Solaris Oilfield Infrastructure(US:SOI)2025-11-06 21:04Revenue Performance - Solaris Power Solutions segment generated revenues of $104.9 million and $229.9 million for the three and nine months ended September 30, 2025, respectively, compared to $4.7 million in the same periods of 2024, reflecting a significant increase due to expanded capacity and operations [202]. - Solaris Logistics Solutions revenues decreased by $8.4 million, or 12%, to $61.9 million in the three months ended September 30, 2025, primarily due to a reduction in fully utilized systems from 91 to 84 [203]. - Total revenues for the Company increased by $91.8 million, or 122%, to $166.8 million in the three months ended September 30, 2025, compared to $75.0 million in the same period of 2024 [202]. Cost and Expenses - The cost of revenue for Solaris Power Solutions was $44.4 million and $89.2 million for the three and nine months ended September 30, 2025, respectively, compared to $1.3 million in the same periods of 2024 [207]. - Cost of revenue as a percentage of revenue for Solaris Power Solutions was 42% and 39% for the three and nine months ended September 30, 2025, respectively, compared to 27% in the same periods of 2024 [208]. - Selling, general and administrative expenses increased by $20.7 million, or 83%, to $45.7 million for the nine months ended September 30, 2025, compared to $25.0 million in the same period of 2024 [214]. - Interest expense rose by $15.3 million to $19.7 million for the nine months ended September 30, 2025, compared to $4.4 million in the same period of 2024, primarily due to higher borrowings and interest rates [218]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $113.2 million for the nine months ended September 30, 2025, up from $46.3 million in the same period of 2024, representing an increase of $66.9 million [237]. - Net cash used in investing activities was $422.1 million for the nine months ended September 30, 2025, an increase of $232.1 million from $189.9 million in the same period of 2024 [238]. - As of September 30, 2025, cash and cash equivalents totaled $106.7 million, providing adequate liquidity for the next 12 months [232]. Debt and Financing - The company had outstanding principal of $320.9 million under its Term Loan as of September 30, 2025, which was fully repaid on October 8, 2025 [222]. - Short-term purchase commitments as of September 30, 2025, totaled $209.8 million, with long-term commitments extending beyond one year totaling $520.8 million [229]. - The company issued $155.0 million aggregate principal amount of the 2030 Notes on May 2, 2025, and $747.5 million aggregate principal amount of the 2031 Notes in October 2025 [224][225]. Taxation - The effective combined United States federal and state income tax rates were 18.4% for the nine months ended September 30, 2025, compared to 19.7% for the same period in 2024 [220]. Operational Developments - The Company expects total capital expenditures of approximately $405 million for 2025, with about $190 million allocated to Stateline, primarily to support Solaris Power Solutions growth [196]. - Solaris Power Solutions is projected to reach a total power generation capacity of approximately 2,200 MW by early 2028, following an order for an additional 500 MW of equipment [195]. - The Company acquired HVMVLV, LLC on August 15, 2025, enhancing its capabilities in power control and distribution solutions [187]. - Depreciation and amortization increased by 103% to $22.4 million in the three months ended September 30, 2025, driven by the addition of depreciable assets in the Solaris Power Solutions segment [212]. - The fully utilized system count for Solaris Logistics Solutions decreased by 11% to 84 systems in the three months ended September 30, 2025, reflecting lower oilfield activity [200]. Share Repurchase - The company has not repurchased any shares under the share repurchase program during the three months ended September 30, 2025, with $15.4 million remaining under the authorized limit [234].