Solaris Energy (SEI) Stock Surges 4.2% on Major Data Center Power Agreement

Key Highlights

• SEI shares advanced 4.2% Tuesday following confirmation of a third major data center power agreement
• The contract provides 600+ megawatts of power capacity to a global technology company over a 10-year period
• First-quarter EPS of $0.32 fell short of analyst expectations by one penny
• First-quarter revenue reached $196.2 million, surpassing the $183.4 million consensus and marking a 55% year-over-year increase
• Morgan Stanley reaffirmed its Overweight stance with an $81 target price

Shares of Solaris Energy Infrastructure rallied Tuesday as the company unveiled its third major power supply agreement with a prominent tech enterprise, overshadowing a marginal quarterly earnings shortfall.

Solaris Energy Infrastructure, Inc., SEI

SEI shares peaked at $81.24 during intraday trading before settling 4.2% higher at $73.66. The stock has surged 54% year-to-date in 2026, with April alone accounting for 25% of those gains.

The freshly inked agreement, finalized on April 24, commits Solaris to supplying over 600 megawatts of power capacity to a subsidiary of an investment-grade international technology corporation. The initial term spans 10 years, with provisions for a five-year extension.

Solaris anticipates commencing power delivery in the latter part of 2026, with a gradual expansion continuing through 2028.

Regarding quarterly performance, first-quarter earnings per share came in at $0.32—representing growth from $0.14 in the prior-year period but falling one cent below consensus forecasts. Revenue presented a more encouraging picture, climbing 55% year-over-year to $196.2 million, exceeding Wall Street’s $183.4 million projection.

Pivoting from Traditional Energy to Digital Infrastructure

Solaris entered the data center power sector in 2024 through its $323 million acquisition of Mobile Energy Rentals. This strategic purchase provided the company with mobile gas turbine technology and on-site generation capabilities.

Currently, Solaris delivers primary power generation, equipment sourcing, and engineering support directly to data center operators—completely independent of traditional electrical grids. Co-CEO Bill Zartler explained during Tuesday’s earnings conference that prolonged grid interconnection timelines are driving customers toward behind-the-meter power alternatives, positioning Solaris favorably.

He further revealed that the company maintains ongoing conversations with both current clients and prospective customers regarding future projects.

Wall Street Analyst Endorsement

Morgan Stanley analyst David Arcaro indicated the newest contract “strengthens” the firm’s Overweight recommendation and $81 price objective for SEI.

Arcaro projects the 600-megawatt agreement—calculated at approximately $300 per kilowatt—could generate around $450 million in value, translating to roughly $5 per share. He anticipates Solaris’s valuation multiple will expand as long-term contract visibility becomes clearer.

However, Arcaro cautioned that profit margins on extended contracts might be compressed, and the cautious third-quarter guidance could indicate uncertainty around contract ramp-up timing.

Concerning forward guidance, Solaris elevated its second-quarter adjusted EBITDA projection to a range of $83–$93 million, up from the previous $76–$84 million forecast. The company established third-quarter adjusted EBITDA guidance at $80–$95 million—with a midpoint trailing Wall Street’s $100.5 million consensus.

Executives attributed the more conservative third-quarter outlook to evolving factors in a joint venture initiative and new equipment shipments planned for the second half of 2026.

Solaris currently trades at a P/E ratio of 99.48x, mirroring heightened growth projections. The company holds a GF Score of 77/100, featuring a growth ranking of 9/10 but a financial strength assessment of only 5/10.

Insider trading patterns over the previous twelve months reveal 11 sales versus 7 purchases—a mixed signal that warrants continued monitoring.

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