SOLV Energy Strong 1Q Beat and Raise; Backlog Growth Continues; PT to $51

Research evidence excerpt

SOLV Energy Strong 1Q Beat and Raise; Backlog Growth Continues; PT to $51

J P M O R G A N North America Equity Research

12 May 2026

SOLV Energy Overweight

MWH, MWH US

Strong 1Q Beat and Raise; Backlog Growth Continues; Price (11 May 26):$44.83

PT to $51 ▲Price Target (Dec-26):$51.00 Prior (Dec-26):$35.00

MWH reported 1Q results that exceeded expectations and raised FY26 earnings

guidance, aided by project execution, favorable weather, and a 1Q change order. Clean Energy, Power Infrastructure,

and Sustainable InvestingBacklog increased q/q as did O&M projects under management. Management tone

remains positive, and we believe the company is largely executing to plan from the Mark Strouse, CFA AC

recent IPO. We believe the RWE acquisition, though relatively small, is an (1-212) 622-8244

mark.w.strouse@jpmorgan.com

indicator of MWH’s ability and willingness to utilize its net cash balance sheet to

consolidate. We are raising our estimates to account for the updated guidance, Michael G Fairbanks

(1-212) 622-4908

continued backlog growth and larger-than-expected O&M fleet. We are also michael.fairbanks@jpmchase.com

marking-to-market our assigned price target multiple for MWH given recent

Anna Zhu

trading strength amongst peers following mostly solid 1Q results. Our YE26 PT (1-212) 622-0012

goes to $51, from $35. Maintain Overweight. anna.zhu@jpmorgan.com

J.P. Morgan Securities LLC

• Strong 1Q Results and Continued Backlog Growth. MWH reported 1Q PF

EBITDA of $93mm on revenue of $677mm, beating Street expectations by

52% and 9%, respectively. Gross margin of 17.6% (18.4% adjusted for stock Key Changes (FYE Dec)

comp) beat Street expectations of 16.3%, owing to favorable weather Prev Cur Δ

conditions, strong project execution, and change order recoveries (~$10mm). Adj.