-year revenue between 4.03 to 4.12 billion dollars, adjusted gross profit of 660 to 690 million dollars, and adjusted EBITDA of 525 to 540 million dollars. With these increases, our net margin expectations for both adjusted gross profit and adjusted EBITDA also improved, a reflection of the continued execution excellence and ongoing operating leverage in the business. Looking beyond 2026, we are set up incredibly well. Our backlog continues to grow, our teams are executing well, we are hitting our stride in M&A, and our business development efforts remain strong. all of which provides us visibility into more growth. And with that, I'll turn it back to George.

Great. Thank you, Chad. I'll close with four reasons our confidence in this business keeps growing. First, demand is growing. Industry sources forecast U.S. electricity demand to rise 28% from 2024 to 2034. versus just 5% over the prior decade. At the same time, more than 11% of today's generation fleet is expected to retire by 2034. The need for new capacity is clear, and solar and storage are among the fastest and most cost-effective ways to meet it. Second, we lead at scale. ENR recently named us the number one solar contractor in the United States. As projects get larger and more complex, fewer contractors can execute at the scale our customers need, and Solve can. Third, we deliver with certainty. We've built more than 24 gigawatts, and our growing self-perform capabilities, including the addition of ASB, gives us more control over the work that drives schedule and cost. Fourth, We have visibility. We ended the quarter with record backlog of approximately 9.2 billion. All of it is safe harbored, and our pipeline extends through 2030. We're raising our 2026 guidance, and as Chad discussed, we have confidence that our business will continue to grow in 2027 and beyond. I want to close where I began. by thanking our teams for the work they do every day to deliver safely for our customers. We have the market position, the backlog, the capabilities to keep winning. We'll stay focused on safe execution, disciplined growth and long-term value for our customers and shareholders. And with that, I will turn it over to the operator. Please open the line for questions. Thank you.

Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To allow for as many questions as possible, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Nick Amakuchi with Evercore ISI. Please proceed with your question.

Good morning, George. Good morning, Chad. How are you guys?

You know, hanging in.

Wanted to touch briefly just so, you know, given the ASB acquisition and kind of the consequential state election there, just kind of taking a step back, not specifically on Texas, but just As we kind of think about the pipeline and kind of the contracted backlog in particular, can you just kind of break out for us or just high level, George, how we're thinking about the conversations? Are they mostly data centers, mostly utilities, or sorry, mostly IPPs, mostly utilities, and any kind of breakdown or color we can provide around that?

Sure.

So, you know, I think our To your question, our backlog is strong. We've had conversations with all of our customers related to their projects moving forward. And we continue to see that those projects are moving. We're seeing no significant delays or cancellations associated to, you know, any perceived challenges in the market. You know, all of our customers are IPPs. delivering to utilities or commercial customers. And those projects continue to move forward. Great, thanks.

And then really quickly, Chad, I think just the implied lower 4Q margin guide, I'm assuming there's some seasonality in there, but just any color there?

Seasonality and not unlike what we've talked about in the past on how we forward project based on plans. and then obviously as you see things mature and projects perform, we'll work through that.

But nothing different than what we've talked about in the past.

Thank you. Our next question comes from the line of Julian Dumoulin-Smith with Jefferies. Please proceed with your question.

Good morning, guys. It's Luke Fincker on for Julian. Nicely done on the quarter. I just wanted to ask on ASB, you know, you still have a large net cash position. Should we expect continued tuck-ins that bring execution scope in-house, or could we see M&A focused on growth, you know, beyond your core solar EPC business? And if you could frame ASB's data center exposure as well. Thanks.

So Luke, it's Chad. I think when we think about M&A, I would maybe go back to the slide we have around ASD and focus in on the ecosystem chart that George talked about. And I think as we think holistically about where we would point capital, it'll be within those areas. So I don't think that's necessarily changed or pivoted our view on how we want to execute and bring businesses into Solve overall.

And to ASB's data center point that you brought up, they do substation work for data centers and large facilities as part of their scope, but they will also support Solve's power plant work with substation work as well. So limited exposure.

Awesome. Yeah, thank you for that. And then great to see backlog growing despite the burn. I noticed battery storage related backlog is like one third of the total. Are you seeing any directional change from that on project scope margins or executions versus your solar only work? Is this like a timing thing, or could batteries be a larger share of the backlog moving forward through M&A?

So that represents both hybrid, which is solar plus storage, and standalone storage. So what we're seeing is a larger portion of our work is hybrid, which are solar and storage plants. So that is That is part of the reason why the backlog continues to grow. And we will see that more and more as the demand for firmed power across most markets will include solar plus storage.

Got it. I'll leave it there.

Thanks, guys. See you next week.

Thank you. Our next question comes from the line of Mark Strauss with JPMorgan. Please proceed with your question.

Yes, good morning. Thank you very much for taking our questions. George, I appreciate your commentary that demand is accelerating. Clearly, you've got record backlog. Just kind of curious, though, like very near term how we should think about contracting activity. Just with the market potentially adjusting to a post-232 world, getting used to these new rules, is there kind of a somewhat temporary lull in order activity that we should be expecting?

Mark, we don't see any real slowdown. 232 is more of a pricing issue than it is a capacity issue. So we're seeing the market adjust to the pricing trend. issues associated to 232. So we're not seeing slowdown in our backlog. In fact, you know, our backlog continues to grow and we have near term opportunities that we will be executing, you know, during the fourth quarter here to continue to grow our backlog. So we're not seeing those impacts.

Okay, good to hear. Just as a follow-up, I wanted to get your thoughts on the permitting bill, the Baja Act. What kind of effect that you could potentially see in your business potentially accelerating over the next few years as permitting eases? Thank you.

We think we're were in support. We think that moving energy projects forward across all sectors is a positive, so largely in support and aligned with the industry associations in support of the bill. We think it's a good and needed measure for the U.S. to move power projects forward faster.

Thank you.

Our next question comes from the line of Philip Shen with Roth Capital Partners. Please proceed with your question.

Hey, guys. Thanks for taking my questions. I was connecting with a private EPC recently, and he was talking about prices for EPCs being up 5% to 10% year over year. And so now average pricing might be in the high 70s cents a watt. Just curious if you can talk to that Have you seen that kind of 5% to 10% year-over-year increase? And then how do you expect pricing to trend in the coming year?

Thanks. Yes.

I mean, prices are increasing. All of the inputs into our projects are seeing increases from equipment to commodities So that's largely in line with what we're seeing. Obviously, we are doing what we can to help mitigate those costs by building efficiencies into it. But scale really does matter in this market. And I think that that's what customers are seeing. And that's why they're coming to us, because buying power matters, ways to mitigate commodity cost risk. all matter and scale helps that. So depending on who you talk to, those percentages might be different.

Okay, thanks, George. Second question here is on scale. And I was talking to an IPP recently and he was saying 18 months ago, EPCs were telling him, if you don't have a gigawatt project, we're not interested in working with you. And recently, It seems like that's changed, where EPCs are much more interested in 100-megawatt projects or even repowering, so smaller projects. I know you guys are working with the biggest players and you want to work with gigawatt-scale projects, but it sounds like some delays out there are creating capacity, and as a result, there's maybe a little more capacity with perhaps not you, but just the general market when it comes to EPCs. So just curious on that dynamic from your perspective, where you fit in and then if you are seeing these dynamics in general with some of your smaller peers. Thanks.

Well, I can't speak to what some of our smaller peers might be looking at or what drives their business decisions. Clearly, our business is built for scale. That's where we bring the best, you know, the best value to our customers and why customers come to us. Because of our buying power sophistication around robotics and automation and the way that we've been doing this for a long time and driven efficiencies in. So our business is still built for scale. And we're seeing, as I said, we now have five gigawatts over over 600 megawatts in our backlog that we're building today. We're continuing to build larger and larger projects, so larger opportunities are flowing our way, and we don't see any reason to pivot away from that model.

Okay. Thanks, George.

Thank you. Our next question comes from the line of Ben Callow with Baird. Please proceed with your question.

Hey, good morning, George. Good morning, Chad. Thank you for taking my question. I wanted to follow up on Mark's question about just booking cadence, but more in the longer term as we get closer to the safe harbor, ITC expiration of the safe harbor. How should we think about how far you'll still be booking up until that 2030 deadline? When would be the last projects that would fall under that? And then how do you expect post-2031 bookings when those start to appear for you?

Well, our backlog, as we've said in the past, our backlog is really a kind of a look at 24 to 30 months based on how fast these projects come into the system and get executed, which is one of the benefits of speed to market. It also means that most of our backlog sits within that window. But we are seeing a significant amount of projects in our pipeline that extend well past the ITC expiration window. And when you're talking about lowest cost of energy Solar and Storage is still the cost leader post-ITC. So we're not seeing that slow down.

Great, that's great to hear. On the M&A front, I think in the past you guys had talked about doing maybe other type of power generation or getting closer to a powered shelf or data center. I just want to know if that was still an opportunity there or if recent nimbyism in election has changed any of that or if that's still something that you guys are looking at. And thank you guys and great quarter.

We are still looking at opportunities that make sense around additional power generation. I don't think it's necessarily just for data centers. We're not concerned about that. I think that you could see a world where a next generation power plant is solar storage, and gas firming. So that is something that we'll continue to look at if the right opportunity presents itself. So I think we're going to continue to look at that as well. It is on our list of priorities as we look at building out our services.

Thank you, Gus.

Thank you. Our next question comes from the line of Dylan Asano with Wolf Research. Please proceed with your question.

Hey, good morning, guys. Thanks for taking my question. I'm going to check on market share. So, you know, this dynamic that you guys talk about with projects getting larger. I mean, it seems like there should be kind of a natural benefit to you there in terms of market share. But are you seeing any movement? with more EPCs that are more your peers or even larger in terms of growing your overall customer market share?

Well, I mean, market share is kind of a backward-looking metric, so it's hard to always know what your market share is. But based on all the information that we can get. I think we're a mid-teens market share and a market leader at that scale. Obviously recognized number one by ENR just recently. So I think we'll continue to grow market share as projects get larger. Those are going to continue to move to companies like us with scale. So I think that will continue to drive market share.

All right, sounds good. Thank you.

Thanks, Dylan.

Thank you. Our next question comes from the line of Joseph Osher with Guggenheim Securities. Please proceed with your question.

Hey, guys. Good morning. This is Peyton Tran on for Joe this morning. I guess just sort of a follow-up on some of the scale questions. You now have five projects above 600 megawatts, and you said you talked about how the field of competitors that are able to handle Thank you. Yes, I think we are seeing that as scale

projects get larger, competition gets fewer companies that can do these projects at scale. I think that there is a balance between pricing power and ability to continue to work our long-term customer relations and being able to deliver. So we're balancing that. I think our results show that our projects continue to perform very well, and scale helps with that. So I think that we're going to continue to see those opportunities. And I think it is great for our business. I think to your point on is there a scale at some point create other challenges. Yes, and I think that's why we are introducing robotics and automation and other ways to optimize our field resources to be able to deliver at the scale and speed required. And as long as we continue to do that, I think that we're going to stay in front of the demands of our customers to deliver at scale.

That's helpful. Thank you.

Thank you. Our next question comes from Mark Darvey with CIBC Capital Markets. Please proceed with your question.

Yeah. Just in terms of The conversion from the pipeline to the backlog, just curious how you'd say that's progressed year-to-date. Is it exceeding your expectation just on the ability to take market share or the scale and pace of customers moving forward? Or just any comments just in terms of funnel into backlog conversion?

I think we're seeing pretty consistent conversion on kind of a historical type of pacing. Nothing that's changed as far as longer in the pipeline and longer to convert. We're seeing a lot of conversions, a lot of near-term opportunities that we expect that will move into backlog in the fourth quarter. Nothing that is out of the normal course of business.

Got it. Obviously, you're sitting on a strong cash position. I know you'd like to maybe keep some dry powder for M&A, but how are you thinking about just

So, I guess, Mark, I'd just say, obviously, we evaluate capital allocation decisions in the course of the business, and it's something that we will consistently work through with our board as we move forward. But I think, you know, from our perspective, it's going to be a lot of work. We are optimistic about our ability to allocate capital to growth, and we're certainly prioritizing that, and we'll continue to assess it with our board.

Okay. Thanks for your time today.

Thank you. Our final question this morning comes from the line of Sangeeta Jain with KeyBank Capital Markets. Please proceed with your question.

Great. Thanks for taking my question. Maybe, George, can you help us with how you're thinking of the extension of the solar tax credits in light of last week's election and whether you think there is a possibility of that getting included in the permitting reform bill that's being pursued recently?

Okay. Well, I think that there's a lot more discussion around the extension of the ITC now following the election. There's the industry associations and many folks are talking about what options there are. But absent of ITC, our business continues to grow because of the low cost and and speed in which we can deploy solar and storage. So I think that there is some optimism, but this is not a policy play. This is really an energy demand issue. So we'll watch, but we'll continue to grow our business.

Got it. And then maybe, Chad, it's probably early for you to give us 2027 outlook. But just any initial thoughts based on the strong booking cadence here today and maybe based on the pace of conversion of LNTPs to FNTPs, how we should think about 2027?

Yeah, it's a great question. We will obviously provide formal guidance on our year-end call. I think if you look at our backlog with where it is and the pace of how that would burn down, plus active business development activity, we certainly see ourselves positioned for meaningful growth. But we'll firm that up as we continue working through the next few months and see how projects come together and pacing thereof.

Got it. Thanks for taking my question.

Thank you. Ladies and gentlemen, that concludes our question and answer session, and we'll conclude our call today. We thank you for your participation. You may now disconnect your lines.