Executive Summary

Q1 2025 delivered strong sequential growth: revenue $126.33M and Adjusted EBITDA $46.88M, with management noting a 31% QoQ revenue increase and 25% QoQ Adjusted EBITDA rise driven by Power Solutions ramp and Logistics momentum .
Against S&P Global consensus, SEI beat Q1 revenue ($126.33M vs $116.28M*) and EPS (company prelim $0.14 vs consensus $0.115*; S&P shows 0.20 actual*, see discrepancy note below). EBITDA consensus was $45.62M*, while S&P’s “actual” EBITDA shows 34.84M*, below SEI’s GAAP EBITDA ($42.12M) and company Adjusted EBITDA ($46.88M) due to differing definitions; we anchor comparisons to S&P for estimates and flag methodology .
Strategic catalyst: the AI data center JV was upsized to ~900 MW with an initial 7-year term; SEI holds 50.1%, partner 49.9%, and SEI contributed ~$86.4M in assets with the partner contributing ~$86M cash; JV-level financing term sheet up to ~$550M supports ~80% of CapEx—expanding average contract tenor to ~5.5 years and visibility into 2027 .
Guidance unchanged for Q2 Adjusted EBITDA ($50–$55M) and introduced Q3 Adjusted EBITDA ($55–$60M); Power Solutions activity guidance raised to 440 MW in Q2 and ~520 MW in Q3, reinforcing near-term growth .
Risk overhangs: tariff exposure (company Risk Factor disclosure) and shareholder litigation/class-action activity tied to the MER acquisition narrative; management articulated mitigation actions (domestic sourcing, in-house SCR components) .

What Went Well and What Went Wrong

What Went Well

Upsized, longer-tenor AI data center JV: contract increased to ~900 MW with initial 7-year term; SEI owns 50.1%, operates the JV, and highlighted “Power-as-a-Service” economics competitive with baseload grid power. CEO: “The extended tenor… improves earnings visibility… The average tenor in our Power Solutions contract book now exceeds five years…” .
Logistics strength and technology adoption: system activity up >25% QoQ; ~75% of locations equipped with both silo and top-fill systems, “effectively doubling our earnings potential at the individual wellsite level” .
Capacity secured despite tight supply chain: SEI added ~330 MW of 16.5 MW turbines (delivery mainly 2H26), lifting operated fleet to ~1,700 MW (net ~1,250 MW to SEI); SEI remains ~70% contracted, with ~500 MW open to bid for opportunities emerging in late 2026 .

What Went Wrong

Tariff/macro exposure: new baseline tariff regime could raise input costs; SEI disclosed risk factors and CFO quantified potential tariff impact on the latest 330 MW order as “limited to 5%” of total cost, with ability to pass-thru where needed and in-house SCR manufacturing to mitigate .
Customer concentration risk: JV upsizing with a single hyperscaler increases reliance on a few large customers; management acknowledged diversification goals while balancing scale/tenor benefits .
Litigation overhang: a March 2025 class-action filing alleges misleading statements tied to MER; SEI states suit is without merit and intends to defend; multiple press releases by law firms amplify headline risk .

Financial Results

Consolidated Results vs Prior Periods

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$75.02	$96.30	$126.33
Diluted EPS ($)	$(0.04)	$0.19	$0.14 (company preliminary)
Net Income ($USD Millions)	$(2.21)	$14.00	$12.97 (company preliminary)
EBITDA ($USD Millions)	$12.17	$42.47	$42.12 (GAAP)
Adjusted EBITDA ($USD Millions)	$22.23	$37.39	$46.88

Notes: Management stated Q1 2025 revenue rose 31% sequentially and Adjusted EBITDA rose 25% sequentially .

Estimates Comparison (S&P Global)

Metric	Q1 2025 Consensus	Q1 2025 Actual
Revenue ($USD Millions)	$116.28*	$126.33
Primary EPS ($)	$0.115*	$0.14 (company preliminary) / $0.20*
EBITDA ($USD Millions)	$45.62*	$34.84* / $42.12 GAAP / $46.88 Adjusted

Values marked with an asterisk (*) retrieved from S&P Global. Methodology differences: S&P’s “actual” EBITDA is standardized and can differ from company-reported GAAP EBITDA and Adjusted EBITDA .

Segment Breakdown (Q1 2025)

Segment	Revenue ($USD Millions)	Segment Adjusted EBITDA ($USD Millions)	Capacity/Activity
Solaris Power Solutions	$49.38	$31.91	~390 MW earning revenue
Solaris Logistics Solutions	$76.96	$25.97	System activity up >25% sequentially

KPIs and Activity

KPI	Q3 2024	Q4 2024	Q1 2025
Power Solutions Avg MW earning revenue	—	~260 MW	~390 MW
Logistics fully utilized systems	91	78	~90–95 expected in Q2 (Q1 uplift indicated, no discrete Q1 figure provided)

Liquidity: As of March 31, 2025, SEI had $16.7M cash and cash equivalents, no revolver borrowings, and ~$49.4M borrowing base availability . As of December 31, 2024, SEI had $160M total cash (including restricted), and $325M in outstanding borrowings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Adjusted EBITDA ($)	Q2 2025	$50–$55M	$50–$55M	Maintained
Total Adjusted EBITDA ($)	Q3 2025	—	$55–$60M	Raised (newly issued)
Power Solutions Avg MW earning revenue	Q1 2025	~360 MW	Actual ~390 MW	Beat / higher activity
Power Solutions Avg MW earning revenue	Q2 2025	~420 MW	~440 MW	Raised
Power Solutions Avg MW earning revenue	Q3 2025	—	~520 MW	Introduced
Corporate/Unallocated expense ($)	Q2 2025	~$7M	~$7M	Maintained
Dividend per share ($)	Q1 2025	$0.12 declared	Paid Mar 21, 2025	Executed

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
AI/data center power JV	Announced six-year, ~500 MW data center contract; planning JV, growing fleet to ~1.4 GW by early 2027	Upsized to ~900 MW; initial 7-year tenor; ~1,700 MW operated fleet by 1H27; JV financing up to ~$550M	Strengthening scale and tenor
Supply chain/turbine availability	Tightening OEM supply; orders doubling fleet size	Secured additional ~330 MW 16.5 MW units despite tight supply; majority delivery in 2H26	Proactive procurement
Tariffs/macro	Noted inflationary risks to grid costs	New tariff baseline; CFO sees max ~5% impact on latest order with pass-thru ability and in-house SCR	Manageable but monitored
Regulatory/permits (air)	Building multiyear behind-the-meter solutions	Customer pursuing Title V; SEI assisting; SCR deployment to sub-2 ppm NOx	Progressing compliance
Logistics product adoption	Top-fill and silo systems growing; Q1 increase expected	~75% sites with both systems; >25% activity up QoQ; cross-training benefits	Positive adoption
Financing/liquidity	$325M term loan; $75M ABL revolver	Amendments to term loan and revolver enabling JV and financings; no revolver borrowings at 3/31	Flexible capital
Customer concentration	Building with largest hyperscaler	JV upsized to 900 MW; mgmt targeting diversification with new capacity	Concentration elevated; diversification in progress

Management Commentary

Strategic positioning: “By using best in class gas turbines… our model is akin to a fixed capacity payment with a variable commodity price input via natural gas… We can remain economically competitive with the grid, offer visibility to long term power costs and provide built in backup…” — CEO .
Logistics momentum: “Approximately 75% of our locations were equipped with both our legacy sand silo system and a top fill system… effectively doubling our earnings potential at the individual wellsite level.” — CEO .
Financing and earnings visibility: “We… are negotiating definitive documentation for a senior secured term loan facility of up to $550,000,000 to support roughly 80% of the forecasted CapEx requirements of the JV… At full deployment, we see potential for the total company to generate $575,000,000 to $600,000,000 of annual run rate adjusted EBITDA on a consolidated basis… net to Solaris ~$440,000,000 to $465,000,000.” — CFO (run-rate scenario) .
Tariffs mitigation: “Maximum potential tariff impact is limited to 5% of the total cost... To the extent higher capital costs are realized, we expect ability to pass those along...” — CFO .

Q&A Highlights

Demand and contracting: Management confident uncontracted assets will be placed in medium/long-term contracts across data centers and industrial loads; spot capacity (5–10% of fleet) targeted for emergency/high-margin situations .
Supply chain: Larger turbine frames effectively sold out; SEI secured 16.5 MW units via “bold” decision-making and OEM relationships; lead times ~12–18 months at current size classes .
Margin profile: Data center vs industrial pricing similar; scale efficiencies yield slightly higher margins in large installations .
Permitting: SEI supporting customer Title V permits and deploying SCRs to meet stringent NOx targets; mgmt sees compliance achievable .

Estimates Context

Q1 2025 beats: Revenue beat vs consensus ($126.33M actual vs $116.28M*); EPS beat vs consensus (company preliminary $0.14 vs $0.115*; S&P shows $0.20 actual*). EBITDA: consensus $45.62M*, S&P “actual” $34.84M*, below SEI GAAP EBITDA $42.12M and Adjusted EBITDA $46.88M, reflecting definitional differences; we anchor to S&P for estimate comparisons and note methodology .
Forward estimates: Consensus implies continued growth through Q4 2025 and Q1 2026 (Revenue rising to ~$164.56M* in Q4 2025; EBITDA consensus ~$69.15M* in Q4 2025), consistent with mgmt activity guidance ramp to ~520 MW in Q3 . Values marked with an asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

Near-term setup: Solid sequential momentum with an unchanged Q2 Adjusted EBITDA guide ($50–$55M) and new Q3 guide $55–$60M, underpinned by Power Solutions MW growth to ~440 in Q2 and ~520 in Q3 .
Structural story: Upsized 900 MW, 7-year AI JV materially extends contract tenor and visibility; JV financing (up to ~$550M) de-risks capital intensity and supports ~80% of JV CapEx .
Logistics engine: Technology-led share gains (top-fill + silo) and electrified fleet continue to fund Power Solutions growth, with >25% sequential activity lift in Q1 .
Risk management: Tariff exposure disclosed with mitigation (domestic OEM, pass-thru, in-house SCR); watch policy changes and potential cost creep; litigation headlines persist but mgmt plans vigorous defense .
Diversification track: Customer concentration elevated following JV upsizing; monitor contracting of ~500 MW open capacity and progress with new industrial/data center customers to balance risk .
Liquidity: No revolver draws and ~$49.4M borrowing base availability at quarter-end; amendments to term loan/revolver provide flexibility for JV and financings .
Trading implications: Near-term catalysts include JV financing close, contracting of open MW, Q2/Q3 activity realization, and tariff/permit updates; narrative remains tied to execution on Power-as-a-Service scale and diversification .

Values marked with an asterisk (*) retrieved from S&P Global.

Solaris Energy Infrastructure, Inc. (SEI)·Q1 2025 Earnings Summary