Solaris Energy Infrastructure Reports Strong Q1 2025 Results, Joint Venture Milestone, Power Solutions Growth, and Fleet Expansion
Energy Infrastructure, Inc., a leading provider of energy solutions, announced today robust operational and financial performance for the first quarter of 2025. In addition, the company detailed major developments in its strategic joint venture initiatives, power generation capacity expansion, and an enhanced service footprint in logistics solutions.
Solid Financial and Operational Momentum in Q1 2025
Solaris reported revenue of $126 million for the first quarter of 2025, marking a significant 31% increase from the fourth quarter of 2024. This jump in revenue was driven by continued strong customer demand and growth in two of the company’s primary business segments: Solaris Power Solutions and Solaris Logistics Solutions.
The company posted net income of $13 million, translating to $0.14 per diluted Class A share. On an adjusted pro forma basis, net income was $14 million, or $0.20 per fully diluted share. Total Adjusted EBITDA reached $47 million, an increase of more than 25% over the prior quarter, underscoring strong earnings growth and disciplined operational performance across the organization.
Strategic Joint Venture with Leading Data Center Partner
A major highlight of the quarter was the finalization of a significant joint venture between Solaris and a large-scale data center client. The new entity, Stateline Power, LLC (“Stateline Power” or the “JV”), is positioned to be a cornerstone of Solaris’ long-term power solutions strategy.
Key highlights of the joint venture include:
- Expanded Commercial Contract Scope: The JV’s commercial power contract was upsized from 500 megawatts (MW) to approximately 900 MW—an increase of roughly 80%. This agreement reflects substantial customer trust in Solaris’ power delivery capabilities. The contract tenor was extended to seven years from the initially planned six, providing Solaris with an extended revenue stream and enhancing long-term visibility.
- Project Financing Update: Stateline Power has executed a term sheet and is in the process of finalizing documentation for up to $550 million in senior secured term loan financing. This loan facility will support a majority of the JV’s capital expenditure requirements. Solaris made its initial cash equity contribution during the first quarter, and its JV partner is scheduled to make a proportional contribution in the second quarter of 2025.
- Ownership Structure: The JV maintains its previously announced ownership structure, with Solaris holding a 50.1% controlling interest and the data center partner retaining a 49.9% stake. This balance reflects a strong alignment of interests and leverages Solaris’ operational expertise.
Power Generation Fleet Expansion and Market Opportunity
In response to the upsized JV contract and broader demand for off-grid and backup power, Solaris continued expanding its power generation fleet. The company secured approximately 330 MW of new generation capacity during the first quarter. Deliveries of this new capacity are expected to begin in the second half of 2026. Solaris is currently in active discussions with several customers to deploy this capacity across various high-demand environments, including data centers, energy-intensive industrial sites, and critical infrastructure facilities.
Importantly, Solaris anticipates any tariff-related costs associated with this equipment order to be minimal, with projected impacts of less than 5% of the total purchase price. This proactive procurement strategy underscores Solaris’ ability to navigate macroeconomic uncertainty while scaling capacity to meet rising demand.
With these new investments, the company expects to operate approximately 1,700 MW of power generation capacity by the first half of 2027. Of this, approximately 1,250 MW will be directly owned by Solaris, net of the Stateline Power JV assets.
Forward Guidance and Financial Outlook
Solaris reaffirmed its Adjusted EBITDA guidance for the second quarter of 2025 in the range of $50 million to $55 million. For the third quarter, the company issued initial guidance of $55 million to $60 million in Adjusted EBITDA, reflecting anticipated increases in revenue-generating capacity and sustained demand across its segments.
Chairman and CEO Bill Zartler commented on the results:
“I am excited about the momentum we are seeing across the power sector and believe that our offerings will play a significant and value-added role to this broad-based demand growth. Our contracted fleet expansion provides visibility to continue growing the Company’s earnings, which will help us drive total shareholder value while maintaining a balanced and attractive financial profile.”
He added:
“We are also excited to solidify our partnership with an industry leader and fast mover in the artificial intelligence computing space to provide power for their newest data center campus. The power that will be provided by our joint venture was increased by approximately 80% to 900 MW for an extended tenor of seven years. We believe this joint venture demonstrates Solaris’ value as a partner and in its ability to deliver reliable prime power while also providing redundancy and complementary backup to grid power.”
Zartler also noted strength in Solaris Logistics Solutions:
“Activity increased significantly from fourth quarter 2024 levels due in part to a seasonal rebound in activity but also from adding new customers that needed a solution that could keep up with the completions efficiencies they are achieving on their well sites. We will continue to seek opportunities to create value for other potential Logistics Solutions customers by continuing to demonstrate our ability to enhance well site efficiencies via our all-electric, high-throughput systems and dedication to service.”
Segment Performance Highlights
Solaris Power Solutions
- First Quarter Performance: The segment averaged approximately 390 MW of capacity actively generating revenue during the quarter. Revenue came in at $49 million, a sequential increase fueled by greater utilization and capacity additions.
- Profitability: Segment Adjusted EBITDA totaled $32 million, a 35% increase from the previous quarter. The increase was driven by a mix of higher owned megawatt contributions and greater use of third-party leased capacity. As the company scales its revenue-generating MWs to an average of 440 MW in Q2 and 520 MW in Q3, further margin expansion is expected.
- Forward-Looking Activity: The company projects continued quarter-over-quarter growth in power-generating capacity and segment earnings as customer adoption of Solaris’ modular, scalable power systems accelerates.
Solaris Logistics Solutions
- First Quarter Activity: The Logistics segment operated 98 fully utilized systems, a 26% increase compared to the fourth quarter of 2024. The growth was driven by both seasonal factors and onboarding of new customers who required advanced, reliable logistics infrastructure.
- Revenue and Profitability: Revenue rose to $77 million in Q1 2025, up 24% from Q4. Segment Adjusted EBITDA reached $26 million, representing a 36% sequential improvement. The rise was directly tied to increased system utilization and operational efficiencies.
- Outlook: Solaris expects to operate between 90 and 95 fully utilized systems in Q2 2025. However, the company signaled that a potential softening in commodity prices could result in a modest dip in activity for Q3.
