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Solaris Energy Infrastructure (SEI)
NYSE:SEI
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Solaris Energy Infrastructure
(NYSE:SEI)
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Rating:65Neutral
Price Target:
$52.00
▲(7.86% Upside)
Solaris Energy Infrastructure's strong revenue growth and operational efficiency are key strengths, but challenges in profitability, cash flow management, and high valuation metrics weigh on the overall score. The earnings call provided a balanced view with both growth opportunities and challenges, contributing to a moderate overall stock score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business operations, enhancing long-term financial stability.
Operational Efficiency
Improved operational efficiency through cost management boosts profitability, providing a competitive edge and supporting sustainable growth.
Power Solutions Expansion
Expansion in Power Solutions capacity demonstrates strategic growth and strengthens market position, ensuring future revenue streams.
Negative Factors
Cash Flow Challenges
Negative free cash flow highlights liquidity risks, potentially limiting investment capacity and operational flexibility in the long term.
Logistics Solutions Decline
Decline in Logistics Solutions indicates potential market challenges, affecting segment profitability and overall business performance.
Dependence on Third-Party Resources
Dependence on third-party resources may lead to supply chain vulnerabilities, impacting operational reliability and cost management.
Solaris Energy Infrastructure (SEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.98B
Dividend Yield1%
Average Volume (3M)3.27M
Price to Earnings (P/E)74.5
Beta (1Y)1.91
Revenue Growth62.66%
EPS Growth-8.07%
CountryUS
Employees364
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.30
Shares Outstanding44,603,740
10 Day Avg. Volume4,007,305
30 Day Avg. Volume3,271,401
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 Cap0.62
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit13.78
Enterprise Value/Ebitda12.32
Forecast
1Y Price Target
$46.00Price Target Upside-4.58% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 MoneySolaris Energy Infrastructure generates revenue primarily through the sale of electricity produced by its solar energy facilities. The company enters into long-term power purchase agreements (PPAs) with utility companies and large commercial customers, ensuring a steady income stream from the electricity generated. Additionally, SEI earns revenue from the installation and maintenance of solar systems for commercial clients, as well as from energy storage solutions that enhance the efficiency and reliability of renewable energy supply. Strategic partnerships with technology providers and government incentives for renewable energy projects further boost SEI's financial performance.
Solaris Energy Infrastructure Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in the Power Solutions segment, driving overall financial growth. However, the decline in the Logistics Solutions segment and dependence on third-party capacity are notable challenges. While the company's innovative solutions and strategic joint ventures present opportunities, flat future EBITDA guidance suggests cautious optimism.Q2-2025 Updates
Positive Updates
Power Solutions Segment Growth
Solaris added capacity with current and new customers, growing from 150 megawatts to over 600 megawatts within 10 months. The Power Solutions segment generated $46 million in adjusted EBITDA, a 43% increase from the prior quarter.
Strong Financial Performance
Solaris generated total revenue of $149 million, reflecting an 18% increase from the prior quarter. Adjusted EBITDA of $61 million represented a 29% increase from the previous quarter.
Strategic Joint Venture
Formed Stateline Power, LLC, a joint venture with an existing data center customer, to co-own and operate approximately 900 megawatts at a single site.
Innovative Solutions and New Technologies
Implementation of mobile Selective Catalytic Reduction systems and development of the Solaris Pulse app for remote monitoring and efficient operation of power generation equipment.
Negative Updates
Logistics Solutions Segment Decline
The Logistics Solutions segment saw a decline of 4% in fully utilized systems from the first quarter and is expected to decline by another 10% to 15% in the third quarter due to oil price softness.
Dependence on Third-Party Resources
The company relied on selective short-term sourcing of third-party power generation capacity to meet increased customer demand, indicating potential challenges in meeting future demand with owned capacity.
Flat Future EBITDA Guidance
Guidance for adjusted EBITDA in the third and fourth quarters is relatively flat at $58 million to $63 million, indicating limited growth potential in the near term.
Company Guidance
During the second quarter of 2025, Solaris Energy Infrastructure, Inc. reported robust financial and operational performance. The company generated $149 million in total revenue, marking an 18% increase from the previous quarter, largely driven by growth in the Power Solutions segment. The adjusted EBITDA for the quarter was $61 million, a significant 29% rise from the prior quarter, with Power Solutions contributing 67% to the total segment adjusted EBITDA. Solaris has successfully expanded its Power Solutions capacity to over 600 megawatts, up from approximately 150 megawatts just ten months prior, and anticipates further growth with new contracts. In the Logistics Solutions segment, despite a 4% decline in fully utilized systems, the company maintained strong cash flow, with expectations for continued profitability despite market softening. Looking forward, Solaris forecasts relatively flat adjusted EBITDA of $58 million to $63 million for the third and fourth quarters of 2025, supported by strategic investments and operational efficiencies.Solaris Energy Infrastructure Financial Statement Overview
Summary
Solaris Energy Infrastructure shows strong revenue growth and operational efficiency, but faces challenges in profitability and cash flow management. The balance sheet reflects moderate leverage, posing potential risks if not managed carefully.Income Statement
Solaris Energy Infrastructure has shown strong revenue growth with a 20.31% increase in TTM, indicating a positive trajectory. The gross profit margin improved to 30.19%, reflecting efficient cost management. However, the net profit margin is relatively low at 4.87%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy at 18.97% and 33.77% respectively, showcasing operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio is 0.91, indicating moderate leverage. Return on equity improved to 7.61%, showing better utilization of equity. However, the equity ratio stands at 27.10%, suggesting a higher reliance on debt financing. Overall, the balance sheet reflects a stable but leveraged financial position.65
Positive
Cash Flow
Operating cash flow is robust with a coverage ratio of 0.90, but the negative free cash flow of -$440.33 million is concerning. The free cash flow to net income ratio is -3.83, indicating cash flow challenges. Despite a 68.60% growth in free cash flow, the negative value highlights potential liquidity risks.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 446.98M | 313.09M | 292.95M | 320.00M | 159.19M | 102.98M |
| Gross Profit | 134.95M | 80.95M | 78.92M | 69.80M | 16.52M | 10.19M |
| EBITDA | 150.95M | 95.95M | 86.09M | 72.24M | 26.82M | -32.88M |
| Net Income | 22.56M | 15.81M | 24.34M | 21.16M | -868.00K | -29.34M |
Balance Sheet | ||||||
| Total Assets | 1.47B | 1.12B | 468.30M | 462.58M | 406.22M | 411.90M |
| Cash, Cash Equivalents and Short-Term Investments | 99.63M | 114.25M | 5.83M | 8.84M | 36.50M | 60.37M |
| Total Debt | 548.21M | 328.88M | 47.79M | 20.48M | 7.52M | 8.20M |
| Total Liabilities | 692.41M | 456.15M | 152.72M | 145.45M | 108.35M | 96.42M |
| Stockholders Equity | 399.14M | 355.62M | 205.98M | 215.72M | 203.15M | 201.25M |
Cash Flow | ||||||
| Free Cash Flow | -440.33M | -129.05M | 23.87M | -13.41M | -3.17M | 39.19M |
| Operating Cash Flow | 73.52M | 59.37M | 88.26M | 68.00M | 16.47M | 43.85M |
| Investing Cash Flow | -638.39M | -305.03M | -62.00M | -79.54M | -19.52M | -3.77M |
| Financing Cash Flow | 698.86M | 399.70M | -29.26M | -16.12M | -20.82M | -46.59M |
Solaris Energy Infrastructure Technical Analysis
Positive
48.21
Price Trends
32.99
Positive
30.77
Positive
27.91
Positive
Market Momentum
4.13
Negative
71.90
Negative
86.06
Negative
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 48.21 is above the 20-day moving average (MA) of 38.97, above the 50-day MA of 32.99, and above the 200-day MA of 27.91, indicating a bullish trend. The MACD of 4.13 indicates Negative momentum. The RSI at 71.90 is Negative, neither overbought nor oversold. The STOCH value of 86.06 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.66B | 20.36 | 7.29% | ― | 2.78% | -63.09% | |
79 Outperform | $2.44B | 12.21 | 27.08% | ― | 8.14% | 62.72% | |
78 Outperform | $1.47B | 21.64 | 4.78% | ― | 2.67% | ― | |
67 Neutral | $2.10B | 9.95 | 10.92% | 2.48% | -9.32% | -48.26% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $2.98B | 74.52 | 6.99% | 1.00% | 62.66% | -8.07% | |
57 Neutral | $1.40B | ― | ― | 1.02% | ― | ― |
* Energy Sector Average
SEI
Solaris Energy Infrastructure
48.21
34.94
263.30%
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FLOC
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15.63
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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.