ERock Inc (NYSE:EROC) shares are falling Thursday after the onsite power provider delivered a split third-quarter report. Here’s what you should know.
- ERock stock is trending lower. What’s driving EROC stock lower?
ERock Profit Tops Estimates While Sales Lag
ERock earned 4 cents per share in the third quarter, better than analyst estimates for a 1-cent loss. Revenue totaled $152.77 million, landing about 7.5% under the $165.16 million forecast.
Despite the top-line miss, revenue still jumped nearly fourfold from the second quarter as the company produced and installed far more generators. That surge flipped results to $8.9 million in net income and $12.6 million in adjusted EBITDA.
CFO Ian Blakely said the quarter gave ERock its first profit since going public. Still, the surprise profit wasn’t enough to outweigh the revenue miss, sending shares lower.
ERock kept its 2026 revenue target at $435 million to $465 million and adjusted EBITDA guidance at $3 million to $9 million. Management expects sales and profit to climb again in the fourth quarter.
Meta Project and New Factory Drive Growth
Construction started on time at the 366-megawatt El Paso Electric plant, the company said. The facility will power a data center campus for Meta Platforms Inc (NASDAQ:META). CEO John Carrington expects the project to wrap up by mid-2027.
ERock is also adding a Houston factory named Atlas, where the site will add 900 megawatts of annual production. Total capacity is predicted to hit 2.1 gigawatts a year by 2028. The company noted that a new engine parts deal with HD Construction will support larger customer orders that year.
Since quarter-end, ERock has booked more than $300 million in new power system sales, which pushed its backlog to an all-time high. Carrington said the orders give the company a clearer view of sales and margins through 2028.
EROC Shares Are Slipping
EROC Price Action: ERock shares were down 4.53% at $8.43 at the time of publication on Thursday, according to Benzinga Pro.
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