Revenue and Income - Revenue decreased by $191.2 million, or 17%, to $947.4 million for Q3 2025 compared to $1.1 billion for Q3 2024[146] - Net income for Q3 2025 was $43.1 million, down from $73.8 million in Q3 2024, representing a decrease of $30.7 million[146] - Revenue for the nine months ended September 30, 2025, decreased by $404.2 million, or 12%, to $3.0 billion compared to $3.4 billion for the same period in 2024[155] - The Company reported a net income of $134.2 million for the nine months ended September 30, 2025, a decrease of 49% compared to $264.1 million for the same period in 2024[170] Costs and Expenses - Cost of services decreased by $70.5 million, or 8%, to $769.8 million for Q3 2025 compared to $840.3 million for Q3 2024[148] - Cost of services for the nine months ended September 30, 2025, decreased by $115.3 million, or 5%, to $2.3 billion compared to $2.5 billion for the same period in 2024[156] - General and administrative expenses increased by $13.1 million, or 8%, to $182.4 million for the nine months ended September 30, 2025, primarily due to increased stock-based compensation[157] EBITDA and Adjusted EBITDA - EBITDA for the nine months ended September 30, 2025, was $588.8 million, down 20.6% from $741.9 million in the prior year[167] - Adjusted EBITDA decreased by 62.3% to $476.6 million for the nine months ended September 30, 2025, compared to $765.9 million for the same period in 2024[167] Cash and Financing - Cash and cash equivalents decreased by $6.5 million to $13.5 million as of September 30, 2025, compared to $20.0 million as of December 31, 2024[169] - Net cash provided by operating activities was $414.2 million for the nine months ended September 30, 2025, a decrease of $237.9 million from $652.1 million in 2024[178] - The Company has a share repurchase program authorized for up to $750.0 million, with $24.0 million repurchased during the nine months ended September 30, 2025[176] - As of September 30, 2025, the Company had $253.0 million outstanding under its revolving credit facility, with $132.1 million of remaining availability[171] - The Company plans to raise significant funds through debt, equity, or strategic alliances to support its expansion into the distributed power business[168] Taxation - The effective global income tax rate for the nine months ended September 30, 2025, was 24.7%, up from 23.5% for the same period in 2024[185] - The Company recognized an income tax expense of $12.0 million and $43.9 million for the three and nine months ended September 30, 2025, respectively, compared to $22.2 million and $81.2 million for the same periods in 2024[185] - As of September 30, 2025, the Company's net deferred tax liabilities were $180.9 million, an increase from $137.7 million as of December 31, 2024[186] - The effective tax rate is higher than the statutory federal income tax rate of 21.0% due to state income taxes and nondeductible executive compensation[185] Foreign Currency and Market Risks - For the three months ended September 30, 2025, the Company recorded a foreign currency translation loss of $2.4 million, while for the nine months, it recorded a gain of $3.7 million[192] - The Company operates in Canada and Australia, exposing it to market risks from fluctuations in foreign currency exchange rates[191] Acquisitions and New Ventures - The Company completed the acquisition of IMG Energy Solutions for approximately $19.6 million, enhancing its capabilities in distributed power systems[139] - The Company launched Liberty Power Innovations LLC to support the transition to natural gas fueled technologies and expand into the distributed power business[138] - The Company acquired IMG Energy Solutions for approximately $15.2 million during the nine months ended September 30, 2025[180] Accounting Policies - There have been no material changes in the evaluation of critical accounting policies and estimates since the Annual Report[190] - The Company bases its critical accounting estimates on historical experience and various assumptions deemed reasonable[189] - Adjustments from the translation of subsidiary financial statements are reported in other comprehensive income[192]

Core Insights - U.S. stocks experienced a mostly positive session, with the Dow Jones index increasing by over 150 points on Friday [1] Company Highlights - Revolution Medicines Inc (NASDAQ:RVMD) saw a significant share price increase of 11.2%, reaching $55.25, after the FDA granted a non-transferrable voucher for its drug daraxonrasib under the National Priority Voucher pilot program [1] - Disc Medicine Inc (NASDAQ:IRON) shares surged by 25.7% to $93.50 following the receipt of a Commissioner's National Priority Voucher from the FDA for bitopertin [4] - Liberty Energy Inc (NYSE:LBRT) reported a 23.4% increase in share price to $14.73 after announcing third-quarter results [4] - Solana Co (NASDAQ:HSDT) shares rose by 19.5% to $12.08 [4] - Sealsq Corp (NASDAQ:LAES) experienced a 14.4% increase, reaching $7.28 [4] - Rekor Systems Inc (NASDAQ:REKR) shares gained 13.3% to $2.94 [4] - Praxis Precision Medicines Inc (NASDAQ:PRAX) saw a 12.5% increase to $183.00 after announcing a $525 million public offering [4] - Sify Technologies Ltd (NYSE:SIFY) shares rose by 11.8% to $13.15 [4] - Kenvue Inc (NYSE:KVUE) increased by 8.4% to $15.30 [4] - Propetro Holding Corp (NYSE:PUMP) surged by 7.6% to $5.52 [4] - Owens & Minor Inc (NYSE:OMI) shares gained 6.7% to $4.90 [4] - American Express Co (NYSE:AXP) reported a 6% increase in share price to $342.57, surpassing analyst estimates for revenue and adjusted earnings per share [4] - AppFolio Inc (NASDAQ:APPF) shares increased by 4.7% to $233.90, with an upgrade from Keybanc analyst Jason Celino from Sector Weight to Overweight and a new price target of $285 [4]

Financial Data and Key Metrics Changes - Liberty Energy reported revenue of $947 million in Q3 2025, a decrease of 9% sequentially from $1 billion in the prior quarter [18] - Adjusted EBITDA for the third quarter was $128 million, down from $181 million in the previous quarter [19] - Net income for Q3 was $43 million, compared to $71 million in the prior quarter, with adjusted net loss of $10 million compared to adjusted net income of $20 million in the previous quarter [18][19] - Fully diluted net income per share was $0.26, down from $0.43 in the prior quarter [19] - The company ended the quarter with a cash balance of $13 million and net debt of $240 million, which increased by $99 million from the prior quarter [19] Business Line Data and Key Metrics Changes - The company achieved the highest combined average daily pumping efficiency and safety performance in its history, despite a slowdown in industry completions activity [4] - DigiPrime fleets showed outstanding performance, with significant cost improvements and efficiency metrics [5][6] - General and administrative expenses remained flat at $58 million, including $5 million in non-cash stock-based compensation [19] Market Data and Key Metrics Changes - Oil and gas industry frac activity has fallen below levels required to sustain North American oil production, leading to a moderation in completions [10][11] - The company anticipates that the moderation in activity is transitory, with long-term gas demand and related completions activity on a favorable trajectory [11][12] - Pricing pressure is primarily affecting conventional fleets due to lower industry activity and underutilized fleets [12] Company Strategy and Development Direction - Liberty Energy is focused on expanding its power generation services, with plans to deliver over one gigawatt of capacity by 2027 [10][21] - The company is committed to driving innovation in technology and service quality, leveraging its Digi Technologies platform to enhance operational efficiencies [13][15] - The strategic acquisition of SLB's completion technologies is seen as a key factor in enhancing the company's competitive position [7] Management's Comments on Operating Environment and Future Outlook - Management expects market headwinds to persist in the near term but believes the company is well-positioned to capitalize on future opportunities [5][10] - The leadership team is confident in the growth trajectory of the power business and anticipates further increases in power generation capacity to meet growing demand [10][21] - Management highlighted the importance of long-term partnerships and the need for a strategic approach to securing contracts in the power generation sector [25][56] Other Important Information - The company recently welcomed Alice Yake to its Board, an expert in energy and infrastructure, to guide its power services efforts [15] - Liberty Energy is focused on maintaining a strong balance sheet while investing in both its frac and power businesses [85] Q&A Session Summary Question: Visibility on demand for power generation assets - Management noted that the sales pipeline for power generation has more than doubled in the last 90 days, with increased urgency in customer demand [25] Question: Financing for capacity growth - The company plans to use project-specific debt backed by long-term contracts, with expectations of covering approximately 70% of capital needs through debt [34] Question: Handling transient response for data centers - Management is developing tailored solutions for transient loads, working closely with engineering teams and partners [39] Question: Capital allocation between frac and power - The frac business remains a strong cash generator, and the company will invest in both businesses as opportunities arise without being capital limited [85] Question: Equipment ordering and delivery timelines - The average timeline from equipment delivery to revenue generation is about six months, depending on the technology used [74] Question: Technology evolution in power generation - The company continues to favor gas reciprocating engines but acknowledges the role of turbines and other technologies in its future power generation strategy [90]

Financial Data and Key Metrics Changes - Liberty Energy reported revenue of $947 million in Q3 2025, a decrease of 9% from $1 billion in the previous quarter [16][17] - Adjusted EBITDA for the third quarter was $128 million, down from $181 million in the prior quarter [17] - Net income for Q3 was $43 million, compared to $71 million in the previous quarter, with an adjusted net loss of $10 million versus adjusted net income of $20 million in the prior quarter [17] - Fully diluted net income per share was $0.26, down from $0.43 in the prior quarter, while adjusted net loss per diluted share was $0.06 compared to a profit of $0.12 in the previous quarter [17] - The company ended the quarter with a cash balance of $13 million and net debt of $240 million, which increased by $99 million from the prior quarter [18] Business Line Data and Key Metrics Changes - The company’s DigiPrime fleets achieved record performance in pumping hours, horsepower hours, and proppant volumes during the quarter [4][5] - The DigiPrime pumps realized maintenance cost savings greater than 30% compared to conventional technologies [5] - AI-driven software, STEM Commander, improved stage execution time by 65% and hydraulic efficiency by 5% to 10% [6] Market Data and Key Metrics Changes - Oil and gas industry frac activity has fallen below levels required to sustain North American oil production, leading to a moderation in completions [10][11] - The slowdown in oil markets has offset increased demand for natural gas fleet activity, although long-term fundamentals remain encouraging [11] - The company anticipates a stabilization of industry activity levels and a potential uptick in 2026, assuming supportive commodity prices [19] Company Strategy and Development Direction - Liberty Energy is focused on expanding its power generation services, with plans to secure additional power generation capacity to exceed one gigawatt by 2027 [10][19] - The company is committed to leveraging technology innovation and service quality to strengthen its competitive position [4][12] - The strategic acquisition of SLB's completion technologies is expected to enhance operational efficiency and performance [6][8] Management's Comments on Operating Environment and Future Outlook - Management anticipates that market headwinds will persist in the near term but believes the company is well-positioned to capitalize on future opportunities [4][10] - The leadership team expressed confidence in the growth trajectory of the power business, driven by increasing demand for reliable energy solutions [10][20] - Management noted that the current downturn in frac activity is expected to be transitory, with a favorable trajectory for long-term gas demand [11][12] Other Important Information - The company increased its quarterly cash dividend by 13% to reflect confidence in future growth and commitment to shareholder value [20] - Alice Yake, an energy and infrastructure expert, was welcomed to the board to guide the company’s power services efforts [14] Q&A Session Summary Question: Visibility on demand for power generation assets - Management noted that the sales pipeline for power generation has more than doubled in the last 90 days, with increased urgency in customer demand [25][26] Question: Financing for capacity growth - The financing for power plants will likely involve long-term Energy Services Agreements (ESAs) and project-specific debt, with approximately 70% of capital needs potentially covered by debt [32] Question: Handling transient response for data centers - The company is developing proprietary solutions tailored to specific generation assets to meet transient load demands [35][36] Question: Capital allocation between frac and power - Management stated that investments in the frac business will continue based on the timing of the cycle, and there will be no capital limitations affecting both businesses [71] Question: Equipment ordering and delivery specifics - The majority of incremental capacity will consist of gas reciprocating engines, with turbines playing a role in the future [74][75]

Core Insights - Liberty Energy Inc. reported a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent, and a significant decrease from a profit of 45 cents in the same quarter last year [1][9] - Revenues totaled $947 million, missing the Zacks Consensus Estimate by $12 million and down 17% from the prior-year quarter's $1.1 billion due to a slowdown in completions activity [2][9] - Adjusted EBITDA was $128 million, a sharp decline of 48% from $248 million in the year-ago quarter and below the estimate of $157.1 million [2] Financial Performance - Total costs and expenses were reported at $949.8 million, a decrease of 7.9% from the previous year's level, but higher than the estimated $938.7 million [6] - The company returned $13 million to shareholders through quarterly cash dividends during the quarter [5] - As of September 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents, with long-term debt of $253 million, resulting in a debt-to-capitalization ratio of 10.9% [7] Operational Highlights - Liberty Energy achieved the highest combined average daily pumping efficiency and safety performance in its history and sold significant amounts of sand from its mines [3] - The company launched Forge, a large language model for intelligent asset orchestration, and increased its total power generation capacity to over one gigawatt, expected to be delivered through 2027 [4] Management Outlook - Management noted that frac activity in North America has dipped below levels needed to sustain oil production due to economic uncertainty, but expects a temporary moderation with a potential recovery in activity next year [8][10] - The demand for next-generation frac fleets is projected to remain strong as operators focus on fuel efficiency and lower emissions [11] - The company is optimistic about its power opportunities driven by AI computing, electrification, and industrial reshoring, positioning itself to deliver reliable, cost-stable power solutions [11]

Core Insights - Liberty Oilfield Services reported a quarterly loss of $0.06 per share, missing the Zacks Consensus Estimate of a loss of $0.01, and a significant decline from earnings of $0.45 per share a year ago [1] - The company’s revenue for the quarter was $947.4 million, which was 1.22% below the Zacks Consensus Estimate and down from $1.14 billion year-over-year [3] - The stock has underperformed the market, losing approximately 38% since the beginning of the year, while the S&P 500 has gained 13.4% [4] Earnings Performance - The earnings surprise for the latest quarter was -500.00%, following a previous quarter where the company reported earnings of $0.12 against an expectation of $0.14, resulting in a surprise of -14.29% [2] - Over the last four quarters, Liberty Oilfield Services has surpassed consensus EPS estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $883.31 million, and for the current fiscal year, it is $0.40 on revenues of $3.86 billion [8] - The estimate revisions trend for Liberty Oilfield Services has been unfavorable, leading to a Zacks Rank of 4 (Sell), indicating expected underperformance in the near future [7] Industry Context - The Oil and Gas - Field Services industry, to which Liberty Oilfield Services belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting a challenging environment [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [6]

[Summary Results and Highlights](index=1&type=section&id=Summary%20Results%20and%20Highlights) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ron Gusek highlighted solid Q3 2025 operational results, record efficiency, and safety, driven by digiPrime and StimCommander, with a strengthening power business - Liberty achieved revenue of **$947 million** and Adjusted EBITDA of **$128 million** in Q3 2025, despite a slowdown in industry completions activity and market pricing pressure[3](index=3&type=chunk) - The company delivered the highest combined average daily pumping efficiency and safety performance in Liberty's history[3](index=3&type=chunk) - digiPrime pumps are realizing measurable cost improvements, with early indications showing total maintenance cost savings greater than **30%** relative to conventional technologies[3](index=3&type=chunk) - AI-driven automated and intelligent rate and pressure control software, StimCommander, is driving a **65% improvement** in time to deliver desired fluid injection rate and a **5% to 10% improvement** in hydraulic efficiency[3](index=3&type=chunk) - Liberty's power opportunities are strengthening, with total power generation capacity increasing to over **one gigawatt** expected to be delivered through 2027[3](index=3&type=chunk)[6](index=6&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Liberty Energy reported Q3 2025 revenue of **$947 million** and Adjusted EBITDA of **$128 million**, increased its dividend, and achieved record efficiency with Forge launch Q3 2025 Key Financial Metrics | Metric | Q3 2025 | Sequential Change | | :----- | :------ | :------------------ | | Revenue | $947 million | 9% decrease | | Net income | $43 million | | | Fully diluted EPS | $0.26 | | | Adjusted EBITDA | $128 million | | - Distributed **$13 million** to shareholders through cash dividends and increased quarterly cash dividend by **13%** to **$0.09 per share** beginning fourth quarter of 2025[5](index=5&type=chunk) - Achieved quarterly record pumping efficiency and tons of sand sold from Liberty mines[5](index=5&type=chunk) - Launched Forge, Liberty's large language model for intelligent asset orchestration[5](index=5&type=chunk) - Appointed Alice Yake (Jackson) to the Board of Directors, bringing decades of experience in energy infrastructure and power generation[5](index=5&type=chunk) [Business Outlook](index=2&type=section&id=Outlook) [Industry Frac Activity Outlook](index=2&type=section&id=Industry%20Frac%20Activity%20Outlook) Industry frac activity moderates due to uncertainty, accelerating attrition, and setting the stage for improved supply/demand and pricing in late 2026 for next-gen fleets - Industry frac activity has fallen below levels required to sustain North American oil production, driven by macroeconomic uncertainty and producers moderating completions[7](index=7&type=chunk) - The moderation in activity is anticipated to be transitory, with global oil oversupply expected to peak during the first half of 2026, and improving frac fundamentals later in 2026[8](index=8&type=chunk) - Lower industry activity and underutilized fleets are driving pricing pressure, accelerating equipment attrition and fleet cannibalization, which is expected to lead to a more constructive supply and demand balance[9](index=9&type=chunk) - The outlook for higher quality, next-generation fleets (like Liberty's digiTechnologies platform) remains strong due to demand for fuel savings, emissions benefits, and operational efficiencies[10](index=10&type=chunk) [Power Business Outlook](index=2&type=section&id=Power%20Business%20Outlook) Structural power demand strengthens from AI, electrification, and reshoring, positioning Liberty's on-site solutions to address grid reliability and capacity challenges - Structural demand for power continues to strengthen, evidenced by large-scale, long-duration power commitments across the industry[11](index=11&type=chunk) - AI compute load, broader electrification trends, and industrial reshoring efforts are driving meaningful long-term growth opportunities and incremental, steady base load demand[11](index=11&type=chunk) - Liberty's on-site power solutions provide consumers with reliability and clarity around power costs, serving as a strategic hedge against potentially significant increases in grid power prices, addressing grid reliability and capacity challenges[11](index=11&type=chunk) [Shareholder Returns](index=2&type=section&id=Cash%20Dividend) [Cash Dividend Details](index=2&type=section&id=Cash%20Dividend%20Details) Liberty paid a Q3 2025 cash dividend of **$0.08 per share** (**$13 million** total) and increased the Q4 2025 dividend by **13%** to **$0.09 per share**, reflecting confidence in future performance Quarterly Cash Dividend Details | Dividend Event | Amount per share | Total (approx.) | Payment Date | Record Date | | :------------- | :--------------- | :-------------- | :----------- | :---------- | | Q3 2025 Paid | $0.08 | $13 million | (during Q3) | (during Q3) | | Q4 2025 Declared | $0.09 (13% increase) | | Dec 18, 2025 | Dec 4, 2025 | - Future declarations of quarterly cash dividends are subject to Board approval and may be adjusted based on market conditions and capital availability[13](index=13&type=chunk) [Financial Performance](index=3&type=section&id=Third%20Quarter%20Results) [Income Statement Overview](index=3&type=section&id=Income%20Statement%20Overview) Liberty's Q3 2025 revenue decreased **17%** YoY and **9%** QoQ to **$947 million**, with net income declining to **$43 million** from **$74 million** in Q3 2024 Income Statement Summary | Metric | Q3 2025 | Q3 2024 | Q2 2025 | YoY Change | QoQ Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Revenue | $947 million | $1.1 billion | $1.0 billion | -17% | -9% | | Net income | $43 million | $74 million | $71 million | -41.89% | -39.39% | [Non-GAAP Financial Measures Performance](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Performance) Q3 2025 Adjusted EBITDA was **$128 million**, a **48%** YoY and **29%** QoQ decrease, with Adjusted Net (Loss) Income turning negative at (**$10 million**) Non-GAAP Financial Measures | Metric | Q3 2025 | Q3 2024 | Q2 2025 | YoY Change | QoQ Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Adjusted EBITDA | $128 million | $248 million | $181 million | -48% | -29% | | Adjusted Net (Loss) Income | ($10 million) | $76 million | $20 million | -113.16% | -150% | | Fully diluted EPS | $0.26 | $0.44 | $0.43 | -40.91% | -39.53% | | Adjusted Net (Loss) Income per Diluted Share | $(0.06) | $0.45 | $0.12 | -113.33% | -150% | [Financial Position](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) [Balance Sheet and Liquidity Overview](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity%20Overview) As of September 30, 2025, Liberty had **$13 million** cash, **$253 million** total debt, and **$146 million** total liquidity, expanding its credit facility to **$750 million** in July 2025 Balance Sheet and Liquidity | Metric | As of Sep 30, 2025 | | :----- | :----------------- | | Cash on hand | $13 million | | Total debt | $253 million | | Total liquidity | $146 million | - In July 2025, Liberty expanded its credit facility to provide for a **$225 million** increase in aggregate commitments to **$750 million**, subject to borrowing base limitations[17](index=17&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call Details](index=3&type=section&id=Conference%20Call) Liberty will host a conference call on October 17, 2025, at 8:30 a.m. MT to discuss Q3 2025 results, featuring CEO Ron Gusek and CFO Michael Stock, with live and replay access details provided - Liberty will host a conference call to discuss Q3 2025 results on Friday, October 17, 2025, at 8:30 a.m. Mountain Time (10:30 a.m. Eastern Time)[18](index=18&type=chunk) - Presenting Liberty's results will be Ron Gusek, President and Chief Executive Officer, and Michael Stock, Chief Financial Officer[18](index=18&type=chunk) - Access details for the live webcast and a telephone replay (available until October 24, 2025) are provided[19](index=19&type=chunk) [About Liberty Energy Inc.](index=3&type=section&id=About%20Liberty) Liberty Energy Inc. is a leading North American energy services company providing completion services for oil, natural gas, and geothermal, also offering advanced distributed power solutions via Liberty Power Innovations - Liberty Energy Inc. is a leading energy services company and one of the largest providers of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America[20](index=20&type=chunk) - The company owns and operates Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions for commercial and industrial, data center, energy, and mining industries[20](index=20&type=chunk) - Founded in 2011 and headquartered in Denver, Colorado, Liberty focuses on value creation through innovation and next-generation technology[20](index=20&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Use of Non-GAAP Measures](index=4&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) This section defines non-GAAP measures like EBITDA, Adjusted EBITDA, Adjusted Net Income, and ROCE, explaining their use for assessing financial performance by excluding non-recurring items, while cautioning they are not U.S. GAAP and may not be comparable - The earnings release includes unaudited non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per Diluted Share, and Adjusted Pre-Tax Return on Capital Employed ('ROCE')[21](index=21&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted to eliminate effects of items like non-cash stock-based compensation, start-up costs, fleet lay-down costs, gains/losses on asset disposal/investments, bad debt reserves, and other non-recurring expenses[21](index=21&type=chunk) - Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share exclude after-tax impacts of unusual or one-time benefits or costs, such as gain or loss on investments, net and transaction and other costs[23](index=23&type=chunk) - ROCE is presented as a measure to evaluate profitability and the efficiency with which management has employed capital over time, calculated as the ratio of adjusted pre-tax net income to Average Capital Employed[24](index=24&type=chunk) - These non-GAAP measures are used by the board, management, investors, and lenders to assess financial performance on a consistent basis, but they do not have standardized meanings and are not substitutes for U.S. GAAP measures[22](index=22&type=chunk)[25](index=25&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section advises that the earnings release contains forward-looking statements regarding future performance, market outlook, and strategies, subject to inherent risks and uncertainties, cautioning that actual results may differ materially, and recommends reviewing SEC filings for risk factors - The information includes 'forward-looking statements' concerning expected growth, future operating results, industry outlooks, business strategy, capital expenditures, and financial position[26](index=26&type=chunk) - These statements involve certain assumptions, risks, and uncertainties, and actual results may differ materially from those indicated or implied[26](index=26&type=chunk) - Liberty has no obligation to affirm or update such information, except as required by law, and advises readers to consider risk factors in its most recent Annual Report on Form 10-K and other SEC filings[26](index=26&type=chunk)[27](index=27&type=chunk) [Contact Information](index=5&type=section&id=Contact) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) Contact information for Liberty Energy's investor relations is provided, including the Chief Financial Officer and Vice President of Investor Relations, with phone and email details - Contact for investor relations: Michael Stock (Chief Financial Officer) and Anjali Voria, CFA (Vice President of Investor Relations)[28](index=28&type=chunk) - Phone: 303-515-2851; Email: IR@libertyenergy.com[28](index=28&type=chunk) [Selected Financial Data (Tables)](index=6&type=section&id=Selected%20Financial%20Data%20(Tables)) [Statement of Operations Data](index=6&type=section&id=Statement%20of%20Operations%20Data) This table presents unaudited statement of operations data for the three and nine months ended September 30, 2025, and comparable periods, detailing revenue, costs, operating income/loss, net income, and EPS Statement of Operations Data (Amounts in Thousands, Except for Per Share Data) | | Three Months Ended | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Sep 30, 2025 | Sep 30, 2024 | | **Statement of Operations Data:** | (amounts in thousands, except for per share data) | | | | | | | Revenue | $ 947,397 | $ 1,042,521 | $ 1,138,578 | $ 2,967,379 | $ 3,371,587 | | Costs of services (exclusive of | | | | | | | | depreciation, depletion, and | | | | | | | | amortization shown separately below) | 769,761 | 812,107 | 840,274 | 2,343,484 | 2,458,752 | | General and administrative (1) | 58,284 | 58,344 | 58,614 | 182,403 | 169,300 | | Transaction and other costs | — | — | — | 811 | — | | Depreciation, depletion, and | | | | | | | | amortization | 122,981 | 129,366 | 126,395 | 380,089 | 372,886 | | (Gain) loss on disposal of assets, net | (1,210) | 5,631 | 6,017 | 7,766 | 6,105 | | Total operating costs and expenses | 949,816 | 1,005,448 | 1,031,300 | 2,914,553 | 3,007,043 | | Operating (loss) income | (2,419) | 37,073 | 107,278 | 52,826 | 364,544 | | (Gain) loss on investments, net | (68,353) | (68,242) | 2,727 | (155,883) | (4,474) | | Interest expense, net | 10,902 | 10,162 | 8,589 | 30,607 | 23,715 | | Net income before income taxes | 55,032 | 95,153 | 95,962 | 178,102 | 345,303 | | Income tax expense | 11,977 | 24,137 | 22,158 | 43,920 | 81,186 | | Net income | 43,055 | 71,016 | 73,804 | 134,182 | 264,117 | | Net income per common share: | | | | | | | | Basic | $ 0.27 | $ 0.44 | $ 0.45 | $ 0.83 | $ 1.59 | | Diluted | $ 0.26 | $ 0.43 | $ 0.44 | $ 0.81 | $ 1.55 | | Weighted average common shares | | | | | | | | outstanding: | | | | | | | | Basic | 161,959 | 161,865 | 164,741 | 161,921 | 165,755 | | Diluted | 165,066 | 164,243 | 168,595 | 165,126 | 169,947 | | Other Financial and Operational Data | | | | | | | | Capital expenditures (2) | $ 113,034 | $ 134,046 | $ 162,835 | $ 367,958 | $ 438,909 | | Adjusted EBITDA (3) | $ 127,679 | $ 180,798 | $ 247,811 | $ 476,627 | $ 765,853 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table provides unaudited condensed consolidated balance sheet data as of September 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Amounts in Thousands) | | | September 30, | | December 31, | | :--- | :--- | :--- | :--- | :--- | | | | 2025 | | 2024 | | **Assets** | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 13,454 | $ | 19,984 | | Accounts receivable and unbilled revenue | | 573,801 | | 539,856 | | Inventories | | 184,420 | | 203,469 | | Prepaids and other current assets | | 122,733 | | 85,214 | | Total current assets | | 894,408 | | 848,523 | | Property and equipment, net | | 1,925,871 | | 1,890,998 | | Operating and finance lease right-of-use assets | | 398,358 | | 356,435 | | Other assets | | 135,928 | | 119,402 | | Investment in equity securities | | 148,820 | | 81,036 | | **Total assets** | $ | **3,503,385** | $ | **3,296,394** | | **Liabilities and Equity** | | | | | | Current liabilities: | | | | | | Accounts payable and accrued liabilities | $ | 559,673 | $ | 571,305 | | Current portion of operating and finance lease liabilities | | 117,530 | | 95,218 | | Total current liabilities | | 677,203 | | 666,523 | | Long-term debt | | 253,000 | | 190,500 | | Noncurrent portion of operating and finance lease liabilities | | 255,454 | | 247,888 | | Deferred tax liability | | 180,883 | | 137,728 | | Payable pursuant to tax receivable agreements | | 67,180 | | 74,886 | | **Total liabilities** | | **1,433,720** | | **1,317,525** | | Stockholders' equity: | | | | | | Common stock | | 1,620 | | 1,619 | | Additional paid in capital | | 970,123 | | 977,484 | | Retained earnings | | 1,113,968 | | 1,019,517 | | Accumulated other comprehensive loss | | (16,046) | | (19,751) | | **Total stockholders' equity** | | **2,069,665** | | **1,978,869** | | **Total liabilities and equity** | $ | **3,503,385** | $ | **3,296,394** | [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This table provides a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025, and comparable periods, detailing the specific adjustments made to arrive at these non-GAAP measures Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Amounts in Thousands) | | | | | Three Months Ended | | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, | | | Jun 30, | | Sep 30, | | | Sep 30, | | | | 2025 | | | 2025 | | 2024 | 2025 | | | 2024 | | Net income | $ | 43,055 | $ | 71,016 | $ | 73,804 | $ | 134,182 | $ | 264,117 | | Depreciation, depletion, and | | | | | | | | | | | | amortization | | 122,981 | | 129,366 | | 126,395 | | 380,089 | | 372,886 | | Interest expense, net | | 10,902 | | 10,162 | | 8,589 | | 30,607 | | 23,715 | | Income tax expense | | 11,977 | | 24,137 | | 22,158 | | 43,920 | | 81,186 | | **EBITDA** | $ | **188,915** | $ | **234,681** | $ | **230,946** | $ | **588,798** | $ | **741,904** | | Stock-based compensation expense | | 7,301 | | 8,101 | | 8,121 | | 33,482 | | 22,318 | | (Gain) loss on investments, net | | (68,353) | | (68,242) | | 2,727 | | (155,883) | | (4,474) | | (Gain) loss on disposal of assets, net | | (1,210) | | 5,631 | | 6,017 | | 7,766 | | 6,105 | | Transaction and other costs | | — | | — | | — | | 811 | | — | | Provision for credit losses | | 1,026 | | 627 | | — | | 1,653 | | — | | **Adjusted EBITDA** | $ | **127,679** | $ | **180,798** | $ | **247,811** | $ | **476,627** | $ | **765,853** | [Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Net%20Income%20per%20Diluted%20Share%20to%20Adjusted%20Net%20(Loss)%20Income%20and%20Adjusted%20Net%20(Loss)%20Income%20per%20Diluted%20Share) This table reconciles GAAP net income and diluted EPS to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share for the three and nine months ended September 30, 2025, and comparable periods, showing non-GAAP adjustments Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share (Amounts in Thousands, Except for Per Share Data) | | | | Three Months Ended | | | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, | | Jun 30, | | Sep 30, | | Sep 30, | | | 2024 | | | 2025 | | 2025 | | 2024 | | 2025 | | | | | Net income | $ | 43,055 | $ | 71,016 | $ | 73,804 | $ | 134,182 | $ | 264,117 | | Adjustments: | | | | | | | | | | | | Less: (Gain) Loss on investments, net | | (68,353) | | (68,242) | | 2,727 | | (155,883) | | (4,474) | | Add back: Transaction and other costs | | — | | — | | — | | 811 | | — | | Total adjustments, before income | | | | | | | | | | | | taxes | | (68,353) | | (68,242) | | 2,727 | | (155,072) | | (4,474) | | Income tax effect of adjustments | | (15,756) | | (17,373) | | 656 | | (38,303) | | (1,051) | | **Adjusted Net (Loss) Income** | $ | **(9,542)** | $ | **20,147** | $ | **75,875** | $ | **17,413** | $ | **260,694** | | Diluted weighted average common | | | | | | | | | | | | shares outstanding | | 165,066 | | 164,243 | | 168,595 | | 165,126 | | 169,947 | | Net income per diluted share | $ | 0.26 | $ | 0.43 | $ | 0.44 | $ | 0.81 | $ | 1.55 | | **Adjusted Net (Loss) Income per Diluted** | | | | | | | | | | | | **Share** | $ | **(0.06)** | $ | **0.12** | $ | **0.45** | $ | **0.11** | $ | **1.53** | [Calculation of Adjusted Pre-Tax Return on Capital Employed](index=9&type=section&id=Calculation%20of%20Adjusted%20Pre-Tax%20Return%20on%20Capital%20Employed) This table details the calculation of Adjusted Pre-Tax Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, showing adjustments to net income and average capital employed, resulting in an ROCE of **2%** Calculation of Adjusted Pre-Tax Return on Capital Employed (Amounts in Thousands) | | | Twelve Months Ended | | | | :--- | :--- | :--- | :--- | :--- | | | | September 30, | | | | | | 2025 | | 2024 | | Net income | $ | 186,075 | | | | Add back: Income tax expense | | 49,995 | | | | Add back: Loss on remeasurement of liability under tax receivable agreements (1) | | 3,210 | | | | Less: Gain on investments, net | | (200,636) | | | | Add back: Transaction and other costs | | 811 | | | | **Adjusted Pre-tax net income** | $ | **39,455** | | | | **Capital Employed** | | | | | | Total debt | $ | 253,000 | $ | 123,000 | | Total equity | | 2,069,665 | | 1,968,998 | | **Total Capital Employed** | $ | **2,322,665** | $ | **2,091,998** | | **Average Capital Employed (2)** | $ | **2,207,332** | | | | **Adjusted Pre-Tax Return on Capital Employed (3)** | | **2 %** | | |

DENVER--(BUSINESS WIRE)--Liberty Energy Inc. (NYSE: LBRT; "Liberty†or the "Company†) today reported third quarter 2025 financial and operational results. Summary Results and Highlights Revenue of $947 million, a 9% sequential decrease Net income of $43 million, or $0.26 fully diluted earnings per share ("EPS†) Adjusted EBITDA1 of $128 million Distributed $13 million to shareholders through cash dividends Increased quarterly cash dividend by 13% to $0.09 per share beginning fourth quarter of 20. ...

Core Insights - Liberty Energy Inc. (LBRT) has significantly underperformed over the past year, with a decline of approximately 39.7%, making it one of the worst performers in its sector and sub-industry [1][2][18] - The broader Oil & Gas Field Services sub-industry saw a decline of 13.6%, while the Oil & Energy sector faced a decrease of 4.3%, highlighting LBRT's negative performance relative to its peers [2] Performance Overview - LBRT's performance is starkly contrasted by companies like Ranger Energy Services (RNGR), which maintained stable performance without losses [1] - ProPetro Holding (PUMP) and Oceaneering International (OII) also experienced declines of around 37.2% and 12.2%, respectively, but LBRT's decline is more pronounced [2] Headwinds Impacting Performance - LBRT is highly concentrated in completions services, making it vulnerable to the volatile boom-bust cycles of North America's shale activity, unlike competitors with more diversified operations [5][10] - Management has guided for a sequential decline in revenues and adjusted EBITDA for Q3 2025 due to reduced customer activity and pricing pressures [6][8] - The company faces significant pricing pressure in the completions market, with management noting "unconstructive" pricing behavior among peers [9] Market Conditions - The core business of LBRT is heavily tied to North American oil and gas completions, which are expected to slow down in the latter half of the year due to producer discipline [10] - The company acknowledges that the current slowdown will lead to increased equipment cannibalization and attrition, exacerbated by persistent overcapacity in the pressure pumping market [13] Customer Dependence and Analyst Sentiment - LBRT's strategy involves deepening relationships with a limited number of large customers, increasing customer concentration risk [14] - Over the past 60 days, analysts have revised earnings estimates downward for LBRT, indicating growing bearish sentiment regarding its earnings outlook [15][17] Long-Term Prospects - The power business initiatives are still in early stages, with minimal revenue contributions expected in the near term, creating uncertainty for future earnings [11][18] - Unless the company demonstrates improved financial results and operational stability, it may be advisable for investors to consider other opportunities within the oil and gas sector [19]

Core Insights - Liberty Energy Inc. (LBRT) is expected to report third-quarter 2025 earnings on October 16, with breakeven earnings forecasted and revenues estimated at $959.1 million [1][8] Group 1: Recent Performance - In the last reported quarter, LBRT's earnings missed the consensus estimate due to macroeconomic uncertainty and reduced customer activity, reporting adjusted net income of 12 cents per share against a consensus of 14 cents [3] - However, LBRT's revenues of $1 billion exceeded the Zacks Consensus Estimate by $37 million, with an average surprise of 2.99% over the trailing four quarters [3] Group 2: Q3 2025 Expectations - The Zacks Consensus Estimate for third-quarter 2025 earnings has remained unchanged, indicating a 100% year-over-year decline, while revenues are expected to decrease by 15.8% from the previous year [4] - Factors contributing to the anticipated decline in revenues include reduced customer activity and a slowdown in completions and frac market operations [5] Group 3: Cost Management - LBRT is optimistic about the expansion of its power activities and has projected a reduction in operating expenses to $938.7 million, down 9% from the previous year [6] - The cost of services is expected to decrease from $840.3 million to $748.1 million, which may help mitigate the impact of lower revenues [6] Group 4: Earnings Prediction Model - The Zacks model does not indicate a conclusive earnings beat for LBRT, as the Earnings ESP is -3100.00% and the company currently holds a Zacks Rank of 4 (Sell) [7][9]