Financial Data and Key Metrics Changes - For the full year 2025, revenue was $4 billion, down from $4.3 billion in 2024. Net income totaled $148 million, with adjusted net income at $25 million, excluding $123 million of tax-affected gains on investments. Fully diluted net income per share was $0.89, and adjusted net income per fully diluted share was $0.15. Full year adjusted EBITDA was $634 million, compared to $922 million in the prior year [19][20] - In Q4 2025, revenue was $1 billion, representing a sequential increase of 10%. Q4 net income was $14 million, down from $43 million in the prior quarter. Adjusted net income was $8 million, compared to a loss of $10 million in the prior quarter. Q4 adjusted EBITDA was $158 million, increasing from $128 million in the prior quarter [19][20] Business Line Data and Key Metrics Changes - The company reported a resilient CROCI of 13% during a volatile year, driven by technological innovation and strong operational execution. The focus on expanding the simulfrac offering and leveraging AI-driven asset optimization software led to a reduction in total maintenance costs per unit of work by approximately 14% [5][6] - The LPI execution platform for earnings growth has gained strong commercial traction, with significant agreements for power solutions, including a 1 gigawatt utility-scale project with Vantage Data Centers [7][8] Market Data and Key Metrics Changes - U.S. power demand is rising at the fastest pace in decades, driven by AI-driven data center expansion and increasing industrial electrification. Data center demand for power is projected to grow threefold by 2030, highlighting the urgent need for flexible, scalable capacity [10][11] - North American oil and gas markets have stabilized after a period of softening activity, with fourth quarter completions activity exceeding expectations. Completions demand is projected to hold firm in 2026 [11][12] Company Strategy and Development Direction - The company aims to deploy approximately 3 gigawatts of power projects by 2029, focusing on long-term value creation and sustainable returns. The strategy includes investing in technology and partnerships to enhance its power solutions business [15][18] - The company is transitioning from a premier North American completions company to a diversified energy technology and power infrastructure platform, emphasizing the importance of advanced technology and strategic partnerships [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market cycles and capitalize on power growth potential, despite anticipated pricing headwinds and increased development costs for the LPI Distributed Power Solutions business [15][23] - The company expects to see strong demand for its digiTechnologies platform and improved economics, with a focus on driving value creation and prioritizing long-term returns [16][19] Other Important Information - The company ended the year with a cash balance of $28 million and net debt of $219 million, which increased by $49 million from the prior year. Total liquidity at the end of the year was $281 million [21][22] - Capital expenditures for 2025 were $571 million, including investments in infrastructure and technology, with expectations for continued strong demand for the company's offerings [22][23] Q&A Session Summary Question: Can you discuss the pipeline of opportunities and market conditions? - Management noted a continued trend towards co-located behind-the-meter power as the best long-term solution for data centers, with increasing urgency from customers to secure power agreements [30][32] Question: How do you see the mix of power generation technology evolving? - The company can achieve the 3 gigawatts target with current technology and is confident in the efficiency of gas reciprocating engines as the preferred choice for deployment [34][36] Question: Can you comment on the delivery of equipment and confidence in timelines? - Management has strengthened relationships with suppliers and secured delivery schedules through 2029, ensuring the ability to meet project timelines [43][44] Question: How will the 3 gigawatts be achieved? - The company expects a combination of growing opportunities with existing customers and adding new customers, with ongoing conversations in the market [45] Question: What are the expectations for EBITDA in 2026? - EBITDA is expected to be down, primarily driven by the completions business, with a significant contribution from the power business anticipated in 2027 [52][53]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $4 billion, down from $4.3 billion in 2024. Adjusted EBITDA was $634 million, compared to $922 million in the prior year. Net income totaled $148 million, with adjusted net income at $25 million, excluding $123 million of tax-affected gains on investments [19][21] - In Q4 2025, revenue was $1 billion, representing a sequential increase of 10%. Fourth quarter net income was $14 million, down from $43 million in the prior quarter. Adjusted net income was $8 million, compared to a loss of $10 million in the prior quarter [19][20] Business Line Data and Key Metrics Changes - The company reported a resilient CROCI of 13% during a volatile year, driven by technological innovation and operational execution [5] - The completions business showed strong performance, with fourth quarter completions activity exceeding expectations despite seasonal declines [11][12] Market Data and Key Metrics Changes - North American oil and gas markets have stabilized after a period of softening activity, with flat oil production targets and modest growth in gas-directed activity expected [12] - Data center demand for power is projected to grow threefold by 2030, highlighting the urgent need for flexible, scalable capacity [11] Company Strategy and Development Direction - The company is focused on expanding its power infrastructure platform, aiming to deploy approximately 3 GW of power projects by 2029, which is expected to deliver sustained earnings and high returns [15][26] - The strategy includes leveraging AI-driven asset optimization software and enhancing operational efficiency through technology [5][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. power demand is rising at the fastest pace in decades, driven by AI-driven data center expansion and increasing industrial electrification [10] - The company anticipates stabilization in completions markets and significant demand for its technology platform, with expectations of improved economics in the future [15][19] Other Important Information - The company ended the year with a cash balance of $28 million and net debt of $219 million, which increased by $49 million from the prior year [21] - Capital expenditures for 2025 were $571 million, including investments in infrastructure and technology [22] Q&A Session Summary Question: Can you talk about the pipeline of opportunities and what you're seeing in the market commercially right now? - Management noted a continued trend towards co-located behind-the-meter power as the best long-term solution for data centers, with increasing urgency from customers to secure power supply [30][32] Question: How do you see your mix evolving and do the customers care about the technology? - Management confirmed that they can achieve the 3 GW target with current technology and emphasized the efficiency of gas reciprocating engines as the preferred choice for deployment [34][36] Question: Can you comment on the delivery of equipment and your confidence in meeting timelines? - Management highlighted strong relationships with suppliers and confidence in meeting delivery schedules for upcoming projects [43][44] Question: Will the 3 GW deployment likely involve multiple customers or exponential add-on capacity? - Management indicated it would be a combination of both, with expectations of growing opportunities with current customers and adding new ones [45] Question: How should we think about the level of EBITDA for 2026? - Management expects EBITDA to be down, primarily driven by the completions business, with significant contributions from the power business anticipated in 2027 [53][54]

Financial Data and Key Metrics Changes - Solaris generated total revenue of $126 million in Q1 2025, reflecting a 31% increase from the prior quarter [24] - Adjusted EBITDA for the quarter was $47 million, representing a 25% increase from the prior quarter [24] - The average contract tenor for Power Solutions increased to approximately 5.5 years, compared to about 4 years last quarter [20] Business Segment Data and Key Metrics Changes - Power Solutions contributed 55% of total segment adjusted EBITDA and is expected to contribute more than 80% of consolidated adjusted EBITDA after the on-order fleet is deployed [24] - Solaris Logistics experienced a strong first quarter with system activity up over 25% sequentially, benefiting from seasonal rebound and new customer wins [12] - Approximately 75% of locations were equipped with both legacy sand silo systems and top fill systems, effectively doubling earnings potential at the individual wellsite level [13] Market Data and Key Metrics Changes - The company secured an additional 330 megawatts of 16.5 megawatt turbines to meet accelerating market demand, bringing the total expected operating fleet to approximately 1,700 megawatts [18][19] - The average megawatts earning revenue is expected to increase by 13% sequentially to 440 megawatts in Q2 2025 and by 18% to approximately 520 megawatts in Q3 2025 [24] Company Strategy and Development Direction - The company is focused on generating strong free cash flow from its logistics business and reinvesting that cash into the growing Power Solutions business [5] - Solaris aims to maximize shareholder value through growth while maintaining a strong financial profile [17] - The company is working on diversifying its customer base while securing extended contract tenors with existing customers [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for power solutions, citing ongoing discussions for additional oilfield applications and data center projects [33] - The company anticipates a potential slowdown in oil-directed activity in the second half of the year due to commodity price softness [14] - Management highlighted the importance of co-locating generation on-site for customers to diversify energy sources and control primary and backup power [10] Other Important Information - The company is planning to manufacture certain capital items in-house to reduce costs and enhance returns [28] - Solaris is addressing regulatory challenges by collaborating with customers to select the best available control technology for emissions [16] Q&A Session Summary Question: What is the demand outlook for uncontracted assets? - Management indicated strong demand for uncontracted assets, with ongoing discussions for various applications, including oilfield and data center projects [33] Question: What is the expected EBITDA per megawatt? - Management noted that the dollar per megawatt economics are in line with expectations, with some lumpiness due to ramping up the business [35][36] Question: Will clients be able to attain air permits in a reasonable time? - Management confirmed that the customer is following EPA guidelines and expects to obtain the necessary permits [44] Question: What is the margin profile difference between data center power and other industrial applications? - Management stated that while the pricing is similar, larger jobs in data centers provide a bit more operating leverage, resulting in slightly higher margins [83] Question: How is the company addressing supply chain challenges? - Management acknowledged the tight supply chain but emphasized their ability to secure additional capacity through strong relationships with OEMs [51] Question: What are the end markets for industrial opportunities? - Management highlighted various industrial applications, including metals manufacturing and high-load compressors, as key areas for future growth [101]

Financial Data and Key Metrics Changes - Solaris generated total revenue of $126 million in Q1 2025, reflecting a 31% increase from the prior quarter [25] - Adjusted EBITDA for the quarter was $47 million, representing a 25% increase from the prior quarter [25] - The average contract tenor for Power Solutions increased to approximately 5.5 years, compared to about four years last quarter and six months when the MER transaction was closed [21] Business Line Data and Key Metrics Changes - Power Solutions contributed 55% of total segment adjusted EBITDA and is expected to contribute more than 80% of consolidated adjusted EBITDA after the on-order fleet is deployed [25] - Solaris Power Solutions generated revenue from approximately 390 megawatts of capacity during the first quarter [25] - Solaris Logistics experienced a strong first quarter with system activity up over 25% sequentially [14] Market Data and Key Metrics Changes - The company expects average megawatts earning revenue to increase by 13% sequentially to 440 megawatts in Q2 2025 and by 18% to approximately 520 megawatts in Q3 2025 [25] - Approximately 70% of the new pro forma delivered total fleet of 1,700 megawatts is contracted, with around 500 megawatts of open capacity available for bidding [10] Company Strategy and Development Direction - Solaris is focused on generating strong free cash flow from its logistics business and reinvesting that cash into its growing Power Solutions business [6] - The company aims to maximize shareholder value through growth while maintaining a strong financial profile [18] - Solaris is working on diversifying its customer base while securing extended contract tenors [81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for power solutions, citing ongoing discussions for additional oilfield applications and data center projects [33] - The company anticipates a slowdown in oil-directed activity if commodity prices remain low, which could impact the logistics segment [26][71] - Management highlighted the importance of regulatory challenges for data centers, which support the Power as a Service model [13] Other Important Information - Solaris has secured a senior secured term loan facility of up to $550 million to support approximately 80% of the forecasted capital expenditure requirements of the joint venture [21] - The company is planning to manufacture certain capital items in-house to reduce costs and enhance returns [29] Q&A Session Summary Question: What is the demand outlook for uncontracted assets? - Management indicated that significant demand exists for uncontracted assets, with ongoing discussions for various applications [33] Question: What is the expected EBITDA per megawatt? - Management noted that the dollar per megawatt economics are in line with expectations, with some lumpiness due to ramping up costs [35] Question: Will clients be able to attain air permits in a reasonable time? - Management confirmed that the customer is following EPA guidelines and expects to obtain the necessary permits [43] Question: What is the ideal mix of contracted versus spot assets? - Management stated that most of the fleet will be used for medium to long-term contracts, with a small percentage available for emergency situations [58] Question: How are negotiations for future data center contracts influenced by current client success? - Management noted that high service levels and rapid response have positively influenced negotiations with potential new customers [65] Question: What is the outlook for industrial opportunities? - Management highlighted various industrial applications, including metals manufacturing and natural gas export facilities, as potential growth areas [101]

Financial Data and Key Metrics Changes - Solaris generated total revenue of $126 million in Q1 2025, reflecting a 31% increase from the prior quarter [25] - Adjusted EBITDA for the quarter was $47 million, representing a 25% increase from the prior quarter [25] - The average contract tenor for Power Solutions increased to approximately 5.5 years, compared to about 4 years last quarter and approximately 6 months when the MER transaction was closed [21][25] Business Line Data and Key Metrics Changes - Power Solutions contributed 55% of total segment adjusted EBITDA and is expected to contribute more than 80% of consolidated adjusted EBITDA after the on-order fleet is deployed [25] - Solaris Power Solutions generated revenue from approximately 390 megawatts of capacity during the first quarter [25] - Logistics Solutions saw system activity up over 25% sequentially, benefiting from seasonal rebound and new customer wins [14] Market Data and Key Metrics Changes - The company expects average megawatts earning revenue to increase by 13% sequentially to 440 megawatts in Q2 2025 and by 18% to approximately 520 megawatts in Q3 2025 [25] - Approximately 70% of the new pro forma delivered total fleet of 1,700 megawatts is contracted, with around 500 megawatts of open capacity available for bidding [10] Company Strategy and Development Direction - Solaris is focused on generating strong free cash flow from its logistics business and reinvesting that cash into its growing Power Solutions business [6] - The company aims to maximize shareholder value through growth while maintaining a strong financial profile [18] - Solaris is working on diversifying its customer base while securing extended contract tenors [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for power solutions, citing ongoing discussions for additional oilfield applications and data center projects [33] - The company anticipates a slowdown in oil-directed activity if commodity prices remain low, which could impact the logistics segment [26][70] - Management highlighted the importance of regulatory challenges for data centers, which support the Power as a Service model [13] Other Important Information - Solaris has secured a senior secured term loan facility of up to $550 million to support approximately 80% of the forecasted CapEx requirements of the joint venture [21] - The company is planning to manufacture certain capital items in-house to reduce costs and enhance returns [29] Q&A Session Summary Question: What is the demand outlook for uncontracted assets? - Management indicated strong demand for uncontracted assets, with ongoing discussions for various applications [33] Question: What is the expected EBITDA per megawatt? - Management noted that the dollar per megawatt economics are in line with expectations, with some lumpiness due to ramping up costs [35][36] Question: Will clients be able to attain air permits in a reasonable time? - Management confirmed that the customer is following EPA guidelines and expects to obtain the necessary permits [43] Question: What is the ideal mix of contracted versus spot assets? - Management stated that most of the fleet will be used for medium to long-term contracts, with a small percentage available for emergency situations [56] Question: How are industrial opportunities evolving? - Management highlighted various industrial applications needing large power loads, including metals manufacturing and LNG export facilities [99]