Solaris Energy Infrastructure, Inc.

What they do

Solaris operates through two segments: Solaris Power Solutions delivers modular power generation, control, and distribution equipment to data center, energy, and commercial/industrial customers, including turnkey power plants and aftermarket services. Solaris Logistics Solutions designs and manufactures specialized equipment for managing raw materials in oil and natural gas well completions, including field technician support and software.

Revenue drivers

• Solaris Power Solutions — Revenue from power generation, control, and distribution; 58% of total revenue in Q4 2025 and growing with long-term contracts.
• Single data center customer — Dominant customer; 88% of Power segment revenue in 2025, 96% in 2024; 2025 contract for up to 900 MW with 7-year initial term.
• Solaris Logistics Solutions — Revenue from equipment-based logistics for well completions; one customer accounted for 28% of segment revenue in 2025.
• New long-term power contracts — 2026 agreements: 660 MW turnkey plant with Hatchbo (up to 18-year term), 640 MW with new customer (10-year term), and expanded energy customer to 80 MW.

Recent performance

Q2 2026 revenue was approximately $219 million, up 12% sequentially; net income was $25 million ($0.26 diluted per share). Adjusted EBITDA was approximately $108 million, up 30% sequentially. For 2025, annual revenue was $622.2 million with net income of $30.2 million; operating cash flow was $209.1 million. As of June 30, 2026, total assets were $4.21 billion, cash was $824.1 million, and long-term debt was $1.60 billion.

Strategy

Management is expanding power solutions through contract scope increases (e.g., 660 MW turnkey plant, 640 MW data center project) and extending tenors. They are pursuing inorganic growth, acquiring HVMVLV (2025) and GESA (July 2026) to add power control/distribution and aftermarket services. They invested $5.0 million in Deployable Energy for SMR nuclear technology exposure. Balance sheet was strengthened with $1.3 billion senior notes offering and new $650 million credit facility, ending Q2 2026 with about $1.4 billion liquidity.

Risks

• Customer concentration — Power segment revenue is heavily dependent on a single data center customer (88% of segment revenue in 2025); loss of this customer would materially hurt results.
• Supplier concentration — A leading supplier provides a significant portion of power generation equipment; inability to secure additional supply could limit growth or increase costs.
• Technology adaptation — Failure to adapt power technologies to meet increasing customer loads could result in downtime and damage reputation, adversely affecting operations.
• Competition from grid — Completion of large-scale utility projects and grid expansion could reduce demand for distributed power generation, limiting growth.

Outlook

Management raised Q3 2026 Adjusted EBITDA guidance to $90-105 million (from $80-95 million) and established Q4 2026 guidance of $100-120 million. Power contract expansions are expected to add $100 million of expected annual Adjusted EBITDA. Revenue under the Hatchbo contract is expected to commence in Q1 2027 and scale through 2028; deployments for the new 640 MW customer are scheduled to start in late 2026.