Revenue and Growth - Solaris Power Solutions generated revenue from an average of approximately 390 megawatts (MW) of generation capacity in Q1 2025, with a forecast to increase to approximately 1,700 MW by the first half of 2027[127]. - Total revenues for Q1 2025 were $126.3 million, a significant increase of $58.4 million compared to $67.9 million in Q1 2024, driven by a $49.4 million contribution from Solaris Power Solutions[135]. - Solaris Logistics Solutions revenues increased by $9.1 million, or 13%, to $77.0 million in Q1 2025, primarily due to a $11.7 million increase in revenue from last mile and ancillary services[135]. Costs and Expenses - The cost of revenue for Solaris Logistics Solutions increased by $11.3 million, or 28%, to $51.2 million in Q1 2025, with a cost of revenue as a percentage of revenue rising to 67%[137][138]. - Interest expense increased by $4.4 million to $5.2 million in Q1 2025, primarily due to higher borrowings and effective interest rates[143]. - The effective combined United States federal and state income tax rates were 23.2% for Q1 2025, compared to 20.3% for Q1 2024[144]. Capital Expenditures and Financing - The company expects total capital expenditures of approximately $490 million in 2025, with $295 million expected to be funded by the Stateline joint venture[129]. - The company issued $155.0 million in 4.75% Convertible Senior Notes due 2030, with $100.0 million restricted for capital expenditures to support Solaris Power Solutions[121]. - The company completed a public offering of $155.0 million aggregate principal amount of 4.75% Convertible Senior Notes due 2030, with $100.0 million restricted for capital expenditures in the Solaris Power Solutions segment[150]. - The net proceeds from the Convertible Senior Notes offering were approximately $148.3 million after deducting underwriting discounts and commissions[154]. Cash Flow and Commitments - As of March 31, 2025, the company had cash and cash equivalents totaling $16.7 million, with projected operating cash flows and borrowing capacity expected to meet operational needs for the next 12 months[153]. - Net cash provided by operating activities increased to $25.7 million for the three months ended March 31, 2025, up from $16.9 million in the same period of 2024, representing an increase of $8.8 million[159]. - Net cash used in investing activities was $144.3 million for the three months ended March 31, 2025, an increase from $3.3 million during the same period in 2024, primarily due to $142.0 million paid for turbines and ancillary equipment[160]. - Net cash used in financing activities totaled $24.5 million for the three months ended March 31, 2025, compared to $15.9 million in the same period of 2024[161]. - The company has short-term purchase commitments due within 12 months totaling $153.0 million and long-term commitments of $774.5 million, with $324.1 million scheduled for fulfillment in 2025[151]. - Future cash commitments include obligations under debt financing arrangements, purchase commitments for power generation equipment, and potential dividend payments[162]. Shareholder Actions - The company has authorized a share repurchase program with a limit of $50.0 million, of which $34.6 million has been utilized to repurchase 4,272,127 shares of Class A common stock[155]. Joint Ventures and Strategic Initiatives - The formation of the Stateline joint venture involved a contribution of non-cash assets valued at approximately $86.4 million for a 50.1% equity interest, aligning with the company's growth strategy in the power solutions market[120]. Net Income - The company’s net income, adjusted for non-cash items, increased to $45.5 million for the three months ended March 31, 2025, up from $21.8 million in the same period of 2024[159].
Solaris Energy Infrastructure, Inc.(SEI) - 2025 Q1 - Quarterly Report