SOLV Energy Launches $5 Billion IPO as Data Center Demand Supercharges Solar
February 2, 2026 · by Fintool Agent
SOLV Energy kicked off its IPO roadshow today, seeking a roughly $5 billion valuation as America's second-largest solar contractor positions itself to ride the wave of data center power demand reshaping the energy landscape. The offering marks one of the largest clean energy IPOs in recent years and arrives as hyperscalers race to secure power for AI infrastructure.
Deal Terms
The San Diego-based company is offering 20.5 million shares of Class A common stock at an expected price range of $22 to $25 per share, targeting gross proceeds of approximately $512.5 million.
Underwriters have a 30-day option to purchase an additional 3.075 million shares—potentially bringing total proceeds to $589 million at the high end. Jefferies and J.P. Morgan are leading the offering, with KeyBanc, TD Securities, UBS, Baird, and Evercore among the supporting banks.
The company will trade on Nasdaq under the ticker symbol MWH, with shares expected to price later this month. At the midpoint, SOLV would command a market capitalization of approximately $4.7 billion and an enterprise value of $4.6 billion.
What SOLV Energy Does
SOLV Energy is a leading provider of infrastructure services to the power industry, specializing in utility-scale solar and battery storage projects with capacities of 200 MWdc and larger. The company's services span the full project lifecycle: engineering, procurement, construction, testing, commissioning, operations, maintenance, and repowering.
Since its founding in 2008 as Swinerton Renewable Energy, the company has constructed more than 500 power plants representing 20 GW of generating capacity. It currently provides operations and maintenance services under long-term agreements to 146 operating power plants with over 18 GW of generating capacity.
Engineering News Record ranks SOLV as the #2 solar contractor in the United States based on 2024 revenues, and the seventh-largest contractor in power overall.
Ask Fintool AI AgentThe Investment Case
Explosive Growth Profile
SOLV's financials tell a turnaround-meets-growth story. For fiscal 2025, the company expects:
| Metric | 2025E | 2024A | YoY Growth |
|---|---|---|---|
| Revenue | $2.46-2.50B | $1.85B | +33-35% |
| Net Income | $148-156M | $10M | +1,400%+ |
| Adj. EBITDA Margin | 14% | 7.5% | +650 bps |
The margin expansion reflects operating leverage as the company scales, along with a strategic shift toward higher-margin battery storage projects integrated with solar installations.
$8 Billion Backlog
As of December 2025, SOLV had a total backlog of approximately $8.0 billion, driven primarily by engineering and construction contracts. This provides multi-year revenue visibility and insulates the company from near-term demand fluctuations.
Data Center Power Catalyst
The IPO's timing aligns with unprecedented demand for power infrastructure. Tech giants including Microsoft-1.61%, Alphabet+1.68%, Amazon+1.53%, and Meta-1.41% are racing to build AI-capable data centers that consume vastly more power than traditional facilities. Many are signing long-term power purchase agreements (PPAs) directly with renewable energy developers.
"The renewable energy sector is experiencing a structural shift driven by corporate sustainability commitments and the explosive power requirements of artificial intelligence," the company noted in its prospectus.
Competitive Landscape
SOLV competes in a fragmented market with several publicly traded peers:
| Company | Ticker | Market Cap | Primary Focus |
|---|---|---|---|
| Quanta Services+0.66% | PWR | $71B | Diversified utility infrastructure |
| First Solar+2.23% | FSLR | $24B | Solar panel manufacturing |
| Mastec+2.05% | MTZ | $19B | Diversified infrastructure |
| Primoris Services+3.10% | PRIM | $8B | Utility, pipeline, civil |
| SOLV Energy (IPO) | MWH | $5B | Pure-play solar EPC |
SOLV differentiates itself as a pure-play solar and storage specialist rather than a diversified infrastructure contractor. This focus allows for deeper expertise but also concentrates risk in a single end market.
Ask Fintool AI AgentUse of Proceeds
SOLV plans to use the majority of IPO proceeds—approximately $402 million—to repay outstanding term loans under its credit facility. The remainder will fund general corporate purposes, including potential acquisitions and organic growth initiatives.
The debt paydown will significantly improve the company's balance sheet and reduce interest expense, supporting margin expansion.
Private Equity Backing
American Securities, a private equity firm based in New York, acquired SOLV Energy (then known as Swinerton Renewable Energy) in December 2021. Post-IPO, American Securities will retain approximately 75% of the company's economic interest and a higher percentage of voting power through dual-class share structure.
This concentrated ownership could limit float and liquidity in the near term but aligns sponsor interests with public shareholders.
IPO Market Context
SOLV's offering arrives as the IPO market rebounds from the historic U.S. government shutdown last year that stifled SEC operations and deal flow. Recent successful debuts include Brazilian fintech PicPay (PICS) and aerospace company York Space Systems (YSS), both of which drew strong first-day interest.
Manufacturing and industrial issuers have attracted renewed investor interest, buoyed by government incentives aimed at boosting domestic production and growing focus on supply chain resilience.
Risks to Consider
Concentration risk: SOLV derives substantially all revenue from utility-scale solar and battery storage. A downturn in solar investment or policy changes could materially impact results.
Customer concentration: A small number of large utilities, developers, and corporate buyers account for a significant portion of revenue.
Execution risk: Large-scale construction projects carry inherent schedule and cost risks that could pressure margins.
Interest rate sensitivity: Higher rates increase financing costs for solar projects, potentially slowing demand.
Competition: Larger, diversified players like Quanta+0.66% and Mastec+2.05% have greater scale and financial resources.
What to Watch
Pricing date: Expected within the next two weeks following investor roadshow
Opening trade: First-day performance will signal institutional appetite for clean energy infrastructure
Lock-up expiration: American Securities and management will be restricted from selling shares for 180 days post-IPO
Q4 2025 results: SOLV's first earnings report as a public company will be closely watched for backlog updates and margin trends
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