Liberty Energy (LBRT) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Q2 2025 Performance Summary Liberty Energy reported strong Q2 2025 results, achieving sequential revenue and Adjusted EBITDA growth through record efficiencies and increased utilization, despite market pricing pressures, and distributed $13 million to shareholders Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Sequential Change | | :--- | :--- | :--- | | Revenue | $1.0 billion | +7% | | Net Income | $71 million | - | | Fully Diluted EPS | $0.43 | - | | Adjusted EBITDA | $181 million | +8% | - Strong performance was attributed to record efficiencies and increased utilization, which more than compensated for industry pricing headwinds amidst softening completions activity[3] - The company delivered a 7% Trailing Twelve Months (TTM) Adjusted Pre-Tax Return on Capital Employed (ROCE)[5] - Distributed $13 million to shareholders via cash dividends during the quarter[5][12] Strategic Developments & Technology The company advanced its technology leadership by field-testing its digiPrime enhancement and a last-mile sand slurry pipe system, while forming strategic alliances for integrated power solutions for data centers and industrial users, including small modular nuclear reactors - Commenced field testing of the digiPrime technology using a natural gas variable speed engine, aiming for high efficiency and low emissions[3][5] - Successfully completed a field trial of the PropX slurry pipe system, designed to reduce costs, improve reliability, and decrease the environmental footprint of last-mile sand delivery[3][5] - Announced strategic collaborations to supply integrated power solutions for potential data center and industrial developments in Pennsylvania (with Range Resources) and Colorado (with AltitudeX Aviation Group)[3][5] - Formed a strategic alliance with Oklo to provide integrated utility-scale power solutions, combining Liberty's Forte℠ natural gas power with a path to integrate small modular nuclear reactors for large load customers[5][6] Market Outlook Despite global economic uncertainties, North American production remains stable due to well-capitalized producers, though completions activity is expected to slow in H2, leading Liberty to modestly reduce its deployed fleet and reposition horsepower to support expanded simulfrac offerings - North American production has remained relatively stable, with larger producers weathering commodity price volatility due to strong balance sheets and efficient operations[7][8] - Completions activity is expected to gradually slow in the second half of the year due to disciplined capital deployment, which will contribute to market pricing pressure on services[9] - In response to market pressures, Liberty plans to modestly reduce its deployed fleet count and reposition assets to support its expanded simulfrac offering[11] Financial Results Second Quarter 2025 Results For Q2 2025, Liberty generated $1.0 billion in revenue, a 7% sequential increase but a 10% year-over-year decrease, with net income of $71 million and Adjusted EBITDA of $181 million, reflecting mixed performance compared to prior periods Comparative Financial Performance | Financial Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Revenue | $1.0B | $977M | $1.2B | | Net Income | $71M | $20M | $108M | | Adjusted EBITDA | $181M | $168M | $273M | | Diluted EPS | $0.43 | $0.12 | $0.64 | | Adjusted Diluted EPS | $0.12 | $0.04 | $0.61 | Balance Sheet and Liquidity As of June 30, 2025, Liberty maintained $20 million in cash and $160 million in total debt, with total liquidity of $276 million, further enhancing its financial flexibility by expanding its credit facility to $750 million in July 2025 Balance Sheet Snapshot | Balance Sheet Item | As of June 30, 2025 | | :--- | :--- | | Cash on Hand | $20 million | | Total Debt | $160 million | | Total Liquidity | $276 million | - In July 2025, the company expanded its credit facility from $525 million to $750 million to support strategic growth in power generation[5][17] Shareholder Returns During Q2, Liberty paid a cash dividend of $0.08 per share, totaling approximately $13 million, and the Board of Directors declared another quarterly dividend of $0.08 per share payable on September 18, 2025 - Paid a quarterly cash dividend of $0.08 per share of Class A common stock, totaling approximately $13 million, during Q2 2025[12] - On July 15, 2025, the Board declared a cash dividend of $0.08 per share, to be paid on September 18, 2025[12] Appendix: Financial Statements and Reconciliations Selected Financial Data (Statements of Operations) This section provides unaudited consolidated statements of operations for Q2 2025 and Q2 2024, detailing revenue, costs, operating income, net income, and earnings per share Selected Statements of Operations Data (Unaudited) | (In thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $1,042,521 | $1,159,884 | | Operating Income | $37,073 | $141,833 | | Net Income | $71,016 | $108,421 | | Diluted EPS | $0.43 | $0.64 | Condensed Consolidated Balance Sheets This section presents unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) | (In thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $921,377 | $848,523 | | Total Assets | $3,441,048 | $3,296,394 | | Total Current Liabilities | $793,378 | $666,523 | | Long-term debt | $160,000 | $190,500 | | Total Stockholders' Equity | $2,034,983 | $1,978,869 | Non-GAAP Reconciliations This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP counterparts, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Pre-Tax Return on Capital Employed (ROCE) Reconciliation of Net Income to EBITDA and Adjusted EBITDA For Q2 2025, Net Income of $71.0 million was reconciled to EBITDA of $234.7 million and Adjusted EBITDA of $180.8 million, with key adjustments including depreciation & amortization, a gain on investments, and stock-based compensation Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Unaudited) | (In thousands) | Q2 2025 | | :--- | :--- | | Net Income | $71,016 | | EBITDA | $234,681 | | Adjustments | ($53,883) | | Adjusted EBITDA | $180,798 | Reconciliation of Net Income to Adjusted Net Income For Q2 2025, GAAP Net Income of $71.0 million ($0.43 per diluted share) was reconciled to Adjusted Net Income of $20.1 million ($0.12 per diluted share), primarily by excluding a $68.2 million pre-tax gain on investments Reconciliation of Net Income to Adjusted Net Income (Unaudited) | (In thousands, except per share) | Q2 2025 | | :--- | :--- | | Net Income | $71,016 | | Total adjustments, before income taxes | ($68,242) | | Adjusted Net Income | $20,147 | | Net income per diluted share | $0.43 | | Adjusted Net Income per Diluted Share | $0.12 | Calculation of Adjusted Pre-Tax Return on Capital Employed (ROCE) For the twelve months ended June 30, 2025, the company calculated an Adjusted Pre-Tax Return on Capital Employed (ROCE) of 7%, derived from an Adjusted Pre-tax net income of $151.5 million and an Average Capital Employed of $2.14 billion Adjusted Pre-Tax Return on Capital Employed (ROCE) Calculation (Unaudited) | (In thousands) | Twelve Months Ended June 30, 2025 | | :--- | :--- | | Adjusted Pre-tax net income | $151,465 | | Average Capital Employed | $2,139,439 | | Adjusted Pre-Tax ROCE | 7% |