MWH earnings analysis
What we found in MWH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SOLV delivered exceptionally strong Q2 growth, with revenue up 77.5% year over year to $951.243 million, diluted EPS of $0.30 and backlog of $8.860 billion. However, gross margin fell to 14.7% from 21.1% a year earlier, cost growth exceeded revenue growth, and six-month operating cash flow declined to $46.039 million as working capital absorbed cash. Debt reduction and $363.968 million of cash improve liquidity, but persistent material weaknesses and a $240.677 million TRA liability remain significant concerns.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sharply
- Q2 revenue rose 77.5% year over year to $951.243 million and increased approximately 40.5% from $677 million in Q1 2026. New construction revenue contributed $913.122 million, including $851.945 million from Solar PV/Solar PV plus battery storage.
- EPS beat and interest costs fell
- Q2 diluted EPS was $0.30 versus $0.24 consensus and improved from a $0.20 loss in Q1. Net income increased 49.7% year over year to $66.833 million, helped by a $12.660 million year-over-year reduction in interest expense.
- Operating leverage improved
- Q2 operating margin improved to 7.3% from negative 1.1% in Q1, while operating income increased 19.9% year over year to $69.683 million. Six-month Adjusted EBITDA increased to $209.996 million from $120.320 million.
- Backlog supports forward demand
- Total backlog was $8.860 billion at June 30, 2026, and remaining EPC performance obligations were $3.546 billion, which management anticipates recognizing substantially over the next 12 to 18 months.
- Balance sheet was delevered
- The company repaid approximately $405.6 million of term debt using IPO proceeds and had no revolver borrowings at quarter-end. Liquidity included $363.968 million of cash and $186.6 million of undrawn revolver availability.
- Positive but pressured cash generation
- Six-month operating cash flow was $46.039 million and capital expenditures were $15.960 million, implying approximately $30.079 million of six-month free cash flow. Management attributed weaker operating cash conversion partly to higher supplier deposits and materials inventory.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material gross-margin compression
- Gross margin declined to 14.7% in Q2 2026 from 21.1% a year earlier and 17.6% in Q1 2026. Management cited project performance, the prior-year contingency release and repair-project mix, as well as the 2026 classification of certain compensation costs into cost of revenue.
- Working capital absorbed cash
- Six-month operating cash flow fell to $46.039 million from $50.836 million despite revenue increasing to $1.628 billion from $943.799 million. Operating assets and liabilities generated $132.040 million of cash outflow, with materials inventory rising to $35.829 million from $4.594 million and accounts receivable rising to $392.766 million from $269.044 million.
- Material weaknesses persist
- Disclosure controls remained ineffective as of June 30, 2026 because previously reported material weaknesses continued, including controls over procure-to-pay, percentage-of-completion revenue recognition, valuation analyses and IT general controls. The filing states that these weaknesses had not yet been remediated.
- TRA creates significant cash obligations
- The Tax Receivable Agreement liability was $240.677 million at June 30, 2026, and the company is required to pay Continuing Equity Owners 85% of realized or deemed-realized tax benefits. Management expects these cash payments to be significant and says they will reduce cash flow otherwise available to the company.
- Costs outpaced revenue growth
- Q2 gross profit increased 23.5% year over year to $139.613 million, materially slower than the 77.5% revenue increase to $951.243 million. Cost of revenue rose 91.9% to $811.630 million, exceeding revenue growth.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.3
- Gross margin
- 14.7%
- Operating margin
- 7.3%
- Segment
- One reportable segment: $951.243 million of revenue in Q2 2026, up 77.5% year over year from $535.952 million. By service type: New Construction $913.122 million, up 87.8%; Existing Infrastructure $27.970 million, down 23.2%; Other $10.151 million, down 24.2%.
What they said about what is next.
The 10-Q provides no explicit full-year revenue or EPS guidance. Management states that $364.0 million of cash, $186.6 million of undrawn revolver availability and operating cash flows are expected to fund operations for at least the next twelve months; remaining EPC performance obligations were $3.546 billion as of June 30, 2026, with substantially all expected to convert to revenue over the next 12 to 18 months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 13, 2026
- SOLV Energy, Inc.'s Q1 2026 results reflect robust revenue growth amidst significant challenges in profitability, posting a net loss of $27.4 million compared to a loss of $0.5 million in Q1 2025. Revenue surged by 66%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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