Solaris Energy (SEI) Shares Climb 4% on Third Major Data Center Contract

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TLDR

• Solaris Energy (SEI) shares climbed 4.2% on Tuesday after locking in its third data center power supply contract
• This new agreement spans over 600 megawatts of capacity with a global technology firm, with a 10-year term
• First-quarter earnings per share hit 32 cents, falling just one cent short of the 33-cent Wall Street forecast
• First-quarter revenue reached $196.2 million, surpassing the $183.4 million expected figure, marking a 55% year-over-year increase
• Morgan Stanley kept its Overweight rating and $81 price target for SEI unchanged

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(SeaPRwire) –   Shares of Solaris Energy Infrastructure rose on Tuesday following the announcement of its third long-term power contract with a leading tech firm, offsetting a modest earnings shortfall.

Solaris Energy Infrastructure, Inc., SEI

The stock peaked at $81.24 before closing 4.2% higher at $73.66. SEI has rallied 54% so far in 2026, with 25% of that upward movement occurring just in April.

Signed on April 24, this new deal will have Solaris delivering more than 600 megawatts of power capacity to an affiliate of an investment-grade global technology company. The contract runs for 10 years, with an optional five-year extension.

$SEI Q1 2026 EARNINGS HIGHLIGHTS

Revenue: $196M (Est. $182.66M) ; +9% sequentially
Adj. EPS: $0.44 (Est. $0.33)
Adjusted EBITDA: $84M; +22% sequentially
Third Long-Term Power Contract: Signed with affiliate of an investment-grade global technology company for over… pic.twitter.com/nSygrpmgge

— Wall St Engine (@wallstengine) April 27, 2026

Solaris plans to begin rolling out power deployments in late 2026 and scale operations through 2028.

When it comes to earnings, Q1 came in at 32 cents per share — up from 14 cents a year prior, but one cent shy of analyst estimates. Revenue told a more positive story, rising 55% year-over-year to $196.2 million, ahead of the $183.4 million Wall Street had expected.

From Oil Fields to Data Centers

Solaris first entered the data center power space in 2024, when it acquired Mobile Energy Rentals for $323 million. This deal gave the company access to mobile gas turbines and on-site power generation capabilities.

Today, Solaris provides primary power, equipment procurement, and engineering services directly to data centers — bypassing the electric grid entirely. Co-CEO Bill Zartler noted during Tuesday’s earnings call that grid interconnection delays are pushing customers toward behind-the-meter power solutions, and Solaris is well-positioned to benefit.

“The broader power market continues to reinforce and support our strategy,” Zartler said.

He also shared that the company is in active discussions with both existing and new customers for additional projects.

Morgan Stanley Backs the Deal

Morgan Stanley analyst David Arcaro stated that the latest contract “strengthens” the firm’s Overweight rating and $81 price target on SEI.

Arcaro estimates the 600-megawatt deal — assuming $300 per kilowatt — could create around $450 million in value, or roughly $5 per share. He also expects Solaris’s valuation multiple to expand as long-term contract visibility improves.

That said, Arcaro flagged that margins on long-term contracts could come in lower, and that the conservative Q3 guidance may reflect an uncertain ramp pace on new contracts.

On guidance, Solaris raised its Q2 adjusted EBITDA outlook to $83–$93 million, up from the prior $76–$84 million range. The company set Q3 adjusted EBITDA guidance at $80–$95 million — with a midpoint below Wall Street’s $100.5 million estimate.

Management attributed the softer Q3 outlook to shifting dynamics in a joint venture project and new equipment deliveries scheduled for the second half of 2026.

Solaris’s current P/E ratio sits at 99.48x, reflecting elevated growth expectations. GF Score rates the company at 77/100, with a growth rank of 9/10 but a financial strength rating of just 5/10.

Insider activity over the past year shows 11 sells and 7 buys — a mixed picture worth keeping an eye on.