Solaris Energy Infrastructure Inc reported record second-quarter fiscal year 2026 results, with adjusted EBITDA rising 30% sequentially to $108 million. Revenue grew 12% quarter-on-quarter to approximately $219 million, driven by strong performance in the Power Solutions segment.

The company’s Power Solutions segment generated revenue of approximately $158 million, a 23% sequential increase, while segment adjusted EBITDA rose 34% to $96 million. This growth was primarily fueled by increased ancillary service revenue and an average of 950 megawatts of capacity earning revenue, up from 910 megawatts in the prior quarter. Conversely, the Logistics segment saw revenue decline 10% to $61 million due to lower last-mile transportation activity, though its adjusted EBITDA increased 7% to $25 million on a more favorable project mix.

Strategic Expansions and Contract Updates

Management highlighted significant contract expansions with three leading investment-grade technology companies. The Hatchbo agreement was amended to convert the original capacity agreement into a comprehensive turnkey solution for a 660-megawatt power plant, extending the term from up to 15 years to up to 18 years. Additionally, scope for a third hyperscaler customer’s contract expanded from 640 megawatts to include incremental balance of plant and energy storage.

The company also finalized the acquisition of Global Energy Services Alliance (GESA), which adds over 600 skilled employees and enhances full-cycle power services capabilities. This acquisition is expected to contribute to the raised third-quarter adjusted EBITDA guidance of $90 to $105 million. Initial fourth-quarter guidance stands at $100 to $120 million, reflecting the ramp-up at the Stateline joint venture and new energizations.

What the Numbers Show

A key analytical observation from the earnings call is the divergence between segment revenues and profitability drivers. While Logistics revenue fell 10%, its EBITDA rose 7%, indicating improved operational efficiency or project mix despite lower volume. Meanwhile, Power Solutions’ EBITDA growth (34%) significantly outpaced its revenue growth (23%), suggesting higher margin contribution from ancillary services rather than just base power generation. This aligns with management’s commentary on the increasing value of balance-of-plant and O&M services within long-term contracts.

Balance Sheet and Capital Allocation

Solaris Energy strengthened its capital structure during the quarter by issuing $1.3 billion in senior unsecured notes and securing a new $650 million revolving credit facility. The company ended the period with over $800 million in cash and a fully undrawn revolver, providing approximately $1.4 billion in total liquidity. Corporate credit ratings were assigned as BB- by S&P, Ba3 by Moody’s, and BB by Fitch.

The board approved a third-quarter dividend of $0.12 per share, marking the 32nd consecutive dividend payment. Management emphasized that current contract cash flows are projected to exceed the company’s enterprise value, underscoring confidence in the sustainability of its business model.

Solaris Energy Infrastructure, Inc. (NYSE: SEI) announced that its subsidiary has priced an upsized offering of $1.25 billion aggregate principal amount of 7.000% Senior Notes due 2032. The issuance was increased from the originally planned size of $1.0 billion.

The notes will mature on April 1, 2032, and are being issued at par. The offering is expected to close on October 1, 2026, subject to customary closing conditions. This development follows the initial announcement of a $1.0 billion senior notes offering, reflecting strong demand for the company's debt securities.

Use of proceeds and structure

The issuer plans to use the net proceeds from the offering for general corporate purposes, growth capital expenditures, and to pay fees and expenses related to the offering. The notes have not been and will not be registered under the Securities Act of 1933. They may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The offering is restricted to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States only in compliance with Regulation S under the Securities Act.

The notes will be fully and unconditionally guaranteed on a senior unsecured basis by Solaris and all existing and future subsidiaries that guarantee certain indebtedness of the issuer or a subsidiary guarantor, including the issuer’s revolving credit facility.

Company profile

Solaris delivers comprehensive power infrastructure solutions including generation, distribution, installation and commissioning, aftermarket support, and operations and maintenance. Headquartered in Houston, Texas, the company serves multiple U.S. end markets, including data centers, energy, and other commercial and industrial sectors.