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    SEI
    Earnings call· Mar 2026(Q1 FY26)

    Solaris Energy Infrastructure Q1 FY26 earnings call SEI

    Apr 28, 2026 Source

    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

    5

    • 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

    3

    • 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

    5
    CategoryTargetConfidence
    Total Adjusted EBITDA
    $83 million to $93 million
    high materiality
    High
    Total Adjusted EBITDA
    $80 million to $95 million
    high materiality
    Medium
    Total Company Adjusted EBITDA (pro forma for 3.1 GW)
    exceed $1 billion annually
    high materiality
    High
    Incremental EBITDA from additional CapEx
    $160 million to $200 million
    high materiality
    High
    Total Company Adjusted EBITDA Outlook (pro forma)
    $875 million to $925 million
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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

    Operational metrics

    14
    Adjusted EBITDA
    $84 million79% higher year-over-year, 22% higher sequentially
    Q1 FY26

    Total company adjusted EBITDA.

    Secured Power Generation Capacity
    3.1 gigawattsover 40% growth
    Q1 FY26

    Total secured power generation capacity, including acquisitions.

    Contracted Power Capacity (Long-term)
    over 2 gigawatts
    Q1 FY26

    Total power generation capacity under long-term contracts.

    New Contracted Power Capacity (Recent)
    over 1 gigawatt
    Q1 FY26

    Capacity added through significant long-term contracts.

    New Contracted Power Capacity (Specific Agreement)
    over 600 megawatts
    Q1 FY26

    Most recent long-term contract announced, includes balance of plant and additional services.

    New Contracted Power Capacity (Specific Agreement)
    over 500-megawatt
    Q1 FY26

    Contract announced in early February.

    Stateline Joint Venture Capacity
    900-megawatt
    Q1 FY26

    Capacity currently under development in the Stateline joint venture.

    Genco Power Solutions Acquisition Capacity
    400 megawatts
    2026-2028

    Incremental capacity from the acquisition of Genco Power Solutions.

    Turbine Delivery Slots Capacity
    500 megawatts
    early 2027 and 2029

    Incremental capacity secured through the purchase of turbine delivery slots.

    Credit Facility
    $300 million
    March 2026

    Initial amount of the credit facility closed in March.

    Credit Facility Upsize
    $200 million
    March 2026

    Additional borrowings allowed by upsizing the credit facility, providing near-term liquidity.

    Incremental Capital Deployment (Identified)
    $1 billion
    2026 and 2027

    Additional identified capital to be deployed, with funding alternatives being evaluated.

    Unlevered Return Target
    north of 20%
    Ongoing

    Target unlevered returns for turnkey projects.

    Industry Cost of New Power Projects
    $3,500 per kilowatt
    Current

    Reference to a recent large project announced by the White House in Ohio, indicating the cost of larger scale opportunities.

    Industry KPIs

    5
    MetricValueDetails
    Rpo backlogover 2 gigawattsGW
    FCF CAPEX leverage$1 billionUSD
    M a integration progress400 megawattsMW
    Orders bookings by segmentover 1 gigawattGW
    Data center new energy revenue capacity3.1 gigawattsGW

    Deals & partnerships

    3
    Genco Power SolutionsAcquisition of 400 MW of incremental natural gas fuel turbine capacity.

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

    Multiple OEMsPurchase 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

    1
    Additional Capital Deploymentidentified$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

    4
    Grid interconnection delaysOngoing

    continued to expand

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

    Demand outpacing committed and on-order capacityCurrent

    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 challengesOngoing

    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 locationsCurrent

    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

    5

    Q2 Adjusted EBITDA

    next quarter
    CurrentQ1 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.