ERock (EROC) Q2 2026 earnings summary

Executive summary

• Achieved a record $1.7 billion contracted backlog, up 10x year-over-year, driven by large-scale AI data center and utility projects, including a 470 MW contract with Anthropic and the El Paso Electric project for Meta, with production sold out through early 2028.

• Successfully completed IPO in June 2026, raising $400 million in gross proceeds, eliminating all outstanding debt, and transitioning to public company status.

• Expanded assembly capacity with the Hyperion facility in Houston, targeting 1.2 GW annual capacity by year-end 2026 at a capital cost of $15 million.

• Focused on scaling operations, commercial pipeline growth, and strengthening partnerships with AI developers, utilities, and grid operators.

• Designs, deploys, operates, and maintains distributed natural gas power systems for data centers, utilities, and commercial/industrial customers, with a strong presence in Texas and California.

Financial highlights

• Q2 2026 revenue was $39.9 million, up 26% sequentially from Q1 but down from $68.5 million in Q2 2025; power system sales revenue was $26.5 million, ongoing services revenue was $13.4 million.

• Gross profit reached $7.4 million (18.6% gross margin); adjusted gross margin was 22.2%.

• Net loss for Q2 2026 was $67.7 million, including a $48.8 million non-recurring loss on debt extinguishment related to pre-IPO financing.

• Adjusted EBITDA for Q2 2026 was $(14.0) million, with expectations to turn EBITDA positive in the second half of 2026.

• Ended Q2 2026 with $627 million in cash and equivalents, no outstanding debt, and an undrawn $250 million credit facility.

Outlook and guidance

• Full-year 2026 revenue guidance: $435–$465 million, representing approximately 2.5x year-over-year growth at the midpoint.

• Full-year 2026 adjusted EBITDA guidance: $3–$9 million, with positive adjusted EBITDA expected in H2 2026.

• Majority of $1.7 billion backlog expected to convert to revenue by end of 2027; $360–$390 million projected to convert in 2026.

• Production capacity is sold out through 2027 and into 2028, with further capacity additions under consideration.

• Management expects significant acceleration in generator deliveries and installations in the second half of 2026.