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what it is
Solaris sells equipment, logistics, and software that help oil and gas crews move sand, water, and chemicals to well sites.
how it gets paid
Last year Solaris Energy made $622M in revenue.
why it's growing
Revenue grew 98.7% last year. Revenue growth did the heavy lifting. Gross margin was 44.1%.
what just happened
Solaris posted quarterly EPS of $0.35, ahead of the $0.34 consensus, with revenue of $149.6M.
At a glance
B balance sheet — gets the job done, barely
25/100 earnings predictability — expect surprises
56.4x trailing p/e — you're paying up for this one
0.9% dividend yield — cash in your pocket every quarter
3.2% return on capital — nothing to write home about
xvary composite: 47/100 — below average
What they do
Solaris sells equipment, logistics, and software that help oil and gas crews move sand, water, and chemicals to well sites.
Solaris wins because it sits in the ugly, expensive part of oilfield work where downtime costs real money. You are not buying a nice app here. You are buying fewer delays at the well site, backed by 364 employees, specialized equipment, and logistics software that ties the whole job together.
How they make money
$622M
annual revenue · their business grew +98.7% last year
total revenue
$622M
+98.7%
The products that matter
distributed power generation
Mobile Power Systems
$373M · 60% of segment revenue base
It is the larger business today, and management just added 900 MW of natural gas capacity to push it toward a $440–$465M annual EBITDA run rate.
900 MW added
well-site equipment and logistics
Well Site Logistics
$249M · 40% of segment revenue base
This $249M business still matters because it anchors customer relationships, but the margin story got worse when gross margin fell 4.2 points to 44.1%.
44.1% gross margin
Key numbers
56.4x
trailing p/e
P/E → how many dollars you pay for one dollar of profit → so what: you are paying a premium for a company with FY2024 EPS estimated at $0.50.
29.6%
operating margin
Operating margin → profit left after running the business → so what: the core business can make money, even if earnings still bounce around.
3.2%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: that is weak against a 56.4x stock multiple.
$524M
long-term debt
Long-term debt → money owed over many years → so what: it is only 13% of capital, which is manageable, but it still limits flexibility.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $524M (13% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SEI right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Solaris posted quarterly EPS of $0.35, ahead of the $0.34 consensus, with revenue of $149.6M.
Revenue growth did the heavy lifting. Gross margin was 44.1%, down 4.2 points vs. prior year, which means the company sold a lot more but kept a little less on each dollar.
$149.6M
revenue
$0.35
eps
44.1%
gross margin
the number that mattered
$0.35 EPS mattered most because it beat the $0.34 consensus, proving Solaris can still out-earn expectations even with margin pressure.
source: company earnings report, 2026
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What could go wrong
the top risk here is gross margin compression during the mobile power pivot. SEI is asking investors to pay for future EBITDA while current unit economics are getting worse.
med
Gross margin keeps slipping
Gross margin fell 4.2 points to 44.1%. That matters because the whole bull case depends on the new business mix producing better economics, not worse ones.
Applied to a $622M revenue base, a 4.2-point margin hit is roughly $26M of gross profit pressure.
med
The 900 MW buildout misses the EBITDA promise
Management is pointing to a $440–$465M annual EBITDA run rate from the new natural gas capacity. That target is doing a lot of work in the valuation today.
A 10% miss against the midpoint would leave about $45M of EBITDA unrealized.
med
The revenue reset is real, not temporary
Analysts now expect $313M of FY2024 revenue versus a $622M prior-year revenue base implied by the segment data. That's a huge gap, and it says the street is not buying a smooth handoff between old and new businesses.
If that smaller revenue base persists, a 56.4x earnings multiple starts looking like optimism with a ticker symbol.
med
Volatility can overpower the fundamentals
Price stability is 10/100 and earnings predictability is 25/100. That combination means narrative changes can move the stock faster than reported numbers do.
At this temperature, you are not just underwriting operations. You are underwriting market patience.
Four risks stand out, and they all point to the same conclusion: the valuation needs the power pivot to show up in margins, EBITDA, and consistency pretty soon.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number that mattered
Q1 2026 adjusted EBITDA guide of $72–$77M
This is the first near-term proof point for the new story. If SEI misses its own range, the market will start questioning the much larger $440–$465M run-rate target.
risk
Gross margin after the 44.1% print
One more decline and the transition story gets harder to defend. Stabilization would help. Another slide would tell you scale is not translating into pricing power.
calendar
Next quarterly report in late May 2026
You are looking for two things at once: whether the company hits the raised EBITDA guide and whether management sounds more precise about utilization of the added 900 MW.
trend
Whether revenue estimates stop falling
The current FY2024 revenue estimate is $313M, about half the prior-year revenue base. If that number stabilizes, the reset may be behind you. If it keeps drifting down, the market was early, not wrong.
Analyst rankings
earnings predictability
25 / 100
This score is low. In human-speak, analysts do not view SEI's earnings stream as stable.
risk rank
3
Middle-of-the-pack safety. Not distressed, not defensive.
price stability
10 / 100
This stock moves like a changing thesis, not a sleepy utility bill.
source: institutional data
Institutional activity
institutional ownership data for SEI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$51
current price
n/a
target midpoint · n/a from current
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