Solaris Energy's Power Solutions Thrive

By Chris Stiles • Tuesday, May 05 14:05 • Permanent Link

Solaris reported that its Power Solutions segment accounted for 76% of total segment Adjusted EBITDA in the first quarter of 2026, up to a level the company says should rise to more than 90% once its fleet is fully deployed by the end of 2029.

The company said its operated fleet is expected to reach about 3,100 MW by the end of 2029, with roughly 2,650 MW of net capacity used in its illustrative run-rate calculation. Based on first-quarter 2026 figures, Solaris put that illustrative Adjusted EBITDA at about $875 million to $925 million net to the company.

The shift toward power is being driven by a string of large contracts. Solaris said it has signed three major agreements in the artificial intelligence data center market totaling more than 2,000 MW. The Stateline project covers about 900 MW and was executed in April 2025. The Hatchbo agreement, signed in February 2026, originally covered more than 500 MW and is expected to expand by another 130 MW. The Customer C contract, signed in April 2026, adds more than 600 MW.

Solaris said its Power Solutions portfolio now includes more than 2,200 MW of long-term contracted capacity across multiple large technology customers. The company also said weighted average contract tenors in the segment have increased materially since 2024, with recent contracts running 10 to 15 years.

The company’s recent dealmaking has also added to capacity. In March 2026, Solaris acquired Genco Power Solutions, which is expected to add 400 MW of incremental generation capacity between 2026 and 2028, including about 100 MW already operated or contracted. Solaris also secured 30 turbine delivery slots in March 2026, which it said will provide more than 500 MW of additional generation capacity between early 2027 and 2029.

Solaris Logistics Solutions, the company’s legacy business, contributed about 24% of total segment Adjusted EBITDA in the first quarter of 2026. By the end of 2029, Solaris expects that share to fall to about 10% as power becomes the dominant earnings driver.

The company said it expects its new credit facility to provide about $650 million of availability at closing. Today the company's shares have moved 1.99% to a price of $75.96. If you want to know more, read the company's complete 8-K report here.

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