Solaris Energy Infrastructure, Inc. (NYSE:SEI) (“Solaris” or the “Company”), today announced significant continued momentum within its business, along with first quarter 2025 financial and ope...
HOUSTON: Solaris Energy Infrastructure, Inc. (NYSE:SEI) (“Solaris” or the “Company”), today announced significant continued momentum within its business, along with first quarter 2025 financial and operational results.
First Quarter 2025 Summary Results
Joint Venture Highlights
Business and Financing Update
CEO Commentary
“I am excited about the momentum we are seeing across the power sector and believe that our offerings will play a significant and value-added role to this broad-based demand growth. Our contracted fleet expansion provides visibility to continue growing the Company’s earnings, which will help us drive total shareholder value while maintaining a balanced and attractive financial profile,” commented Bill Zartler, Solaris’ Chairman and Chief Executive Officer.
“We are also excited to solidify our partnership with an industry leader and fast mover in the artificial intelligence computing space to provide power for their newest data center campus. The power that will be provided by our joint venture was increased by approximately 80% to 900 MW for an extended tenor of seven years. We believe this joint venture demonstrates Solaris’ value as a partner and in its ability to deliver reliable prime power while also providing redundancy and complementary backup to grid power. Additionally, we have secured meaningful new generation capacity to meet the continued demand we see for power, whether it is co-located, off-grid, or back up.”
“Solaris Logistics Solutions activity increased significantly from fourth quarter 2024 levels due in part to a seasonal rebound in activity but also from adding new customers that needed a solution that could keep up with the completions efficiencies they are achieving on their well sites. We will continue to seek opportunities to create value for other potential Logistics Solutions customers by continuing to demonstrate our ability to enhance well site efficiencies via our all-electric, high-throughput systems and dedication to service.”
Segment Results and Outlook (3)
Solaris Power Solutions(4)
Solaris Logistics Solutions
Footnotes
(1) | See “About Non-GAAP Measures” below for additional detail and reconciliations of GAAP to non-GAAP measures in the accompanying financial tables. Due to the forward-looking nature of such metrics, a reconciliation of 2025 second quarter and third quarter Adjusted EBITDA to the most directly comparable GAAP measure cannot be provided without unreasonable efforts. |
(2) | Please refer to the Earnings Supplemental Slides posted under “Events” on the Investor Relations section of the Company’s website solaris-energy.com for more detail on activity and financial guidance, including expected 2025 estimated capital expenditures by quarter. |
(3) | Segment Adjusted EBITDA excludes Corporate Adjusted EBITDA. |
(4) | Each purchase order includes distinct product specifications, such as product type, quantity, delivery period, and price, as well as standard terms and conditions with respect to acceptance, delivery, transportation, inspection, assignment, taxes and performance failure. |
Conference Call
Solaris will host a conference call to discuss its results for first quarter 2025 on Tuesday, April 29, 2025 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To join the conference call from within the United States, participants may dial (844) 413-3978, or for participants outside of the United States (412) 317-6594. Participants should ask the operator to join the Solaris Energy Infrastructure, Inc. call. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investor Relations section of the Company’s website at solaris-energy.com.
An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days. It can be accessed by dialing (877) 344-7529 within the United States or (412) 317-0088 outside of the United States. The conference call replay access code is 9278017. The replay will also be available in the Investor Relations section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.
About Non-GAAP Measures
In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that EBITDA, Adjusted EBITDA, Adjusted pro forma net income and Adjusted pro forma earnings per fully diluted share provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating Solaris’ overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.
About Solaris Energy Infrastructure, Inc.
Solaris Energy Infrastructure, Inc. (NYSE:SEI) provides mobile and scalable equipment-based solutions for use in distributed power generation as well as the management of raw materials used in the completion of oil and natural gas wells. Headquartered in Houston, Texas, Solaris serves multiple U.S. end markets, including energy, data centers, and other commercial and industrial sectors. Additional information is available on our website, solaris-energy.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to, our business strategy, our industry, our future profitability, changes in tariffs, trade barriers, price and exchange controls and other regulatory requirements, and the impact of such policies on us, our customers and the global economic environment, the success of our JV and associated transactions and its impact on the financial condition and results of operations of our Solaris Power Solutions segment, the anticipated growth of our power fleet and sources of financing thereafter, the volatility in global oil markets, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future long-term contracts, our future business and financial performance and our results of operations, and the other risks discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the US Securities Exchange Commission (the “SEC”) on March 5, 2025 and Part II, Item 1A. “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 to be filed with the SEC subsequent to the issuance of this communication. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to the factors discussed or referenced in our filings made from time to time with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
SOLARIS ENERGY INFRASTRUCTURE, INC | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(In thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
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| Three Months Ended |
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| March 31, |
| December 31, |
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| 2025 |
| 2024 |
| 2024 |
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Service revenue |
| $ | 87,226 |
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| $ | 64,635 |
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| $ | 64,581 |
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Service revenue - related parties |
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| — |
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| 3,255 |
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| — |
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Leasing revenue |
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| 39,106 |
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| — |
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| 31,716 |
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Total revenue |
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| 126,332 |
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| 67,890 |
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| 96,297 |
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Operating costs and expenses: |
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Cost of services, excluding depreciation and amortization |
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| 52,159 |
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| 39,887 |
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| 45,131 |
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Cost of leasing revenue, excluding depreciation |
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| 15,551 |
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| — |
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| 6,849 |
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Non-leasing depreciation and amortization |
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| 12,786 |
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| 9,934 |
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| 11,625 |
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Depreciation of leasing equipment |
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| 7,278 |
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| — |
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| 5,103 |
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Gain on sale of Kingfisher facility (1) |
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| — |
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| — |
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| (7,461 | ) |
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Selling, general and administrative |
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| 15,274 |
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| 7,990 |
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| 10,569 |
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Other operating expense (income), net (2) |
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| 1,229 |
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| 123 |
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| (1,258 | ) |
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Total operating costs and expenses |
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| 104,277 |
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| 57,934 |
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| 70,558 |
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Operating income |
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| 22,055 |
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| 9,956 |
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| 25,739 |
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Interest expense, net |
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| (5,171 | ) |
|
| (799 | ) |
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| (7,392 | ) |
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Income before income tax expense |
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| 16,884 |
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| 9,157 |
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| 18,347 |
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Provision for income taxes |
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| (3,916 | ) |
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| (1,857 | ) |
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| (4,343 | ) |
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Net income |
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| 12,968 |
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| 7,300 |
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| 14,004 |
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Less: net income related to non-controlling interests |
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| (7,648 | ) |
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| (2,983 | ) |
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| (7,753 | ) |
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Net income attributable to Solaris Energy Infrastructure, Inc. |
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| 5,320 |
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| 4,317 |
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| 6,251 |
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Less: income attributable to participating securities (3) |
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| (257 | ) |
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| (277 | ) |
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| (410 | ) |
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Net income attributable to Class A common shareholders |
| $ | 5,063 |
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| $ | 4,040 |
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| $ | 5,841 |
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Earnings per share of Class A common stock - basic |
| $ | 0.14 |
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| $ | 0.14 |
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| $ | 0.20 |
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Earnings per share of Class A common stock - diluted |
| $ | 0.14 |
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| $ | 0.14 |
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| $ | 0.19 |
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