Solaris Energy Infrastructure, Inc.

Solaris Energy Infrastructure supplies power generation equipment, electrical distribution equipment and services for data centers, energy customers and other industrial users. Its Power Solutions business now includes site construction, installation, commissioning, repairs and maintenance. A separate Logistics Solutions business provides equipment and services for oil and gas well completions.

The company trades on the New York Stock Exchange and NYSE Texas as SEI. Its power contracts generally combine fixed-fee equipment rentals with services. By late October 2026 it had about 3.2 gigawatts under long-term power contracts, with deployments extending into future years. One customer accounted for 59% of consolidated revenue in Q3 2026.

How the earnings mix is changing

The adjusted measure also excludes share-based compensation, deal costs, debt-extinguishment costs and specified other items. In Q3 2026, Power Solutions supplied $284.2 million of revenue and Logistics supplied $56.9 million. New construction and maintenance businesses substantially increased services revenue, while product sales rose to $51.3 million from $2.0 million in Q2.

Average generation capacity earning revenue fell to about 820 megawatts from 950 in Q2, as Solaris returned temporary third-party equipment. Its own capacity at work grew 20% sequentially. These figures cover the revenue-earning generation fleet, rather than all customer-owned equipment serviced by its maintenance businesses.

Completed acquisitions

On July 1, 2026, Solaris completed the purchase of Global Energy Services Alliance, which installs, operates, maintains and repairs power plants and equipment. Its latest acquisition accounting values the consideration at $263.1 million, including cash and 2.88 million new Class A shares. GESA contributed $89.9 million of Q3 revenue and $17.0 million of pretax income.

On September 1, Solaris completed the acquisition of Omega Foundation Services, adding site preparation, heavy civil construction and related engineering capabilities. Preliminary purchase consideration was $275.2 million, including cash and 3.60 million new Class A shares. Omega contributed $57.9 million of revenue and $9.8 million of pretax income from the closing date through September 30.

The earlier Genco transaction closed March 16, 2026, at an acquisition cost of $483.2 million. It primarily added turbine generators and was accounted for as an asset acquisition. The two later service businesses expand the work Solaris can perform around its own equipment and for outside customers.

Expectations and the investment plan

Q3 adjusted EBITDA of $136.1 million exceeded September's $110 million to $130 million forecast. November guidance raises Q4 to $165 million to $185 million from $145 million to $180 million, and Q1 2027 to $220 million to $260 million from $200 million to $240 million.

The October 29 contract adds about 900 megawatts for an existing investment-grade industrial and technology customer, with a 15-year initial term and a 15-year extension option. Deployment is expected to start in the first half of 2027 and scale through 2028.

The current capital plan budgets about $1.035 billion of consolidated Q4 spending, excluding capitalized interest. Of that, $90 million is expected to be funded through the Stateline project facility and $20 million is reimbursable venture spending. Management says some Q3 payments moved into Q4 and project costs remain on plan. The total plan through 2029 increased by roughly $600 million for more generation equipment and broader project scope.

Cash and financing

For the first nine months of 2026, operating cash flow was $478.0 million, compared with $113.2 million a year earlier. Capital spending rose to $1.382 billion from $392.3 million. Customer advances supported operating cash flow, including advance lease payments and a $61.5 million advance for an equipment sale.

At September 30, cash and equivalents were $399.5 million, including $9.6 million in Stateline. Restricted cash was another $98.5 million. The carrying value of consolidated debt, including convertible notes, was $2.600 billion. These balances predate the October 1 issue of $1.25 billion of 7% notes due April 1, 2032.

The revolving credit facility was undrawn at September 30, with $650 million of commitments and $125 million of letters of credit, leaving $525 million available. Commitments increased to $850 million on October 1, with a stated May 2031 maturity subject to earlier-maturity provisions. The company continued to describe the facility as undrawn in its November results. Solaris reported covenant compliance at September 30.

Stateline is a consolidated venture owned 50.1% by Solaris. Its project loan had $408.2 million of principal at September 30 and rose to $433.2 million after a later draw. That borrowing is secured by the project's equipment and contracts and is nonrecourse to Solaris.

The near-term checks are project commissioning, cash spending and whether acquired services continue to support higher earnings. Construction work brings cost-estimation and fixed-price contract exposure alongside the older equipment-rental model.