SEI — Solaris Energy Infrastructure, Inc.

SEI Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $196 million, up 22% sequentially and 79% year-over-year.
• Adjusted EBITDA: $84 million, reflecting strong operational momentum.
• Power Solutions: Operated over 900 megawatts, with adjusted EBITDA increasing over 30% sequentially to $72 million.
• Logistics Solutions: Adjusted EBITDA approximately $23 million, a 2% increase from Q4 2025.
• Guidance: Q2 adjusted EBITDA guidance raised by 10% to $83 million - $93 million; initial Q3 guidance of $80 million - $95 million.

2. Strategic Updates and Business Highlights

• Contract Wins: Secured two long-term contracts totaling over 1 gigawatt with investment-grade global technology companies, increasing contracted capacity to over 2 gigawatts.
• Capacity Expansion: Closed two strategic transactions adding approximately 900 megawatts of new natural gas turbine capacity, expanding generation capacity by over 40% to 3.1 gigawatts.
• Turnkey Solutions: Emphasized a shift towards providing comprehensive power solutions, including balance of plant and distribution capabilities, enhancing project returns.
• Market Position: Solaris is positioned as a leader in the behind-the-meter power solutions market, with a focus on rapid deployment and compliance.

3. Forward Guidance and Outlook

• Long-term Visibility: Over 2 gigawatts of contracted capacity provides earnings and cash flow visibility for the next 10-15 years.
• Growth Potential: Pro forma adjusted EBITDA could exceed $1 billion annually with the full deployment of 3,100 megawatts.
• Capital Deployment: Identified over $1 billion in capital to be deployed in 2026 and 2027, with plans for further updates on funding alternatives.

4. Bad News, Challenges, or Points of Concern

• Contract Negotiation Complexity: Initial complex commercial contracts can take extended periods to close, although progress is being made towards more standardized agreements.
• Supply Chain Risks: While diversifying supplier relationships, there remains a risk associated with supply chain disruptions and lead times for equipment.
• Market Competition: Increased competition from other players in the behind-the-meter space, with potential challenges in maintaining pricing power.

5. Notable Q&A Insights

• Accelerated Contracting: Discussions with customers have become more urgent, reflecting a growing recognition of the need for behind-the-meter solutions.
• Balance of Plant Business: Solaris is exploring opportunities to provide balance of plant services independently, alongside generation contracts.
• Market Dynamics: The company is witnessing a shift in customer preferences towards integrated power solutions, which enhances their competitive positioning.
• Future Opportunities: The company is actively pursuing additional contracts and has seen increased interest from both existing and new customers.
• JV Cash Flow: Revenue from the joint venture will be used for debt servicing initially, with excess cash available for distribution to support growth.

Overall, Solaris is demonstrating strong financial performance and strategic execution, positioning itself well for future growth while navigating potential challenges in the market.