Solaris (SEI) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Energy· Apr 28, 2026

Source: earnings call transcript

Executive summary

Solaris Q1 FY26 — Accelerating Growth with New Power Contracts and Expanded Scope

Solaris Energy Infrastructure delivered a strong Q1 FY26, driven by significant commercial success in its Power Solutions segment, securing over 1 GW in new long-term contracts and expanding generation capacity to 3.1 GW. The company is strategically broadening its scope to offer turnkey "molecule to electron" solutions, including balance of plant and services, which enhances project returns and deepens customer integration. While demand outpaces current supply, Solaris is actively securing future capacity and sees a clear path to substantial long-term earnings growth, underpinned by its expanding contracted base and strategic capital deployment.

Highlights

Secured over 1 gigawatt of new contracted power generation capacity with two investment-grade global technology companies.
Expanded generation capacity by over 40% to 3.1 gigawatts through two strategic transactions.
Q1 adjusted EBITDA increased 79% year-over-year to $84 million.
Power Solutions adjusted EBITDA increased more than 30% sequentially to $72 million.
Logistics Solutions segment adjusted EBITDA increased 2% sequentially to $23 million with fully utilized systems.

Concerns

Demand for solutions continues to outpace committed and on-order capacity, requiring decisive action on the supply side.
Grid interconnection delays continue to expand, accelerating adoption of behind-the-meter solutions but also posing a challenge for traditional grid infrastructure.
Q3 adjusted EBITDA guidance reflects shifting power from temporary to permanent at Stateline JV and equipment deliveries for 2027 revenue, implying a potential near-term plateau or dip.

Guidance & targets

Category	Target	Timeline	Confidence
Total Adjusted EBITDA	$83 million to $93 million high materiality	Q2 · FY26	High
Total Adjusted EBITDA	$80 million to $95 million high materiality	Q3 · FY26	Medium
Total Company Adjusted EBITDA (pro forma for 3.1 GW)	exceed $1 billion annually high materiality	Annual	High
Incremental EBITDA from additional CapEx	$160 million to $200 million high materiality	Future	High
Total Company Adjusted EBITDA Outlook (pro forma)	$875 million to $925 million high materiality	Future	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Power Solutions Adjusted EBITDA increased more than 30% sequentially, driven by growth in revenue from both owned assets and third-party leased capacity. Operated megawatts: more than 900 megawatts	—	—	more than 30%	$72 million
Logistics Solutions Segment adjusted EBITDA increased 2% over Q4 2025, with demand for top fill equipment exceeding deployable supply and a tight forward-looking calendar. Fully utilized systems: 104	—	—	2%	approximately $23 million

SEI operating KPIs by quarter

SEI operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Change vs prior quarter
Average fully utilized systems Logistics Solutions	93 In our Logistics segment, we averaged 93 fully utilized systems, an increase of 11% from the third quarter. Source: earnings call transcript	104 In Logistics, we averaged 104 fully utilized systems and segment adjusted EBITDA was approximately $23 million, a 2% increase over the fourth quarter of 2025. Source: earnings call transcript	+11.8%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Genco Power Solutions Acquisition of 400 MW of incremental natural gas fuel turbine capacity.

Closed on March 16. This acquisition meaningfully diversifies the equipment supplier base.

Multiple OEMs Purchase of 30 turbine delivery slots, providing approximately 500 MW of incremental capacity.

Closed on March 16. Prices for the slots are fixed, and there is an opportunity to move some delivery dates up.

Not named (lenders) Closed a $300 million credit facility, subsequently upsized by $200 million. $300 million

Closed in March. The upsized facility supports the company's growth plan.

Capital programs

Additional Capital Deployment identified $1 billion

Funding: evaluating funding alternatives

Start: 2026

Benefit:execute our growth plan in an accretive manner

More than $1 billion of additional identified capital to be deployed in 2026 and 2027, with funding alternatives being evaluated to ensure accretive growth.

Risks & headwinds

Grid interconnection delays Ongoing

continued to expand

Mitigation:Accelerates adoption of Solaris' behind-the-meter power solutions, reinforcing the company's strategy.

Demand outpacing committed and on-order capacity Current

Demand for our solutions continues to outpace our committed and on-order capacity.

Mitigation:Moving decisively on the supply side through strategic acquisitions (Genco Power Solutions) and purchasing turbine delivery slots, diversifying the OEM base.

Labor training challenges Ongoing

labor is a challenge

Mitigation:Building internal skills, developing own protocols for repair and maintenance, and establishing a labor training force across the board.

Public backlash on data center locations Current

seen some backlash publicly about where the data centers can go and where they can't go

Mitigation:Solaris' strategy to put power where customers need it, when they need it, allows flexibility in site selection and addresses dynamic public environments.

What to watch in Q2 FY26

Q2 Adjusted EBITDA

next quarter

Current Q1 FY26 Adjusted EBITDA was $84 million

Target $83 million to $93 million

Why it matters

Verifies near-term execution and confidence in the company's guidance for the second quarter.

For the second quarter, we're increasing total adjusted EBITDA guidance by 10% to $83 million to $93 million, reflecting our confidence in near-term execution.

Find out whether SEI delivers this. Inve re-checks your case every morning.

Q&A highlights

Has the time to securing new power contracts accelerated, and how have discussions changed regarding execution speed?

William Zartler explained that initial complex contracts take a long time to finalize, but once standard terms are established, future opportunities are expected to be more streamlined. He noted that customers were 'forced' into these contracts and that developing win-win solutions takes time.

“Well, these have been baking for a while now. So they've taken a long time to get across the finish line to start with. Obviously, when they're closed, it feels really good to have them done.”

asked by David Arcaro · answered by William Zartler

2 min read 5 chapters

Detailed narrative

Accelerating Power Strategy and Market Tailwinds

Solaris' power strategy is accelerating growth, driven by increasing demand for behind-the-meter solutions for data centers and large industrial loads. Grid interconnection delays and electricity affordability concerns reinforce the need for rapid, compliant, and cost-effective power solutions, where Solaris' turnkey capabilities are a key differentiator. The company's proven ability to deploy rapidly and compliantly, fully behind the meter in island mode if needed, with the optionality of providing a cost-effective reliability-enhancing complement to the grid, continues to be a real differentiator.

Commercial Success and Capacity Expansion

The company secured over 2 GW of power generation under long-term contracts with three technology companies, including a recent 600 MW contract for 10-15 years and a 500 MW contract announced in February. To meet demand, Solaris acquired Genco Power Solutions (400 MW) and purchased 30 turbine delivery slots (500 MW), expanding total secured capacity to 3.1 GW. These strategic moves also diversify the company's OEM supplier base, increasing operational flexibility and reducing supply chain exposure.

Expanding Scope and Turnkey Solutions

Solaris is innovating beyond generation, offering a "molecule to electron" approach that includes power distribution, conditioning, storage, and fuel supply. The most recent 600 MW agreement confirms this strategy, including greater project scope covering balance of plant and additional services like last-mile gas delivery. This broader scope means more capital deployed per site, closer integration with customer infrastructure, and enhanced returns over the contracted period, making contractual relationships more durable.

New Initiatives and Customer Integration

The company is seeing increased traction for balance of plant services even where it doesn't provide generation, and is being approached for consulting on power challenges due to its technical depth. Additionally, Solaris is participating in a pilot research program with a large technology customer for mobile distributed compute, helping design and provide expertise for balance of plant, which could eventually include generation. These opportunities are incremental to the contracted generation base and leverage capabilities assembled over the past two years.

Capital Allocation and Financial Outlook

Solaris closed a $300 million credit facility in March, subsequently upsized by $200 million, providing meaningful near-term liquidity. With over $1 billion of additional identified capital to be deployed in 2026-2027, the company is evaluating funding alternatives for accretive growth. The 2 GW of contracted capacity provides long-term earnings visibility for 10 to 15 years, with a scenario where total adjusted EBITDA pro forma for all 3.1 GW could exceed $1 billion annually.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.