ERock (EROC) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $152.8M, net income of $8.9M and Adjusted EBITDA of $12.6M; FY2026 guidance reaffirmed.

• El Paso Electric’s 366 MW project for Meta drove deliveries; contracted backlog was ~$1.6B, with post-quarter bookings exceeding $300M.

Financial highlights

• Q3 revenue was $152.8M vs. $39.9M in Q2 and $37.2M a year earlier; power system sales were $136.3M vs. $26.5M in Q2.

• Gross profit was $34.9M; gross margin was 22.9% and Adjusted Gross Margin was 24.1%, vs. 18.6% and 22.2% in Q2.

• Net income was $8.9M vs. a $67.7M net loss in Q2; Adjusted EBITDA was $12.6M vs. a $14.0M loss.

• Ongoing services revenue was $8.6M excluding pass-through, up 23% QoQ; total services revenue including pass-through was $16.5M.

• Nine-month revenue rose 73% to $224.4M; net loss was $76.0M, including $48.8M in debt-extinguishment losses.

Outlook and guidance

• FY2026 revenue guidance was reaffirmed at $435M–$465M and Adjusted EBITDA guidance at $3M–$9M.

• Implied Q4 outlook is revenue of $211M–$241M and Adjusted EBITDA of $17M–$23M; El Paso is expected to drive product and installation growth.

• Approximately $1.6B of contracted power-system sales backlog is expected to be executed over ~2 years; production is sold out through 2027 and into early 2028.

• Atlas is planned to add ~900 MW of annual capacity by early 2028, with potential to scale to 1.2 GW; more recently priced deals carry mid-20s or higher margins.