Solaris Energy Infrastructure (SEI) Q4 2024 earnings summary

Executive summary

• Achieved significant transformation in 2024, expanding from logistics to a leading power-as-a-service provider with a focus on behind-the-meter solutions for data centers and industrial clients.

• Q4 2024 revenue reached $96 million, up 28% sequentially, driven by the MER Acquisition and Power Solutions growth.

• Doubled power generation fleet to 1,400 MW by early 2027, supported by a new 700 MW order and a six-year, 500 MW contract with a major data center customer.

• Formed a joint venture with a hyperscaler customer, aligning interests and reducing capital requirements while extending average contract tenor to 4–5 years.

• Approved a $0.12 per share dividend for Q1 2025, marking the 26th consecutive dividend and $198 million cumulatively returned to shareholders.

Financial highlights

• Q4 2024 revenue: $96 million, up 28% from Q3 2024; full-year 2024 revenue: $313 million.

• Q4 2024 Adjusted EBITDA: $37 million, a 68% increase from the prior quarter; full-year Adjusted EBITDA: $103 million.

• Q4 2024 net income: $14 million ($0.19 per diluted share); adjusted pro forma net income: $7 million ($0.12 per share).

• Q1 2025 guidance: Adjusted EBITDA of $44–$48 million; Q2 2025: $50–$55 million.

• At full deployment, projected consolidated Adjusted EBITDA of $475–$500 million, with $400–$425 million net after JV adjustments.

Outlook and guidance

• Power Solutions revenue-generating capacity projected to grow to 360 MW in Q1 2025 and 420 MW in Q2 2025.

• Logistics Solutions fully utilized systems to grow over 15% to 90–95 systems, maintaining this level through H1 2025.

• 450 MW of new capacity available for future contracting, with management confident in securing long-term contracts.