Financial Data and Key Metrics Changes - Solaris achieved record levels of quarterly revenue and profit in Q3 2025, generating revenue of $167 million and adjusted EBITDA of $68 million, reflecting a 12% growth from the prior quarter and more than three times the adjusted EBITDA compared to the same quarter last year [23][24] - The adjusted EBITDA for the Power Solutions segment was $58 million, a 27% increase from the second quarter [24] Business Line Data and Key Metrics Changes - The Power Solutions segment contributed over 60% of total revenue and more than three-quarters of segment-level adjusted EBITDA [20] - The company operated approximately 760 megawatts during Q3 2025, up from approximately 150 megawatts a year ago, representing an increase of more than 27% from the prior quarter [10][24] - The Logistics Solutions segment averaged 84 fully utilized systems, a decline of 11% from the second quarter [24] Market Data and Key Metrics Changes - Demand for reliable and efficient power generation is accelerating, particularly due to the growth in data center investments, with many data centers now requiring over one gigawatt of electricity demand per site [5][6] - The company expects to have a pro forma generation capacity of approximately 2,200 megawatts by early 2028, up from a prior plan of 1,700 megawatts by 2027 [11][21] Company Strategy and Development Direction - Solaris aims to provide a comprehensive range of power solutions, including natural gas turbines, reciprocating engines, battery energy storage systems, and renewable technologies, to meet the diverse needs of its customers [9][10] - The company has expanded its capabilities through acquisitions, including the acquisition of HVMV LV, which enhances its offerings in high-growth end markets [12][13] - The strategic focus is on maintaining a strong balance sheet, optimizing capacity, and ensuring operational excellence to support growth [7][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for power services and the company's ability to capitalize on significant growth opportunities in the market [18] - The management highlighted the importance of executing well across all business aspects, including supply chain management, to meet customer demands effectively [32][34] Other Important Information - Solaris raised approximately $748 million in senior convertible notes to repay existing term loans and fund new generation capacity, unlocking significant financial flexibility [22][23] - The company is experiencing a near-term bottom in drilling and completion activity in the oil and gas industry, but expects the Logistics Solutions segment to generate significant free cash flow [16][24] Q&A Session Summary Question: Supply chain challenges and competition for OEM slots - Management acknowledged that the supply chain is tightening and emphasized the importance of exploring multiple sources of generation to meet power demands [32][34] Question: Impact of recent announcements from competitors on growth opportunities - Management stated that the market is large enough to require multiple companies to meet growing power demand, and recent announcements from competitors have not changed their outlook [47][48] Question: Competitive advantages of the HVMV LV acquisition - Management highlighted the integrated solution approach and the ability to regulate and distribute power effectively as key differentiators in the market [70][72] Question: Future contract negotiations and flexibility in power generation sources - Management confirmed that they provide options for customers regarding the type of assets generating power, allowing for flexibility in meeting customer demands [106][108] Question: Pipeline size and future growth expectations - Management indicated that the customer pipeline is enormous and expects to exceed current orders in a couple of years [91] Question: Insights on the second data center order and contract tenor - Management provided details on the second data center's operational status and noted that contract tenors are extending due to grid delays and increasing power needs [98][99]