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Solaris Energy Infrastructure (SEI)
NYSE:SEI
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Solaris Energy Infrastructure (SEI) AI Stock Analysis

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SEI

Solaris Energy Infrastructure

(NYSE:SEI)

Rating:69Neutral
Price Target:
$33.00
▲(9.96%Upside)
The overall score reflects Solaris Energy Infrastructure's strong financial performance and promising developments in the Power Solutions segment. However, high valuation metrics and cash flow concerns, coupled with neutral technical indicators, moderate the optimism.
Positive Factors
Operational Growth
SEI now owns and operates a fleet of mobile NG-fired turbines and is expanding rapidly to meet load growth.
Strategic Partnerships
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 Dependency
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 (SEI) is a leading company in the renewable energy sector, specializing in the development, construction, and management of solar energy projects. The company focuses on providing sustainable energy solutions by leveraging advanced solar technologies to deliver clean and efficient power. SEI's core services include solar panel installation, grid integration, and maintenance services for both commercial and residential clients.
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:Jul 23, 2025
(Q2-2025)
|
% Change Since: 2.04%|
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong performance in the Power Solutions segment, with significant revenue and EBITDA growth, successful joint venture formation, and technological advancements. However, these positives are somewhat tempered by a decline in the Logistics Solutions segment and an anticipated flattening of overall EBITDA growth in the coming quarters.
Q2-2025 Updates
Positive Updates
Significant Growth in Power Solutions
Solaris' Power Solutions segment saw a greater than 50% revenue increase, reaching approximately 600 megawatts of capacity, with a 43% increase in segment adjusted EBITDA from the first quarter.
Joint Venture Success
Formation of Stateline Power, LLC, a 50.1% Solaris-owned joint venture, to co-own and operate approximately 900 megawatts at a single site.
Revenue and EBITDA Growth
Total revenue for Solaris was $149 million, an 18% increase from the prior quarter. Adjusted EBITDA was $61 million, a 29% increase from the prior quarter.
Advancements in Technology and Operations
Engineering modifications made to Selective Catalytic Reduction systems enhanced mobility and reduced downtime. Development of 'Solaris Pulse' app for remote monitoring of power generation.
Strong Financial Position
Raised $155 million via 4.75% senior convertible notes and secured a $550 million senior secured loan facility for the joint venture.
Negative Updates
Logistics Solutions Decline
Logistics Solutions segment saw a 4% decline in fully utilized systems from the first quarter, with expectations for continued softness due to lower oil prices and reduced drilling activity.
Anticipated Flat EBITDA Growth
Guidance for the third and fourth quarters indicates flat total company adjusted EBITDA, reflecting minor growth in Power Solutions but a weaker outlook for Logistics Solutions.
Company Guidance
During the Solaris Energy Infrastructure, Inc. Second Quarter 2025 Earnings Conference Call, guidance was provided indicating a robust performance and future outlook. The company achieved a total revenue of $149 million, an 18% increase from the prior quarter, driven by the Power Solutions segment. Adjusted EBITDA rose by 29% to $61 million, with Power Solutions contributing 67% and expected to exceed 80% of total segment adjusted EBITDA after deploying their on-order fleet. Solaris formed a joint venture, Stateline Power, LLC, to operate approximately 900 megawatts. They also successfully raised $155 million through senior convertible notes and secured a $550 million loan facility for the JV. Guidance for the third and fourth quarters of 2025 suggests an adjusted EBITDA range of $58 million to $63 million, supported by continued growth in Power Solutions and a moderated decline in Logistics Solutions due to oil price softness.

Solaris Energy Infrastructure Financial Statement Overview

Summary
Solaris Energy Infrastructure shows strong financial performance with robust revenue growth and operational efficiency, as evidenced by an 18.7% revenue increase and improved gross profit margin. However, cash flow challenges due to high capital expenditures and negative free cash flow necessitate close monitoring.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue313.09M292.95M320.00M159.19M102.98M
Gross Profit80.95M78.92M69.80M16.52M10.19M
EBITDA95.95M86.09M72.24M26.82M-32.88M
Net Income15.81M24.34M21.16M-868.00K-29.34M
Balance Sheet
Total Assets1.12B468.30M462.58M406.22M411.90M
Cash, Cash Equivalents and Short-Term Investments114.25M5.83M8.84M36.50M60.37M
Total Debt328.88M47.79M20.48M7.52M8.20M
Total Liabilities456.15M152.72M145.45M108.35M96.42M
Stockholders Equity355.62M205.98M215.72M203.15M201.25M
Cash Flow
Free Cash Flow-129.05M23.87M-13.41M-3.17M39.19M
Operating Cash Flow59.37M88.26M68.00M16.47M43.85M
Investing Cash Flow-305.03M-62.00M-79.54M-19.52M-3.77M
Financing Cash Flow399.70M-29.26M-16.12M-20.82M-46.59M

Solaris Energy Infrastructure Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price30.01
Price Trends
50DMA
29.24
Positive
100DMA
25.17
Positive
200DMA
24.79
Positive
Market Momentum
MACD
0.90
Positive
RSI
48.09
Neutral
STOCH
49.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEI, the sentiment is Neutral. The current price of 30.01 is below the 20-day moving average (MA) of 31.12, above the 50-day MA of 29.24, and above the 200-day MA of 24.79, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 49.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEI.

Solaris Energy Infrastructure Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.22B17.334.78%2.67%
69
Neutral
$2.43B50.776.99%1.60%62.66%-8.07%
69
Neutral
$986.16M17.974.92%3.58%-2.74%-54.52%
69
Neutral
$1.09B6.0313.87%72.10%
69
Neutral
$1.08B26.154.51%3.00%-4.91%-46.51%
68
Neutral
$864.28M18.183.27%-8.19%
67
Neutral
$15.01B9.775.95%5.64%4.51%-61.80%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEI
Solaris Energy Infrastructure
30.01
18.82
168.19%
INVX
Innovex International
15.77
0.72
4.78%
HLX
Helix Energy
5.88
-4.25
-41.95%
RES
RPC
4.47
-1.88
-29.61%
XPRO
Expro Group Holdings
10.53
-8.55
-44.81%
WTTR
Select Energy Services
9.01
-1.49
-14.19%

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: Aug 02, 2025