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Solaris Energy Infrastructure (SEI)
NYSE:SEI
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Solaris Energy Infrastructure
(NYSE:SEI)
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Rating:64Neutral
Price Target:
$57.00
▲(3.22% Upside)
Action:ReiteratedDate:01/24/26
The score is supported by strong technical uptrend signals and a positive earnings outlook with raised EBITDA guidance and expanding power capacity plans. The main constraints are financial quality concerns from deeply negative free cash flow and increased leverage, alongside a demanding valuation (high P/E and modest dividend yield).
Positive Factors
Revenue and Margin Recovery
Sustained top-line growth and materially improved operating margins indicate the core solar project business is scaling and capturing operating leverage. This stronger earnings power and turnaround from prior losses support durable cash generation potential if margins remain stable across new capacity additions.
Power Solutions Scale
Rapid capacity build to 2,200 MW is structural: larger fleet expands recurring PPA revenue, improves utilization economics, and increases bargaining power with customers and suppliers. Scale in Power Solutions also drives the majority of segment EBITDA, anchoring long-term profitability and cash flow resilience.
Strategic Funding & M&A
Securing substantial convertible debt and executing targeted acquisition(s) provides financing flexibility and capability expansion. Lower near-term financing costs and added technical assets support faster roll-out of projects and improved returns on invested capital, reducing execution funding risk for planned growth.
Negative Factors
Negative Free Cash Flow
Persistently negative free cash flow despite positive operating cash flow reflects heavy capex and working-capital strains tied to rapid expansion. If negative FCF continues, the company will remain dependent on external financing, compressing returns and increasing funding and refinancing risk over the medium term.
Rising Leverage
Material increase in leverage reduces financial flexibility and raises interest burden sensitivity, especially with negative FCF. Higher debt levels make the company more vulnerable to rate shocks or project delays and could constrain opportunistic investments or force more costly future funding.
Concentration & Operational Risks
Heavy revenue and EBITDA concentration in Power Solutions boosts exposure to that segment's execution and contract risk. Simultaneous Logistics weakness and stretched OEM lead times signal operational fragility: persistent supply constraints or underperformance in Logistics could impair growth pacing and margin sustainability.
Solaris Energy Infrastructure (SEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.66B
Dividend Yield1.07%
Average Volume (3M)2.78M
Price to Earnings (P/E)81.0
Beta (1Y)2.10
Revenue Growth92.33%
EPS Growth116.22%
CountryUS
Employees364
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding48,802,383
10 Day Avg. Volume2,782,720
30 Day Avg. Volume2,779,487
Financial Highlights & Ratios
PEG Ratio-1.51
Price to Book (P/B)2.33
Price to Sales (P/S)2.64
P/FCF Ratio-6.41
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue8.17
Enterprise Value/Gross Profit25.37
Enterprise Value/Ebitda22.12
Forecast
1Y Price Target
$67.20Price Target Upside21.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Solaris Energy Infrastructure Business Overview & Revenue Model
Company DescriptionSolaris Energy Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides technician support, last mile, and mobilization logistics services. It is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, the company develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. It serves exploration and production, and oilfield services industries. The company was formerly known as Solaris Oilfield Infrastructure, Inc. and changed its name to Solaris Energy Infrastructure, Inc. in September 2024. Solaris Energy Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.
How the Company Makes MoneySEI generates revenue primarily through long-term power purchase agreements (PPAs) with utilities and large commercial clients, ensuring a steady income stream from the energy produced at its solar facilities. The company also earns money by developing solar projects for third parties, charging fees for project management and consulting services. Additionally, SEI may benefit from government incentives and tax credits associated with renewable energy investments, which enhance its profitability. Strategic partnerships with other energy firms and technology providers further bolster its revenue potential by expanding its service offerings and market reach.
Solaris Energy Infrastructure Key Performance Indicators (KPIs)
Any
Revenue by Segment
Tracks top-line sales across the company’s business segments (for example generation, storage, services, or project development), showing where growth is coming from and where the business is concentrated. Useful for assessing diversification, market reach, and whether management is successfully shifting mix toward higher-growth or more predictable businesses.
Tracks top-line sales across the company’s business segments (for example generation, storage, services, or project development), showing where growth is coming from and where the business is concentrated. Useful for assessing diversification, market reach, and whether management is successfully shifting mix toward higher-growth or more predictable businesses.
Data provided by:
The Fly
The FlySolaris Energy Infrastructure Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The earnings call conveyed strong positive momentum: record annual revenue and adjusted EBITDA growth, major long-term contracts (including a >500 MW 10-year deal and a 15-year JV upsized to 500–900 MW), solid Logistics cash generation and near‑term guidance upgrades. Management also detailed strategic acquisitions and regulatory tailwinds (EPA subpart KKKKa) that enhance speed-to-market and service breadth. Notable challenges include margin pressure from project mix and third‑party capacity, supply‑chain and OEM delivery timing uncertainty, the need to secure additional capacity to meet demand, and some localized permitting/operational questions. Overall the positive items (material revenue/earnings growth, high-quality contracts, funding for 2.2 GW, strong cash flow from Logistics, and regulatory tailwinds) materially outweigh the listed challenges, though execution and supply/capacity risks warrant monitoring.Q4-2025 Updates
Positive Updates
Record Revenue and EBITDA Growth
Full year 2025 revenue nearly doubled year-over-year to $622 million and adjusted EBITDA more than doubled to $244 million, reflecting strong execution across the business and the success of the diversified strategy (roughly +100% YoY revenue and >100% YoY adjusted EBITDA).
Power Solutions Accelerating — Large Long-Term Contracts
Power Solutions has become the primary growth engine (accounting for ~70% of earnings and targeting ~90%) highlighted by a finalized 15-year joint venture/upsized long-term power agreement (~500–900 MW) and a new 10-year agreement (with a 5-year extension option) to deliver over 500 MW to an investment-grade global technology customer beginning 2027, providing multi-year committed capacity and visibility.
Contracted Capacity and Funding Position
Company is fully funded for expected deliveries to reach 2,200 MW pro forma; strengthened balance sheet via two convertible bond issuances, financing for the JV, and repayment of the 2024 term loan. The new >500 MW investment-grade customer improves earnings and cash flow visibility and supports attractive financing options.
Logistics Segment Cash Generation and High Utilization
Logistics Solutions contributed over $80 million of free cash flow in 2025. Top-fill system utilization rose from mid-90% in Q4 to nearly 100% in Q1; averaged 93 fully utilized systems in Q4 (an 11% increase from Q3). Q4 Logistics segment adjusted EBITDA was approximately $23 million.
Quarterly Results and Upgraded Near-Term Guidance
Q4 consolidated revenue was nearly $180 million with adjusted EBITDA of $69 million (adjusted EBITDA nearly doubled YoY). Management raised Q1 2026 total adjusted EBITDA guidance to $72–$77 million (from $70–$75 million) and introduced Q2 2026 guidance of $76–$84 million. Power segment adjusted EBITDA is expected to increase by more than 20% in Q1 as capacity ramps.
Strategic Acquisitions and Emissions/Regulatory Positioning
Acquired a specialty provider of voltage distribution/control equipment (integrated into Power Solutions) to deepen capabilities and accelerate penetration across multiple data centers. Made a small inorganic investment in an SCR manufacturer and leveraged internal engineering to position for EPA subpart KKKKa changes (clarifies temporary operations up to 24 months), improving speed-to-market for modular/mobile turbines.
Large Market Tailwinds from Hyperscaler Investment
Management highlighted that the four largest global technology companies guided combined capital expenditures exceeding $600 billion in 2026 (management cited ~70% increase from 2025 and nearly double 2024), indicating significant addressable demand for behind-the-meter and rapid-deployment power solutions.
Negative Updates
Power Segment Margin Pressure and Timing Impacts
Power segment adjusted EBITDA in Q4 was $53 million, a modest decrease from Q3 due to a less favorable project mix and timing-related costs when owned generation units rotated off a utility resiliency project into planned refurbishment. Increased use of third-party leased capacity during ramp also produced a lower-margin mix.
Supply Chain and Delivery Timing Uncertainty
Deployment timing is sensitive to OEM deliveries and supply chain; management embedded conservatism in guidance due to week-to-week/month-to-month variability. Large projects (e.g., Colossus 2) have significant civil/OEM dependencies that can shift quarter-to-quarter results.
Capacity Constraints — Demand Exceeds Current Supply
Management acknowledged demand materially exceeds available capacity (2.2 GW in hand), requiring the company to secure additional capacity and potentially incremental financing to support 2027–2028 expansion; this increases execution risk and reliance on supplier diversification and financing markets.
Elevated/One-Off Maintenance and Refurbishment Costs
Q4 results included elevated maintenance/refurbishment costs as equipment rotated off short-term projects and was modified for long-term deployment. While described as transitory, these costs pressured margins during the quarter.
Supplier Concentration Risk
Historically closely tied to a single OEM (though management is evaluating other suppliers and new product lines). Existing supplier concentration poses execution risk if diversification or additional OEM relationships are not secured quickly.
Local Permitting and Operational Uncertainty (Mississippi Reference)
Analyst questions raised potential noise and concerns around Mississippi operations and permitting; management declined to comment on specifics. While EPA rule changes are a tailwind overall, localized permitting/regulatory scrutiny remains an operational risk.
Short-Term Margin Mix from Third-Party Capacity
Selective use of third-party generation to accelerate ramping lowered margins versus owned capacity in Q4. Reliance on leased/third-party capacity can depress near-term margins until owned capacity is deployed or contracts are optimized.
Company Guidance
The company provided concrete near-term and longer-term financial and operational guidance: full-year 2025 revenue nearly doubled to $622 million with adjusted EBITDA more than doubling to $244 million and Logistics Solutions generating over $80 million of free cash flow; Q4 revenue was nearly $180 million with consolidated adjusted EBITDA of $69 million (Power segment adj. EBITDA $53 million; ~780 MW generated revenue in Q4; Logistics averaged 93 fully utilized systems, up 11% vs. Q3, with segment adj. EBITDA ≈ $23 million and top‑fill utilization rising from mid‑90% in Q4 to nearly 100% in Q1). For 1Q26 Solaris now guides total adjusted EBITDA of $72–$77 million (up from $70–$75M) and introduces 2Q26 guidance of $76–$84 million, expecting Power segment adjusted EBITDA to increase by more than 20% in 1Q; the company is fully funded for scheduled deliveries to reach 2,200 MW, expects pro forma total‑company “earnings” of over $600 million (before additional scope), and highlighted material contracted capacity including a 15‑year JV upsized to ~500–900 MW and a new 10‑year (+5‑year option) >500 MW customer (energization phased into Q1 2027).Solaris Energy Infrastructure Financial Statement Overview
Summary
Income statement strength (78) shows a strong operating recovery with sharp revenue growth and robust operating margins, but this is offset by balance-sheet risk (62) from higher leverage and especially weak cash generation (cash flow score 38) due to deeply negative free cash flow despite positive operating cash flow.Income Statement
TTM (Trailing-Twelve-Months) results show strong momentum: revenue is up sharply (20.5%) with solid profitability (gross margin ~32%, EBITDA margin ~37%, EBIT margin ~23%). Net margin (~7.1%) is positive and improved versus prior years, reflecting a meaningful turnaround from earlier losses (2020–2021). Offsetting this, profitability has been somewhat volatile over the cycle (notably net margin was higher in 2023 than 2024), suggesting earnings power may be sensitive to operating conditions.78
Positive
Balance Sheet
The balance sheet has expanded significantly, but leverage has moved up with it: TTM (Trailing-Twelve-Months) debt is roughly in line with equity (debt-to-equity ~1.0), a clear step-up from the low-leverage profile in 2020–2022. Returns on equity are positive (TTM ~9.2%) and improving versus 2024, but still not high enough to fully offset the increased balance-sheet risk from higher borrowing.62
Positive
Cash Flow
Operating cash flow is positive and currently exceeds net income (TTM operating cash flow to net income ~1.16), which is a quality positive. However, free cash flow is deeply negative in TTM (Trailing-Twelve-Months) and deteriorated versus 2024, indicating heavy cash investment or working-capital needs that are overwhelming operating inflows. The sharp swing from positive free cash flow in 2023 to large outflows in 2024 and TTM raises funding and sustainability questions if this persists.38
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 538.80M | 313.09M | 292.95M | 320.00M | 159.19M | 102.98M |
| Gross Profit | 173.53M | 80.95M | 78.92M | 69.80M | 16.52M | 10.19M |
| EBITDA | 199.04M | 95.95M | 86.09M | 72.24M | 26.82M | -32.88M |
| Net Income | 38.08M | 15.81M | 24.34M | 21.16M | -868.00K | -29.34M |
Balance Sheet | ||||||
| Total Assets | 1.57B | 1.12B | 468.30M | 462.58M | 406.22M | 411.90M |
| Cash, Cash Equivalents and Short-Term Investments | 106.70M | 114.25M | 5.83M | 8.84M | 36.50M | 60.37M |
| Total Debt | 545.28M | 328.88M | 47.79M | 20.48M | 7.52M | 8.20M |
| Total Liabilities | 708.09M | 456.15M | 152.72M | 145.45M | 108.35M | 96.42M |
| Stockholders Equity | 546.55M | 355.62M | 205.98M | 215.72M | 203.15M | 201.25M |
Cash Flow | ||||||
| Free Cash Flow | -392.64M | -129.05M | 23.87M | -13.41M | -3.17M | 39.19M |
| Operating Cash Flow | 126.27M | 59.37M | 88.26M | 68.00M | 16.47M | 43.85M |
| Investing Cash Flow | -537.16M | -305.03M | -62.00M | -79.54M | -19.52M | -3.77M |
| Financing Cash Flow | 401.06M | 399.70M | -29.26M | -16.12M | -20.82M | -46.59M |
Solaris Energy Infrastructure Technical Analysis
Positive
55.22
Price Trends
50.81
Positive
50.10
Positive
39.82
Positive
Market Momentum
0.11
Negative
55.41
Neutral
42.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEI, the sentiment is Positive. The current price of 55.22 is above the 20-day moving average (MA) of 52.71, above the 50-day MA of 50.81, and above the 200-day MA of 39.82, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEI.
Solaris Energy Infrastructure Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.86B | 10.83 | 39.64% | ― | 8.71% | 72.09% | |
73 Outperform | $2.02B | 38.77 | 4.60% | ― | -1.24% | 337.41% | |
72 Outperform | $2.20B | -40.47 | -4.59% | ― | 3.18% | -53.71% | |
71 Outperform | $2.01B | 43.56 | ― | 1.32% | ― | ― | |
66 Neutral | $4.58B | 31.58 | 7.29% | 1.78% | -12.05% | -46.45% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $3.66B | 81.00 | 9.45% | 1.07% | 92.33% | 116.22% |
* Energy Sector Average
SEI
Solaris Energy Infrastructure
55.22
22.81
70.38%
OII
Oceaneering International
37.92
15.77
71.20%
XPRO
Expro Group Holdings
17.30
5.28
43.93%
DNOW
Now
11.68
-4.44
-27.54%
LBRT
Liberty Energy
28.37
11.56
68.77%
FLOC
Flowco Holdings Inc Class A
22.28
-3.70
-14.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.