Solaris is no longer primarily an oilfield last-mile equipment vendor. The company is becoming a behind-the-meter power landlord for hyperscale computing, and the second quarter showed that existing customers are widening both megawatts and scope rather than shopping the work elsewhere. Three long-term contract expansions, including a Hatchbo turnkey plant sized near 660 megawatts with batteries and energy-management systems built for artificial-intelligence loads, are the mechanism. Management ties those amendments to more than $100 million of expected annual adjusted earnings before interest, taxes, depreciation and amortization. That is the new franchise, not a side project.
The tension is that reported earnings do not yet look like a completed conversion. Adjusted earnings before interest, taxes, depreciation and amortization rose by about a third sequentially even as diluted Class A earnings slipped versus the year-ago quarter. A larger share count, a mid-teens million loss on extinguishing acquisition loans, and higher interest after the inaugural senior notes all sit between operating profit and the residual claim. Logistics still throws off cash, but last-mile activity cooled. Power is carrying the story, and Power is still concentrated in a handful of technology counterparties.
The June quarter printed revenue of $219 million. Adjusted earnings before interest, taxes, depreciation and amortization reached $108 million, with about 950 megawatts earning. After the September guidance raise, the first quarter of next year is framed at $200 million to $240 million of the same adjusted metric. The open question is whether Stateline and the expanded Hatchbo-class plants start on the advertised timetable, or whether interest, dilution, and a single large data-center customer keep converting contracted megawatts into a thinner residual.