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Solaris Energy Infrastructure (SEI)
NYSE:SEI
US Market

Solaris Energy Infrastructure (SEI) AI Stock Analysis

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Solaris Energy Infrastructure

(NYSE:SEI)

Rating:76Outperform
Price Target:
$37.00
▲(13.95%Upside)
Solaris Energy Infrastructure's strong financial performance and positive earnings call sentiment are significant strengths. The stock's bullish technical indicators further support its appeal. However, a high valuation and cash flow challenges are notable risks.
Positive Factors
Expansion and Growth
SEI now owns and operates a fleet of mobile NG-fired turbines and is expanding rapidly to meet load growth.
Strategic Joint Ventures
The JV will own ~500 MW of capacity, leasing it to the data center partner, which lowers SEI's CAPEX load and allows the company to grow faster without raising high coupon debt or equity.
Negative Factors
Market Challenges
SEI now finds itself at the center of the electrification of everything movement, including increasing power generation demands from generative AI data centers and production-oriented O&G markets.

Solaris Energy Infrastructure (SEI) vs. SPDR S&P 500 ETF (SPY)

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 (SEI) generates revenue through multiple streams. The primary source of income is the sale of solar energy equipment and installation services to residential, commercial, and industrial clients. Additionally, SEI enters into power purchase agreements (PPAs) with businesses and utilities, allowing them to earn long-term revenue from the electricity generated by their solar projects. The company also offers maintenance and operational services for solar installations, which provide a steady income stream. SEI may engage in strategic partnerships with technology providers and government entities to expand its market reach and enhance its service offerings, contributing to its overall earnings.

Solaris Energy Infrastructure Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q1-2025)
|
% Change Since: 58.54%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong performance with significant growth in both power and logistics segments, highlighted by a major upsizing of a contract and increased revenue. However, there are concerns about potential softness in oil-directed activity and challenges in the supply chain. Overall, the positive aspects outweigh the negative ones.
Q1-2025 Updates
Positive Updates
Upsizing of Power Generation Contract
Solaris upsized its commercial contract from 500 megawatts to 900 megawatts for a data center campus, extending the initial tender from six to seven years.
Strong Performance in Logistics Segment
Solaris Logistics had a strong first quarter with system activity up over 25% sequentially, driven by new customer wins and the adoption of the top-fill system.
Increase in Revenue and EBITDA
Solaris generated total revenue of $126 million, reflecting a 31% increase from the prior quarter, with adjusted EBITDA of $47 million, representing a 25% increase.
New Capacity Secured for Future Growth
Solaris secured approximately 330 megawatts of additional generation capacity from its manufacturing partner, expected to be delivered in the second half of 2026.
Significant Free Cash Flow Generation
Solaris continued to harvest significant free cash flow from fleet investments made in prior years, bolstering the company's financial position.
Negative Updates
Potential Impact of Commodity Price Softness
Solaris observed some operators responding to recent commodity price softness by delaying jobs or reducing the number of fractures expected in the second half of the year.
Tight Supply Chain for Power Generation Equipment
OEM supply chain for power generation equipment has gotten progressively tighter, posing challenges in securing additional capacity.
Oil-Directed Activity Softness
There is an expectation of oil-directed activity softening in the third quarter should commodity prices remain at or below current levels.
Company Guidance
During the Solaris First Quarter 2025 Earnings Conference Call, the company provided detailed guidance on several key metrics. Solaris announced an upsized commercial contract for its power solutions business, increasing from approximately 500 megawatts to 900 megawatts, with an extended contract term of seven years. This expansion brings the total pro forma capacity to approximately 1,700 megawatts, with Solaris owning around 1,250 megawatts. The average tenor for their power solutions contracts now exceeds five years, a significant increase from the prior average. The company expects to generate consolidated annual run-rate adjusted EBITDA of $575 million to $600 million, with Solaris' net portion estimated at $440 million to $465 million. First-quarter revenue was reported at $126 million, a 31% increase from the previous quarter, while adjusted EBITDA increased by 25% to $47 million. For the second quarter, Solaris anticipates adjusted EBITDA between $50 million and $55 million, and between $55 million and $60 million for the third quarter. Additionally, the company secured a senior secured term loan facility of up to $550 million to support capital expenditures related to the joint venture. The guidance reflects Solaris' strong performance and growth strategy in both its power and logistics segments.

Solaris Energy Infrastructure Financial Statement Overview

Summary
Solaris Energy Infrastructure shows strong revenue growth and operational efficiency with an 18.7% revenue increase and solid profit margins. However, cash flow concerns and moderate net profit margins indicate areas for improvement.
Income Statement
84
Very Positive
Solaris Energy Infrastructure has demonstrated strong financial performance with consistent revenue growth, evidenced by a 18.7% increase from the previous year to the TTM period. The gross profit margin for TTM improved to 27.3%, indicating effective cost management. The company also maintained a healthy EBITDA margin of 31.8% and an EBIT margin of 17.5%, reflecting solid operational efficiency. However, the net profit margin for TTM is relatively modest at 4.5%, suggesting room for improvement in profitability.
Balance Sheet
75
Positive
The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 0.91, indicating a balanced leverage level. The equity ratio stands at 32.0%, showing a stable capital structure. Return on equity (ROE) for TTM is at 4.6%, which suggests moderate returns on shareholders' investment. Despite the overall healthy balance sheet, the increase in total debt warrants cautious monitoring of future leverage levels.
Cash Flow
68
Positive
Solaris Energy Infrastructure's cash flow performance shows areas of concern, with a significant decline in free cash flow due to high capital expenditures, resulting in negative free cash flow. The operating cash flow to net income ratio of 4.12 indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential cash flow challenges that need addressing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue371.53M313.09M292.95M320.00M159.19M102.98M
Gross Profit101.44M80.95M78.92M69.80M16.52M10.19M
EBITDA118.18M95.95M86.09M72.24M26.82M-32.88M
Net Income16.55M15.81M24.34M21.16M-868.00K-29.34M
Balance Sheet
Total Assets1.13B1.12B468.30M462.58M406.22M411.90M
Cash, Cash Equivalents and Short-Term Investments16.72M114.25M5.83M8.84M36.50M60.37M
Total Debt328.09M328.88M47.79M20.48M7.52M8.20M
Total Liabilities461.72M456.15M152.72M145.45M108.35M96.42M
Stockholders Equity361.29M355.62M205.98M215.72M203.15M201.25M
Cash Flow
Free Cash Flow-261.18M-129.05M23.87M-13.41M-3.17M39.19M
Operating Cash Flow68.21M59.37M88.26M68.00M16.47M43.85M
Investing Cash Flow-446.01M-305.03M-62.00M-79.54M-19.52M-3.77M
Financing Cash Flow391.09M399.70M-29.26M-16.12M-20.82M-46.59M

Solaris Energy Infrastructure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.47
Price Trends
50DMA
26.01
Positive
100DMA
24.86
Positive
200DMA
23.18
Positive
Market Momentum
MACD
1.56
Negative
RSI
65.04
Neutral
STOCH
89.73
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 32.47 is above the 20-day moving average (MA) of 28.91, above the 50-day MA of 26.01, and above the 200-day MA of 23.18, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 89.73 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RERES
76
Outperform
$1.13B14.577.06%3.12%-9.78%-49.45%
SESEI
76
Outperform
$2.14B64.095.52%1.51%33.59%-27.16%
76
Outperform
$1.01B16.124.91%10.48%
75
Outperform
$1.08B5.9913.87%72.10%
HLHLX
73
Outperform
$947.06M12.245.64%0.34%
72
Outperform
$1.09B26.324.51%3.07%-4.91%-46.51%
44
Neutral
AU$1.40B-6.68-23.02%6.54%5.33%-26.92%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEI
Solaris Energy Infrastructure
32.47
24.40
302.35%
INVX
Innovex International
16.23
0.22
1.37%
HLX
Helix Energy
6.72
-5.07
-43.00%
RES
RPC
5.39
-0.17
-3.06%
XPRO
Expro Group Holdings
9.43
-12.03
-56.06%
WTTR
Select Energy Services
9.71
-0.23
-2.31%

Solaris Energy Infrastructure Corporate Events

Private Placements and Financing
Solaris Energy Secures $550M Loan Agreement
Neutral
May 29, 2025

On May 23, 2025, Stateline Power, LLC, a joint venture involving Solaris Energy Infrastructure, entered into a significant loan and security agreement with Stonebriar Commercial Finance LLC. This agreement, which includes a loan of up to $550 million, is intended to fund capital expenditures and is secured by a lien on Stateline’s assets. The agreement imposes financial covenants on Stateline, including maintaining specific financial ratios, and is backed by a pledge of Stateline’s equity.

The most recent analyst rating on (SEI) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Solaris Energy Infrastructure stock, see the SEI Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Solaris Energy Elects New Directors at Annual Meeting
Neutral
May 20, 2025

At the 2025 Annual Meeting of Stockholders held on May 15, Solaris Energy Infrastructure announced the election of three Class II Directors, the ratification of BDO USA, P.C. as its independent public accounting firm for 2025, and an advisory vote approving the compensation of its Named Executive Officers. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (SEI) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Solaris Energy Infrastructure stock, see the SEI Stock Forecast page.

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.Date of analysis: Jul 05, 2025