ERock Posts First Profitable Quarter as Revenue Nearly Quadruples on Data Center Power Demand

ERock, Inc. (NYSE: EROC), a Houston-based provider of utility-grade onsite power solutions, reported third-quarter 2026 results marked by record revenue and the company's first profitable quarter as a public company, as surging demand for distributed generation from data center operators drove a sharp acceleration in generator production and installation activity.

Total revenue for the quarter ended September 30, 2026 reached $152.8 million, nearly four times the $39.9 million recorded in the prior quarter and more than quadruple the $37.2 million reported in the same period a year earlier. Power system sales revenue accounted for $136.3 million of the total, while ongoing services revenue rose to $16.5 million from $10.7 million a year ago. The company posted net income of $8.9 million, or $0.04 per diluted share, a swing of $76.6 million from the prior quarter's loss of $67.7 million, and Adjusted EBITDA of $12.6 million, an improvement of $26.6 million quarter-over-quarter. Gross margin expanded to 22.9% from 9.0% in the year-ago period.

Chief Executive Officer John Carrington attributed the performance to disciplined execution and growing commercial momentum. "We executed well in the third quarter, with record production and deliveries that drove record quarterly revenue and profitability," he said. "We began construction at the El Paso Electric facility for Meta, and that project remains on track for completion in mid-2027." The 366-megawatt generation facility, which supports Meta's data center campus, broke ground on schedule during the quarter.

ERock is moving aggressively to expand manufacturing capacity to meet demand. The company is adding 900 megawatts per year of capacity through its new Atlas facility in Houston, which is expected to bring total run-rate capacity to 2.1 gigawatts per year in 2028. It also secured supply chain visibility through an engine long block contract with HD Construction, enabling expanded volumes for customers in 2028. Since the end of the quarter, ERock has booked more than $300 million in new power system sales, pushing its contracted backlog to a record level of approximately $1.6 billion.

Chief Financial Officer Ian Blakely described the quarter as an inflection point. "The third quarter marked an inflection point with revenue growing nearly 4x quarter-over-quarter, driving our first profitable quarter as a public company," he said, adding that the results "demonstrate the operating leverage embedded in our business." The company ended the quarter with $549 million in unrestricted cash, no outstanding debt and an undrawn $250 million credit facility.

ERock reaffirmed its full-year 2026 guidance, projecting revenue of $435 million to $465 million, which at the midpoint represents roughly 2.5 times year-over-year growth, and Adjusted EBITDA of $3 million to $9 million. The outlook underscores how onsite gas-fired generation is becoming an increasingly critical bridge for data center operators facing grid interconnection delays and mounting power constraints, a dynamic that has propelled ERock's installed base to 1,104 megawatts and annualized recurring service revenue to $24.7 million.