Q4 2025 Solaris Energy Infrastructure Inc Earnings Call [BACKUP]

February 25, 2026

[Analyst]: Hey, good morning, everybody. Just wanted to go back to the capacity expansion commentary. Obviously, I know you need more than the 2.2 gigawatts than you have today, but maybe on the funding side, just how should we think about the funding mechanisms that are available to you? You obviously noted that you freed up your secured borrowing capacity, but just thinking about as you progress towards 3 gigawatts, 4 gigawatts, wherever that target may migrate over time, maybe just help us understand further as far as what funding we can expect as we continue to push the capacity targets higher.

Back to the capacity expansion commentary, obviously, I know you need more than the $2 two gigawatts and you have today, but maybe on the funding side just how should we think about the funding mechanisms that are available to you. You. Obviously noted that you've freed up your secured borrowing capacity, but just thinking about as you progress towards three gigawatts for agreements wherever that target may.

Migrate over time, maybe just help us understand further as far as what you what funding we can expect as we continue to push the capacity target is higher.

Aleko: Yeah, I think, you know, we really cleaned up the balance sheet quite well at the end of last year and added significant liquidity into the system. That liquidity is already proving to be very advantageous from a strategic execution standpoint. We did that last year, obviously, with a couple of convertible bonds. As the maturity and the contract profile continues to grow and, you know, the notion of potentially multiple investment-grade counterparties, I really think the secured financing options for the business, both from the bank market as well as the sort of term debt market, are ample. Bringing in Steven has been a huge help with that regard. You've got extensive experience in getting out, getting rated, getting notes issued on behalf of companies.

Kyle Ramachandran: Yeah, I think, you know, we really cleaned up the balance sheet quite well at the end of last year and added significant liquidity into the system. That liquidity is already proving to be very advantageous from a strategic execution standpoint. We did that last year, obviously, with a couple of convertible bonds. As the maturity and the contract profile continues to grow and, you know, the notion of potentially multiple investment-grade counterparties, I really think the secured financing options for the business, both from the bank market as well as the sort of term debt market, are ample. Bringing in Steven has been a huge help with that regard. You've got extensive experience in getting out, getting rated, getting notes issued on behalf of companies.

Yes, I think we really cleaned up the balance sheet quite well at the end of last year and added significant liquidity in the system.

That liquidity is already proving to be very advantageous from a strategic execution standpoint.

We did that last year I haven't seen with a couple of convertible bonds as the maturity and the contract profile continues to.

Grow and the notion of potentially multiple investment grade Counterparties really think the secured financing options for the business both in the bank market as well as the sort of term debt market are ample.

Bring in Stephen has been a huge help with that regards team got extensive experience in getting out game rated.

<unk>.

Issued on behalf of companies and that bandwidth is critical for us as we look at the long term offered <unk> for us to finance the business.

Aleko: That bandwidth is critical for us as we look at the long-term opportunities for us to finance the business. I think, you know, as we look at it going forward, we've got really attractive cost of capital options relative to where we've been over the last couple of years.

Kyle Ramachandran: That bandwidth is critical for us as we look at the long-term opportunities for us to finance the business. I think, you know, as we look at it going forward, we've got really attractive cost of capital options relative to where we've been over the last couple of years.

So I think as we look at it going forward, we've got really attractive cost of capital options relative to where we've been over the last couple of years.

Stephan Tompsett: Yeah. Hi, this is. There's quite a bit of appetite out there in the market, as Kyle alluded to, both bank market, term loan market, high-yield, and project finance. I think, you're going to see our cost of capital is improving, and that's just going to accrete to the bottom line.

Hi, This is Steve.

There's quite a bit of a pause.

Played out there in the market as Carl alluded to.

Market term loan market are yielding project finance, so I think.

Youre going to see our cost of capital is improving and I was just going to accrete to the bottom line.

[Analyst]: Got it. Okay. No, that's great. I appreciate the color. Maybe thinking about this, the integrated power solution. You've talked about Molecule to Electron. Just thinking about how you optimize your turnkey solution with the grid longer term. Obviously, we're behind-the-meter, we're island power today, maybe longer term, how do you think about it potentially integrating with the grid, just say, as we move further into the 2030s? Just how do you see your turnkey solution evolving as an integrated strategy and optimization with the grid over a longer period of time?

Got it okay. That's great I appreciate the color and then maybe thinking about the integrated power solution, you've talked about molecule to electron just thinking about how you optimize your turnkey solution with the grid longer term, obviously, we're behind the meter where island power today, but maybe longer term how do you think about potentially integrating with the grid.

Just say as we move further into the 2000 <unk> just how do you see your turnkey solution evolving as an integrated strategy and optimization with the grid over a longer period of time.

William Zartler: Well, we certainly believe that potentially excess power ability at times to move back into the grid, you know, complicated interconnection agreements and all that stuff. Mechanically, we have supported the grid in many ways with our equipment before. We know how to form to the grid and perform all that. It's a matter of working closely with the utility and the regulators to ensure that what we can provide from the interconnection agreement. What we focus on today, however, is getting that power up and running at speed. The timing for those agreements is not fast. Over time, we do think it'll evolve that direction.

Well, we certainly believe that that will be potentially excess power ability at times to move back into the grid comp.

Complicated interconnection agreements I'll ask mechanically we have supported the grid in many ways with our equipment before so we know how to.

Fortunately the grid and pro forma all that it's a matter of working closely with the utility of the regulators to ensure that we can provide from interconnection agreement. What we focus on today are versus getting that power up and running at speed the timing for those agreements is not fast.

But over time, we do think they are all.

All of that rich.

[Analyst]: Great. Appreciate all the color. I'll turn it back.

Great I appreciate all the color I'll turn it back.

Yes.

Operator: The next question will come from Scott Gruber with Citigroup. Please go ahead.

The next question will come from Scott Gruber with Citigroup. Please go ahead.

Scott Gruber: Yes, good morning. Now, Aleko, the...

Yes, good morning, no Luckily earnings unrelated good morning, I'll Echo the congrats on the latest contract.

Aleko: Morning, Scott.

Kyle Ramachandran: Morning, Scott.

Scott Gruber: the latest. Good morning, Aleko. The congrats on the latest contract. How do you think about getting back into the queue for additional equipment? You know, do you wait to contract the additional 400 megawatts? Do you get in the queue soon? What are your thoughts on diversifying your supplier base, you know, just as backlogs fill across the supplier base?

So how do you think about getting back into the queue for additional equipment do you wait to contract. The additional 400 megawatts you get into the queue soon.

Your thoughts on.

Diversified your supplier base, just as backlog still occur.

Cross the supplier base.

Aleko: I think we've been pretty clear from the beginning that as capacity gets contracted, we will be back obtaining more capacity in multiple different options in that regard. To your point, there's multiple OEMs. We have, to date, been tied pretty closely to one OEM. They've been a great partner. We'll continue to work with them, but we're obviously looking at other options. There are other new product lines coming into the market that look quite similar to the sort of workhorse asset that we've got in our generation fleet, and so we're evaluating all those options. Clearly, while we were working in conjunction with our new customer, we were also working supply chain. This isn't like a, you know, a standing start.

Kyle Ramachandran: I think we've been pretty clear from the beginning that as capacity gets contracted, we will be back obtaining more capacity in multiple different options in that regard. To your point, there's multiple OEMs. We have, to date, been tied pretty closely to one OEM. They've been a great partner. We'll continue to work with them, but we're obviously looking at other options. There are other new product lines coming into the market that look quite similar to the sort of workhorse asset that we've got in our generation fleet, and so we're evaluating all those options. Clearly, while we were working in conjunction with our new customer, we were also working supply chain. This isn't like a, you know, a standing start.

I think we've been pretty clear from the beginning as capacity is contracted we will be back obtaining more capacity.

In multiple different options in that regard so to your point there is.

Multiple Oems we have.

To date been tied pretty closely to one OEM they've been a great partner and we will continue to work with them, but we're obviously looking at other options there.

There are other new product lines coming into the market that look quite similar to the sort of workhorse asset that we've got in our generation fleet and so we're evaluating all those options.

And clearly while we were working in conjunction with our new customer. We were also working supply chain. So this isn't like a standing start we've had these conversations warm for quite some time.

Aleko: We've had these conversations warm for quite some time, and those dialogues are very healthy. I think we've demonstrated to be a very good customer to suppliers, paying on time, doing what we say we will do, and generally being pretty cooperative with that whole mix. We are being consistent with what Bill mentioned of, you know, doing what we say. With respect to more capacity, that's more of the same. We are actively analyzing those opportunities and expect to be able to provide updates in due course.

Kyle Ramachandran: We've had these conversations warm for quite some time, and those dialogues are very healthy. I think we've demonstrated to be a very good customer to suppliers, paying on time, doing what we say we will do, and generally being pretty cooperative with that whole mix. We are being consistent with what Bill mentioned of, you know, doing what we say. With respect to more capacity, that's more of the same. We are actively analyzing those opportunities and expect to be able to provide updates in due course.

And in those dialogues are very healthy I think we've demonstrated to be a very good customer to suppliers paying on time doing what we say, we will do and generally being pretty cooperative.

With that whole mix. So we have we.

We are being consistent with what Bill mentioned is doing what we say and so with respect to more capacity that's more of the same and so we.

Actively.

Analyzing those opportunities and expect to be able to provide updates in due course.

Sure.

Scott Gruber: No, I appreciate that. It was nice to see the Q1 EBITDA bump and Q2 grows, but it's a little bit more slowly than expectations across the street, and maybe the street was just a bit ahead of itself. You know, logistics, that segment is looking better. Can you just walk us through the kind of megawatts deployed, you know, across Q1 and into Q2? Is there any uncertainty around the deployment schedule, you know, at Colossus Two into Q2? Are you just embedding, you know, some conservatism until you get better line of sight?

No I appreciate that.

It was nice to see the <unk> EBITDA.

In <unk> grows.

But it's a little bit more slowly than expectations across the street, maybe the street was a bit ahead of itself.

Logistics that that segment is looking better.

So can you just walk us through what kind of megawatts deployed across.

Across <unk> entities, <unk> and is there any uncertainty around the deployment schedule at classes to enter into <unk> or are you just embedding some conservatism until you get better line of sight.

Aleko: Well, I mean, I think generally, as we look at providing guidance, we always try to embed some level of conservatism, rational and reasonable, but some level of conservatism. I mean, when it comes to the timing of equipment getting deployed, most of that is out of our control. That's obviously subject to the OEM. You know, if you look at how we even shaped sort of the capital guidance for Q4 relative to what happened, we assumed in the guidance that we would be receiving installment invoices ahead of when we actually did. So some of this is a function of the supply chain and where they sit with their processes. We feel very good about the Costa Two project with respect to the total 900 megawatts that will be deployed there.

Kyle Ramachandran: Well, I mean, I think generally, as we look at providing guidance, we always try to embed some level of conservatism, rational and reasonable, but some level of conservatism. I mean, when it comes to the timing of equipment getting deployed, most of that is out of our control. That's obviously subject to the OEM. You know, if you look at how we even shaped sort of the capital guidance for Q4 relative to what happened, we assumed in the guidance that we would be receiving installment invoices ahead of when we actually did. So some of this is a function of the supply chain and where they sit with their processes. We feel very good about the Costa Two project with respect to the total 900 megawatts that will be deployed there.

Well I mean, I think generally as we look at providing guidance, we always try to embed some level of conservatism.

Rational and reasonable, but some level of conservatism I mean, when it comes to the timing of equipment getting deployed most of that is out of our control. That's obviously subject to the OEM and if you look at how we even shaped sort of the capital guidance for the fourth quarter relative to what happened.

We assumed in the guidance that we would be receiving installment invoices ahead of when we actually did and so some of this is a function of the supply chain and where they sit there with air processes.

We feel very good about the.

Cost to project with respect to that total 900 megawatts that will be deployed there the exact prescriptive timing week to week month to month quarter to quarter is going to be somewhat in flux, depending on OEM deliveries. It's a massive project that's being built in real time, and so there's lots of civil work that needs to take place there as well so there's lots of puts and takes there.

Aleko: The exact prescriptive timing, week to week, month to month, quarter to quarter, is going to be somewhat in flux, depending on OEM deliveries. It's a massive project that's being built in real time, and so there's lots of civil work that needs to take place there as well. There are lots of puts and takes that are outside of our control, quite frankly, and so that's driving maybe somewhat of the guidance. I don't think it has any impact whatsoever with respect to the run rate as we look at it.

Kyle Ramachandran: The exact prescriptive timing, week to week, month to month, quarter to quarter, is going to be somewhat in flux, depending on OEM deliveries. It's a massive project that's being built in real time, and so there's lots of civil work that needs to take place there as well. There are lots of puts and takes that are outside of our control, quite frankly, and so that's driving maybe somewhat of the guidance. I don't think it has any impact whatsoever with respect to the run rate as we look at it.

Our outside of our control quite frankly, and so that's that's driving may be somewhat of the guidance, but I don't think it has any any impact whatsoever with respect to the run rate.

Got it.

Scott Gruber: I appreciate the color. Thank you.

I appreciate the color. Thank you and we're still on track for Q1 of next year to be at the full 900 megawatts at cost with it.

Aleko: We're, you know, still on track for Q1 of next year to be at the full 900 megawatts at Costa Two. Just, you know, finally, we have been able to use, and to Amanda's point, with respect to some of the new regulatory analysis, an ability to put more power out there on a temporary basis to allow the customer to ramp their demand potentially ahead of when the permanent power comes into play.

Kyle Ramachandran: We're, you know, still on track for Q1 of next year to be at the full 900 megawatts at Costa Two. Just, you know, finally, we have been able to use, and to Amanda's point, with respect to some of the new regulatory analysis, an ability to put more power out there on a temporary basis to allow the customer to ramp their demand potentially ahead of when the permanent power comes into play.

And then just finally, we have been able to use and to Matt's point with respect to some of the new regulatory.

Analysis and ability to put more power out there on a temporary basis to allow the customer to ramp their demand potentially ahead of when the permanent.

Power comes into play.

Okay.

Scott Gruber: Well, that's great color. Thanks, Kyle. Turn it back.

Oh, that's great color, thanks, guys I'll turn it back.

Operator: Our next question comes from Stephen Gengaro with Stifel. Please go ahead.

Our next question comes from Stephen <unk> with Stifel. Please go ahead.

Stephen Gengaro: Thanks. Good morning, everybody. I think two for me. The first, and I'm not sure how much color you can add, but when you talk about discussions that are out there for that, for, I guess, roughly incremental 400 megawatts, are we talking about, like, discussions that are in the gigawatt range, where you have multiple conversations going on? Or are they more sort of isolated discussions with specific customers? Like, is there any way to think about and kind of quantify sort of the near-term demand for that power?

Thanks, and good morning, everybody.

I think two from me.

And I'm not sure how much color you can add when you talk about discussions that are out there for that for I guess roughly an incremental 400 megawatts are we talking about like discussions that are in the gigawatt range, where you have multiple conversations going on or is it are they more sort of isolated discussions with specific customers.

Any way to think about it.

Current quantify sort of the near term demand for that power.

William Zartler: Hi, Steven. I think the discussions are as widely varied as we need 100 megawatts to we need 2 to 3 gigawatts. How does that roll out over the course of 2027, 2028, 2029 kind of timeframe, and it's with multiple customers or single customers. The opportunity set, as Amanda mentioned, is significant, it's large. I think where we will focus on is closing with one or two customers in that, you know, in that 400 megawatt kind of range.

Steven I think.

<unk> are as widely varies as we need a 100 megawatts to we need two to three gigawatts and how does that rollout over the course of 2789.

To frame and as with multiple customers on a single customer.

The opportunity set is Amanda mentioned is significant.

Large I think where we will focus on his closing with one or two.

Customers in that.

At 400 megawatt kind of range.

Amanda: What happens in these negotiations, which, like we've said, are negotiations, not discussions, is we will maybe start with the 400 MW. Because of how electrification is phased in, we will then add over time.

Kyle Ramachandran: What happens in these negotiations, which, like we've said, are negotiations, not discussions, is we will maybe start with the 400 MW. Because of how electrification is phased in, we will then add over time.

What what happens in these negotiations on which that we said.

Negotiations not discussion.

And if we will maybe start with the 400 megawatts that because of how electrification is faith that we will then add overtime.

Stephen Gengaro: Okay. No, that's helpful. Thank you. The other question, when you think about the price of power, and I know, like, when you were first deploying assets and, you know, because you're basically at the customer site, your cost of power was pretty close to grid power, and it feels like grid power or even at or below grid power. As we, you know, have these kind of conversations about rising electricity costs over time, how do you price the power? Like, are you able to take advantage or at least leverage the fact that power prices are likely rising over the next decade when you're signing these longer-term contracts? Like, how does that discussion go?

Okay.

That's helpful. Thank you and the other question.

When you think about the the price of power and I know like when you were first deploying assets in.

Because you're basically at the customer site, you're kind of.

Your cost of Power's pretty close to the grid power and it feels like grid power or even even at or below grid power.

You have these these kind of conversations about rising electricity costs over time, how do you price. The power like are you able to take advantage or at least leverage. The fact that power prices are likely rising over the next decade, when you're when you're when you're signing these longer term contracts and how does that discussion go.

William Zartler: Yeah. I mean, I think customers intuitively understand this and how the shape of our curve. We're really focused on return on capital, focused on protecting our costs with co-location. We're in most cases, not buying the gas, the customers are buying their gas, so we're not at risk for that part of the expense going up. We do see, you know, maintenance and all the regular costs that can increase over time.

Yes, I mean, I think customers intuitively understand this and how the shape of our curve. We're really focused on return on capital focused on protecting our cost with Colo.

In most cases not buying the gas the customers are buying their gas. So we're not at risk for that part of the part of the expense going up but we do see maintenance and all the regular cost that can increase over time.

William Zartler: I think this is a, you know, you can lock it up now, and just like you might with a, with a big power, you could do a capacity deal, with some variable, which is what we're seeing both on this kind of behind-the-meter scale as well as co-located scale, and protect and hedge for the next, you know, 10 to 20 years as a customer.

But I think this is a.

You can lock it up now and just like you might have.

Big power you could do a capacity deal with some variable which is what we're seeing both on the kind of behind the meter scale as well as co located scale and protection hedge for the next 10 to 20 years.

Stephen Gengaro: Okay. Great. Thanks for the additional color.

Our success Okay.

Great. Thanks for the additional color.

Operator: Our next question comes from Michael Dudas with Vertical Research. Please go ahead.

Our next question comes from Michael Dudas with vertical research. Please go ahead.

Aleko: Good morning, everyone.

Kyle Ramachandran: Good morning, everyone.

Good morning, everyone.

William Zartler: Good morning.

Amanda: Morning.

Kyle Ramachandran: Morning.

Good morning.

Aleko: As you, as you indicated in your prepared remarks, and certainly as we've seen in the market, you know, demand is much greater than supply and capacity. How is that evolving relative to the moat that you're creating, given the momentum you've put together over the past 2 years? How does that impact relative to what you want to do in the uplift to the other services to provide for your integration? You know, is the acquisition market or the opportunities there, are there quickly enough for you to, you know, generate the value from that, just to, you know, really, solidify your solutions profile?

Kyle Ramachandran: As you, as you indicated in your prepared remarks, and certainly as we've seen in the market, you know, demand is much greater than supply and capacity. How is that evolving relative to the moat that you're creating, given the momentum you've put together over the past 2 years? How does that impact relative to what you want to do in the uplift to the other services to provide for your integration? You know, is the acquisition market or the opportunities there, are there quickly enough for you to, you know, generate the value from that, just to, you know, really, solidify your solutions profile?

As you indicated in your prepared remarks, and certainly as we can see in the market.

<unk> seems to be much greater than supply capacity, how is that evolving relative to the moat that youre, creating given the momentum you've put together over the past couple of years.

And how does that impact relative to what you want to do in the uplift to the other services to provide for your integration.

Is the acquisition market or the opportunities there.

They are quickly enough for you to generate the value from that just to really solidify your solutions profile.

William Zartler: Yeah, I mean, I think, I mean, number one, this is a very big market. We will not be alone in developing power this industry, right? The numbers are staggering. Our moat and our offering is one of experience, of operations, of knowledge, of ensuring as reliable power as possible at, you know, at attractive pricing. As we build out our offering, the more capital we can put to work and the more services we offer that we can get paid for is valuable. I think valuable to the customer, in that what we're doing ultimately is just ensuring that they get the power where they need it, when they need it, at the right voltage, and type.

Yes, I mean, I think number one this is a very big market, we will not be alone in developing power for this is industry right. The numbers are staggering.

Our moat and our.

Offering as one of experience of operations of knowledge of ensuring as reliable power as possible.

At attractive pricing as we build out our offerings the more capital we can put to work in the more services. We offer that we can get paid for is valuable.

Valuable to the customer and that what we're doing ultimately is just ensuring that they get the power where they need it when they needed at the right.

The rifles.

William Zartler: That will give us the amount of runway that this business needs to continue to grow very rapidly over the next several years.

And that will give us the.

William Zartler: That will give us the amount of runway that this business needs to continue to grow very rapidly over the next several years.

A matter of runway that this business needs to continue to grow very rapidly over the next several years.

Aleko: Excellent. Thanks, Bill.

Kyle Ramachandran: Excellent. Thanks, Bill.

Excellent. Thanks Bill.

Operator: Our next question comes from Jeff LeBlanc with TPH&Co.. Please go ahead.

Our next question comes from Jeff will belong with TBH. Please go ahead.

Jeff LeBlanc: Good morning, Bill and Amanda. Thank you for taking my questions.

Good morning, Bill and Amanda and thank you for taking my questions.

William Zartler: Morning.

Amanda: Morning.

Kyle Ramachandran: Morning.

Good morning.

Jeff LeBlanc: In SLS, you're guiding the flat EBITDA on a sequential basis, while the pressure pumpers are flagging Winter Storm Fern as having a sizable impact on Q1 profitability. Can you expound upon how that your rentals business is insulating SEI from these types of disruptions? Thank you.

And SLS are guiding to flat EBITDA on a sequential basis, while the pressure pumper or flagging the winter storm firm.

Foreign excuse me as having a sizeable impact on Q1 profitability can.

Can you expound upon how that your rentals businesses insulating Sci from these types of disruptions. Thank you.

William Zartler: Well, we did see some downtime during the storm. What we also see is an additional growth in the business that's offsetting that. I think we're growing maybe faster than the current pressure pumping market is, just in terms of touch. The Top Fill System offering and the savings that it offers for some of these large frac jobs is real. We continue to see demand there, and we're virtually sold out, as I had mentioned on the call, with that equipment. You know, given the growth in that from quarter-over-quarter, that's going to offset some of the declines that we saw in or most of the declines we saw in the storm.

Well, we did see some some downtime during the storm. So we also see additional growth in the business. That's offsetting that so I think we are.

We are growing maybe faster than the current pressure pumping market is just in terms of touch the topco offering into savings and it offers for some of these large frac jobs is real.

So we continue to see demand there.

Virtually sold out as I've mentioned on the call with that equipment. So given that given the growth in that from quarter over quarter Thats going to offset some of the declines that we saw.

Most of the declines we saw in the store.

Jeff LeBlanc: Okay. Thank you very much. I'll hand the call back to the operator.

Thank you very much I'll hand, the call back to the operator.

Operator: Our next question comes from Don Crist with Johnson Rice. Please go ahead.

Our next question comes from Don Crist with Johnson Rice. Please go ahead.

Don Crist: Good morning, guys. Hope you all are doing well this morning. One macro question for me, you know, as you're having these discussions, you know, given all the state of the world right now with energy prices and the consumer-facing kinda aspects of that, how many of your discussions are 100% behind-the-meter versus kind of a hybrid approach with, you know, grid versus, you know, behind-the-meter? Is it shifting more to where you're gonna be a standalone island power plant for the life of the data center, or is it still kind of a hybrid approach?

Good morning, guys Hope you all are doing well this morning.

<unk>.

One macro question from me.

As you're having these discussions.

Given all of the state of the World right now with with.

Energy prices in the consumer facing kind of aspects of that how many of your discussions are 100% behind the meter versus kind of a hybrid approach with grid versus.

Behind the meter.

Is it more is it shifting more to where youre going to be a standalone island power plant for the life of the data center or is it still kind of a hybrid approach.

William Zartler: I think there's still a bit of a hybrid. It's, it's probably weighted toward behind-the-meter for the life of the plant. Although, we're having discussions with a few customers around having a mobile kit that they may rent for the next 10 years, that we set up in advance of grid connections that they hope to get there over some period of time. The mobile nature and the service of being able to set up bare power quickly, the tailwinds with the quad K regulations, which are allowing some of that to happen on a temporary basis, kinda gives a couple of pieces of this offering.

I think there's a little there is still a bit of a hybrid it's probably weighted towards behind the meter for the life of the plant, although we're having discussions with a few customers around.

Our mobile kit that they may rent for the next 10 years that we've set up in advance of grid connections that they hope to get there over some period of time and so the mobile nature of the service of being able to set up their power quickly.

<unk> with the Quad K regulations, which is allowing some of that to happen on a temporary basis kind of give us a couple of pieces of this offering one is the pure behind the meter that may end up being co located over time or.

William Zartler: One is the pure behind-the-meter that may end up being co-located over time, or we can go in and are looking for long-term contracts to be a bridge provider, which would mean that we may sit on sites between 1 and 2 years, but we have a contract with that customer for multiple years beyond that, to move the site to site, as they recognize that connections are slow. They're building out locations maybe faster than the grid can connect to them, and they need a solution like that to complement their rapid growth.

We can go in and are looking for long term contracts to be a bridge provider, which mean that we may sit on sites between one and two years, but we have a contract with that customer for multiple years beyond that to move decisive side as they recognize that.

Connections are slow and they are building out locations maybe faster than.

It can connect to them and they need a solution like that complement their rapid growth.

Amanda: Don, we are seeing, you know, as we said, the acceleration of discussions. The tailwinds here: 1, greater tenor on contracts, we always like to see that. 2, people in the last quarter, customers and end users getting very comfortable that they can be in fully islanded mode successfully, reliably for a 10-plus year contract. It's all of the above, but definitely a tailwind toward people getting comfortable that maybe they don't have to connect to the grid. We think that, you know, last night's State of the Union address with the Ratepayer Protection Pledge, these discussions will continue to gain traction.

Kyle Ramachandran: Don, we are seeing, you know, as we said, the acceleration of discussions. The tailwinds here: 1, greater tenor on contracts, we always like to see that. 2, people in the last quarter, customers and end users getting very comfortable that they can be in fully islanded mode successfully, reliably for a 10-plus year contract. It's all of the above, but definitely a tailwind toward people getting comfortable that maybe they don't have to connect to the grid. We think that, you know, last night's State of the Union address with the Ratepayer Protection Pledge, these discussions will continue to gain traction.

John We are seeing you know as we said this acceleration that discussion.

Tailwind here, one greater turnaround contracts.

We always like to see that to.

People in the last quarter.

Customers and engineers is getting very comfortable that they can be in fully island node successfully reliably for a 10 plus year contract and all of the above but definitely a tailwind to what people are getting comfortable that maybe they don't have to connect to the grid and we think that lost not stated a union.

Address with the right patent protection Slash. These discussions will continue to gain traction.

Don Crist: Yeah, that makes a lot of sense. Just one further one for me. Obviously, the Q4 had some maintenance issues, or not issues, but maintenance costs, that were elevated as you had to kinda update your equipment. How do we look at it going forward, you know, as you add a whole lot more new equipment? Is that maintenance schedule kind of de minimis going forward, or do you have another wave of stuff coming through in the next 12 to 15 months or so that need to go through that process?

Yes that makes a lot of sense and just one further one for me obviously, the fourth quarter had some maintenance issues or not issues, but maintenance costs that were elevated as you had to kind of update your equipment, but how do we look at it going forward.

As you add a whole lot more new equipment is that maintenance schedule kind of de minimis going forward or do you have another wave of stuff coming through in the next 12 to 15 months or so that that need to go through that process.

Aleko: Yeah, Don, I think the color on the Q4 was around some equipment coming off of a utility project that was relatively short term in nature, and we were doing some modifications to that equipment to get it ready for a long-term contract to serve a microgrid in the West Texas area. That was sort of, I'd say, more of a one-off in nature. As we've talked about, historically, this equipment has an overhaul cycle, which is episodic relative to the number of hours run in the engines. On average, they're roughly 30,000 hour overhaul cycles. It's every, you know, 4-ish kinda year timeframe, depending on the fired hours per day or per year for those engines.

Kyle Ramachandran: Yeah, Don, I think the color on the Q4 was around some equipment coming off of a utility project that was relatively short term in nature, and we were doing some modifications to that equipment to get it ready for a long-term contract to serve a microgrid in the West Texas area. That was sort of, I'd say, more of a one-off in nature. As we've talked about, historically, this equipment has an overhaul cycle, which is episodic relative to the number of hours run in the engines. On average, they're roughly 30,000 hour overhaul cycles. It's every, you know, 4-ish kinda year timeframe, depending on the fired hours per day or per year for those engines.

I think the color on the fourth quarter was around some equipment coming off of a utility project that was relatively short term in nature and we're doing some modifications to that equipment to get it ready for a long term contract to serve a micro grid in debt.

In West Texas area.

So that was sort of I'd say more of a kind of a one off in nature.

As we've talked about historically this equipment has.

Overhaul cycle, which is episodic relative to the number of hours.

And the engines and on average that roughly 30000 hour overhaul cycles. So it's every four ish kind of year timeframe, depending on the fire and hours per day efforts per year for those engines.

Aleko: We're obviously in a period here where we're not seeing significant maintenance capital. Over time, that will be running through the business, and that's several years out for us. The other thing in the Q4 was, we did secure some additional third-party equipment to meet an accelerated ramp schedule for one of our larger projects. We pulled that in a little bit ahead of when the equipment was deployed onto site, and so that was just some additional cost that was transitory in nature in the Q4.

Kyle Ramachandran: We're obviously in a period here where we're not seeing significant maintenance capital. Over time, that will be running through the business, and that's several years out for us. The other thing in the Q4 was, we did secure some additional third-party equipment to meet an accelerated ramp schedule for one of our larger projects. We pulled that in a little bit ahead of when the equipment was deployed onto site, and so that was just some additional cost that was transitory in nature in the Q4.

We're obviously in a period here, where we're not seeing significant maintenance capital over time that will be running through the business.

Several years out from now and then the other thing in the fourth quarter was.

Did secure some additional third party equipment to meet an accelerated ramp schedule.

For one of our larger projects and so we pulled that in a little bit ahead of when the equipment was displayed on the site and so that was just some additional cost countless transitory in nature in the fourth quarter.

William Zartler: I appreciate all the color. Thanks, guys. Turn it back.

I appreciate all the color thanks, guys.

Operator: This concludes our question and answer session. I would like to turn the conference back over to William Zartler for any closing remarks.

This concludes our question and answer session I would like to turn the conference back over to Bill <unk> for any closing remarks.

William Zartler: Thank you all for joining us today. We're excited by the strong momentum we've built in all aspects of our business in 2025 and the significant opportunities ahead. It's rewarding to see our team grow and deliver real value in this fast-developing market. A big thank you to our dedicated employees, our trusted customers, and valued supplier partners. Your commitment makes it all possible. Thank you.

Thank you all for joining US today, we're excited about the strong momentum we built in all aspects of our business in 2025 and the significant opportunities ahead, it's rewarding to see our team grow and deliver real value in this fast evolving market.

A big thank you to our dedicated employees, our trusted customers and valued supplier partners Youre commitment makes it all possible. Thank you.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Q4 2025 Solaris Energy Infrastructure Inc Earnings Call [BACKUP]

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