Financial Data and Key Metrics Changes - In Q2, the company generated revenues of $520 million, a decrease from $600 million in Q1, reflecting market headwinds [18][32] - Adjusted EBITDA for Q2 was $79 million, down from $130 million in Q1, resulting in an adjusted EBITDA margin of 16% compared to 22% in the previous quarter [32][34] - Free cash flow improved to $54 million in Q2 from negative $14 million in Q1, demonstrating operational resilience despite challenging conditions [18][34] Business Line Data and Key Metrics Changes - Stimulation services revenues declined to $432 million in Q2 from $525 million in Q1, with adjusted EBITDA falling to $51 million from $105 million [34] - Proppant production segment revenues increased to $78 million in Q2 from $67 million in Q1, driven by higher delivered sand sales [35] - Manufacturing segment revenues decreased to $56 million in Q2 from $66 million in Q1, with a notable increase in external sales contributing to adjusted EBITDA improvement [36] Market Data and Key Metrics Changes - The company noted a stabilization in active fleet count towards the end of Q2 and into early Q3, with modest improvements in activity levels observed [22] - Increased customer engagement around 2026 planning indicates a potential uptick in activity levels compared to current conditions [43][44] - The company anticipates increased demand in the Haynesville region, positioning itself well with significant proppant production capacity [24][19] Company Strategy and Development Direction - The company emphasizes its vertically integrated manufacturing capabilities and sophisticated asset management platform as key competitive advantages [10][19] - A strategic partnership with Flotek has unlocked value and positioned the company in a multibillion-dollar market for gas quality management [16][40] - The company is focusing on a power generation strategy that targets the data center market, aiming to generate revenues decoupled from the volatility of the completions industry [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market conditions improving, with signs of increased activity and customer dialogue for 2026 planning [7][19] - The company remains disciplined in capital allocation while preparing for potential tightening in the market in early 2026 [20][50] - Management highlighted the importance of technology leadership and operational flexibility in navigating current market challenges [11][19] Other Important Information - The company reported total liquidity of approximately $108 million at the end of Q2, including $87 million available under the ABL [38] - The company executed transactions expected to provide approximately $90 million in incremental liquidity through 2025, enhancing financial flexibility [39] - The Flotek transaction involved the transfer of mobile gas conditioning units, strengthening the strategic partnership and providing financial benefits [40] Q&A Session Summary Question: Inquiry about increasing customer engagement around 2026 - Management noted a significant increase in engagement regarding 2026 programs, with operators reassessing their activity levels and some already returning to work [43][44] Question: Context on increased activity since late June - Management indicated that the uptick in activity is observed across both gas and oil markets, with a more pronounced increase in gas-directed activities [45][46]

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Results) [Executive Summary](index=1&type=section&id=Executive%20Summary) ProFrac's Q2 2025 results faced market headwinds, but operational excellence improved capital efficiency, exceeding Adjusted EBITDA less capital expenditures, with fleet redeployment and positive 2026 outlook - Q2 performance reflected market headwinds following a **sharp decline in commodity prices** in early April[4](index=4&type=chunk) - Operational excellence initiatives, particularly asset management programs, continuously **improved capital efficiency** and optimized capital investments[4](index=4&type=chunk) - **Adjusted EBITDA less capital expenditures exceeded expectations**, with the company maintaining an **industry-leading position** in this metric[4](index=4&type=chunk) - Since the end of Q2, a portion of the fleet has returned to work, and frac calendar utilization has **improved** from recent lows[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The company experienced a sequential decline in total revenue and Adjusted EBITDA in Q2 2025, with a significant net loss expansion, yet net cash flow from operating activities and free cash flow both substantially increased, while capital expenditures decreased Key Financial Data for Q2 2025 (vs. Q1) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------------- | :------------- | :------------- | :--------- | | Total Revenue | $502 million | $600 million | ↓ $98 million | | Net Loss | $104 million | $15 million | ↑ $89 million | | Adjusted EBITDA | $79 million | $130 million | ↓ $51 million | | Adjusted EBITDA as % of Revenue | 16% | 22% | ↓ 6 percentage points | | Net Cash Provided by Operating Activities | $100 million | $39 million | ↑ $61 million | | Capital Expenditures | $47 million | $53 million | ↓ $6 million | | Free Cash Flow | $54 million | $(14) million | ↑ $68 million | [Strategic Initiatives and Business Outlook](index=1&type=section&id=Strategic%20Initiatives%20and%20Outlook) The company continues to deploy the ProPilot automated frac system, deepen its partnership with Flotek for gas quality and asset integrity management, and enhance financial flexibility through debt refinancing, while Q3 outlook anticipates a sequential decline in frac services but stable proppant production - The ProPilot automated frac system has been deployed to all active fleets, aiming for **transformative improvements** in frac operations[5](index=5&type=chunk) - Collaboration with Flotek provides ownership exposure to a **highly scalable gas quality and asset integrity management business**[5](index=5&type=chunk) - Financial flexibility was enhanced through targeted debt refinancing measures, providing **incremental liquidity**[5](index=5&type=chunk) - Active fleet count in the stimulation services segment bottomed out in late June to early July, with incremental fleets redeployed as of July 31, but Q3 performance is expected to **decline sequentially**[7](index=7&type=chunk) - The proppant production segment anticipates sales volumes to be **flat with Q2 levels**, with efficiency gains expected to maintain profitability similar to Q2[8](index=8&type=chunk) [Consolidated Financial Performance](index=7&type=section&id=Consolidated%20Financial%20Performance) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) In Q2 2025, the company experienced a significant sequential decline in total revenue, leading to an expanded operating loss and a substantial increase in net loss, with both revenue and net income declining compared to the prior year period Key Data from Consolidated Statements of Operations | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Revenue | $501.9 million | $600.3 million | $579.4 million | $1,102.2 million | $1,160.9 million | | Operating Income (Loss) | $(54.3) million | $16.0 million | $(49.2) million | $(38.3) million | $(9.3) million | | Net Income (Loss) | $(103.5) million | $(15.4) million | $(65.6) million | $(118.9) million | $(62.6) million | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets and total liabilities both decreased compared to the end of 2024, with cash and cash equivalents increasing but the accumulated deficit expanding Key Data from Consolidated Balance Sheets | Metric | June 30, 2025 | Dec 31, 2024 | | :----------------------- | :------------- | :------------- | | Total Assets | $2,830.7 million | $2,988.1 million | | Total Liabilities | $1,812.4 million | $1,848.5 million | | Cash and Cash Equivalents | $26.0 million | $14.8 million | | Accumulated Deficit | $(361.9) million | $(235.9) million | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, cash flow from operating activities significantly increased, while investing activities continued to be a net cash outflow, and financing activities shifted from a net inflow in Q1 to a net outflow Key Data from Consolidated Statements of Cash Flows | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | $100.4 million | $38.7 million | $113.5 million | $139.1 million | $192.6 million | | Net Cash Used in Investing Activities | $(46.2) million | $(51.7) million | $(231.5) million | $(97.9) million | $(284.8) million | | Net Cash Provided by (Used in) Financing Activities | $(44.2) million | $14.2 million | $113.7 million | $(30.0) million | $90.9 million | [Business Segment Information](index=2&type=section&id=Business%20Segment%20Information) [Stimulation Services](index=2&type=section&id=Stimulation%20Services) The Stimulation Services segment experienced a significant sequential decline in both revenue and Adjusted EBITDA in Q2 2025, leading to a substantial contraction in profit margin Stimulation Services Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $432 million | $525 million | ↓ $93 million | | Adjusted EBITDA | $51 million | $105 million | ↓ $54 million | | Profit Margin | 12% | 20% | ↓ 8 percentage points | [Proppant Production](index=2&type=section&id=Proppant%20Production) The Proppant Production segment saw sequential revenue growth in Q2 2025, but Adjusted EBITDA decreased, resulting in margin contraction, with approximately 58% of its revenue from intercompany transactions Proppant Production Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $78 million | $67 million | ↑ $11 million | | Adjusted EBITDA | $15 million | $18 million | ↓ $3 million | | Profit Margin | 19% | 27% | ↓ 8 percentage points | | Intercompany Revenue Share | 58% | N/A | N/A | [Manufacturing](index=2&type=section&id=Manufacturing) The Manufacturing segment experienced a sequential revenue decline in Q2 2025, but Adjusted EBITDA significantly increased, leading to a substantial improvement in profit margin, with approximately 78% of its revenue from intercompany transactions Manufacturing Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $56 million | $66 million | ↓ $10 million | | Adjusted EBITDA | $7 million | $4 million | ↑ $3 million | | Profit Margin | 13% | 6% | ↑ 7 percentage points | | Intercompany Revenue Share | 78% | N/A | N/A | [Other Business Activities](index=2&type=section&id=Other%20Business%20Activities) The Other Business Activities segment saw a slight sequential revenue increase in Q2 2025, with stable Adjusted EBITDA and a minor decrease in profit margin, including performance from Flotek Industries and Livewire Power Other Business Activities Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $65 million | $62 million | ↑ $3 million | | Adjusted EBITDA | $8 million | $8 million | ↔ $0 million | | Profit Margin | 12% | 13% | ↓ 1 percentage point | - Other business activities include the performance of Flotek Industries and Livewire Power[12](index=12&type=chunk) [Capital Structure, Liquidity and Free Cash Flow](index=2&type=section&id=Capital%20Structure,%20Liquidity%20%26%20Free%20Cash%20Flow) [Capital Expenditures and Allocation](index=3&type=section&id=Capital%20Expenditures%20and%20Allocation) Cash capital expenditures decreased sequentially in Q2 2025, and the company raised its full-year 2025 capital expenditure guidance, primarily for frac fleet maintenance, selective growth, and Alpine mine improvements Capital Expenditures (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------- | :------------- | :------------- | :--------- | | Cash Capital Expenditures | $47 million | $53 million | ↓ $6 million | - The company expects 2025 capital expenditures to be approximately **$175 million to $225 million**, primarily for frac fleet maintenance, selective growth, and quality and throughput improvements at the Alpine mine[14](index=14&type=chunk) [Balance Sheet and Liquidity Position](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity%20Position) As of June 30, 2025, the company maintained high total and net debt levels, with increased cash and cash equivalents, and total liquidity of $108 million, including cash and available asset-backed credit facility Debt and Liquidity (Period End) | Metric | June 30, 2025 | Dec 31, 2024 | | :----------------------- | :------------- | :------------- | | Total Debt | $108.42 million | $110.9 million | | Total Principal Debt | $111.0 million | $113.89 million | | Net Debt | $108.4 million | $112.41 million | | Cash and Cash Equivalents | $26 million | $14.8 million | | Total Liquidity | $108 million | N/A | - Total liquidity includes approximately **$21 million in cash and cash equivalents** (excluding Flotek) and **$87 million in available asset-backed credit facility**[16](index=16&type=chunk) [Free Cash Flow Generation](index=1&type=section&id=Free%20Cash%20Flow%20Generation) The company generated $54 million in free cash flow in Q2 2025, a significant improvement from the negative value in Q1 Free Cash Flow (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------- | :------------- | :------------- | :--------- | | Free Cash Flow | $54.4 million | $(13.6) million | ↑ $68.0 million | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) [About ProFrac Holding Corp.](index=3&type=section&id=About%20ProFrac%20Holding%20Corp.) ProFrac Holding Corp. is a technology-driven, vertically integrated energy services holding company providing hydraulic fracturing, proppant production, related completion services, and supplementary products to North American unconventional oil and gas E&P companies - ProFrac Holding Corp. is a **technology-driven, vertically integrated energy services holding company**[18](index=18&type=chunk) - Core businesses include hydraulic fracturing, proppant production, related completion services, and supplementary products and services[18](index=18&type=chunk) - Operates through three business segments: Stimulation Services, Proppant Production, and Manufacturing, along with Other Business Activities[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This report defines and explains non-GAAP financial measures such as Adjusted EBITDA, Free Cash Flow, and Net Debt, used by management and investors to assess financial performance and liquidity, noting their limitations as non-substitutes for GAAP measures - **Adjusted EBITDA** is defined as net income (loss) adjusted for interest expense, income taxes, depreciation and amortization, gain or loss on asset disposals, stock-based compensation, and other items[23](index=23&type=chunk) - **Free Cash Flow** is defined as net cash provided by operating activities less investments in property, plant, and equipment, plus proceeds from asset sales[23](index=23&type=chunk) - **Net Debt** is defined as total debt plus unamortized debt discounts, premiums, and issuance costs, less cash and cash equivalents[26](index=26&type=chunk) - These non-GAAP measures are supplementary and should not be considered substitutes for GAAP financial measures, and may not be comparable to similarly titled measures used by other companies[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements about future events or financial performance, based on current assumptions but subject to risks and uncertainties that may cause actual results to differ materially, with no obligation to update unless legally required - Forward-looking statements involve future events or the company's future financial or operating performance, often accompanied by words such as "may," "should," and "expect"[20](index=20&type=chunk) - Actual results may differ materially from forward-looking statements due to various risks and uncertainties, including acquisition benefits, market conditions, capital requirements, industry fluctuations, and economic conditions[20](index=20&type=chunk) - Readers should not place undue reliance on forward-looking statements, and the company undertakes no obligation to update them unless required by law[21](index=21&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call) ProFrac has scheduled a conference call for Thursday, August 7, 2025, at 11:00 AM ET / 10:00 AM CT to discuss results, with a webcast archive available on the company's investor relations website for 90 days - The conference call is scheduled for **Thursday, August 7, 2025, at 11:00 AM ET / 10:00 AM CT**[17](index=17&type=chunk) - An archive of the webcast will be available for **90 days** shortly after the call in the IR Calendar section of ProFrac's investor relations website[17](index=17&type=chunk)

Core Viewpoint - Flotek Industries (FTK) is strategically expanding its Data Analytics Services (DAS) segment through the acquisition of mobile gas monitoring and dual-fuel optimization units, aiming to build recurring, high-margin revenues from real-time gas analytics and remote power solutions [1][2]. Group 1: Acquisition Details - In April 2025, Flotek acquired 30 mobile gas monitoring and dual-fuel optimization units from ProFrac Holding Corp. for $105 million [1]. - The transaction is expected to generate $14 million in EBITDA in 2025 from 22 units already deployed under a six-year lease [2]. - Once all 30 units are operational, annual lease revenues could reach $27.4 million in 2026, nearly double the DAS segment's revenues in 2024 [2]. Group 2: Strategic Positioning - The acquisition strengthens Flotek's partnership with ProFrac and positions the company to capitalize on the growing off-grid energy market [3]. - This move enhances Flotek's competitiveness in gas analytics and on-site power management, which are critical as industries aim to reduce flaring and improve fuel efficiency [3]. Group 3: Competitive Landscape - Compared to larger rival ChampionX, which has not adopted a lease-based model for its analytics technology, Flotek's hybrid approach combines hardware with built-in analytics and long-term leases [4][5]. - ChampionX's digital revenues remain modest, and its reliance on short-cycle markets adds volatility, highlighting Flotek's differentiated strategy [4]. Group 4: Financial Performance and Estimates - Flotek's shares have increased approximately 54% year to date [8]. - The company trades at a forward price-to-earnings ratio of 24.98, significantly higher than the subindustry's 12.19 [9]. - The Zacks Consensus Estimate for Flotek's 2025 earnings indicates a 56% year-over-year improvement, with estimates of $0.53 for the current year and $0.67 for the next year [11][12].

Group 1: Earnings Performance - ProFrac Holding Corp. reported a quarterly loss of $0.11 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.32, representing an earnings surprise of 65.63% [1] - The company posted revenues of $600.3 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 22.84% and showing an increase from $581.5 million year-over-year [2] - Over the last four quarters, ProFrac has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Group 2: Stock Performance and Outlook - ProFrac Holding Corp. shares have declined approximately 41.2% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.24 on revenues of $526.07 million, and -$0.91 on revenues of $2.08 billion for the current fiscal year [7] - The Zacks Rank for ProFrac is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Alternative Energy - Other industry, to which ProFrac belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Performance - Total revenue for Q1 2025 was $600.3 million, an increase of $18.8 million or 3.2% from Q1 2024[96] - Net loss attributable to ProFrac Holding Corp. for Q1 2025 was $17.5 million, a decrease of $19.3 million from Q1 2024[96] - Stimulation Services revenue increased by $7.2 million, or 1%, to $524.5 million in Q1 2025 compared to Q1 2024[97] - Proppant Production revenue decreased by $10.4 million, or 13%, to $67.3 million in Q1 2025 due to lower average pricing[98] - Manufacturing revenue increased by $22.3 million, or 51%, to $65.8 million in Q1 2025, driven by higher intercompany demand[99] Costs and Expenses - Total cost of revenues for Q1 2025 was $419.4 million, an increase of $45.7 million or 12.2% from Q1 2024[101] - Selling, general and administrative expenses increased by $3.0 million, or 6%, to $53.6 million in Q1 2025, primarily due to labor and facility costs from acquisitions[106] Cash Flow - Cash provided by operating activities for Q1 2025 was $38.7 million, a decrease of $40.4 million from Q1 2024[96] - Net cash provided by operating activities decreased to $38.7 million in Q1 2025 from $79.1 million in Q1 2024, primarily due to lower earnings[121] - Net cash used in investing activities was $51.7 million in Q1 2025, slightly down from $53.3 million in Q1 2024[122] - Net cash provided by financing activities was $14.2 million in Q1 2025, compared to a net cash used of $22.8 million in Q1 2024[123] Debt and Capital Expenditures - Long-term debt increased by $15.5 million to $1,154.4 million as of March 31, 2025[96] - As of March 31, 2025, the company had $1,154.4 million in long-term debt, with $151.8 million due in the next twelve months[124] - Capital expenditures for Q1 2025 were $52.5 million, with full-year estimates ranging from $150 million to $175 million for maintenance and an additional $100 million to $125 million for growth initiatives[128] - The company has identified potential capital expenditure reductions of $70 million to $100 million to align with market conditions[128] Future Outlook - The company expects consolidated results to decline in Q2 2025 due to reduced capital spending by customers[94] - The company is closely monitoring compliance with a covenant requiring a maximum Total Net Leverage Ratio of 2.00 to 1.00, effective from Q1 2026[126] Tax and Interest Obligations - Estimated tax receivable agreement obligations were $86.2 million, with $3.3 million due in the next twelve months[131] - A 1% increase in interest rates on variable-rate debt would increase annual interest payments by approximately $11.1 million[136] Purchase Commitments - As of March 31, 2025, the company had purchase commitments of $41.6 million for hydraulic fracturing equipment components and proppant[130]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $600 million, a 32% increase from $455 million in Q4 2024, while adjusted EBITDA rose 83% to $130 million from $71 million in the previous quarter [7][31][20] - The adjusted EBITDA margin improved to 22% compared to 16% in Q4 2024 [31] - Free cash flow was a net use of cash of approximately $14 million, a decline of about $68 million from the previous quarter, primarily due to investments in working capital [32] Business Line Data and Key Metrics Changes - The Stimulation Services segment generated revenues of $525 million in Q1, up from $384 million in Q4, with adjusted EBITDA increasing to $105 million from $54 million [33] - The Proppant Production segment saw revenues rise to $67 million from $47 million, driven by a 53% increase in sales volumes, although EBITDA margins decreased to 27% from 31% due to ramp-up costs [34] - The Manufacturing segment's revenues increased by 6% sequentially to $66 million, with adjusted EBITDA improving to approximately $4 million [35] Market Data and Key Metrics Changes - The company noted a significant improvement in active fleet count, particularly in the Eagle Ford and Permian regions, with six fleets returning to service early in Q1 [23] - The natural gas market showed resilience, with expectations for increased activity in the second half of 2025, particularly in the Haynesville region [19][28] Company Strategy and Development Direction - The company is focused on proactive customer engagement and maintaining long-term relationships with key operators, emphasizing the importance of efficient and scalable offerings [13] - A strategic transaction with Flotek was completed, enhancing the company's capabilities in gas quality assurance and asset integrity, which is expected to drive future growth [12][28] - The company is implementing strategic adjustments to its capital allocation plan to maximize cash flow generation while ensuring high-quality service [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted economic uncertainties due to tariffs and OPEC's increased oil production, which have impacted commodity prices and spending outlooks [16][18] - There is an expectation of a decline in activity levels in Q2 relative to Q1, but operators are maintaining flexibility to resume operations when market conditions improve [19][20] - The company remains optimistic about the natural gas market and its position in the Haynesville, anticipating potential upside in the latter half of the year [19][21] Other Important Information - The company has identified potential CapEx reductions of $70 million to $100 million to align with evolving market conditions [30] - Total liquidity at the end of Q1 was approximately $76 million, with $66 million available under the ABL credit facility [36] Q&A Session Summary Question: Can you provide more specific guidance on the second quarter outlook? - Management acknowledged a pullback in Q2 but noted uncertainty regarding the extent, emphasizing customer-specific evaluations [41][42] Question: What is the capacity of the electric frac assets deployed? - Most electric fleets are on long-term contracts and remain fully utilized, with seven fleets in total [44][46] Question: Can you comment on the performance of specific fleets and what has changed recently? - Management noted record-breaking pump times across the fleet, attributing success to operations and asset management programs [53][54] Question: How do you expect Q4 seasonality to impact performance this year? - Management anticipates a muted seasonal slowdown in Q4 compared to previous years, with strong gas market fundamentals [58][60] Question: What are the pricing dynamics in the Haynesville versus West Texas? - The company sees significant opportunities in the Haynesville, with a focus on balancing volumes and pricing, while navigating challenges in West Texas [68][70]

Financial Data and Key Metrics Changes - In Q1 2025, ProFrac reported revenue of $600 million, a 32% increase from $455 million in Q4 2024, while adjusted EBITDA rose 83% to $130 million from $71 million in the previous quarter [5][29][30] - The adjusted EBITDA margin improved to 22% in Q1 from 16% in Q4 [30] Business Line Data and Key Metrics Changes - The Stimulation Services segment generated $525 million in revenue in Q1, up from $384 million in Q4, with adjusted EBITDA increasing to $105 million from $54 million [30] - The Proppant Production segment saw revenues rise to $67 million in Q1 from $47 million in Q4, driven by a 53% increase in sales volumes [31] - The Manufacturing segment's revenue increased by 6% sequentially to $66 million, with adjusted EBITDA improving to approximately $4 million [33] Market Data and Key Metrics Changes - The company experienced a significant improvement in active fleet count, with six fleets returning to service early in Q1, particularly in the Eagle Ford and Permian regions [21] - Demand for next-gen natural gas burning equipment remained resilient compared to diesel assets [21] Company Strategy and Development Direction - ProFrac is focused on leveraging its in-house R&D, manufacturing, and maintenance capabilities to enhance operational efficiency and customer service [5][19] - The company completed a strategic transaction with Flotek, enhancing its gas quality assurance and asset integrity solutions, which is expected to drive future growth [10][19] - ProFrac is optimistic about the potential in the Haynesville region, particularly for natural gas-directed activity [17][26] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty from tariffs and OPEC's production increase has impacted commodity prices and spending outlook [14][15] - Operators are expected to reduce activity in Q2 relative to Q1, but some maintain flexibility to resume operations quickly when conditions improve [15][16] - The natural gas market is showing resilience, with potential for increased activity in the second half of 2025 [17][19] Other Important Information - The company identified potential CapEx reductions of $70 million to $100 million to align with evolving market conditions [28] - Total cash and cash equivalents as of March 31, 2025, were approximately $16 million, with total liquidity at about $76 million [34] Q&A Session Summary Question: Can you provide more specific guidance on the second quarter outlook? - Management acknowledged a pullback in Q2 but noted uncertainty on the degree, emphasizing customer-specific evaluations [39][41] Question: What is the capacity of your electric frac assets? - Most electric fleets are on long-term contracts and remain fully utilized, with seven electric frac fleets deployed [43][45] Question: Can you comment on the performance of specific fleets? - Record-breaking pump times were noted across the fleet, attributed to operational excellence and asset management [51][53] Question: How do you expect Q4 seasonality to impact performance? - Management expects a muted seasonal slowdown in Q4 compared to previous years, with strong gas market fundamentals [57][59] Question: What are the pricing dynamics in the Haynesville versus West Texas? - The Haynesville market is expected to provide significant opportunities, with a focus on balancing volumes and pricing [67][68]

Financial Performance - Total revenue for Q1 2025 was $600 million, a 32% increase from $455 million in Q4 2024[5] - Adjusted EBITDA for Q1 2025 was $130 million, representing an 83% increase from $71 million in Q4 2024, and 22% of revenue compared to 16% in Q4 2024[5] - Net loss for Q1 2025 was $15 million, significantly improved from a net loss of $102 million in Q4 2024[5] - Operating income for the same period was $16.0 million, compared to a loss of $46.8 million in the previous quarter[31] - Net loss attributable to ProFrac Holding Corp. was $17.5 million for the three months ended March 31, 2025, an improvement from a loss of $105.0 million in the previous quarter[31] - Adjusted EBITDA for the three months ended March 31, 2025, was $129.5 million, up from $70.8 million in the previous quarter[33] Segment Performance - Stimulation Services segment generated revenues of $525 million in Q1 2025, with an Adjusted EBITDA margin of 20%, up from 14% in Q4 2024[8] - Proppant Production segment revenues were $67 million in Q1 2025, with an Adjusted EBITDA margin of 27%, down from 31% in Q4 2024[9] - Manufacturing segment revenues increased to $66 million in Q1 2025, with an Adjusted EBITDA margin of 6%, up from 5% in Q4 2024[10] - Stimulation services revenue increased to $524.5 million for the three months ended March 31, 2025, from $384.4 million in the previous quarter[34] Cash Flow and Debt - Free cash flow for Q1 2025 was $(14) million, a decrease from $54 million in Q4 2024[5] - Total debt outstanding as of March 31, 2025, was $1.15 billion, with net debt of $1.14 billion[14] - The total principal amount of debt as of March 31, 2025, was $1,154.4 million, compared to $1,138.9 million at the end of 2024[35] - For the three months ended March 31, 2025, net cash provided by operating activities was $38.7 million, down from $76.5 million for the same period in 2024[36] - ProFrac's free cash flow for the three months ended March 31, 2025, was negative $13.6 million, a significant decrease from positive $54.3 million in the previous quarter[36] Assets and Liabilities - Total assets increased to $3,020.9 million as of March 31, 2025, compared to $2,988.1 million as of December 31, 2024[30] - Total liabilities rose to $1,896.8 million as of March 31, 2025, compared to $1,848.5 million as of December 31, 2024[30] - The company reported a decrease in accumulated deficit to $(254.7) million as of March 31, 2025, from $(235.9) million as of December 31, 2024[30] Capital Expenditure and Investments - The Company has identified potential capital expenditure reductions of approximately $70-100 million to align with market conditions[13] - Investment in property, plant, and equipment for the three months ended March 31, 2025, was $52.5 million, compared to $63.2 million in the previous quarter[36] - Proceeds from the sale of assets for the three months ended March 31, 2025, were $0.2 million, a decrease from $41.0 million in the previous quarter[36] Future Outlook - ProFrac Holding Corp. plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[31]

Company Overview - ProFrac Holding Corp. (ACDC) shares increased by 23% to close at $5.30, following a significant volume of trading, contrasting with a 40.6% loss over the previous four weeks [1] - An analyst from Stifel has raised the target price for ProFrac Holding Corp.'s stocks, potentially contributing to the recent price increase [1] Earnings Expectations - ProFrac Holding Corp. is expected to report a quarterly loss of $0.31 per share, reflecting a year-over-year change of -1133.3% [2] - Revenue expectations for the upcoming report stand at $488.95 million, which is a decrease of 15.9% compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for ProFrac Holding Corp. has been revised 11.7% lower over the last 30 days [3] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, indicating caution for future stock performance [3] Industry Context - ProFrac Holding Corp. operates within the Zacks Alternative Energy - Other industry, where Ormat Technologies (ORA) is another player [3] - Ormat Technologies has seen a consensus EPS estimate change of -10.9% over the past month, with a current estimate of $0.58, which is a decline of 10.8% from the previous year [4]

Core Viewpoint - JP Morgan analyst Arun Jayaram maintains an Underweight rating on ProFrac Holding Corp. (ACDC) with a price target of $7, following disappointing fourth-quarter results that missed sales expectations and reported a significant net loss [1]. Financial Performance - ACDC reported fourth-quarter sales of $454.7 million, falling short of the consensus estimate of $479.3 million, and recorded a net loss of $105.0 million compared to a loss of $45.2 million in the same quarter last year [1]. - The results were impacted by misses in EBITDA and free cash flow (FCF) attributed to seasonality and a weaker macroeconomic environment [1]. Operational Insights - Management noted an increase in ACDC's active fleet count, reaching its highest level since mid-2024, with six additional fleets secured since the fourth-quarter low point [2]. - The company expects lower average pricing to slightly offset modestly higher activity in Stimulation Services year-over-year [2]. - Continued industry-wide equipment attrition is anticipated due to higher hours pumped per fleet and lower reinvestment levels [2]. Future Projections - The analyst estimates an average of 29.3 fleets in the first quarter of 2025, leading to Stimulation Services EBITDA of approximately $80 million [3]. - Profitability is expected to improve as utilization increases across business units throughout the year, albeit at a slower pace [3]. - Revised EBITDA forecasts for 2025 and 2026 are $472 million and $588 million, down from previous estimates of $543 million and $680 million, respectively [3]. Cash Flow and Capital Expenditure - Projected FCF generation for 2025 and 2026 is $78 million and $184 million, respectively, with capital expenditures estimated at $340 million and $447 million for the same periods [4]. - Investors can gain exposure to ACDC through the Invesco Oil & Gas Services ETF (PXJ) [4]. Stock Performance - ACDC shares are down 1.65%, trading at $7.15 as of the last check on Monday [4].