Workflow
Solaris Energy Infrastructure, Inc.(SEI)
icon
Search documents
Solaris Energy Infrastructure, Inc. (SEI) Q2 Earnings and Revenues Surpass Estimates
ZACKS· 2025-07-24 00:45
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]
Solaris Energy Infrastructure, Inc.(SEI) - 2025 Q2 - Quarterly Results
2025-07-23 22:32
[Executive Summary & Key Updates](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Updates) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Summary%20Results%20and%20Key%20Updates) Solaris Energy Infrastructure announced strong Q2 2025 results, updated guidance, and continued shareholder returns - Solaris delivered **strong Q2 2025 financial and operational results**[1](index=1&type=chunk) - The company updated its earnings guidance and announced **continued shareholder returns**[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted strong Q2 performance driven by strategic growth in Power Solutions and free cash flow from Logistics Solutions - Solaris executed its strategy of growing the Power Solutions segment and generating **substantial free cash flow** in Logistics Solutions[3](index=3&type=chunk) - Operational achievements include expanding the power fleet, accelerating power delivery on a data center project, and securing multi-year contracts[4](index=4&type=chunk) - Prospects for **continued growth** in the Power Solutions segment are strong[4](index=4&type=chunk) [Segment Performance Overview (Q2 2025)](index=1&type=section&id=Segment%20Performance%20Overview%20(Q2%202025)) [Solaris Power Solutions Segment](index=1&type=section&id=Solaris%20Power%20Solutions) The Power Solutions segment saw significant sequential growth in revenue and profitability, leading to updated guidance and new financing [Revenue and Profitability](index=1&type=section&id=Revenue%20and%20Profitability_PowerSolutions) Q2 2025 Financial Metrics | Metric | Q2 2025 | Sequential Change (QoQ) | | :----- | :------ | :----------------------- | | Revenue | $149 million | +18% | | Net Income | $24 million | N/A | | Diluted Class A EPS | $0.30 | N/A | | Adjusted Pro Forma Net Income | $25 million | N/A | | Adjusted Pro Forma Diluted EPS | $0.34 | N/A | | Total Adjusted EBITDA | $61 million | +29% | | Adjusted EBITDA attributable to Solaris | ~$62 million | N/A | [Guidance](index=1&type=section&id=Guidance_PowerSolutions) - Increased third quarter 2025 Adjusted EBITDA guidance to **$58-63 million** from previous guidance of $55-60 million[6](index=6&type=chunk) - Established fourth quarter 2025 Adjusted EBITDA guidance in-line with third quarter 2025 at **$58-63 million**[6](index=6&type=chunk) [Financing and Balance Sheet](index=1&type=section&id=Financing%20and%20Balance%20Sheet_PowerSolutions) - Closed **$155 million** of 4.75% senior convertible notes during Q2 2025[6](index=6&type=chunk) - Stateline JV closed a **$550 million** senior secured loan facility, with an initial draw of $72 million[6](index=6&type=chunk) Balance Sheet Summary (as of June 30, 2025) | Metric | Consolidated | Attributable to Solaris | | :--------------------------- | :----------- | :---------------------- | | Total Debt | $535 million | $500 million | | Total Cash | $139 million | $119 million | [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns_PowerSolutions) - Approved third quarter 2025 dividend of **$0.12 per share**, marking Solaris' 28th consecutive dividend[6](index=6&type=chunk) [Operational Activity](index=1&type=section&id=Activity_PowerSolutions) Capacity Earning Revenue | Metric | Q2 2025 | Q1 2025 | Sequential Change (QoQ) | | :----- | :------ | :------ | :----------------------- | | Average Capacity Earning Revenue | ~600 MW | ~390 MW | +53% | [Solaris Logistics Solutions Segment](index=1&type=section&id=Solaris%20Logistics%20Solutions) The Logistics Solutions segment experienced a sequential decline in revenue and profitability due to fewer fully utilized systems [Revenue and Profitability](index=3&type=section&id=Revenue%20and%20Profitability_LogisticsSolutions) Q2 2025 Financial Metrics | Metric | Q2 2025 | Sequential Change (QoQ) | | :----- | :------ | :----------------------- | | Revenue | $74 million | -4% | | Segment Adjusted EBITDA | $23 million | -13% | - Profitability decreased primarily due to the decrease in fully-utilized system count and higher fixed cost absorption[9](index=9&type=chunk) [Operational Activity](index=3&type=section&id=Activity_LogisticsSolutions) System Utilization | Metric | Q2 2025 | Sequential Change (QoQ) | | :----- | :------ | :----------------------- | | Fully Utilized Systems | 94 | -4% | - The decline in fully utilized systems occurred amidst lower commodity prices[9](index=9&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Solaris reported substantial year-over-year growth in revenue, operating income, and net income for Q2 and the first half of 2025 Financial Performance Summary | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | 6 Months 2025 | 6 Months 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | :------------ | :------------ | :--------- | | Total Revenue | $149,328 | $73,886 | +102.1% | $275,660 | $141,776 | +94.4% | | Operating Income | $35,569 | $11,854 | +200.0% | $57,624 | $21,810 | +164.2% | | Net Income | $24,129 | $9,824 | +145.6% | $37,097 | $17,124 | +116.6% | | Net Income attributable to Solaris | $11,955 | $6,208 | +92.6% | $17,275 | $10,525 | +64.1% | | Earnings per share - diluted | $0.30 | $0.20 | +50.0% | $0.44 | $0.35 | +25.7% | [Detailed Segment Reporting](index=6&type=section&id=Detailed%20Segment%20Reporting) [Segment Descriptions and Financial Performance](index=6&type=section&id=SEGMENT%20REPORTING) Solaris operates two segments: Power Solutions, which showed significant growth, and Logistics Solutions, which saw a slight decline - Solaris Power Solutions provides configurable natural gas-powered mobile turbines, primarily leasing to data center and energy customers[22](index=22&type=chunk) - Solaris Logistics Solutions designs and manufactures specialized equipment for managing raw materials in oil and natural gas wells[22](index=22&type=chunk) Segment Financial Summary | Metric (in thousands) | Segment | Q2 2025 | Q2 2024 | YoY Change | 6 Months 2025 | 6 Months 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | :------------ | :------------ | :--------- | | **Revenue** | | | | | | | | | Solaris Power Solutions | | $75,625 | $0 | N/A | $125,000 | $0 | N/A | | Solaris Logistics Solutions | | $73,703 | $73,886 | -0.2% | $150,660 | $141,776 | +6.3% | | **Adjusted EBITDA** | | | | | | | | | Solaris Power Solutions | | $45,657 | $0 | N/A | $77,562 | $0 | N/A | | Solaris Logistics Solutions | | $22,714 | $28,181 | -19.4% | $48,688 | $54,041 | -9.9% | | Total Adjusted EBITDA | | $60,607 | $20,797 | +191.4% | $107,488 | $43,484 | +147.2% | | **Capital Expenditures** | | | | | | | | | Solaris Power Solutions | | $183,510 | $0 | N/A | $325,588 | $0 | N/A | | Solaris Logistics Solutions | | $1,491 | $624 | +138.9% | $3,693 | $3,748 | -1.5% | | Total Capital Expenditures | | $185,124 | $663 | +27820.7% | $329,454 | $4,021 | +8090.8% | [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [About Non-GAAP Measures](index=4&type=section&id=About%20Non-GAAP%20Measures) Solaris uses non-GAAP measures like Adjusted EBITDA and Adjusted pro forma net income to supplement GAAP results for better comparability - Non-GAAP financial measures are used to provide useful information on core operating results and facilitate comparisons[12](index=12&type=chunk) - These non-GAAP measures are considered supplemental and should not be used as a substitute for or superior to GAAP measures[12](index=12&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=7&type=section&id=EBITDA%20AND%20ADJUSTED%20EBITDA) The company provides reconciliations from GAAP net income to EBITDA and Adjusted EBITDA to enhance comparability - EBITDA is defined as net income plus depreciation and amortization expense, interest expense, and income tax expense[26](index=26&type=chunk) - Adjusted EBITDA further includes stock-based compensation expense and certain non-cash or non-recurring items[26](index=26&type=chunk) Reconciliation of Net Income to Adjusted EBITDA | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | 6 Months 2025 | 6 Months 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | :------------ | :------------ | :--------- | | Net Income | $24,129 | $9,824 | +145.6% | $37,097 | $17,124 | +116.6% | | EBITDA | $53,946 | $21,419 | +151.9% | $96,065 | $41,309 | +132.5% | | Total Adjusted EBITDA | $60,607 | $20,797 | +191.4% | $107,488 | $43,484 | +147.2% | | Adjusted EBITDA attributable to Solaris | $62,237 | $20,797 | +199.3% | $109,118 | $43,484 | +150.9% | [Cash and Debt Attributable to Solaris](index=9&type=section&id=CASH%20AND%20DEBT%20ATTRIBUTABLE%20TO%20SOLARIS) The company details its consolidated cash and debt positions and the amounts attributable to Solaris after accounting for non-controlling interests Cash and Debt Summary (as of June 30, 2025) | Metric (in thousands) | Consolidated | Attributable to Solaris | | :--------------------------------------- | :----------- | :---------------------- | | Cash and cash equivalents | $99,626 | N/A | | Restricted cash | $39,416 | N/A | | Consolidated cash | $139,042 | $118,711 | | Long-term debt, current portion | $16,714 | N/A | | Long-term debt, net of current portion | $369,518 | N/A | | Convertible notes | $149,267 | N/A | | Consolidated debt and convertible notes | $535,499 | $499,978 | [Adjusted Pro Forma Net Income and EPS Reconciliation](index=9&type=section&id=ADJUSTED%20PRO%20FORMA%20NET%20INCOME%20AND%20ADJUSTED%20PRO%20FORMA%20EARNINGS%20PER%20FULLY%20DILUTED%20SHARE) Adjusted pro forma metrics are presented to provide a comparable view of operating performance assuming full LLC membership exchange - Adjusted pro forma net income assumes the full exchange of all outstanding Solaris LLC membership interests and adjusts for certain non-recurring items[32](index=32&type=chunk) - These measures facilitate comparisons by eliminating the effect of changes in net income attributable to Solaris from ownership increases[33](index=33&type=chunk) Reconciliation to Adjusted Pro Forma Net Income and EPS | Metric (in thousands, except per share data) | Q2 2025 | Q2 2024 | YoY Change | 6 Months 2025 | 6 Months 2024 | YoY Change | | :----------------------------------------- | :------ | :------ | :--------- | :------------ | :------------ | :--------- | | Net income attributable to Solaris | $11,955 | $6,208 | +92.6% | $17,275 | $10,525 | +64.1% | | Adjusted pro forma net income | $24,634 | $5,965 | +312.9% | $38,476 | $13,219 | +191.1% | | Adjusted pro forma earnings per share - diluted | $0.34 | $0.13 | +161.5% | $0.55 | $0.30 | +83.3% | [Corporate Information and Disclosures](index=4&type=section&id=Corporate%20Information%20and%20Disclosures) [Conference Call Information](index=4&type=section&id=Conference%20Call) Solaris will host a conference call on July 24, 2025, to discuss its second quarter 2025 results - A conference call to discuss Q2 2025 results is scheduled for **Thursday, July 24, 2025, at 8:00 a.m. Central Time**[10](index=10&type=chunk) - Participants can join via dial-in or live webcast, with an audio replay available for approximately seven days[10](index=10&type=chunk)[11](index=11&type=chunk) [Company Profile](index=4&type=section&id=About%20Solaris%20Energy%20Infrastructure,%20Inc.) Solaris provides mobile equipment-based solutions for distributed power generation and raw material management for oil and gas wells - Solaris Energy Infrastructure provides mobile and scalable equipment-based solutions for distributed power generation[13](index=13&type=chunk) - The company also manages raw materials used in the completion of oil and natural gas wells[13](index=13&type=chunk) - Solaris serves multiple U.S. end markets, including energy, data centers, and other commercial and industrial sectors[13](index=13&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward%20Looking%20Statements) This report contains forward-looking statements, and readers are cautioned that actual results may differ due to inherent risks - The press release contains forward-looking statements concerning business strategy, future profitability, and industry conditions[14](index=14&type=chunk) - Actual results may differ materially from forward-looking statements due to inherent uncertainties, risks, and changes in circumstances[14](index=14&type=chunk) - Readers are advised to refer to the 'Risk Factors' sections in the company's SEC filings for detailed risks[14](index=14&type=chunk)
SEI Reports Second-Quarter 2025 Financial Results
Prnewswire· 2025-07-23 20:01
Core Insights - SEI Investments Company reported strong financial results for Q2 2025, with a 70% increase in EPS, 8% growth in revenue, and 9% growth in operating income compared to Q2 2024 [1][2][8] - The operating margin improved to 27%, reflecting the company's strategic investments in talent, technology, and infrastructure to support growth [1][2][8] Financial Performance - **Earnings Per Share (EPS)**: Q2 2025 EPS was $1.78, up 70% from $1.05 in Q2 2024, benefiting from a $0.58 impact from various items, including a $94.4 million gain from the sale of the Family Office Services business [1][2][8] - **Revenue**: Total revenues for Q2 2025 were $559.6 million, an 8% increase from $519.0 million in Q2 2024 [2][8] - **Operating Income**: Operating income rose to $148.6 million, a 9% increase from $136.5 million in the same quarter last year [2][8] - **Net Income**: Net income for Q2 2025 was $227.1 million, a 63% increase from $139.1 million in Q2 2024 [2][8] Business Segment Performance - **Investment Managers**: Revenues increased by 8% to $195.1 million, with operating profit growing by 7% to $73.4 million [4][5] - **Private Banks**: Revenues grew by 7% to $141.4 million, and operating profit increased by 11% to $22.7 million [4][5] - **Investment Advisors**: Revenues rose by 14% to $137.2 million, with operating profit up 19% to $61.4 million [4][5] - **Institutional Investors**: Revenues decreased by 3% to $69.3 million, but operating profit remained stable at $33.5 million [5] Strategic Initiatives - The company is focused on innovation and growth, as highlighted by its strategic investment in Stratos Wealth Holdings [3] - SEI is enhancing its capabilities through investments in technology and talent to meet evolving client needs [1][3] Shareholder Actions - SEI repurchased 2.2 million shares for $180.8 million during Q2 2025, bringing total shares repurchased to 9.0 million over the trailing 12 months [8]
SEI Appoints Karin Risi and Tom Naratil to Board of Directors
Prnewswire· 2025-07-22 21:28
Core Insights - SEI has appointed Karin Risi and Tom Naratil to its Board of Directors, effective immediately, while Stephanie Miller has resigned from the board [1][2] Group 1: Board Appointments - Karin Risi brings 30 years of experience in wealth management, having previously led Vanguard's $2.5 trillion Personal Investor and Wealth Management businesses [2][3] - Tom Naratil has a 39-year career at UBS, where he held several senior positions, including Co-President of Global Wealth Management [3][4] Group 2: Leadership Perspectives - Risi expressed enthusiasm for SEI's commitment to innovation and long-term value delivery, emphasizing the need to adapt to changing client needs in the asset and wealth management industry [4] - Naratil highlighted the importance of capitalizing on industry shifts for growth and expressed excitement about supporting SEI's leadership in achieving sustained growth [4] Group 3: Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.6 trillion in assets as of March 31, 2025 [5]
Solaris Energy to Report Q2 Earnings: Here's What You Need to Know
ZACKS· 2025-07-18 15:41
Core Insights - Solaris Energy Infrastructure Inc. (SEI) is scheduled to report its second-quarter 2025 results on July 23, with adjusted earnings expected to rise 15.4% year over year to 15 cents per share and revenues projected to increase by 66.8% to $123.2 million [1][2][7] Earnings Performance - In the last reported quarter, SEI's adjusted earnings of 20 cents per share exceeded the Zacks Consensus Estimate of 12 cents, driven by growth in Solaris Power Solutions [1] - SEI has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 6.93% [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for second-quarter revenues is $123.2 million, reflecting a significant increase of 66.8% compared to the previous year [2][7] - The earnings per share estimate of 15 cents indicates a 15.4% improvement from the prior year's reported number [2][7] Market Conditions - Average spot prices for West Texas Intermediate (WTI) crude oil in the second quarter were lower than in the first quarter, with prices of $63.54, $62.17, and $68.17 per barrel for April, May, and June respectively [3][4] - Despite softer crude prices, the pricing environment remains favorable for exploration and production activities, which likely supported steady demand for SEI's specialized equipment [4] Earnings Whispers - The current model does not indicate an earnings beat for SEI, as it holds a Zacks Rank of 4 (Sell) despite having a positive Earnings ESP of +31.03% [5]
SEI and Stratos Wealth Holdings Announce Strategic Investment and Business Partnership
Prnewswire· 2025-07-18 12:00
Core Insights - SEI and Stratos Wealth Holdings have entered into a strategic partnership aimed at enhancing the growth and scalability of financial advisors' businesses [1][2] - SEI will invest approximately $527 million for a 57.5% equity stake in Stratos, with the potential to acquire 100% in the future [4][5] - The partnership is expected to leverage SEI's technology, custody, operations, and asset management capabilities to support Stratos' existing business model [2][4] Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.6 trillion in assets as of March 31, 2025 [6][7] - Stratos Wealth Holdings supports a network of independent financial advisors, advising and servicing over $37 billion in client assets [8] Leadership and Vision - Jeff Concepcion, Founder and CEO of Stratos, emphasizes the importance of SEI's investment and expertise in driving growth and enhancing service offerings for advisors [3] - Ryan Hicke, CEO of SEI, highlights the strategic investment as a reinforcement of their commitment to financial advisors and the value they provide [4]
Portfolio Update – PEL 79 License Extension
Globenewswire· 2025-07-15 19:18
Core Insights - Sintana Energy Inc. has received a 12-month extension for Petroleum Exploration License 79 (PEL 79) in Namibia, now valid until July 2026, allowing further exploration activities [2][6] - The joint venture partners include the National Petroleum Corporation of Namibia (NAMCOR) and Giraffe Energy Investments, with Sintana holding a 49% interest in Giraffe [2][3] - PEL 79 is strategically located near other licenses with significant oil discoveries, enhancing its potential value [3][5] Exploration and Development - PEL 79 is supported by extensive seismic data, including over 4,760 km of 2D seismic and 1,137 km² of 3D seismic, along with a well that has shown gas indications [3] - The area is experiencing increased drilling activity, with nearby operators like Rhino Resources having made significant oil discoveries, including a flow test of over 11,000 barrels per day from the Capricornus-1X well [5][6] - Sintana anticipates material progress across its Namibian offshore portfolio in the coming quarters, leveraging the extension of PEL 79 [6]
SEI to Announce Second-Quarter 2025 Earnings on Wednesday, July 23, 2025
Prnewswire· 2025-07-09 13:00
Core Insights - SEI is set to release its second quarter 2025 earnings on July 23, 2025, after market close, followed by a conference call at 5 p.m. Eastern Time to discuss the financial results [1] - The public can listen to the conference call and access a replay through the company's investor relations website [2] - As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets, positioning itself as a leading global provider of financial technology and asset management services [3]
Solaris Energy Infrastructure (SEI) Earnings Call Presentation
2025-07-08 12:46
Business Overview - Solaris Energy Infrastructure has a market capitalization of approximately $1.5 billion and an enterprise value of approximately $2.0 billion[4] - The company anticipates its power solutions segment to contribute over 80% of its Adjusted EBITDA, while logistics solutions are expected to contribute less than 20%[6, 9] Growth and Expansion - Solaris expects to grow its fleet to 1.7 GW by the second half of 2027, with 71% of the pro forma fleet already contracted[10, 13] - The company has established a joint venture with a key data center customer for approximately 900 MW of power generation[18] - Additional orders for 330 MW will expand the fleet to approximately 1.7 GW by 2H 2027[13] Financial Performance and Projections - Solaris anticipates an annual Adjusted EBITDA contribution of $575-600 million pro forma for power fleet equipment deliveries[22] - The company projects a potential annual Adjusted EBITDA of $440-465 million from its 1.7 GW power solutions fleet[22] - Q1 2025 Adjusted EBITDA was $47 million, with Q2 2025 guidance between $50-55 million and Q3 2025 guidance between $55-60 million[93] Fleet Composition - The pro forma 1.7 GW fleet includes 55% of 16.5 MW units and 37% of units greater than 35 MW[52] - Approximately 67% of the 1.7 GW fleet is contracted to data centers, with 4% contracted to energy and 29% available beginning in 2H 2026[44]
2025 Incentive Awards
Globenewswire· 2025-06-30 10:30
Group 1 - Sintana Energy Inc. has approved grants of a total of 4.3 million equity incentive awards, which include 100,000 common stock options and 4.2 million restricted share units for several directors and officers [1] - The stock options have an exercise price of CA $0.73, vest in three equal tranches over the next 24 months, and will expire on June 27, 2035 [1] Group 2 - Sintana Energy is engaged in petroleum and natural gas exploration and development activities across six large, highly prospective onshore and offshore petroleum exploration licenses in Namibia, an onshore joint venture in Angola, and a project in Colombia's Magdalena Basin [2]