Why Is Solaris Energy Infrastructure, Inc. (SEI) Down 6.7% Since Last Earnings Report?

A month has gone by since the last earnings report for Solaris Energy Infrastructure, Inc. (SEI). Shares have lost about 6.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Solaris Energy Infrastructure, Inc. due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Solaris Energy Infrastructure, Inc. before we dive into how investors and analysts have reacted as of late.

Solaris Energy Q2 Earnings Beat Estimates on Power Solutions Growth

Solaris Energy Infrastructure reported second-quarter 2026 adjusted earnings of 39 cents per share, up 14.7% year over year, and beat the Zacks Consensus Estimate of 31 cents by 25.81%. The outperformance was driven by the exceptional results of the Power Solutions segment.

Revenues of $219 million increased 47% year over year and topped the consensus estimate of $198 million by 10.78%, driven by higher leasing and service revenues. The company’s leasing and service revenues increased 70.8% and 30% year over year, respectively.

Net income reported by SEI was $25.2 million in the quarter. On a non-GAAP basis, adjusted EBITDA was $108.3 million, up from $60.6 million in the year-ago period, driven primarily by higher Power Solutions activity levels and a lift in Logistics profitability.

On Aug. 4, 2026, the company’s board of directors approved a third-quarter 2026 dividend of 12 cents per share, payable on Sept. 25 to its shareholders of record as of Sept. 15.

Segment Results

Solaris Power Solutions:Power Solutions revenues increased to $158.3 million compared with $75.6 million in the year-ago period. Capacity earning revenues in the segment averaged 950 MW during the quarter. Adjusted EBITDA from the segment increased to $96.4 million, driven by increased ancillary service revenues.

Solaris Logistics Solutions: Logistics Solutions delivered revenues of $61 million, decreasing 17.2% from the year-ago period. Adjusted EBITDA from the segment increased year over year to $24.7 million, driven by increased system activity and a more favorable project mix.

Solaris Energy Builds Out Full-Cycle Power Capabilities

The acquisition of Global Energy Services Alliance, or GESA, expands SEI’s installation, commissioning, operations, maintenance and aftermarket capabilities. GESA added more than 600 skilled employees and brings project experience spanning more than 30 countries.

Management sees the acquisition as a way to improve project execution while expanding third-party service opportunities. Solaris Energy also has approximately 800 MW of open capacity with relatively near-term delivery timelines and said it is in advanced discussions with multiple customers regarding long-term deployments.

SEI’s Balance Sheet

At quarter-end, Cash and cash equivalents attributable to Solaris Energy were $888.5 million, while long-term debt attributable to SEI (net of current portion) was $1.6 billion, with a debt-to-capitalization of 58%.

During the quarter, the company completed an inaugural $1.3 billion senior, unsecured notes offering and secured a new, undrawn $650 million credit facility.

Guidance

For the third quarter of 2026, the company raised adjusted EBITDA guidance to $90-$105 million from $80-$95 million previously, and established fourth-quarter adjusted EBITDA guidance of $100-$120 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -91.46% due to these changes.

VGM Scores

Currently, Solaris Energy Infrastructure, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Solaris Energy Infrastructure, Inc. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Solaris Energy Infrastructure, Inc. is part of the Zacks Oil and Gas - Mechanical and and Equipment industry. Over the past month, USA Compression Partners (USAC), a stock from the same industry, has gained 5.7%. The company reported its results for the quarter ended June 2026 more than a month ago.

USA Compression reported revenues of $342.15 million in the last reported quarter, representing a year-over-year change of +36.8%. EPS of $0.31 for the same period compares with $0.22 a year ago.

USA Compression is expected to post earnings of $0.28 per share for the current quarter, representing a year-over-year change of +7.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +16.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for USA Compression. Also, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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