Solaris Energy Infrastructure, Inc. Class A

Good day and welcome to the Solaris Q4 2025 earnings teleconference and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Yvonne Fletcher, Senior Vice President of Finance and Investor Relations. Please go ahead.

Thank you, Operator. Good morning and welcome to the Solaris fourth quarter and full year 2025 earnings conference call. Joining us today are Chairman and Co-CEO Bill Zartler, our Co-CEO and Director Amanda Brock, our President, Kyle Ramachandran, and our CFO, Steve Thompson. Before we begin, I'd like to remind you of our standard cautionary remarks regarding the forward-looking nature of some of the statements that we will make today. Such forward-looking statements may include comments regarding future financial results and reflect a number of known and unknown risks. Please refer to our press release issued yesterday, along with other recent public filings with the Securities and Exchange Commission that outline those risks. We also encourage you to refer to our earnings supplement slide deck, which was published last night on the investor relations section of our website under events and presentations. I would like to point out that our earnings release in today's conference call will contain discussion of non-GAAP financial measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable gap measures are available in our earnings release, which is posted in the news section on our website. For more details on the company's earnings guidance, please refer to the earnings supplement slide deck published on our website. I'll now turn the call over to our chairman and co-CEO, Bill Lertler.

Thank you, Yvonne, and thank you, everyone, for joining us this morning. 2025 marked a meaningful step forward for Solaris. we showed that we are successfully executing our strategy of growing and establishing a more diversified services and solutions business with accelerated earnings growth, improved long-term visibility, and multiple pathways for meaningful expansion. Through new products, services, and targeted investments, both organic and inorganic, we've strengthened our engineering, manufacturing, and operational capabilities. This has positioned us to deliver reliable, integrated power solutions to meet our customers' rapidly escalating needs. Coming out of 2025, we're serving a much wider customer base with active contracts and deployments now spanning multiple data centers, energy infrastructure, and diverse industrial and commercial end markets with generation, distribution, and full turnkey power. Our 2025 financial results highlight the success of our diversified strategy. Full-year 2025 revenue nearly doubled year-over-year to $622 million while adjusted EBITDA of $244 million more than doubled. Both of our power and logistics segments contributed meaningfully to these results. This is just the beginning of additional step change growth that we believe will accelerate through 26 and 27. Starting with our power solutions segment, which has become the primary growth engine for Solaris, power now accounts for roughly 70% of our earnings and is heading to 90% contribution as we've consistently grown the business, expanding our capabilities, the rapid demand growth for power, particularly to support data center compute needs. Our solutions have enabled customers to deploy power quickly and cost-effectively while delivering the operational reliability, high uptime, and efficiency they require, whether as an alternative or as a supplement to the grid. We've strategically positioned Solaris across the power lifecycle from molecule to electron. This integrated approach delivers true turnkey power for our customers. We can handle sourcing and delivery of clean natural gas at the right volumes of pressure, convert it through multiple generation sources, and manage the distribution, storage, and final delivery of electrons, all engineered as a cohesive system to meet the most complex and demanding load profiles. Our strategy has translated into commercial success with both existing and new customers. In 2025, we significantly expanded our partnership with our initial major data center customer. We finalized a 15-year joint venture and upsized the associated long-term power agreement for approximately 500 to 900 megawatts, providing greater visibility with substantial committed capacity for years ahead. We also acquired a specialty provider of voltage distribution and control equipment that has now been integrated into Solaris Power Solutions. This strategic acquisition has deepened our capabilities and accelerated market penetration, enabling us to deliver integrated equipment and engineered solutions to at least six different data centers across the U.S., as well as to numerous industrial and commercial sites. Building on our success, I'm excited to highlight a significant new long-term contracted customer, which further validates our strategy and reputation in the behind-the-meter power market. In early February, we announced a 10-year agreement with a five-year extension option to provide leading investment-grade global technology company with over 500 megawatts of power generation tailored to their compute needs. The initial 10-year term begins January 1, 2027, with energization targeted to be phased in at the beginning of the Q1 of 2027. This agreement validates our strategy of sourcing generation capacity in advance of a contract so that we can successfully deliver behind-the-meter power on aggressive timelines. We are actively working with this customer to deliver more services related to balance of plant equipment, such as full power control, storage and delivery infrastructure, engineering and site preparations. As we move forward, expanding our scope, we will deploy additional capital, which will provide Solaris with enhanced returns through the contracted period. We believe that we are well positioned to continue to work with this customer on behind-the-meter solutions to meet their growing compute needs. Underscoring the opportunity ahead, the four largest global technology companies have recently guided to combine capital expenditures exceeding $600 billion in 2026, focused primarily on data center infrastructure and computing. That's roughly a 70% increase from 2025 levels and nearly double the spending seen in 2024. With data center and compute power investments accelerating rapidly, Solaris is exceptionally well positioned to capitalize on the surging demand for reliable, scalable power. Our proven solutions enable us to partner effectively with leading technology companies who are contracting directly from behind the meter options to meet their urgent compute needs. I would also like to highlight the continued performance of our logistics solution segment, which is performing well and contributed over $80 million in free cash flow in 2025. In the fourth quarter, we saw activity levels for both the industry and Solaris increase, with Solaris success driven in part by increasing adoption of our top fill systems. Our top fill system utilization rate was in the mid-90% in the fourth quarter and now nearing 100% in the first quarter. This momentum is expected to carry through for the first half of 2026. supporting consistent utilization and margins while generating cash to fund our broader growth initiatives across the company. In summary, 2025 was a year of successful execution, which positioned Solaris for even greater success in 2026. We are extremely focused on delivering value for our customers and shareholders, and we're excited about 2026, which is already shaping up as another year of significant growth, new opportunities, continued execution, and results. With that, I'll turn it over to Amanda.