- EROC
- META
Key Points
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Q3 revenue surged to $153 million from $40 million in Q2, driven mainly by generator deliveries and installation work for Meta’s El Paso data center project. ERock posted $8.9 million in net income, its first profitable quarter as a public company.
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ERock said production capacity is sold out through 2027 and into early 2028. More than $300 million in post-quarter bookings lifted its contracted backlog to a record, and the planned Houston facility is expected to add up to 900 megawatts of annual capacity by the first half of 2028.
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The company reaffirmed its 2026 revenue forecast of $435 million to $465 million and adjusted EBITDA outlook of $3 million to $9 million. It ended September with $549 million in unrestricted cash, no debt, and an undrawn $250 million credit facility.
ERock (NYSE:EROC) reported third-quarter revenue of $153 million, nearly four times its second-quarter total, as work accelerated on a power project supporting Meta’s data center complex in El Paso, Texas. The company reaffirmed its full-year outlook and announced plans for a new Houston assembly facility to meet demand extending into 2028.
Net income was $8.9 million, which Chief Financial Officer Ian Blakely said marked ERock’s first profitable quarter as a public company. Adjusted EBITDA rose to $12.6 million from a loss of $14 million in the prior quarter.
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Chief Executive Officer John Carrington said demand remained strong across the company’s customer segments, despite volatility in AI infrastructure. He said ERock’s production capacity is sold out through 2027 and into early 2028, and that the company is now pursuing orders for later deliveries.
El Paso project drives revenue growth
Third-quarter revenue increased from $40 million in the second quarter. Power system sales rose to $136 million from $27 million, primarily reflecting generator deliveries and installation work on the El Paso project, Blakely said.
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Ongoing services revenue, excluding pass-through reimbursable variable revenue, rose 23% sequentially to $8.6 million, helped by seasonal activity. Blakely said service revenue from large projects is expected to begin contributing late next year and in 2028.
Gross profit was $34.9 million, while adjusted gross margin rose to 24.1% from 22.2% in the second quarter. Blakely attributed the improvement to higher product margins, partly offset by lower installation and services margins.
