Solaris Energy (SEI) Stock Jumps 4% as Third Data Center Deal Steals the Show

TLDR

• Solaris Energy (SEI) stock rose 4.2% on Tuesday after securing its third data center power contract
• The new deal covers 600+ megawatts of capacity with a global tech firm, running for 10 years
• Q1 earnings of 32 cents per share came in just below the 33-cent Wall Street estimate
• Q1 revenue of $196.2 million beat expectations of $183.4 million, up 55% year-over-year
• Morgan Stanley maintained its Overweight rating and $81 price target on SEI

Solaris Energy Infrastructure stock jumped Tuesday after announcing a third long-term power contract with a major technology company, offsetting a slim earnings miss.

Solaris Energy Infrastructure, Inc., SEI

The stock climbed as high as $81.24 before closing up 4.2% at $73.66. SEI is up 54% in 2026, with 25% of that gain coming in April alone.

The new deal, signed April 24, will see Solaris deliver more than 600 megawatts of power capacity to an affiliate of an “investment-grade, global technology company.” The contract runs for 10 years, with an option to extend by five more.

Solaris expects to begin power deployments in late 2026 and scale through 2028.

On the earnings front, Q1 came in at 32 cents per share — up from 14 cents a year ago, but one cent short of analyst estimates. Revenue told a better story, rising 55% year-over-year to $196.2 million, ahead of the $183.4 million Wall Street was expecting.

From Oil Fields to Data Centers

Solaris made its move into the data center power space in 2024, when it acquired Mobile Energy Rentals for $323 million. That deal gave the company access to mobile gas turbines and on-site power generation capabilities.

Now, Solaris provides primary power, equipment procurement, and engineering services directly to data centers — bypassing the electric grid entirely. Co-CEO Bill Zartler said on Tuesday’s earnings call that grid interconnection delays are pushing customers toward behind-the-meter power solutions, and Solaris is positioned to benefit.

He also noted the company is in active discussions with both existing and new customers for additional projects.

Morgan Stanley Backs the Deal

Morgan Stanley analyst David Arcaro said the latest contract “strengthens” the firm’s Overweight rating and $81 price target on SEI.

Arcaro estimates the 600-megawatt deal — assuming $300 per kilowatt — could create around $450 million in value, or roughly $5 per share. He also expects Solaris’s valuation multiple to expand as long-term contract visibility improves.

That said, Arcaro flagged that margins on long-term contracts could come in lower, and that the conservative Q3 guidance may reflect an uncertain ramp pace on new contracts.

On guidance, Solaris raised its Q2 adjusted EBITDA outlook to $83–$93 million, up from the prior $76–$84 million range. The company set Q3 adjusted EBITDA guidance at $80–$95 million — with a midpoint below Wall Street’s $100.5 million estimate.

Management attributed the softer Q3 outlook to shifting dynamics in a joint venture project and new equipment deliveries scheduled for the second half of 2026.

Solaris’s current P/E ratio sits at 99.48x, reflecting elevated growth expectations. GF Score rates the company at 77/100, with a growth rank of 9/10 but a financial strength rating of just 5/10.

Insider activity over the past year shows 11 sells and 7 buys — a mixed picture worth keeping an eye on.

The post Solaris Energy (SEI) Stock Jumps 4% as Third Data Center Deal Steals the Show appeared first on CoinCentral.