Atlas Energy Solutions (NYSE:AESI) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Company ParticipantsBlake McCarthy - CFOBud Brigham - Executive ChairmanEddie Kim - VP in Equity ResearchJeff LeCorgne - Director in the Equity Research divisionJohn Daniel - FounderJohn Turner - President and CEOKyle Turlington - VP of Investor RelationsMichael Scialla - Managing DirectorStephen Gengaro - Managing DirectorTim Ondrak - SVP and PresidentConference Call ParticipantsDerek Podhaizer - Director and Senior Rese ...

The share price of Solaris Energy Infrastructure, Inc. (NYSE:SEI) surged by 9.79% between February 6 and February 13, 2026, putting it among the Energy Stocks that Gained the Most This Week. Solaris Energy Infrastructure (SEI) Surges Following AI Data Center Deal Carol Gauthier/Shutterstock.com Solaris Energy Infrastructure, Inc. (NYSE:SEI) designs and manufactures specialized equipment for oil and natural gas operators in the United States. Solaris Energy Infrastructure, Inc. (NYSE:SEI) shot up on Feb ...

Core Viewpoint - Solaris Energy Infrastructure Inc. (NYSE:SEI) has shown strong performance, particularly following a new partnership with Hatchbo LLC for power generation equipment, which has positively influenced investor sentiment [1][4]. Group 1: Stock Performance - Solaris Energy's stock reached an intra-day high of $61.36, ultimately closing up by 10.03% at $56.63 [2]. - The stock's performance is attributed to the announcement of a significant partnership, indicating strong market interest [1]. Group 2: Partnership Details - Solaris Power Solutions, a subsidiary of Solaris Energy, has entered into a 10-year rental agreement with Hatchbo for the supply of 500 MW of power generation equipment for data centers [4]. - The lease is set to commence on January 1, 2027, with an option for a five-year extension, highlighting long-term growth potential [4]. Group 3: Earnings Guidance - Solaris Energy is expected to announce its earnings results for the full year and fourth quarter of 2025 on February 25, targeting adjusted EBITDA of $65 million to $70 million, an increase from previous guidance of $58 million to $63 million [5].

Group 1 - Solaris Energy Infrastructure Inc. experienced a significant stock surge of 12.26%, reaching $57.78 in after-hours trading, following a regular session close at $51.47, which was down 4.21% [1] - Solaris Power Solutions LLC, a subsidiary of Solaris Energy Infrastructure, entered into a Master Equipment Rental Agreement with Hatchbo LLC to provide over 500 megawatts of power generation equipment for AI computing needs [2] - The rental agreement has a 10-year term starting January 1, 2027, with provisions for early termination by Hatchbo, requiring 30 days' notice and payment of 50% of remaining rental fees [3] Group 2 - Voya Financial Inc. disclosed a 5.2% stake in Solaris Energy Infrastructure, holding 2.54 million shares [4] - Solaris Energy Infrastructure has a market capitalization of $3.52 billion, with a 52-week high of $59.80 and a low of $14.27, reflecting an 88.74% gain over the past 12 months [5] - The company is positioned approximately 81.7% above its 52-week low, indicating strong long-term trend and potential for continued upside [5]

Core Insights - Generac Holdings Inc. anticipates strong sales growth in 2026, driven by data center opportunities and recovery in power outage environments [1][6] Fourth Quarter 2025 Highlights - Net sales decreased by 12% to $1.09 billion compared to $1.23 billion in Q4 2024, with a slight favorable impact from acquisitions and foreign currency [4] - Residential product sales fell approximately 23% to $572 million, while Commercial & Industrial (C&I) product sales increased by 10% to $400 million, primarily due to higher revenue from data center customers [4][12] - The company reported a net loss of $24 million, or $0.42 per share, compared to a net income of $117 million, or $2.15 per share in the same period last year [4] - Adjusted net income was $95 million, or $1.61 per share, down from $168 million, or $2.80 per share in Q4 2024 [4] - Adjusted EBITDA was $185 million, representing 17.0% of net sales, compared to $265 million, or 21.5% of net sales in the prior year [4][8] Full-Year 2025 Highlights - Net sales for 2025 decreased by 2% to $4.21 billion from $4.30 billion in 2024, with a slight favorable impact from acquisitions and foreign currency [4] - Residential product sales decreased by 7% to $2.27 billion, while C&I product sales increased by 5% to $1.46 billion [4] - Net income for 2025 was $160 million, or $2.69 per share, down from $316 million, or $5.39 per share in 2024 [4] - Adjusted EBITDA for 2025 was $716 million, or 17.0% of net sales, compared to $789 million, or 18.4% of net sales in the prior year [4] 2026 Outlook - The company expects full-year 2026 net sales growth in the mid-teens percent range, including a 1% favorable impact from foreign currency and acquisitions [15] - C&I product sales are projected to increase in the 30% range, driven by data center customer revenue and the acquisition of Allmand [18] - Residential product sales are expected to rise by approximately 10%, assuming a return to average power outage activity [18] - The anticipated net income margin for 2026 is expected to be around 8.0 to 9.0%, with an adjusted EBITDA margin of approximately 18.0 to 19.0% [19] Business Segment Results - Domestic segment sales decreased by approximately 17% to $889 million, primarily due to weaker shipments of home standby and portable generators [12] - International segment sales increased by approximately 12% to $209.2 million, driven by higher revenue from data center customers [16] - Adjusted EBITDA for the domestic segment was $151.5 million, or 17.0% of total sales, down from 22.7% in the prior year [13] Share Repurchase Program - The company repurchased approximately 1.1 million shares for $148 million in 2025 and initiated a new stock repurchase program allowing for up to $500 million over the next 24 months [5]

Financial Data and Key Metrics Changes - Kirby Corporation reported a record year in 2025, with over $400 million in free cash flow and a strong balance sheet, having paid down $130 million in debt [4][21] - The company generated cash flow from operations of $670 million for the year, driven by higher revenues and earnings [21] - Total revenues for the Marine Transportation segment were $482 million in Q4 2025, with an operating income of $100 million, reflecting a 3% increase in revenues year-over-year [10][11] Business Line Data and Key Metrics Changes - In the Inland Marine segment, revenues decreased by 1% compared to Q4 2024, primarily due to lower utilization, but increased by 3% compared to Q3 2025 due to improved market conditions [11][12] - Coastal Marine revenues increased by 22% year-over-year, supported by steady demand and higher contract prices, with operating margins around 20% [13][14] - The Distribution and Services segment saw revenues of $370 million in Q4 2025, a 10% increase year-over-year, driven by the power generation business, which represented 52% of total segment revenues [15][16] Market Data and Key Metrics Changes - Barge utilization in Inland Marine averaged in the mid- to high-80% range, improving towards the end of the quarter, while Coastal Marine utilization remained strong in the mid- to high-90% range [6][7] - Spot prices in the inland market showed early signs of recovery in January 2026, following a decline in Q4 2025 [6][32] - The power generation business experienced a 47% year-over-year revenue increase, driven by strong order flow and project wins [16][17] Company Strategy and Development Direction - Kirby Corporation aims for steady growth and solid performance in 2026, with a focus on capital allocation to return value to shareholders and pursue long-term investments [4][23] - The company is optimistic about the power generation segment, which is expected to continue driving growth despite mixed demand across other product lines [24][27] - Management highlighted the importance of maintaining operational excellence and cost control amid rising medical costs and inflationary pressures [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial momentum exiting 2025, with expectations for improving market conditions in 2026 [4][24] - The company noted potential upside from macro factors such as Venezuelan oil flows and ongoing tariff developments, which could enhance demand [24][29] - Management acknowledged the challenges posed by supply constraints and inflation but remains optimistic about the overall financial performance for 2026 [21][29] Other Important Information - Kirby Corporation's total capital expenditures for 2025 were $264 million, with expectations for 2026 to fall in the $220 million-$260 million range [22] - The company maintained a balanced capital allocation approach, with a focus on returning capital to shareholders while exploring acquisition opportunities [23][29] Q&A Session Summary Question: Insights on Q4 term contract pricing and demand outlook for 2026 - Management indicated that the slight decline in term contract pricing was due to short-term demand pressures, but early signs of recovery in spot prices are encouraging for 2026 [31][32] Question: Impact of coastal shipyard activity on revenue and costs - Management confirmed that increased shipyard activity would impact margins due to associated costs, but pricing remains strong in the coastal market [39][40] Question: Clarification on EPS guidance range and factors influencing it - The broad EPS guidance range reflects uncertainties in power generation deliveries and pricing improvements in the inland market, with management remaining cautiously optimistic [47][48] Question: Update on CapEx guidance and new build pricing trends - Management noted that new build pricing remains consistent, with ongoing labor challenges at shipyards, and emphasized a pragmatic approach to potential acquisitions [84][87]

Financial Data and Key Metrics Changes - Full year sales and revenues reached $67.6 billion, the highest in the company's history, with a 4% year-over-year growth [6][10] - Adjusted operating profit margin was 17.2%, and adjusted profit per share was $19.06 [6][10] - Fourth quarter sales and revenues were $19.1 billion, an 18% increase year-over-year, with adjusted operating profit margin at 15.6% and adjusted profit per share at $5.16 [8][25] Business Line Data and Key Metrics Changes - Construction Industries sales increased by 15% in Q4 to $6.9 billion, with a profit decrease of 12% to $1.0 billion [29][30] - Resource Industries sales rose by 13% in Q4 to $3.4 billion, with a profit decrease of 24% to $360 million [31] - Power and Energy sales increased by 23% in Q4 to $9.4 billion, with a profit increase of 25% to $1.8 billion [32] Market Data and Key Metrics Changes - North America showed strong growth in construction, while EAME and Asia Pacific saw slight declines [9] - Latin America experienced better-than-expected growth [9] - Power generation sales exceeded $10 billion, with over 30% year-over-year growth [14] Company Strategy and Development Direction - The company aims to achieve $30 billion in services revenues by 2030, with a focus on digital and technology initiatives [11][22] - The strategy is centered on commercial excellence, advanced technology leadership, and transforming operations [22] - The company is committed to returning substantially all MP&E-free cash flow to shareholders over time [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong backlog of $51 billion, which provides momentum for 2026 [15][16] - The outlook for 2026 anticipates sales growth of around 5%-7%, supported by healthy end markets and positive price realization [15][16] - Management acknowledged the ongoing impact of tariffs but remains committed to managing costs effectively [39][40] Other Important Information - The company generated $9.5 billion in MP&E-free cash flow for 2025, allowing for significant shareholder returns [11][34] - The company plans to increase capital expenditures to around $3.5 billion in 2026 [16][34] Q&A Session Summary Question: Can you comment on order growth and backlog? - Management highlighted strong order growth across all segments, with a backlog of $51 billion, which is 70% higher than the previous year [53][54] Question: What is the outlook for power generation capacity? - Management indicated that capacity increases are on schedule, with significant steps expected by the end of 2026 [64] Question: How does backlog growth relate to sales guidance? - Management explained that the backlog includes a significant increase in dealer inventory, which will impact sales growth expectations [69]

Core Viewpoint - Generac Holdings Inc. is set to release its fourth quarter and full-year 2025 financial results on February 11, 2026, with a conference call scheduled for 10:00 a.m. EST to discuss the earnings highlights [1]. Company Overview - Generac is a total energy solutions company founded in 1959, recognized as a leading global designer, manufacturer, and provider of energy technology solutions [3]. - The company offers a wide range of products including power generation equipment, energy storage systems, and energy management devices, catering to residential, light commercial, and industrial markets [3]. - Generac pioneered the affordable backup generator and established the automatic home standby generator category, continuing to expand its energy technology offerings to promote more resilient and sustainable energy solutions [3].

Core Insights - Global demand for data center capacity is projected to more than triple by 2030, creating unprecedented demand for reliable and scalable power solutions [1] - Generac is positioned to capitalize on this opportunity, aiming to double sales of Commercial & Industrial (C&I) products in the next three to five years [1] - The company has expanded its product portfolio to include large-megawatt generators, facilitating entry into the growing data center market [1] - Generac's order backlog has doubled due to increased customer interest from the data center sector [1] - The new manufacturing facility in Sussex will enhance Generac's capacity to serve various sectors, including healthcare and heavy industrial plants [1] Company Overview - Generac Holdings, Inc. is a total energy solutions company founded in 1959, specializing in power generation equipment and energy technology solutions [3] - The company operates nine manufacturing facilities internationally, including locations in Mexico, Europe, Asia, and South America [2] - Generac aims to lead the evolution towards more resilient, efficient, and sustainable energy solutions [3] Employment Impact - The new manufacturing facility is expected to create over 100 new manufacturing positions upon its opening in the fourth quarter of 2026 [2]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $8.3 billion, a decrease of 2% compared to Q3 2024, primarily due to weaker North America heavy and medium-duty truck demand, with unit volumes declining 40% year-over-year [8][19] - EBITDA was $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% a year ago; excluding non-cash charges, EBITDA was $1.4 billion, or 17.2% of sales, an increase of 80 basis points from the previous year [9][20] - Operating cash flow was strong at $1.3 billion, compared to $640 million a year ago, indicating improved credit metrics and capital allocation flexibility [23] Business Line Data and Key Metrics Changes - Engine segment revenues were $2.6 billion, a decrease of 11% from a year ago, with EBITDA at 10%, down from 14.7% due to weaker North American truck volumes [24] - Component segment revenue decreased 15% to $2.3 billion, with EBITDA at 12.5%, down from 12.9% [24] - Distribution segment revenues increased 7% to a record $3.2 billion, with EBITDA also reaching a record 15.5% [24] - Power systems segment revenues were a record $2 billion, an increase of 18% from a year ago, with EBITDA dollars also at a record $457 million, increasing as a percent of sales from 19.4% to 22.9% [25] Market Data and Key Metrics Changes - North America revenues decreased 4% compared to 2024, while international revenues increased by 2% [19] - Revenues in China, including joint ventures, were $1.7 billion, up 16% from a weak quarter last year, driven by stronger unit demand [11] - Revenues in India, including joint ventures, were $713 million, an increase of 3% from a year ago, with power generation revenues increasing 41% [12] Company Strategy and Development Direction - The company announced a collaboration with Komatsu to develop hybrid powertrains for heavy mining equipment, aiming to support customers' sustainability efforts [5][6] - The company is undergoing a strategic review of its electrolyzer business due to significantly lower demand expectations, with potential further charges anticipated [16][50] - The company expects near-term weakness in North America on-highway truck markets to persist, with a projected 15% decline in unit shipments from Q3 levels [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the global trade and policy landscapes remain dynamic, presenting ongoing challenges, but they are well-positioned to support customers [15][27] - The company anticipates that demand for power generation equipment will remain strong beyond this year, despite challenges in shorter-cycle markets [14][27] - Management expressed cautious optimism about the North American on-highway markets nearing a bottom, with hopes to reinstate guidance in February 2026 [28] Other Important Information - The company faced $240 million in non-cash charges related to its electrolyzer business, reflecting lower demand expectations due to reduced U.S. government incentives [9][20] - The effective tax rate for the quarter was 32.7%, impacted by increased tax expenses related to recent U.S. tax legislation [22] Q&A Session Summary Question: Engine margins and tariff costs in Q4 - Management indicated that engine business margins are under pressure due to product changeovers and additional costs, but they are managing costs effectively [32][33] Question: Power systems production ramp-up and margin targets - Management confirmed strong performance in power systems and distribution, with ongoing investments for profitable growth, but cautioned against expecting continued margin improvement at the same rate [34][36] Question: Capacity investments for data centers - Management is actively assessing the need for additional capacity investments in response to strong demand for data center power generation [40][42] Question: Accelera segment performance and losses - Management acknowledged that the losses in the electrolyzer business are significant and are under review, while e-mobility is showing growth [58][61] Question: International data center opportunities - Management noted strong demand in both the U.S. and China for data centers, with local competition being more prevalent in China [78][80]