Solaris Energy Infrastructure Q1 Earnings Call Highlights

Key Points

• Solaris has sharply accelerated its behind-the-meter power push for data centers, signing two major long‑term contracts that lift contracted generation to over 2 GW, including a newly announced >600 MW 10‑year deal (with a 5‑year option) and expanding turnkey “molecule‑to‑electron” balance‑of‑plant scope.
• Secured generation capacity rose to 3.1 GW after the Genco Power Solutions acquisition (adds ~400 MW) and purchase of 30 turbine delivery slots (~500 MW), giving Solaris more flexibility and diversified OEM supply to meet strong customer demand.
• Q1 revenue was $196 million with Adjusted EBITDA of $84 million (up 22% sequential, 79% YoY); management raised Q2 Adj. EBITDA guidance to $83–$93 million, provided an initial Q3 range of $80–$95 million, and closed a $300 million credit facility while identifying >$1 billion of deployable capital for 2026–27.

Solaris Energy Infrastructure NYSE: SEI used its first-quarter 2026 earnings call to highlight a sharp acceleration in its behind-the-meter power strategy for data centers, driven by new long-term contracts, expanded generation capacity, and a growing push from customers for turnkey “molecule-to-electron” solutions.

Contract wins push contracted capacity above 2 GW

Chairman and Co-CEO Bill Zartler said the company is “off to an exceptional start in 2026,” pointing to the addition of “two significant long-term contracts with two investment-grade global technology companies for over 1 GW of contracted power generation capacity and importantly, associated balance-of-plant equipment.”

President Kyle Ramachandran said Solaris now has “over 2 GW of power generation under long-term contracts with three different leading technology companies,” with more than half of that contracted in the prior two months and contract terms extending “to 10–15 years.”

Ramachandran detailed the newest agreement announced the night before the call: Solaris will provide “over 600 MW of generation with balance of plant” for “an initial 10-year term with an option to extend for an additional five years,” with energization expected to “begin ramping in late 2026.” He said the deal follows the “over 500 MW contract” announced in early February and the “900 MW State Line joint venture that is currently under development.”

In the Q&A, Zartler said the latest contracts “have been baking for a while,” and while early negotiations can be lengthy given complex terms, he expects future opportunities to be more streamlined once “general standard terms” are established. Zartler and Ramachandran also pointed to the importance of building customer trust and a track record of uptime to support contracting.

Capacity expands to 3.1 GW through acquisitions and turbine delivery slots

Management emphasized that demand for Solaris’ offerings continues to exceed committed capacity. To address supply constraints, Ramachandran said the company closed two transactions on March 16 that added about 900 MW of natural gas-fueled turbine capacity and increased total secured generation capacity by more than 40% to 3.1 GW.

• Genco Power Solutions acquisition: Adds 400 MW between 2026 and 2028, including about 100 MW that is “currently operated and contracted,” according to Ramachandran.
• Purchase of turbine delivery slots: 30 slots representing about 500 MW of incremental capacity between early 2027 and 2029.

Management also underscored the strategic value of diversifying the company’s equipment supplier base by working with multiple OEMs to reduce supply chain exposure and increase flexibility in configuring capacity for customer needs.

During Q&A, Zartler said Solaris sees opportunities to “scoop up opportunistically” delivery slots that become available, citing market dynamics where some parties who purchased turbine positions may not be able to deploy them as planned due to siting challenges and community pushback related to data centers.

Turnkey scope expands beyond generation, including balance of plant

Co-CEO Amanda Brock described customer demand shifting toward comprehensive power infrastructure, including distribution, conditioning, storage, management, and fuel logistics. She said Solaris’ strategy is to deliver “a turnkey and rapidly deployable solution” and described investments in talent and bolt-on acquisitions, including Solaris Power Distribution Services.

Brock said the newest 600+ MW agreement reflects expanded scope beyond generation, including “developing and operating last mile gas delivery” and associated “distribution storage and balance of plant infrastructure.” She argued that broader scope can mean “more capital deployed per site,” “closer integration with the customer's infrastructure,” and potentially “enhanced returns over the contracted period,” while making relationships “more durable over time.”

She also pointed to several examples of scope expansion and adjacent opportunities, including advanced negotiations to add scope to the February contract, deployments of balance-of-plant equipment at sites where Solaris does not provide generation, inbound interest for consulting on power-challenged projects, and participation in a pilot program related to “mobile distributed compute,” where Solaris is helping design balance-of-plant components.

In response to analysts, management said the “last two contracts include balance of plant,” while the State Line JV is generation-only. Ramachandran said Solaris’ 20%–50% uplift framework for balance-of-plant opportunities remains the “right way to think about it,” but emphasized that the company’s current outlook reflects only what is “actually under contract signed to date.” He also noted that customers differ in what they want Solaris to provide versus capitalizing themselves.

First-quarter financial results and updated guidance

CFO Stephan Tompsett reported first-quarter 2026 revenue of $196 million and Adjusted EBITDA of $84 million, which he said was 22% higher sequentially and 79% higher year-over-year.

Within Solaris Power Solutions, Tompsett said the company operated “more than 900 MW” during the quarter and segment Adjusted EBITDA increased “more than 30% sequentially to $72 million,” driven by revenue growth from both owned assets and third-party leased capacity. In the Logistics segment, Solaris averaged 104 fully utilized systems and segment Adjusted EBITDA was approximately $23 million, up 2% from the fourth quarter of 2025.

Tompsett updated guidance and provided initial third-quarter expectations:

• Q2 Adjusted EBITDA guidance: Increased by 10% to $83 million–$93 million.
• Initial Q3 Adjusted EBITDA guidance: $80 million–$95 million, reflecting shifting power from temporary to permanent at the State Line JV and deliveries of new equipment in the back half of 2026 that are contracted and “will begin earning revenue January 1st, 2027.”

Looking further out, Tompsett said the company’s contracted capacity provides “line of sight into earnings and cash flow for the next 10–15 years.” He referenced a scenario in the company’s presentation where total company Adjusted EBITDA “pro forma for all 3,100 MW delivered and operating could well exceed $1 billion annually,” with potential upside if scope expansion develops further. He added that incremental capital deployed per site would be underwritten at returns consistent with the company’s existing framework.

Liquidity, capital needs, and JV cash flow

Tompsett said Solaris closed a $300 million credit facility in March and later upsized it to allow up to $200 million in additional borrowings, describing it as meaningful near-term liquidity. He also said Solaris has “more than $1 billion of additional identified capital to be deployed in 2026 and 2027” and is evaluating funding alternatives it believes would allow execution of its growth plan “in an accretive manner,” with updates expected “in the very near future.”

On the State Line joint venture, Tompsett said the JV has debt servicing requirements for interest and amortization, but after those are met, “all the cash is available to be distributed up to both Solaris and our partner,” which would support continued growth.

In closing remarks, Zartler reiterated that Solaris is building “a vertically integrated behind-the-meter power business from molecule to electron,” aimed at serving data centers and industrial markets at scale, and said the company is focused on long-term delivery rather than quarter-to-quarter timing swings as deployments ramp.

About Solaris Energy Infrastructure NYSE: SEI

Solaris Energy Infrastructure Fund Inc NYSE: SEI is a closed-end management investment company that seeks to provide total return through a combination of current income and capital appreciation. The fund pursues its objective by investing primarily in equity securities of energy infrastructure companies, including master limited partnerships (MLPs) and other midstream entities. SEI is externally managed by Solaris Asset Management LP, a firm specializing in energy infrastructure investments.

The fund’s portfolio targets businesses involved in the gathering, processing, transportation, storage and terminalling of oil, natural gas and refined products.

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