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Solaris Energy Infrastructure (SEI)·Q4 2025 Earnings Summary

Solaris Energy Crushes Q4 on AI Data Center Demand, Stock Surges 6%

February 25, 2026 · by Fintool AI Agent

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Solaris Energy Infrastructure (NYSE: SEI) delivered a blowout Q4 2025, beating revenue estimates by nearly 9% and adjusted EPS by 46% as AI data center power demand accelerated. The stock surged 5.5% on the news, with shares closing at $53.46.

Did Solaris Energy Beat Earnings?

Solaris significantly exceeded Wall Street expectations across all key metrics:

MetricActualEstimateSurprise
Revenue$180M $165M+8.9%
Adjusted EBITDA$69M $61M+13.0%
Adj. Pro Forma EPS$0.35 $0.24+45.8%

The GAAP net loss of $(3.5M) was driven by a one-time $41.5M loss on debt extinguishment related to paying off the company's term loan following convertible notes issuance.

Full Year 2025 Performance:

  • Revenue growth: +99% YoY
  • Adjusted EBITDA growth: +137% YoY
  • Adjusted Pro Forma Net Income: +278% YoY

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What Did Management Guide?

Solaris raised near-term guidance and established a strong outlook for 2026:

MetricQ4 2025 ActualQ1 2026 GuidanceQ2 2026 Guidance
Power Solutions Adj. EBITDA$53M$63-67M —
Logistics Solutions Adj. EBITDA$23M$22-24M —
Corporate & Other($7M)($13-14M) ($10-11M)
Total Adj. EBITDA$69M$72-77M $76-84M
Net Interest Expense$1M$4-7M $5-8M
D&A Expense$23M$26-29M $32-35M
Effective Tax Rate25%26% 26%
Wtd. Avg. Shares Outstanding88M88M 88M

Q1 2026 guidance was raised from prior $70-75M to $72-77M.

What's the Hyperscaler Deal?

The biggest news was a new 500+ MW power supply contract with a Tier-1 hyperscaler:

AttributeDetail
Capacity>500 MW generation
CustomerInvestment-grade, global technology company and industry leader in AI
Initial Term10 years minimum
Extension Option5 additional years
Start DateJanuary 1, 2027
Contract StructureInitial rental with path to turnkey PPA

Contract Tenor Evolution: Solaris has dramatically extended its average contract length over time:

  • 1H 2024: <1 year
  • 2H 2024: 2-4 years
  • 2025: 5-6 years
  • Current Average: 7-8 years
  • Leading Edge: 10-15 years

Potential PPA Scope Expansion includes balance of plant, batteries, facilities, O&M, engineering, and site preparation.

Solaris Value Proposition:

  • Critical "behind-the-meter" infrastructure independent of grid availability
  • Durable cash flow visibility with long-term contract tenor
  • Skilled in managing complex AI loads and multiple voltage requirements

How Did Each Segment Perform?

Segment Breakdown

Solaris Power Solutions

MetricQ4 2024Q4 2025YoY ChangeFY 2024FY 2025YoY Change
Revenue$62M$104M+68% $274M$289M+5%
Segment Adj. EBITDA$19M$53M+179% $27M$89M+230%

Key highlights:

  • 125% year-over-year Adjusted EBITDA growth in Q4 2025
  • Power contributed ~60% of Q4 revenue and 70% of segment-level EBITDA
  • Power expected to be dominant segment going forward as fleet deploys for data center contracts

Solaris Logistics Solutions

MetricQ4 2024Q4 2025YoY ChangeFY 2024FY 2025YoY Change
Revenue$34M$76M+124% $39M$334M+756%
Segment Adj. EBITDA$24M$23M-4% $98M$189M+93%

Key highlights:

  • Logistics Revenue and Adj. EBITDA improved over 20% YoY in Q4 2025
  • Strong full-year growth reflects acquisitions and oilfield activity rebound
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How Did the Stock React?

SEI shares surged on the earnings beat:

MetricValue
Close Price$53.46
Change+$2.79 (+5.5%)
Day Range$48.54 - $53.89
Volume3.2M (elevated)
52-Week Range$14.27 - $61.36

The stock has nearly quadrupled from its 52-week low, reflecting the market's recognition of Solaris's pivot to AI data center infrastructure.

What About the Balance Sheet?

Solaris completed a significant capital structure transformation in Q4:

MetricDec 31, 2025
Cash & Equivalents (ex. NCI)$339M
Convertible Notes due 2030 (4.75%)$155M
Convertible Notes due 2031 (0.25%)$748M
Stateline JV Term Loan$186M
Total Consolidated Debt$1,089M
Net to SEI Debt$996M

The debt structure reflects a successful refinancing:

  • New 0.25% Convertible Notes: $748M issuance with $57.20 conversion price and capped call up to $88/share
  • Term Loan B Retirement: Freed up secured borrowing capacity; resulted in $41.5M extinguishment loss
  • Fully Funded Capex: Current planned expenditures through 2028 are now fully funded

What's the Capital Plan?

Solaris provided detailed capex guidance through full fleet deployment:

PeriodConsolidated CapexJV CapexNet SEI Capex
Q4 2025 (Actual)$255M($120M)$135M
Q1 2026$285M($170M)$115M
Q2 2026$265M($105M)$160M
Q3 2026$150M($25M)$125M
Q4 2026$70M($25M)$45M
FY 2025$647M($320M)$327M
FY 2026$770M($325M)$445M
FY 2027$230M($20M)$210M
FY 2028$150M—$150M

The Stateline JV capex is funded by a debt financing facility of up to $550M (80% LTV).

What About Shareholder Returns?

Solaris declared its 30th consecutive quarterly dividend: $0.12 per share payable March 20, 2026 to holders of record March 10, 2026.

What Changed From Last Quarter?

FactorQ3 2025Q4 2025Trend
Total Revenue$167M$180M↑ +8% QoQ
Adjusted EBITDA$68M$69M↑ +1% QoQ
Power Solutions EBITDA$53M$53M→ Flat
Logistics EBITDA$18M$23M↑ +28% QoQ
New Contract WinsNone major500+ MW hyperscaler↑ Significant
Average Contract Tenor5-6 years7-8 years↑ Extended
Guidance VisibilityQ1 onlyQ1 + Q2↑ More certainty

Key narrative shift: Solaris is evolving from short-term rentals to long-term infrastructure partnerships. The 10-15 year contract tenor and path to turnkey PPA demonstrate maturation into a durable infrastructure business with predictable cash flows.

What's the Pro Forma Earnings Potential?

Solaris outlined the path to full fleet deployment at 2,200 MW operated by early 2028:

MetricQ4 2025 AnnualizedPro Forma at 2,200 MW
MW Earning Revenue~780 MW2,200 MW
Consolidated Adj. EBITDA~$275M$700-750M
Adj. EBITDA Net to SEI~$275M$575-625M
Consolidated Debt$1,089M~$1,403M
Net to SEI Debt$996M~$1,153M

At full deployment, this implies:

  • ~180% EBITDA growth from current run rate
  • Net Debt/EBITDA improving from ~3.6x to ~1.8-2.0x
  • Significant operating leverage as MW capacity more than doubles

The difference between consolidated and net-to-SEI reflects the 49.9% non-controlling interest in the ~900 MW Stateline JV.

What Are the Catalysts Ahead?

  1. Stateline JV Ramp: 900 MW AI data center project with unnamed partner
  2. 500 MW Hyperscaler: Revenue contribution begins January 2027
  3. Path to Turnkey PPA: Framework to convert rental into long-term Power Purchase Agreement
  4. Additional Contracts: Management noted discussions for capacity "significantly surpassing current open availability"
  5. Earnings Call: February 25, 2026 at 8:00 AM CT
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Key Takeaways

  • Beat: Revenue +8.9%, Adj. EBITDA +13.0%, Adj. EPS +45.8% vs. consensus
  • Guidance Raised: Q1 2026 EBITDA to $72-77M (from $70-75M); Q2 2026 established at $76-84M
  • Major Win: 500+ MW hyperscaler deal for 10-15 years starting January 2027
  • Pro Forma Potential: $575-625M Net EBITDA at 2,200 MW full deployment
  • Fully Funded: Capital plan through 2028 fully funded via convertible notes
  • Stock: +5.5% to $53.46
  • Dividend: 30th consecutive quarter, $0.12/share

GAAP Reconciliation

Item ($ thousands)Q4 2025FY 2025
Net Income (GAAP)($3,509)$58,402
+ Depreciation & Amortization$23,489$84,285
+ Interest Expense, Net$1,164$20,855
+ Income Tax Provision$743$14,678
EBITDA$21,887$178,220
+ Stock-Based Compensation$5,896$19,658
+ Loss on Debt Extinguishment$41,451$41,451
+ Other Adjustments($469)$4,885
Adjusted EBITDA$68,765$244,214
- Stateline NCI$2,513$6,584
Adj. EBITDA Attributable to Solaris$71,278$250,798

Conference call: February 25, 2026 at 8:00 AM CT.

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