AI Takeaway
SOLV delivered strong FY2025 earnings growth with net income surging 224.8% to $1.56B and operating income more than doubling to $2.18B, driven by significant debt reduction and margin expansion, though operating cash flow declined sharply by 68.9%.
Revenue
$8.32B
++0.86% YoY
EPS (Basic)
$8.94
++222.74% YoY
Gross Margin
53.5%
-2.18% YoY
Operating Income
$2.18B
++110.52% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
SOLV reported FY2025 revenue of $8.33B, a modest +0.9% increase from $8.25B in the prior year, suggesting the top-line growth environment remains challenging while the company focused on profitability improvements.
Source: Source: 10-K Income Statement
Operating income surged 110.5% year-over-year to $2.18B from $1.04B, reflecting significant improvement in operational efficiency and cost discipline despite a 10.7% increase in SG&A expenses to $3.08B.
Source: Source: 10-K Income Statement
Long-term debt fell 37.1% from $8.01B to $5.04B, contributing to a 70.6% increase in stockholders' equity to $5.05B and a meaningful reduction in total liabilities from $11.50B to $9.25B, signaling a major deleveraging effort.
Source: Source: 10-K Balance Sheet
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Upgrade to unlockDespite reducing long-term debt by 37.1% to $5.04B, SOLV carries a debt-to-equity ratio of 1.83, indicating the balance sheet remains leveraged. Continued debt service obligations could constrain financial flexibility if operating cash flows remain under pressure.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.57 versus the $1.53 analyst consensus — a +2.9% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.32B | $8.25B | +0.86% |
Gross Profit | $4.45B | $4.59B | -3.09% |
Operating Income | $2.18B | $1.04B | +110.52% |
Net Income | $1.56B | $479M | +224.84% |
EPS (Basic) | $8.94 | $2.77 | +222.74% |
EPS (Diluted) | $8.88 | $2.76 | +221.74% |
R&D Expense | $739M | $775M | -4.65% |
SG&A Expense | $3.08B | $2.78B | +10.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $14.29B | $14.46B | -1.13% |
Current Assets | $3.86B | $3.25B | +18.78% |
Total Liabilities | $9.24B | $11.5B | -19.59% |
Current Liabilities | $3.14B | $2.7B | +16.02% |
Stockholders' Equity | $5.05B | $2.96B | +70.63% |
Cash & Equivalents | $878M | $762M | +15.22% |
Long-Term Debt | $5.04B | $8.01B | -37.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $369M | $1.19B | -68.86% |
Investing Cash Flow | $2.8B | $-380M | +836.05% |
Financing Cash Flow | $-3.06B | $-240M | -1173.75% |
D&A | $489M | $555M | -11.89% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 53.5% | 55.6% | -2.18% |
Operating Margin | 26.2% | 12.6% | +13.65% |
Net Margin | 18.7% | — | — |
ROE | 30.8% | — | — |
ROA | 10.9% | — | — |
Current Ratio | $1.231 | — | — |
Debt to Equity | $1.831 | — | — |
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SOLV reported FY2025 revenue of $8.33B (+0.9% YoY) with net income surging 224.8% to $1.56B and diluted EPS of $8.88 vs. $2.76 in the prior year. The strong earnings growth was driven by a more than doubling of operating income to $2.18B and significant interest expense savings from a 37.1% reduction in long-term debt.
SOLV's net income rose 224.8% to $1.56B primarily because operating income more than doubled (+110.5% to $2.18B) and the company significantly reduced its long-term debt from $8.01B to $5.04B, which would have lowered interest expense substantially. These factors combined to dramatically improve the bottom line despite only modest revenue growth of 0.9%.
SOLV's operating cash flow declined sharply by 68.9% to $369M from $1.19B in the prior year, despite much higher net income of $1.56B. Investing cash flow turned strongly positive at $2.80B (vs. -$380M), and financing cash flow was -$3.06B, suggesting the company sold significant assets and used the proceeds to pay down debt.
Yes, SOLV made substantial progress on deleveraging in FY2025, reducing long-term debt by 37.1% from $8.01B to $5.04B and cutting total liabilities by 19.6% from $11.50B to $9.25B. As a result, stockholders' equity increased 70.6% to $5.05B, significantly strengthening the balance sheet.
Key risks for SOLV include its still-elevated debt-to-equity ratio of 1.83 despite deleveraging, the sharp 68.9% decline in operating cash flow to $369M which raises cash conversion concerns, and gross margin compression of 2.2 percentage points to 53.5%. Additionally, SG&A expenses grew 10.7% — far outpacing revenue growth of 0.9% — which could pressure future profitability if not controlled.