Solaris Energy Infrastructure NYSE: SEI reported record second-quarter results as growth in its Power Solutions business, expanded customer contracts and the acquisition of Global Energy Services Alliance, or GESA, supported its outlook for the second half of 2026.
The company generated approximately $219 million in second-quarter revenue, up 12% sequentially, and approximately $108 million in adjusted EBITDA, up 30% from the first quarter, CFO Steve Tompsett said. Net income was $25 million, while adjusted pro forma net income totaled $37 million, or $0.39 per fully diluted share.
Chairman and Co-CEO Bill Zartler said Solaris continues to provide dedicated power to two operating data centers and is building projects at two additional locations, including one expected to energize in September. The company has signed long-term contracts with three investment-grade technology companies, two of which were executed during the past six months.
Power Solutions Drives Quarterly Growth
Solaris averaged about 950 megawatts of revenue-generating capacity during the quarter, compared with about 910 megawatts in the first quarter. Power Solutions revenue increased 23% sequentially to approximately $158 million, while adjusted EBITDA rose 34% to about $96 million. Tompsett attributed the improvement primarily to higher ancillary-service revenue.
Its Logistics segment generated $61 million in revenue, down 10% sequentially due to lower last-mile transportation activity. However, Logistics adjusted EBITDA rose 7% to $25 million, reflecting higher activity and a more favorable project mix.
Zartler said the Logistics business continues to produce more than $20 million in quarterly free cash flow, which Solaris is investing in its power and infrastructure services operations. He said the company is effectively sold out of its top-fill equipment and sees favorable market fundamentals for the segment.
Contract Expansions Add Scope and Duration
Co-CEO Amanda Brock said Solaris amended its Hatchbo agreement in July, converting the original power-capacity arrangement into a capacity and operating agreement for a turnkey 660-megawatt power plant. The expanded agreement includes additional balance-of-plant equipment, batteries and full operations and maintenance services.
The agreement has a 10-year base term and an eight-year extension option, increasing its potential duration to 18 years from the prior maximum of 15 years. Solaris began civil construction in July, has more than 70% of the required equipment available, and expects to begin earning revenue from the project in January 2027, Brock said.
The company also expanded an April contract with its third investment-grade global technology customer. The scope grew from 640 megawatts of generation to include incremental balance-of-plant equipment, energy storage and natural-gas procurement, delivery and management on a cost-plus basis. Solaris expects the first deployment under that contract to energize next month.
In July, Solaris expanded and extended a contract with a large energy customer after that customer was told its grid interconnection could take seven to eight years. The customer increased capacity to about 80 megawatts from 60 megawatts and extended the contract term to six years from four years.
Brock said Solaris has approximately 800 megawatts of open capacity with near-term delivery potential and is in advanced discussions with customers regarding long-term deployments.
GESA Acquisition Broadens Services
Solaris acquired GESA in early July, adding installation, commissioning, operations, maintenance, repair, refurbishment and emergency-response capabilities across several generation technologies. GESA was formed from the combination of Baseload Power and Pro-Per Energy Services and has experience serving utilities, independent power producers, governments and original equipment manufacturers.
President Kyle Ramachandran said the acquisition adds more than 600 skilled employees and strengthens Solaris’ ability to execute projects during a period of tight labor availability. He said GESA also provides access to aftermarket opportunities and equipment-refurbishment capabilities, including the ability to identify generation equipment that may be suitable for Solaris projects or third-party sales.
Management said the company intends to continue expanding GESA’s third-party work while using its expertise to support Solaris’ own installations, maintenance programs and project timelines.
Solaris also disclosed an equity investment in Deployable Energy, an early-stage small modular reactor company. Zartler said Deployable Energy has achieved reactor criticality under a Department of Energy program, a milestone he said advances the technology toward commercial readiness. Solaris plans to work with Deployable Energy on commercialization efforts.
Guidance, Liquidity and Financing
Solaris raised its third-quarter adjusted EBITDA guidance to between $90 million and $105 million, citing the GESA contribution and continued execution. The company set initial fourth-quarter adjusted EBITDA guidance of $100 million to $120 million, reflecting expected energization at its Stateline joint venture and the first location for its third hyperscaler customer.
The guidance excludes potential contributions from ancillary services, including engineering studies, commissioning and decommissioning costs, option payments and, following the GESA acquisition, third-party equipment sales.
During the quarter, Solaris issued $1.3 billion of senior unsecured notes and secured a new $650 million five-year revolving credit facility. The company ended the quarter with more than $800 million in cash and a fully undrawn revolver, for about $1.4 billion in liquidity, Tompsett said.
The board also approved a third-quarter dividend of $0.12 per share on Aug. 4. Once paid, it will represent Solaris’ 32nd consecutive dividend.
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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