Revenue 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 [202]. - 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]. - Solaris Power Solutions contributed 63% of total revenue and 77% of total segment Adjusted EBITDA in the third quarter of 2025, indicating its dominant role in the Company's financial performance [192]. Capital Expenditures and Investments - The Company expects total capital expenditures for 2025 to be approximately $405 million, with about $190 million allocated to Stateline, primarily to support Solaris Power Solutions growth [196]. - The Company ordered an additional approximately 500 megawatts of power generation equipment, expecting total capacity to reach approximately 2,200 megawatts by early 2028 [195]. - The Company acquired HVMVLV, LLC on August 15, 2025, enhancing its capabilities in power control and distribution solutions [187]. Costs and Expenses - Cost of revenue for Solaris Power Solutions was $44.4 million in the three months ended September 30, 2025, with a cost of revenue percentage of 42%, up from 27% in the same period of 2024 [208]. - Solaris Logistics Solutions' cost of revenue increased by $14.9 million, or 11%, to $146.6 million in the nine months ended September 30, 2025, primarily due to higher last mile and ancillary service costs [210]. - 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 and Tax Expenses - Interest expense increased 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]. - The company recognized a combined income tax expense of $13.9 million for the nine months ended September 30, 2025, an increase of $10.3 million compared to $3.7 million in the same period of 2024 [220]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $113.2 million for the nine months ended September 30, 2025, compared to $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 to meet obligations for the next 12 months and beyond [232]. Debt and Share Repurchase - The company had an outstanding principal balance of $320.9 million under its Term Loan as of September 30, 2025, which was fully repaid on October 8, 2025 [222]. - The company entered into purchase commitments totaling $209.8 million due within the subsequent 12 months and $520.8 million extending beyond one year as of September 30, 2025 [229]. - The company issued $747.5 million aggregate principal amount of the 2031 Notes in October 2025, enhancing liquidity and extending debt maturity [225]. - The company has collectively repurchased and retired 4,272,127 shares of Class A common stock for $34.6 million, with $15.4 million remaining under the authorized share repurchase program as of September 30, 2025 [234].
Solaris Energy Infrastructure, Inc.(SEI) - 2025 Q3 - Quarterly Report