Solaris Energy Infrastructure Raises Outlook on New 900 MW Contract

Solaris Energy Infrastructure reported stronger third-quarter earnings and raised its near-term outlook as new power contracts expanded its long-term project portfolio and a $1.25 billion debt offering increased available growth capital.

For the quarter ended September 30, 2026, adjusted EBITDA rose 26% sequentially to $136.1 million from $108.3 million. GAAP net income increased to $39.3 million from $25.2 million in the second quarter, while adjusted EBITDA attributable to Solaris reached $138.4 million.

Adjusted pro forma net income was $43.0 million, or $0.45 per diluted share, compared with $36.5 million, or $0.39 per share, in the preceding quarter. The non-GAAP calculation used 96.4 million adjusted pro forma diluted shares.

Power contracts support higher guidance

Solaris raised its adjusted EBITDA guidance to $165 million to $185 million for the fourth quarter, from a previous range of $145 million to $180 million. It also increased its first-quarter 2027 forecast to $220 million to $260 million from $200 million to $240 million. The company said it could not reconcile the forward-looking non-GAAP figures to their nearest GAAP measures without unreasonable effort.

Power Solutions generated $127 million of adjusted EBITDA in the third quarter and is expected to contribute $155 million to $175 million in the fourth quarter. Logistics Solutions produced $24 million and is projected to deliver $24 million to $26 million in the fourth quarter. Corporate and other expense was $15 million in the third quarter and is forecast at $15 million to $16 million in the fourth.

The central addition to Solaris’ contracted portfolio was a 900-megawatt power agreement with an existing investment-grade industrial and technology customer. The contract has an initial 15-year term beginning in 2027 and includes an option for another 15 years. Its scope covers power generation, associated balance-of-plant equipment, and operations and maintenance, with equipment deployable across multiple locations.

Solaris also secured another 200 MW of available generation capacity that is contracted and scheduled for deployment in 2027. The company said the equipment was procured on a near-term basis, avoiding extended original-equipment-manufacturer queues. Including that capacity, Solaris expects its pro forma fleet to reach approximately 3.5 gigawatts by 2029.

A separate seven-year operations and maintenance agreement covers about 400 MW of customer-owned generation. Solaris said it now has more than 3,200 MW under long-term contracts with technology and industrial customers.

Capital plan and funding

Solaris completed a $1.25 billion senior unsecured notes offering in October and secured another $200 million of bank commitments, increasing its undrawn revolving-credit capacity to $850 million. The company described its current capital plan as fully funded, with roughly $1.5 billion of growth capital and liquidity.

Forecast Solaris-funded capital expenditure totals $925 million in the fourth quarter of 2026, $1.28 billion in 2027, $360 million in 2028 and $160 million in 2029. These estimates exclude capitalized interest, which could reach $35 million per quarter during project construction. The updated plan incorporates broader contract scope, including balance-of-plant equipment, and more than 200 MW of incremental generation capacity.

At September 30, consolidated debt stood at $2.61 billion. On a pro forma basis reflecting the October notes offering and full deployment of the Stateline joint venture’s term loan, consolidated debt would be about $3.95 billion. Pro forma cash available to Solaris, excluding Stateline JV and restricted cash, was $1.62 billion.

Management estimates that contracted projects, existing operations and open capacity could produce more than $1.78 billion of annual adjusted EBITDA at full deployment, including potential contracts tied to roughly 300 MW of unallocated capacity. That figure is forward-looking and partly illustrative, relying on recent contract economics and additional investment assumptions.

Execution remains subject to project deployment schedules, financing requirements and the performance of long-term contracts. Solaris also identified uncertainty related to capital spending, tariffs and trade restrictions, regulatory changes, oil-market volatility and the Stateline joint venture. The company cautioned that actual results could differ materially from its current forecasts and deployment assumptions.