Key Highlights
- SEI shares advanced 4.2% Tuesday following the announcement of another data center power agreement
- The agreement provides over 600 megawatts of power capacity to a global technology company for a decade
- First-quarter earnings reached 32 cents per share, narrowly missing the 33-cent consensus estimate
- First-quarter revenue hit $196.2 million, surpassing forecasts of $183.4 million with 55% annual growth
- Morgan Stanley reaffirmed its Overweight stance with an $81 target on SEI shares
Shares of Solaris Energy Infrastructure rallied Tuesday after the company unveiled another extended power supply agreement with a prominent tech enterprise, effectively overshadowing a marginal quarterly earnings disappointment.
Solaris Energy Infrastructure, Inc., SEI
The equity peaked at $81.24 during the session before settling 4.2% higher at $73.66. Year-to-date in 2026, SEI has surged 54%, with April accounting for 25% of those gains.
Announced on April 24, the latest agreement will have Solaris supplying in excess of 600 megawatts of generating capacity to an affiliate of an “investment-grade, global technology company.” The pact spans a 10-year term with provisions for a five-year extension.
Management anticipates commencing power deployment operations in late 2026, with full-scale implementation extending through 2028.
Regarding quarterly performance, first-quarter earnings landed at 32 cents per share — representing growth from 14 cents in the year-ago period but falling a penny short of analyst projections. Revenue painted a more positive picture, climbing 55% annually to $196.2 million, exceeding the Street’s $183.4 million expectation.
Strategic Pivot from Traditional Energy to Tech Infrastructure
Solaris entered the data center power sector in 2024 through its $323 million acquisition of Mobile Energy Rentals. This transaction provided the company with mobile gas turbine technology and on-site generation capabilities.
Currently, Solaris delivers primary power supply, equipment sourcing, and engineering services directly to data center operators — eliminating reliance on traditional utility grids. Co-CEO Bill Zartler explained during Tuesday’s earnings conference that grid connection bottlenecks are driving customers toward behind-the-meter power alternatives, positioning Solaris favorably.
“The broader power market continues to reinforce and support our strategy,” Zartler stated.
He further mentioned ongoing negotiations with both current clients and prospective customers regarding additional installations.
Wall Street Analyst Endorses Recent Contract Win
Morgan Stanley analyst David Arcaro indicated the newest agreement “strengthens” the firm’s Overweight recommendation and $81 price objective for SEI.
Arcaro projects the 600-megawatt contract — using a $300 per kilowatt assumption — could generate approximately $450 million in value, translating to about $5 per share. He anticipates Solaris’s valuation multiple will expand as long-term contract pipeline visibility increases.
However, Arcaro cautioned that profit margins on extended contracts might prove lower, and the conservative third-quarter forecast may signal uncertainty surrounding new contract ramp timelines.
Concerning forward guidance, Solaris elevated its second-quarter adjusted EBITDA projection to $83–$93 million from the previous $76–$84 million band. For the third quarter, the company established adjusted EBITDA guidance at $80–$95 million — with the midpoint trailing Wall Street’s $100.5 million consensus.
Executives attributed the more tempered Q3 outlook to evolving circumstances in a joint venture initiative and new equipment arrivals planned for the latter half of 2026.
Solaris currently trades at a P/E multiple of 99.48x, indicating substantial growth expectations. The company’s GF Score stands at 77/100, featuring a growth ranking of 9/10 but a financial strength assessment of only 5/10.
Insider transaction data from the past twelve months reveals 11 sales versus 7 purchases — presenting a mixed signal warranting continued monitoring.
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