Solaris Energy Infrastructure (SEI) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with revenue up to $126.3 million, driven by robust performance in both logistics and power solutions segments, and supported by integration benefits and strategic focus on free cash flow and reinvestment in growth areas.

• Finalized a joint venture (Stateline Power, LLC) with a major data center client, upsizing the power contract from 500 MW to 900 MW with a seven-year tenor, enhancing earnings visibility and fully committing the power fleet.

• Secured an additional 330 MW of generation capacity, increasing the pro forma operated fleet to 1,700 MW, with 1,250 MW owned on a net basis, and deliveries starting in H2 2026.

• Logistics segment saw over 25% sequential system activity growth, driven by new customer wins and technology adoption, with Q1 2025 revenue of $77 million and 98 fully utilized systems.

• Issued $155 million in 4.75% Convertible Senior Notes due 2030, with $100 million restricted for Solaris Power Solutions capex.

Financial highlights

• Q1 2025 revenue reached $126.3 million, up 31% sequentially and 86% year-over-year, with adjusted EBITDA of $57.9 million, a 25% sequential increase.

• Net income attributable to common shareholders was $5.1 million ($0.14 per share); adjusted pro forma net income was $14 million ($0.20 per fully diluted share).

• Operating income was $22.1 million, up from $10.0 million in Q1 2024.

• Cash and cash equivalents at March 31, 2025, were $16.7 million, down from $114.3 million at year-end 2024.

• Cash flow from operations was $25.7 million; capital expenditures and investments totaled $144.3 million.

Outlook and guidance

• Q2 2025 Adjusted EBITDA guidance is $50–$55 million; Q3 2025: $55–$60 million.

• Power Solutions revenue-generating capacity expected to average 440 MW in Q2 and 520 MW in Q3 2025.

• Logistics segment guidance for 90–95 fully utilized systems in Q2, with profit per system stable; potential Q3 softness if oil prices remain low.

• Annual run rate adjusted EBITDA projected at $575–$600 million consolidated, $440–$465 million net to the company, assuming full deployment.

• Expects operated power generation fleet to reach 1,700 MW by H1 2027, with 70% of capacity committed under 2–7 year contracts.