Solaris Energy (SEI) Q3 2025 Earnings Transcript | The Motley Fool

Image source: The Motley Fool. DATE Tuesday, November 4, 2025 at 9 a.m. ET CALL PARTICIPANTS Chairman and Co-Chief Executive Officer - William Zartler President and Chief Financial Officer - Kyle Ramachandran Co-Chief Executive Officer - Amanda Brock TAKEAWAYS Revenue -- $167 million, a company record for quarterly revenue. Adjusted EBITDA -- $68 million, rising 12% sequentially and more than tripling year-over-year. Power Solutions Revenue Contribution -- Exceeded 60% of total revenue, with over 75% of segment-level adjusted EBITDA. Activated Megawatts -- 760 megawatts operated, up more than 27% from the prior quarter and a fivefold increase year-over-year. Power Solutions Segment Adjusted EBITDA -- $58 million, growing 27% from the second quarter. Fourth-Quarter Adjusted EBITDA Guidance -- $65 million to $70 million, raised from the previous guidance of $58 million to $63 million. First-Quarter 2026 Adjusted EBITDA Guidance -- $70 million to $75 million. Pro Forma Generation Capacity -- Expected to reach 2,200 megawatts by early 2028, versus the previously planned 1,700 megawatts by the first half of 2027. Incremental Generation Orders -- Recent orders include 80 megawatts announced weeks prior and an additional 400 megawatts; scheduled deliveries extend into early 2028. Capital Expenditures for 500 Megawatts -- Approximately $450 million, mainly for turbines and emissions control equipment. Convertible Financing -- Raised $748 million from senior convertible notes due 2031 at a 0.25% coupon, repaid term loan, and unlocked $45 million in expected interest and amortization savings over four quarters. Commercial Pipeline -- Management characterized it as "enormous," noting the company is "evaluating a number of potential long-term opportunities." Logistics Solutions Utilization -- Averaged 84 fully utilized systems, an 11% decline from the second quarter, identified as a near-term bottom in drilling and completion activity. New Acquisition -- Acquired HVMVLV in the third quarter, adding specialty voltage distribution and regulation equipment capabilities. Leadership Update -- Amanda Brock joined as co-CEO to help drive operational and commercial expansion. Multi-System Deployments -- Deployed multiple Solaris systems on 90% of customer locations year-to-date, up from 60% one year earlier and 40% two years prior. Stateline Power LLC JV Update -- Currently providing temporary power with full emissions control for a second data center, transitioning to over 1 gigawatt of permanent capacity beginning next quarter. Logistics Solutions Cash Flow -- Continues to deliver stable free cash flow supporting growth in the Power Solutions segment. Pro Forma Earnings Outlook -- New estimate of over $600 million, reflecting ordered capacity and recent acquisition, before considering additional customer or scope growth. Need a quote from a Motley Fool analyst? Email [email protected] RISKS Supply Chain Constraints -- Zartler said, "The supply chain is growing out. We are lucky to get the slots we have with our relationships," explicitly noting lead times and tight OEM competition may hamper execution. Lower Logistics Solutions Activity -- Ramachandran highlighted an 11% sequential decline in Logistics Solutions utilization, described as a near-term trough in sector activity. SUMMARY The call highlighted Solaris Energy Infrastructure (NYSE: SEI)'s record quarterly financial performance, marked by substantial...

Preview: ~500 words