Solaris Energy Infrastructure (SEI) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformative year, with strong free cash flow from logistics reinvested into acquiring and expanding a mobile power generation business, now Solaris Power Solutions, and the MER Acquisition in September 2024.

• Power solutions fleet expanded from 150 MW to a projected 1,400 MW by early 2027, driven by new orders and long-term contracts, including a six-year, 500 MW data center agreement.

• A joint venture is being finalized with a key customer to co-own power plant equipment, aligning interests and reducing capital requirements.

• The business model is shifting toward power-as-a-service, providing reliable, behind-the-meter power for complex, 24/7 customer applications.

• Operational synergies are being realized by integrating logistics and power teams, optimizing equipment, and leveraging industry expertise.

Financial highlights

• Q4 2024 revenue reached $96 million, up 28% sequentially, driven by Solaris Power Solutions and increased activity; full-year 2024 revenue was $313 million.

• Adjusted EBITDA for Q4 was $37 million, a 68% increase from the prior quarter; full-year Adjusted EBITDA was $103 million.

• Solaris Power Solutions contributed over 50% of Adjusted EBITDA in Q4 and is expected to reach nearly 80% after full fleet deployment.

• Q1 2025 guidance: Adjusted EBITDA of $44–$48 million; Q2 2025: $50–$55 million.

• 26th consecutive dividend of $0.12 per share approved, totaling $198 million returned to shareholders since 2018.

Outlook and guidance

• Full deployment of the power fleet expected by H1 2027, with $475–$500 million consolidated Adjusted EBITDA projected; $400–$425 million net to Solaris after JV structure.

• Q1 2025: Average megawatts earning revenue to rise 20% to 360 MW; Q2: up 17% to 420 MW.

• Logistics Solutions systems expected to grow over 15% to 90–95 fully utilized systems in H1 2025.

• 450 MW of capacity remains available for future contracting, with active discussions underway.