Solaris Q2 2026 Earnings: Power Solutions Drives a 30% Sequential Adjusted EBITDA Gain

Solaris Energy Infrastructure (NYSE: SEI) reported Q2 2026 revenue of $219.4 million, up about 47% from $149.3 million a year earlier, while diluted Class A EPS declined to $0.26 from $0.30. Adjusted EBITDA rose 30% sequentially to $108.3 million as Power Solutions expanded, though a $14.8 million debt-extinguishment loss, higher net interest expense, and a larger diluted share count limited GAAP per-share earnings. The company also expanded three long-term contracts, raised Q3 adjusted EBITDA guidance, and established Q4 guidance.

Core Earnings Data

Revenue growth came from both income streams. Leasing revenue increased about 71% year over year to $105.7 million, while service revenue rose about 30% to $113.7 million.

On a non-GAAP basis, adjusted EBITDA increased faster than revenue and its implied margin expanded. Adjusted pro forma net income was $37 million, or $0.39 per fully diluted share, while adjusted EBITDA attributable to Solaris was $110.8 million after excluding the partner’s share of Stateline’s adjusted EBITDA loss.

Adjusted EBITDA and adjusted pro forma earnings are non-GAAP measures and should be considered alongside the company’s GAAP results.

Segment Performance

Power Solutions was the principal growth driver. Its revenue and segment adjusted EBITDA also more than doubled from the prior-year quarter, while Logistics Solutions generated higher sequential adjusted EBITDA despite lower revenue.

Power Solutions’ adjusted EBITDA rose much faster than its revenue-earning capacity, consistent with management’s attribution of the increase primarily to ancillary service revenue. Logistics revenue declined because of lower last-mile transportation activity, but increased system activity and a more favorable project mix supported profitability. Segment adjusted EBITDA excludes a $12.9 million corporate and other adjusted EBITDA loss.

Expanded Contracts Add Scope, Capacity, and Duration

Solaris expanded three long-term contracts that it expects to contribute more than $100 million of annual adjusted EBITDA. The figure is a company expectation rather than revenue or earnings already recognized in Q2.

• The February 2026 Hatchbo agreement now covers a turnkey power plant of approximately 660 MW, including balance-of-plant equipment, batteries, and energy-management systems designed for AI workloads. Its potential term increased to 18 years from 15 years.
• The scope of an April 2026 agreement expanded to include additional balance-of-plant equipment, energy-storage assets, and infrastructure support services.
• A large energy customer increased contracted microgrid capacity to approximately 80 MW from 60 MW and extended the contract to six years from four years.

Solaris also acquired Global Energy Services Alliance, adding repair, maintenance, installation, commissioning, and operational capabilities. Its equity investment in Deployable Energy provides exposure to small modular reactor technology, although the investment amount and near-term financial contribution were not disclosed.

Financing Costs and Dilution Offset Operating Profit Growth

The gap between operating income growth and diluted EPS was significant. Net interest expense was approximately $11.5 million, compared with about $5.5 million a year earlier, and Solaris recorded a $14.8 million loss on extinguishing debt associated with financing that had been arranged for the Genco acquisition. As a result, pretax income remained nearly flat at $30.2 million despite higher operating income.

The diluted weighted-average Class A share count also increased to approximately 79.0 million from 37.8 million. That larger denominator contributed to diluted EPS declining even as consolidated net income rose modestly.

Capital requirements increased alongside the Power Solutions expansion. Q2 capital expenditures reached $491.8 million, of which $488.2 million was allocated to Power Solutions, compared with total capital expenditures of $185.1 million in Q2 2025.

Following a $1.3 billion senior unsecured notes offering and the establishment of an undrawn $650 million credit facility, Solaris ended the quarter with approximately $1.4 billion of available liquidity. Cash attributable to Solaris increased to $888.5 million at June 30 from $339.4 million at December 31, 2025, while debt attributable to Solaris rose to $2.32 billion from $972.6 million.

Guidance

Solaris raised both ends of its Q3 adjusted EBITDA range by $10 million and introduced guidance for Q4. The revised Q3 midpoint is $97.5 million, up from $87.5 million previously, although the entire range remains below the Q2 result of $108.3 million.

Because these are forward-looking non-GAAP measures, Solaris did not provide reconciliations to the most comparable GAAP measure.

Recent Insider Transactions

The provided six-month insider data showed 4,627,487 shares purchased across 10 transactions and 4,099,593 shares sold across six transactions, resulting in net purchases of 527,894 shares. The latest records with specific terms included several sales and one purchase; the transactions alone do not establish insiders’ views of the company’s prospects.

Risks Investors Need to Monitor

• Capital intensity and leverage: Q2 capital expenditures approached $492 million, while attributable debt more than doubled from year-end. Higher interest costs could continue to separate operating growth from GAAP earnings.
• Contract execution: The expected annual adjusted EBITDA contribution of more than $100 million depends on delivering expanded power plants, storage assets, and related services under long-duration contracts.
• Near-term variability: Although Q3 guidance was raised, its range remains below Q2 adjusted EBITDA, making project timing, ancillary service revenue, and capacity deployment important quarterly variables.
• Segment concentration: Power Solutions is driving overall growth, while Logistics Solutions revenue declined both sequentially and year over year. Continued weakness in last-mile transportation could remain a drag on consolidated revenue.

Summary

Solaris’ Q2 2026 results reflected a continued shift toward power infrastructure, with ancillary services and broader project scope lifting revenue, operating income, and adjusted EBITDA. The main offsets were financing costs, a debt-extinguishment charge, dilution, and sharply higher capital spending. The next points to watch are execution of the expanded contracts, conversion of that scope into adjusted EBITDA, and management of the larger debt load while pursuing the raised second-half guidance.