Solaris doubled revenue. Two deals explain most of the jump.

Solaris Energy Infrastructure has raised its near-term earnings targets after third-quarter sales reached $341.1 million, up from $166.8 million a year earlier. Recent acquisitions are already reshaping how the power infrastructure company earns its money.

Research by Ticker Byline shows that two newly acquired service companies contributed revenue equivalent to about 85% of Solaris' year-over-year sales increase. They supplied $147.8 million of quarterly revenue, against a $174.2 million increase for the group.

That helps explain an unusual combination: Solaris' average power-generation capacity earning revenue fell from the second quarter, while revenue and earnings rose. The company is selling more of the work around the generators.

The businesses behind the increase

Global Energy Services Alliance, acquired July 1, contributed $89.9 million of revenue. It installs, operates, maintains and repairs power equipment. Omega Foundation Services, acquired September 1, added $57.9 million from construction and related work, including preparing sites and building foundations.

Both fit Solaris' expanding power-services business: they can work on its own projects and serve outside customers. The deals also bring more labor and project execution into a company previously focused on renting equipment.

Solaris' own generation capacity at work grew 20% from Q2. But it returned temporary third-party equipment, reducing total average capacity earning revenue to about 820 megawatts from 950. Acquired services and equipment sales helped fill the gap.

Another step above the forecast

Adjusted EBITDA reached $136.1 million, above the $110 million to $130 million forecast in Solaris' September presentation. This measure excludes interest, taxes, depreciation and amortization, plus costs such as share-based pay and deal expenses.

Reported operating income also rose, to $67.0 million from $37.9 million a year earlier. Consolidated net income increased to $39.3 million from $24.8 million.

Solaris now expects Q4 adjusted EBITDA of $165 million to $185 million, up from $145 million to $180 million. Its Q1 2027 range rises to $220 million to $260 million from $200 million to $240 million.

The company is benefiting from the same demand for data-center power visible in Cummins' generator business. Solaris' newest large contract, for about 900 megawatts over 15 years, was announced October 29. Deployment is expected to begin in the first half of 2027 and ramp through 2028.

The spending has to come first

Operating cash flow reached $478 million in the first nine months, up from $113 million. Customer advance payments helped. Capital spending was much larger, at $1.38 billion, as Solaris bought equipment for its expanding fleet.

An October 1 bond sale raised $1.25 billion before fees to help finance growth. The current presentation budgets about $1 billion of consolidated Q4 capital spending, including joint-venture spending. Some payments planned for Q3 moved into Q4; management says overall project costs remain on plan.

The service acquisitions give Solaris another source of earnings as those power projects ramp. They also make estimating construction costs and delivering jobs on time a larger part of the business. The next results will test both the higher earnings targets and the pace of that capital rollout.