Solaris Energy Infrastructure Q2 Earnings Call Highlights

Solaris Energy Infrastructure NYSE: SEI reported record second-quarter results as growth in its Power Solutions business, expanded customer contracts and the acquisition of Global Energy Services Alliance, or GESA, supported its outlook for the second half of 2026.

The company generated approximately $219 million in second-quarter revenue, up 12% sequentially, and approximately $108 million in adjusted EBITDA, up 30% from the first quarter, CFO Steve Tompsett said.

Net income was $25 million, while adjusted pro forma net income totaled $37 million, or $0.39 per fully diluted share.

Chairman and Co-CEO Bill Zartler said Solaris continues to provide dedicated power to two operating data centers and is building projects at two additional locations, including one expected to energize in September.

The company has signed long-term contracts with three investment-grade technology companies, two of which were executed during the past six months.

Solaris averaged about 950 megawatts of revenue-generating capacity during the quarter, compared with about 910 megawatts in the first quarter.

Power Solutions revenue increased 23% sequentially to approximately $158 million, while adjusted EBITDA rose 34% to about $96 million.

Tompsett attributed the improvement primarily to higher ancillary-service revenue.

Its Logistics segment generated $61 million in revenue, down 10% sequentially due to lower last-mile transportation activity.

However, Logistics adjusted EBITDA rose 7% to $25 million, reflecting higher activity and a more favorable project mix.

Zartler said the Logistics business continues to produce more than $20 million in quarterly free cash flow, which Solaris is investing in its power and infrastructure services operations.

He said the company is effectively sold out of its top-fill equipment and sees favorable market fundamentals for the segment.

Co-CEO Amanda Brock said Solaris amended its Hatchbo agreement in July, converting the original power-capacity arrangement into a capacity and operating agreement for a turnkey 660-megawatt power plant.

The expanded agreement includes additional balance-of-plant equipment, batteries and full operations and maintenance services.

The agreement has a 10-year base term and an eight-year extension option, increasing its potential duration to 18 years from the prior maximum of 15 years.

Solaris began civil construction in July, has more than 70% of the required equipment available, and expects to begin earning revenue from the project in January 2027, Brock said.

The company also expanded an April contract with its third investment-grade global technology customer.

The scope grew from 640 megawatts of generation to include incremental balance-of-plant equipment, energy storage and natural-gas procurement, delivery and management on a...