Solaris Energy Infrastructure Raises Guidance as Power Segment Grows
The company reported a sequential revenue increase of 12% to $219 million for the second quarter.
Solaris Energy Infrastructure (SEI), the energy services provider, reported second-quarter revenue of $219 million, a 12% increase from the first quarter.
The results were driven by a significant expansion in the company's power solutions business, which offset a decline in logistics activity. The company used the period to strengthen its balance sheet and expand its service capabilities through both acquisitions and strategic investments.
Adjusted EBITDA rose 30% sequentially to approximately $108 million. This growth was primarily fueled by the Solaris Power Solutions segment, where revenue rose 23% from the prior quarter to $158 million. The segment's adjusted EBITDA increased 34% sequentially to $96 million due to higher ancillary service revenue. Capacity earning revenue for the power segment also grew 4% to 950 MW.
Solaris Logistics Solutions saw revenue decrease 10% sequentially to $61 million due to lower last-mile transportation activity. Despite the revenue dip, the segment's adjusted EBITDA increased 7% sequentially to $25 million due to a more favorable project mix and increased system activity.
The company raised its third-quarter adjusted EBITDA guidance to a range of $90 million to $105 million, up from the previous range of $80 million to $95 million. Solaris also established a fourth-quarter adjusted EBITDA guidance range of $100 million to $120 million.
During the quarter, Solaris expanded three long-term contracts, adding more than $100 million of expected annual adjusted EBITDA. The company also acquired Global Energy Services Alliance, Inc. to integrate in-house aftermarket repair, maintenance, installation, and commissioning services.
Solaris made a new equity investment in Deployable Energy, a company specializing in Small Modular Reactor nuclear technology. To support these initiatives, the company increased its liquidity to $1.4 billion following a $650 million credit facility and a $1.3 billion senior unsecured notes offering.