Company Overview - SEI has been selected by Nephila Capital Ltd. to support its back- and middle-office operations across North America and the UK [1] - Nephila has over 20 years of experience in managing institutional assets in the reinsurance industry and is one of the largest insurance linked securities managers globally, with approximately $7 billion in assets under management [2][9] - As of June 30, 2025, SEI manages, advises, or administers approximately $1.7 trillion in assets [5] Market Insights - The insurance linked securities (ILS) market is projected to nearly double from approximately $100 billion to $200 billion by 2032 [2] - Asset managers like Nephila are seeking strategic partners to enhance efficiency through comprehensive services such as reconciliation, payment processing, and data aggregation [2] Strategic Partnership - Nephila's Head of Operations emphasized the need for a strategic partner with a proven track record in managing complex products and scalable infrastructure [3] - SEI's technology-driven solutions are tailored to help Nephila achieve its strategic goals and enhance operational efficiency [4] - SEI's global footprint and stability are seen as beneficial for supporting Nephila's long-term growth in the complex ILS industry [4]

Public Invited to Monitor Webcast Investor Contact: Media Contact: Brad Burke Leslie Wojcik SEI SEI +1 610-676-5350 +1 610-676-4191 [email protected] [email protected] SOURCE SEI Investments Company OAKS, Pa., Aug. 14, 2025 /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) will host its Investor Day in New York City for institutional investors and industry analysts on Thursday, Sept. 18, 2025, from 8:30 a.m. to 12 p.m. EDT. Presentations by SEI's executive leadership will describe the company, its marke ...

Core Insights - SEI has appointed Robert Hum as Head of Investment Product Development and Activation to enhance its investment product strategies and portfolio outcomes [1][4] - Hum brings 15 years of experience from BlackRock and Ladenburg Thalmann, where he managed over $2 billion in assets [2] - Heather Corkery has transitioned to support Hum, focusing on product activation strategies and user experience optimization [3] Company Strategy - SEI aims to strengthen its investment solutions by building a dedicated team to identify market trends and client needs [4] - The company is focused on enhancing access to private markets and improving investment products and model allocations [4] - SEI manages approximately $1.7 trillion in assets as of June 30, 2025, indicating its significant presence in the financial services industry [6] Leadership and Expertise - Robert Hum's diverse experience in ETF construction and implementation is expected to drive SEI's growth in new markets [4] - Heather Corkery's 20 years of experience at SEI will contribute to the depth of investment expertise within the new team [3] - Both leaders emphasize SEI's client-centric approach and the importance of leveraging technology and operations for competitive advantage [5]

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This statement outlines the inherent risks and uncertainties associated with forward-looking statements in the report - The report includes forward-looking statements concerning business strategy, future profitability, capital expenditures, and financial performance, which are subject to various risks, uncertainties, and assumptions[9](index=9&type=chunk) - Key factors that could cause actual results to differ materially include domestic spending levels, access to capital markets, changes in tariffs and trade barriers, global economic developments, geopolitical risks, inflation, interest rates, supply chain constraints, and various operational and regulatory risks[10](index=10&type=chunk)[12](index=12&type=chunk) PART I: FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Solaris Energy Infrastructure, Inc.'s unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with comprehensive notes providing detailed explanations of the company's financial position and performance for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of specific dates Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | Change | | :--------------------- | :------------ | :---------------- | :----- | | **Total Assets** | $1,472,730 | $1,122,881 | +$349,849 | | Cash and cash equivalents | $99,626 | $114,255 | -$14,629 | | Accounts receivable, net | $114,070 | $71,774 | +$42,296 | | Equipment held for lease, net | $671,741 | $339,932 | +$331,809 | | **Total Liabilities** | $692,407 | $456,152 | +$236,255 | | Long-term debt, net of current portion | $369,518 | $307,605 | +$61,913 | | Convertible notes | $149,267 | $0 | +$149,267 | | **Total Stockholders' Equity** | $780,323 | $666,729 | +$113,594 | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income over specific reporting periods Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :----- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Total revenue | $149,328 | $73,886 | +$75,442 | $275,660 | $141,776 | +$133,884 | | Operating income | $35,569 | $11,854 | +$23,715 | $57,624 | $21,810 | +$35,814 | | Net income | $24,129 | $9,824 | +$14,305 | $37,097 | $17,124 | +$19,973 | | Net income attributable to Solaris Energy Infrastructure, Inc. | $11,955 | $6,208 | +$5,747 | $17,275 | $10,525 | +$6,750 | | EPS - Basic | $0.30 | $0.20 | +$0.10 | $0.44 | $0.35 | +$0.09 | | EPS - Diluted | $0.30 | $0.20 | +$0.10 | $0.44 | $0.35 | +$0.09 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines the changes in the company's equity from various transactions over time Key Changes in Stockholders' Equity (in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Balance at December 31, 2024/2023 | $666,729 | $315,580 | | Stock-based compensation | $5,020 | $4,179 | | Net income | $24,129 | $9,824 | | Capital contribution from non-controlling interest in Stateline | $86,023 | $0 | | Dividends paid (Class A common stock) | $(9,554) | $(7,289) | | Balance at June 30, 2025/2024 | $780,323 | $317,183 | - The company's total stockholders' equity significantly increased from **$666.7 million** at December 31, 2024, to **$780.3 million** at June 30, 2025, primarily driven by net income and a substantial capital contribution from non-controlling interest in Stateline[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :----------------- | :----------------------------- | :----------------------------- | :----------- | | Operating Activities | $49,903 | $35,751 | +$14,152 | | Investing Activities | $(336,999) | $(3,640) | -$333,359 | | Financing Activities | $266,271 | $(32,885) | +$299,156 | | Net decrease in cash, cash equivalents and restricted cash | $(20,825) | $(774) | -$20,051 | - Net cash used in investing activities dramatically increased by **$333.4 million**, primarily due to significant investments in property, plant, and equipment and equipment held for lease, reflecting the growth of the Solaris Power Solutions segment[27](index=27&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the financial statements [Note 1. Business and Basis of Presentation](index=14&type=section&id=Note%201.%20Business%20and%20Basis%20of%20Presentation) This note describes Solaris Energy Infrastructure, Inc.'s business operations and the accounting principles used for financial reporting - Solaris Energy Infrastructure, Inc. provides mobile and scalable equipment-based solutions for distributed power generation and raw material management for oil and natural gas wells[28](index=28&type=chunk) - The company operates through two business segments: Solaris Power Solutions (mobile turbines for power generation) and Solaris Logistics Solutions (specialized equipment for oil and natural gas well completion)[28](index=28&type=chunk) [Note 2. Variable Interest Entities](index=14&type=section&id=Note%202.%20Variable%20Interest%20Entities) This note details the formation and financial impact of Stateline Power, LLC, a consolidated variable interest entity - On April 28, 2025, Solaris formed Stateline Power, LLC, a variable interest entity (VIE), to provide off-grid power to a data center campus under a long-term equipment rental arrangement[31](index=31&type=chunk)[32](index=32&type=chunk) - Solaris contributed **$86.4 million** in non-cash assets for a **50.1% equity interest** and is the primary beneficiary, consolidating Stateline's financials within the Solaris Power Solutions segment[32](index=32&type=chunk)[37](index=37&type=chunk) Stateline's Assets and Liabilities (as of June 30, 2025, in millions) | Category | Amount | | :------- | :----- | | Total Assets | $246.2 | | Equipment held for lease, net | $199.9 | | Total Liabilities | $71.8 | | Long-term debt, net of current portion | $70.7 | [Note 3. Business Segments](index=18&type=section&id=Note%203.%20Business%20Segmen%20ts) This note provides financial and operational details for the Solaris Power Solutions and Solaris Logistics Solutions segments - Solaris Power Solutions provides configurable natural gas-powered mobile turbines for data centers and energy customers, while Solaris Logistics Solutions designs and manufactures equipment for oil and natural gas well material management[47](index=47&type=chunk) Segment Financial Information (in millions) | Metric | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | Solaris Power Solutions | $75.6 | $0 | $125.0 | $0 | | | Solaris Logistics Solutions | $73.7 | $73.9 | $150.7 | $141.8 | | Capital Expenditures | Solaris Power Solutions | $183.5 | $0 | $325.6 | $0 | | | Solaris Logistics Solutions | $1.5 | $0.6 | $3.7 | $3.7 | | Adjusted EBITDA | Solaris Power Solutions | $45.7 | $0 | $77.6 | $0 | | | Solaris Logistics Solutions | $22.7 | $28.2 | $48.7 | $54.1 | - Solaris Power Solutions' Adjusted EBITDA now contributes over **two-thirds** of total segment Adjusted EBITDA, reflecting significant growth since its establishment in Q3 2024[46](index=46&type=chunk) [Note 4. Summary of Significant Accounting Policies](index=20&type=section&id=Note%204.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting policies and principles applied in preparing the financial statements - The company adopted ASU No. 2023-07 (Segment Reporting) effective January 1, 2024, retrospectively applying enhanced disclosure requirements for significant segment expenses[56](index=56&type=chunk) - The company consolidates entities where it has a controlling financial interest, including Variable Interest Entities (VIEs) where it is the primary beneficiary, having both power to direct activities and the obligation/right to absorb losses/benefits[61](index=61&type=chunk)[63](index=63&type=chunk) [Note 5. Prepaid Expenses and Other Current Assets](index=30&type=section&id=Note%205.%20Prepaid%20Expenses%20and%20Other%20Current%20Assets) This note details the composition and changes in the company's prepaid expenses and other short-term assets Prepaid Expenses and Other Current Assets (in millions) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Prepaid expenses and deposits | $7.3 | $7.3 | | Short-term loan to third party | $7.6 | $0 | | Prepaid purchase orders | $2.4 | $0.1 | | Total | $17.5 | $8.4 | - A new secured demand note receivable of **$7.6 million** was extended to a third party on April 3, 2025, classified as held to maturity with no allowance for credit losses deemed necessary[91](index=91&type=chunk)[92](index=92&type=chunk) [Note 6. Property, Plant and Equipment](index=30&type=section&id=Note%206.%20Property,%20Plant%20and%20Equipment) This note provides a breakdown of the company's property, plant, and equipment, net of accumulated depreciation Property, Plant and Equipment, Net (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Oil and gas logistics equipment | $456.7 | $447.2 | | Total Property, plant and equipment, gross | $502.4 | $496.1 | | Less: accumulated depreciation | $(214.6) | $(197.3) | | Property, plant and equipment, net | $287.8 | $298.8 | - Depreciation expense for property, plant and equipment was **$9.3 million** for Q2 2025 and **$18.7 million** for H1 2025[93](index=93&type=chunk) [Note 7. Equipment Held for Lease](index=31&type=section&id=Note%207.%20Equipment%20Held%20for%20Lease) This note details the company's equipment held for lease, including power generation turbines and construction in progress Equipment Held for Lease, Net (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Power Generation - Turbine | $224.2 | $133.6 | | Construction in progress | $362.9 | $153.6 | | Total equipment held for lease, gross | $691.1 | $345.9 | | Less: accumulated depreciation | $(19.4) | $(6.0) | | Total equipment held for lease, net | $671.7 | $339.9 | - Depreciation expense for equipment held for lease was **$6.1 million** for Q2 2025 and **$13.4 million** for H1 2025, with no comparable expense in 2024 due to recent acquisitions[95](index=95&type=chunk) - Capitalized interest related to equipment held for lease was **$4.1 million** for Q2 2025 and **$6.9 million** for H1 2025[94](index=94&type=chunk) [Note 8. Intangible Assets](index=31&type=section&id=Note%208.%20Intangible%20Assets) This note provides a breakdown of the company's intangible assets, including customer relationships and trademarks Intangible Assets, Net (in millions) | Category | Gross (June 30, 2025) | Accumulated Amortization (June 30, 2025) | Net Book Value (June 30, 2025) | Net Book Value (December 31, 2024) | | :------------------- | :-------------------- | :--------------------------------------- | :----------------------------- | :--------------------------------- | | Customer relationships | $66.0 | $(7.5) | $58.5 | $64.0 | | Trademarks | $8.0 | $(1.3) | $6.7 | $7.5 | | Total identifiable intangibles | $74.1 | $(8.9) | $65.2 | $71.5 | - Amortization expense was **$2.9 million** for Q2 2025 and **$6.3 million** for H1 2025, significantly higher than the prior year due to recent acquisitions[97](index=97&type=chunk) [Note 9. Accrued Liabilities](index=32&type=section&id=Note%209.%20Accrued%20Liabilities) This note details the various accrued liabilities, including employee-related expenses and operational cost accruals Accrued Liabilities (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Employee-related expenses | $10.2 | $9.5 | | Operational cost accruals | $5.7 | $9.8 | | Taxes payable | $3.2 | $2.6 | | Interest payable | $1.8 | $0 | | Total Accrued liabilities | $25.2 | $23.2 | [Note 10. Debt](index=32&type=section&id=Note%2010.%20Debt) This note provides details on the company's outstanding debt obligations, including term loans and future maturities Outstanding Debt (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Term loan | $325.0 | $325.0 | | Stateline term loan | $72.0 | $0 | | Total debt, net of debt financing costs | $386.2 | $315.7 | | Long-term debt | $369.5 | $307.6 | - Stateline entered into a delayed draw term loan facility on May 23, 2025, with a maximum principal of **$550.0 million**, of which **$72.0 million** was drawn as of June 30, 2025[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - The Stateline Term Loan bears a variable interest rate (Floating Rate) initially, converting to a fixed rate of **9.85%** upon conversion, and is non-recourse to the Company, secured solely by Stateline's assets[105](index=105&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) Expected Future Principal Maturities of Debt Obligations (in millions) | Year Ending December 31, | Long-term Debt | Convertible Notes | | :----------------------- | :------------- | :---------------- | | 2025 (remainder of) | $8.1 | $0 | | 2026 | $19.7 | $0 | | 2027 | $25.6 | $0 | | 2028 | $25.9 | $0 | | 2029 | $277.6 | $0 | | Thereafter | $40.1 | $155.0 | | Total future principal debt payments | $397.0 | $155.0 | [Note 11. Convertible Notes](index=35&type=section&id=Note%2011.%20Convertible%20Notes) This note describes the issuance and key terms of the company's 4.75% Convertible Senior Notes due 2030 - On May 2, 2025, the Company issued **$155.0 million** aggregate principal amount of **4.75% Convertible Senior Notes** due 2030, with net proceeds of **$150.3 million**, primarily to support the Solaris Power Solutions segment's growth[116](index=116&type=chunk)[117](index=117&type=chunk) - The notes are convertible into Class A common stock at an initial rate of **37.8896 shares per $1,000 principal amount** (conversion price **~$26.39/share**), subject to anti-dilution adjustments and specific conversion conditions[118](index=118&type=chunk)[119](index=119&type=chunk)[125](index=125&type=chunk) Convertible Notes Components (as of June 30, 2025, in millions) | Component | Amount | | :-------------------------- | :----- | | Principal (par value) | $155.0 | | Unamortized debt discount and costs | $(5.7) | | Net carrying amount | $149.3 | | Estimated fair value (Level 1) | $207.9 | [Note 12. Fair Value Measurements and Financial Instruments](index=39&type=section&id=Note%2012.%20Fair%20Value%20Measurements%20and%20Financial%20Instruments) This note explains the company's fair value measurement hierarchy and concentrations of credit risk - The company uses a three-level fair value hierarchy for financial instruments, with most short-term instruments approximating fair value due to their nature, and variable-rate debt and lease obligations using Level 2 inputs[126](index=126&type=chunk)[127](index=127&type=chunk) - Significant credit risk concentrations exist with cash and cash equivalents exceeding FDIC insured limits, and two customers accounting for **43%** and **16%** of total accounts receivable as of June 30, 2025[128](index=128&type=chunk)[129](index=129&type=chunk) [Note 13. Equity and Non-controlling Interest](index=39&type=section&id=Note%2013.%20Equity%20and%20Non-controlling%20Interest) This note details changes in equity, non-controlling interests, and dividend distributions - Solaris LLC paid **$8.1 million** in dividend distributions to unitholders in Q2 2025, with **$4.9 million** paid to the Company for Class A common stock dividends[130](index=130&type=chunk) Non-controlling Interest (in millions) | Entity | June 30, 2025 | December 31, 2024 | | :----------- | :------------ | :---------------- | | Solaris LLC | $295.0 | $311.1 | | Stateline | $86.2 | $0 | | Total | $381.2 | $311.1 | - In H1 2025, **2,127,606 Solaris LLC units** were exchanged for Class A common stock, increasing the Company's ownership interest in Solaris LLC[134](index=134&type=chunk) [Note 14. Earnings Per Share](index=41&type=section&id=Note%2014.%20Earnings%20Per%20Share) This note outlines the calculation of basic and diluted earnings per share for various periods Earnings Per Share Calculation | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Class A shareholders (millions) | $11.4 | $5.8 | $16.5 | $9.8 | | Basic weighted average shares outstanding | 37,818,102 | 28,335,491 | 37,001,762 | 28,461,172 | | Diluted weighted-average shares outstanding | 37,818,102 | 28,335,491 | 37,001,762 | 28,461,172 | | Basic EPS | $0.30 | $0.20 | $0.44 | $0.35 | | Diluted EPS | $0.30 | $0.20 | $0.44 | $0.35 | - Potentially dilutive shares, including Class B common stock, convertible notes, and restricted stock awards, were excluded from diluted EPS calculation as their inclusion would have been antidilutive[136](index=136&type=chunk) [Note 15. Income Taxes](index=43&type=section&id=Note%2015.%20Income%20Taxes) This note provides details on income tax expense, effective tax rates, and the Tax Receivable Agreement liability Income Tax Expense and Effective Rates | Period | Income Tax Expense (millions) | Effective Tax Rate | | :-------------------------- | :---------------------------- | :----------------- | | Three Months Ended June 30, 2025 | $6.0 | 19.8% | | Three Months Ended June 30, 2024 | $1.3 | 12.0% | | Six Months Ended June 30, 2025 | $9.9 | 21.0% | | Six Months Ended June 30, 2024 | $3.2 | 15.8% | - The effective tax rate differed from the statutory rate primarily due to Solaris LLC's treatment as a partnership for U.S. federal income tax purposes[138](index=138&type=chunk) - The liability under the Tax Receivable Agreement was **$73.7 million** as of June 30, 2025, representing **85%** of anticipated tax savings from basis increases and imputed interest[144](index=144&type=chunk) [Note 16. Concentrations](index=45&type=section&id=Note%2016.%20Concentrations) This note identifies significant customer and supplier concentrations impacting revenues, receivables, and payables - For Q2 2025, two customers accounted for **45%** and **12%** of total revenues, and **43%** and **16%** of accounts receivable[147](index=147&type=chunk) - For Q2 2025, one supplier accounted for **42%** of total purchases, and two suppliers accounted for **51%** and **20%** of accounts payable[148](index=148&type=chunk) [Note 17. Commitments and Contingencies](index=45&type=section&id=Note%2017.%20Commitments%20and%20Contingencies) This note describes the company's legal proceedings and significant purchase commitments for power generation equipment - The company is involved in legal proceedings, including an intellectual property infringement lawsuit by Masaba Inc. and a putative class action lawsuit by Stephen Pirello, both of which management intends to vigorously defend[152](index=152&type=chunk)[153](index=153&type=chunk) Purchase Commitments for Power Generation Equipment (in millions) | Commitment Type | Amount | | :----------------------------------- | :----- | | Short-term (due within 12 months) | $222.4 | | Long-term (2025 expected payments) | $138.1 | | Long-term (2026 expected payments) | $382.7 | | Total purchase commitments | $743.2 | - Purchase commitments include **$450.4 million** related to Stateline, expected to be funded by the Stateline Term Loan and cash flows, with no recourse to the Company[154](index=154&type=chunk) [Note 18. Related Party Transactions](index=49&type=section&id=Note%2018.%20Related%20Party%20Transactions) This note details transactions with related parties, including services, leases, and convertible note purchases - The company incurred **$0.2 million** in Q2 2025 for services from Solaris Energy Management, LLC, owned by the CEO[157](index=157&type=chunk) - KTR Management Company, LLC, a related party, is involved in a commercial real estate lease and equipment purchases, with **$0.1 million** rental expense in Q2 2025 and **$2.0 million** equipment purchased in H1 2025[160](index=160&type=chunk) - BlackRock Portfolio Management LLC, a **>5% shareholder**, purchased **$55.0 million** of the Convertible Senior Notes[161](index=161&type=chunk) [Note 19. Subsequent Events](index=49&type=section&id=Note%2019.%20Subsequent%20Events) This note reports significant events occurring after the reporting period, including dividends and tax law changes - On July 23, 2025, a quarterly cash dividend of **$0.12 per share** of Class A common stock was approved, payable September 26, 2025[162](index=162&type=chunk) - The 'One Big Beautiful Bill Act,' signed July 4, 2025, may impact future tax liabilities by allowing **100% expensing** of certain qualified property costs and modifying interest expense deduction limitations[163](index=163&type=chunk)[164](index=164&type=chunk) - On July 28, 2025, **4,000,000 Solaris LLC Units** were exchanged for Class A common stock, increasing the Company's ownership interest[165](index=165&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Solaris Energy Infrastructure, Inc.'s financial performance and condition for the three and six months ended June 30, 2025. It covers an executive overview, recent developments, market trends, detailed analysis of revenues, costs, and cash flows, and a discussion of liquidity and capital resources, highlighting the significant growth in the Solaris Power Solutions segment [Executive Overview](index=52&type=section&id=Executive%20Overview) This section provides a high-level summary of the company's business, recent developments, and strategic initiatives - Solaris provides mobile and scalable equipment-based solutions for distributed power generation and raw material management in oil and natural gas wells, serving energy, data centers, and other commercial/industrial sectors[168](index=168&type=chunk) - Key recent developments include the formation of Stateline Power LLC for off-grid data center power, the issuance of **$155.0 million Convertible Senior Notes** to support growth, and Stateline's **$550 million** delayed draw term loan facility[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Market Trends and Outlook](index=54&type=section&id=Market%20Trends%20and%20Outlook) This section discusses key market trends, growth drivers, and future capital expenditure plans for the company's segments - Solaris Power Solutions segment is experiencing significant growth, with its Adjusted EBITDA now contributing over **two-thirds** of total segment Adjusted EBITDA, driven by demand for power in the U.S., especially from the AI computing sector[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - Approximately **75%** of the **1,700 MW** expected delivered capacity for Solaris Power Solutions is committed under long-term commercial agreements, with **67%** for data centers and **8%** for energy[176](index=176&type=chunk) - Solaris Logistics Solutions' demand is influenced by oil and natural gas well drilling activity; Q2 2025 saw a **4% decrease** in fully utilized systems due to lower crude oil prices[180](index=180&type=chunk) - Total company capital expenditures remaining in 2025 are estimated at **$295 million**, with the majority supporting Solaris Power Solutions' growth, and funding expected from available cash, operations, credit facilities, and Stateline debt financing[177](index=177&type=chunk)[178](index=178&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, cost of revenue, and operating expenses Revenue Performance by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Solaris Power Solutions | $75,625 | $0 | +$75,625 | $125,000 | $0 | +$125,000 | | Solaris Logistics Solutions | $73,703 | $73,886 | $(183) | $150,660 | $141,776 | +$8,884 | | Total Revenues | $149,328 | $73,886 | +$75,442 | $275,660 | $141,776 | +$133,884 | - Cost of revenue (exclusive of D&A) for Solaris Power Solutions increased by **$28.3 million** (Q2 2025) and **$44.8 million** (H1 2025) as the segment was established in Q3 2024. For Solaris Logistics Solutions, it increased by **$4.8 million** (Q2 2025) and **$16.2 million** (H1 2025), mainly due to higher last mile and ancillary service costs[184](index=184&type=chunk)[185](index=185&type=chunk)[188](index=188&type=chunk) - Depreciation and amortization increased significantly by **92%** (Q2 2025) and **97%** (H1 2025) due to the Solaris Power Solutions segment's new assets. Selling, general and administrative expenses rose by **80%** (Q2 2025) and **86%** (H1 2025) due to increased headcount, professional fees, and stock-based compensation[190](index=190&type=chunk)[192](index=192&type=chunk) - Interest expense increased by **$4.8 million** (Q2 2025) and **$9.2 million** (H1 2025) due to higher outstanding borrowings and effective interest rates[194](index=194&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's sources of liquidity, cash flow activities, and future capital commitments - Primary liquidity sources include cash flows from operations, **$56.0 million** available capacity under the revolving credit facility, and proceeds from Convertible Senior Notes (**$150.3 million** net) and Stateline's delayed draw term loan (**$72.0 million** drawn, **$446.5 million** remaining capacity)[196](index=196&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[203](index=203&type=chunk) - As of June 30, 2025, cash and cash equivalents totaled **$139.0 million**, with **$39.4 million** of Convertible Senior Notes proceeds remaining restricted for capital expenditures[206](index=206&type=chunk)[200](index=200&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :----------------- | :----------------------------- | :----------------------------- | :----------- | | Operating Activities | $49,903 | $35,751 | +$14,152 | | Investing Activities | $(336,999) | $(3,640) | -$333,359 | | Financing Activities | $266,271 | $(32,885) | +$299,156 | - Net cash used in investing activities increased by **$333.4 million**, primarily due to **$325.6 million** for turbines and ancillary equipment for Solaris Power Solutions[212](index=212&type=chunk) - Future cash commitments include **$743.2 million** in purchase commitments for power generation equipment, with **$222.4 million** short-term and **$520.8 million** long-term, including **$450.4 million** for Stateline[204](index=204&type=chunk)[154](index=154&type=chunk) [Critical Accounting Policies and Estimates](index=64&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to the company's critical accounting policies and estimates - There have been no material changes to the company's critical accounting policies and estimates since December 31, 2024[217](index=217&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that Solaris Energy Infrastructure, Inc.'s exposures to market risk have not materially changed since December 31, 2024, and refers to the Annual Report on Form 10-K for comprehensive disclosures on market risk - Market risk exposures have not materially changed since December 31, 2024[218](index=218&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures as of June 30, 2025, and reports no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of June 30, 2025[219](index=219&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[220](index=220&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) This section details the ongoing legal proceedings against Solaris Energy Infrastructure, Inc., including an intellectual property infringement lawsuit by Masaba Inc. and a putative class action lawsuit by Stephen Pirello, both of which management believes are without merit and intends to vigorously defend - The company is defending against an intellectual property infringement lawsuit by Masaba Inc. (U.S. Patent No. 11,780,689), with an IPR instituted by USPTO in January 2025[223](index=223&type=chunk)[152](index=152&type=chunk) - A putative class action lawsuit, Stephen Pirello v. Solaris Energy Infrastructure, Inc., et al., was filed on March 28, 2025, alleging misleading statements related to the MER Acquisition, which the company believes is without merit[223](index=223&type=chunk)[153](index=153&type=chunk) [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors, highlighting new and evolving risks such as the adverse effects of tariffs and trade measures, specific risks associated with the Stateline Power LLC venture (including customer concentration and financing), and potential impacts from short selling strategies and related litigation. It also addresses risks related to the Convertible Senior Notes, including repurchase obligations, potential dilution, and accounting implications - Tariffs and other trade measures could increase material input costs, supply chain delays, and negatively impact global economic demand for power generation solutions[225](index=225&type=chunk)[226](index=226&type=chunk) - Risks associated with Stateline include reliance on a few large customers, potential need for additional debt/equity financing, complex regulatory frameworks, difficulties in finding alternative lessors, and management time dedication[228](index=228&type=chunk)[233](index=233&type=chunk) - The company may be subject to short selling strategies and related litigation, which could lead to stock price instability, negative publicity, and diversion of management's time[230](index=230&type=chunk)[231](index=231&type=chunk) - Risks related to Convertible Senior Notes include potential inability to repurchase notes for cash, dilution of ownership interests upon conversion, and adverse effects on reported financial condition and results due to accounting methods[232](index=232&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk)[241](index=241&type=chunk)[243](index=243&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section clarifies that while the Convertible Senior Notes offering was registered, the Class A common stock issuable upon conversion has not been registered under the Securities Act. It also provides details on the initial and maximum conversion rates for these notes - The Convertible Senior Notes offering was registered, but the Class A common stock issuable upon conversion has not been registered under the Securities Act[245](index=245&type=chunk)[246](index=246&type=chunk) - The initial conversion rate is **37.8896 shares of Class A common stock per $1,000 principal amount** (approx. **$26.39/share**), with a maximum conversion rate of **51.1508 shares** (approx. **$19.55/share**) and a maximum of **7,928,374 shares** issuable[247](index=247&type=chunk)[248](index=248&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Maximum Dollar Value of Shares that May Yet be Purchased Under the Plan (2) | | :---------------- | :----------------------------------- | :--------------------------- | :------------------------------------------------------------------------- | | April 1 - April 30 | 1,693 | $18.40 | $15,440,555 | | May 1 - May 31 | — | — | $15,440,555 | | June 1 - June 30 | 1,947 | $27.77 | $15,440,555 | | Total | 3,640 | $23.41 | | - Shares purchased were to satisfy tax withholding obligations upon vesting of restricted stock, with **$15.4 million** remaining under the **$50.0 million** authorized share repurchase program[254](index=254&type=chunk)[207](index=207&type=chunk) [Item 3. Defaults upon Senior Securities](index=75&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section explicitly states that there were no defaults upon senior securities during the reported period - No defaults upon senior securities were reported[250](index=250&type=chunk) [Item 4. Mine Safety Disclosures](index=75&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that there are no mine safety disclosures to report - No mine safety disclosures were reported[251](index=251&type=chunk) [Item 5. Other Information](index=75&type=section&id=Item%205.%20Other%20Information) This section incorporates disclosures from Item 2 regarding unregistered sales of equity securities and confirms that no Rule 10b5-1 trading arrangements were adopted or terminated by any director or officer during the three months ended June 30, 2025 - Disclosures from Item 2 (Unregistered Sales of Equity Securities and Use of Proceeds) are incorporated by reference[252](index=252&type=chunk) - No Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q2 2025[253](index=253&type=chunk) [Item 6. Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section provides a comprehensive list of all exhibits filed as part of the Form 10-Q, including various agreements, certificates of incorporation, bylaws, indentures, and certifications required by the Sarbanes-Oxley Act - The report includes various exhibits such as the Contribution Agreement, Amended and Restated Certificate of Incorporation, Indenture for Convertible Senior Notes, Loan and Security Agreement for Stateline Power, LLC, and CEO/CFO certifications[255](index=255&type=chunk)[258](index=258&type=chunk) [SIGNATURES](index=80&type=section&id=SIGNATURES) This section provides the official signatures for the Quarterly Report on Form 10-Q - The Quarterly Report on Form 10-Q was signed by William A. Zartler (Chairman and CEO) and Kyle S. Ramachandran (President and CFO) on July 31, 2025[263](index=263&type=chunk)

Amy Sliwinski Will Lead Global Talent and Culture to Power Company's Strategic Growth OAKS, Pa., July 29, 2025 /PRNewswire/ -- SEI® (NASDAQ: SEIC) today announced the appointment of Amy Sliwinski as an Executive Vice President and Chief People and Culture Officer. Sliwinski will focus on transforming people strategies globally to enable SEI's business goals, scale the organization, and nurture the company's culture as the business grows and evolves. In this new role, she will be responsible for developing, ...

SEI Investments Company SEIC reported better-than-expected earnings for the second quarter on Wednesday.The company posted quarterly earnings of $1.20 per share which beat the analyst consensus estimate of $1.16 per share. The company reported quarterly sales of $559.601 million which beat the analyst consensus estimate of $555.724 million.“SEI achieved another strong quarter across our core businesses. We are executing with conviction and discipline, positioning the company for sustained growth. As we prep ...

Core Insights - SEI Investments Co. (SEIC) reported a second-quarter 2025 earnings per share (EPS) of $1.78, exceeding the Zacks Consensus Estimate of $1.18, and reflecting a 70% increase from the prior-year quarter [1][9] - The net income for the quarter was $227.1 million, up 63% from the year-ago quarter, surpassing the estimate of $145.3 million [1] Revenue and AUM Performance - Total revenues reached $559.6 million, marking an 8% year-over-year increase, driven by higher asset management, administration, distribution fees, and information processing and software servicing fees, although it fell short of the Zacks Consensus Estimate of $561.1 million [2][9] - Assets under management (AUM) stood at $517.5 billion, reflecting a 10% increase from the prior-year quarter, while client assets under administration (AUA) rose 11% year over year to $1.14 trillion [4][9] Expense Analysis - Total expenses amounted to $411 million, up 7% year over year, primarily due to increases in almost all cost components, except for amortization and depreciation charges, and slightly above the estimate of $409.8 million [3] - Operating income increased by 9% year over year to $148.6 million, exceeding the estimate of $139.7 million [3] Share Repurchase Activity - In the reported quarter, SEIC repurchased 2.2 million shares for $180.8 million at an average price of $83.60 per share [5] Strategic Outlook - The company's global presence, diverse product offerings, solid balance sheet, strategic acquisitions, and robust AUM balance are expected to support revenue growth, despite concerns over elevated operating expenses and concentrated fee-based revenues [6]

Financial Data and Key Metrics Changes - Solaris generated total revenue of $149 million, reflecting an 18% increase from the prior quarter due to growth in Power Solutions, which offset a modest decline in Logistics Solutions activity [18] - Adjusted EBITDA was $61 million, representing a 29% increase from the prior quarter, with Power Solutions contributing 67% of total segment adjusted EBITDA [18][19] - Adjusted EBITDA attributable to Solaris shareholders was approximately $62 million, considering the joint venture's non-controlling interest [19] Business Segment Data and Key Metrics Changes - The Power Solutions segment generated revenue from approximately 600 megawatts of capacity, an increase of over 50% from the prior quarter, driven by increased customer demand [20] - Segment adjusted EBITDA for Power Solutions was $46 million, a 43% increase from the first quarter [20] - In the Logistics Solutions segment, the average number of fully utilized systems declined by 4% from the first quarter, with expectations of a further decline of 10% to 15% in the third quarter due to lower drilling and completion activity [21][22] Market Data and Key Metrics Changes - The market demand for power generation is accelerating, driven by electrification, artificial intelligence power needs, and reshoring of manufacturing [7] - Regulatory clarity, such as Senate Bill 6 in Texas, is creating numerous commercial opportunities for distributed generation solutions [10] Company Strategy and Development Direction - Solaris is focused on growing its Power Solutions business while maintaining strong cash flow from Logistics Solutions, with plans to evaluate adjacent opportunities that complement core offerings [14][24] - The company aims to deliver strong returns on invested capital and is exploring partnerships to enhance its service offerings and operational capabilities [83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in establishing a robust business position for continued growth and future opportunities, despite anticipated softness in oil prices affecting the Logistics segment [16][17] - The company is optimistic about the potential for increased demand in the Power Solutions segment, particularly as new equipment deliveries are expected to ramp up in 2026 [20][24] Other Important Information - Solaris formed a joint venture, Stateline Power LLC, to co-own and operate approximately 900 megawatts at a single site, enhancing its capacity and market presence [19] - The company raised $155 million in senior convertible notes and closed a $550 million senior secured loan facility for the joint venture, ensuring funding for capital expenditure commitments [23] Q&A Session Summary Question: Details on the 600 megawatts capacity - Management indicated that additional capacity was sourced through third-party resources to meet customer demand, with expectations for owned assets to phase in as deliveries occur [26][27] Question: Plans beyond the 1.7 gigawatts capacity - Management is evaluating the mix of assets and considering both build and buy options, with a focus on specific project needs for future orders [34][35] Question: Logistics segment performance in Q4 - Management confirmed a modest decline in logistics activity is expected in Q4, but highlighted the segment's ability to gain share through cutting-edge completion designs [37][39] Question: Microgrid contracts in oil and gas - Management noted that oil and gas customers have strong credit qualities and similar pricing structures to data center contracts, indicating a positive outlook for microgrid opportunities [41][42] Question: Capacity and permitting for data centers - Management confirmed that permitting is generally the responsibility of the job site owner, with two data centers currently in operation, one having received its Title V air permit [65][66] Question: Operational levers in Logistics Solutions - Management is focused on managing fixed costs and ensuring quality while maintaining margins in the face of projected activity declines [67]

Financial Performance & Guidance - Q2 2025 Adjusted EBITDA was $61 million[17] - Q2 2025 Adjusted EBITDA attributable to Solaris was $62 million[17] - Q3 2025 Total Adjusted EBITDA guidance is $58-63 million[17] - Q4 2025 Total Adjusted EBITDA guidance is $58-63 million[17] - Net Interest Expense guidance for Q3 2025 is $8 million[23] - Net Interest Expense guidance for Q4 2025 is $8 million[23] Fleet & Capacity - The company expects to operate a 1,700 MW fleet by 1H 2027[5,13] - As of 1H 2027, approximately 75% of the 1,700 MW fleet is expected to be contracted[5] - Q2 2025 Average MW Earning Revenue is 600 MW[10,17] Capital Expenditure - Remaining consolidated capex spend for 2026 is projected to be $525 million[13] - Remaining consolidated capex spend for 2027 is projected to be $255 million[13]

Financial Performance - Solaris Energy Infrastructure, Inc. reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and up from $0.13 per share a year ago, representing an earnings surprise of +142.86% [1] - The company posted revenues of $149.33 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 21.18%, compared to year-ago revenues of $73.89 million [2] Market Performance - Solaris Energy Infrastructure, Inc. shares have declined approximately 1.8% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The company has underperformed the market so far this year, raising questions about its future stock performance [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $132.42 million, and for the current fiscal year, it is $0.53 on revenues of $513.88 million [7] - The estimate revisions trend for Solaris Energy Infrastructure, Inc. was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which Solaris Energy Infrastructure, Inc. belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]