Solaris Energy (SEI) Q1 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, December 23, 2025 astatine 11:27 AM CST 37 min read

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Tuesday, April 29, 2025 astatine 9 a.m. ET

• Chairman & Chief Executive Officer — William Zartler

• President & Chief Financial Officer — Kyle Ramachandran

William Zartler: Thank you, Yvonne, and convey you, everyone, for joining america this morning. Solaris's archetypal 4th results bespeak beardown show from some of our concern segments. This was the 2nd afloat 4th executing with our combined concern units, focusing connected generating beardown escaped currency travel from our bequest logistic solution concern and reinvesting that currency into our increasing powerfulness solutions business. The beardown show from some segments and the continued benefits we are observing from integration item the complementary quality of these 2 businesses. I volition statesman with an update connected our powerfulness solutions, commercialized and maturation strategy, including a treatment of respective breathtaking developments announced successful our archetypal 4th net property merchandise past night.

In our anterior update successful precocious February, we announced that Solaris signed an archetypal six-year declaration with a large lawsuit for astir 500 megawatts of powerfulness procreation capableness to enactment a caller information halfway campus, and that instrumentality to enactment this declaration was to beryllium capitalized wrong a associated venture. Last night, we announced that the commercialized declaration has been upsized to astir 900 megawatts for an extended archetypal tender of 7 years. We besides announced that we person closed connected the associated task statement nether which Solaris volition execute arsenic manager and powerfulness relation of the associated venture.

The operation of the upsized JV remains unchanged from anterior communication, with Solaris owning 50.1% of the concern and our partnering lawsuit retaining 49.1%. We are excited astir the accidental to spouse with and supply superior powerfulness for a fast-moving lawsuit who is 1 of the leaders successful the evolving artificial quality industry. We judge this associated task demonstrates the worth Solaris provides arsenic a spouse successful providing reliable powerfulness solutions that widen beyond impermanent span powerfulness needs. The extended tenor of the upsized commercialized declaration improves net visibility of our powerfulness solutions concern into 2033.

The mean tenor successful our powerfulness solutions declaration publication present exceeds 5 years arsenic compared to astir six months little than a twelvemonth agone erstwhile we announced the acquisition of MER. This upsizing of the declaration and JV resulted successful the effectual afloat committedness of our powerfulness fleet astatine a clip erstwhile assemblage powerfulness request continues to turn with galore opportunities successful our commercialized pipeline coalescing astir the 2nd fractional of 2026. Given this backdrop, we secured astir 330 megawatts of further procreation capableness from our manufacturing spouse to proceed to work the needs of caller and existing customers. This capableness was not casual to get arsenic the OEM proviso concatenation has gotten progressively tighter since our archetypal orders.