Liberty Energy (LBRT) - 2025 Q3 - Quarterly Results

Summary Results and Highlights CEO Commentary 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] - The company delivered the highest combined average daily pumping efficiency and safety performance in Liberty's history[3] - digiPrime pumps are realizing measurable cost improvements, with early indications showing total maintenance cost savings greater than 30% relative to conventional technologies[3] - 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] - Liberty's power opportunities are strengthening, with total power generation capacity increasing to over one gigawatt expected to be delivered through 2027[3][6] Key Financial & Operational Highlights 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] - Achieved quarterly record pumping efficiency and tons of sand sold from Liberty mines[5] - Launched Forge, Liberty's large language model for intelligent asset orchestration[5] - Appointed Alice Yake (Jackson) to the Board of Directors, bringing decades of experience in energy infrastructure and power generation[5] Business Outlook Industry Frac Activity Outlook 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] - 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] - 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] - 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] Power Business Outlook 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] - AI compute load, broader electrification trends, and industrial reshoring efforts are driving meaningful long-term growth opportunities and incremental, steady base load demand[11] - 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] Shareholder Returns Cash Dividend Details 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] Financial Performance Income Statement Overview 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 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 Balance Sheet and Liquidity Overview 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] Corporate Information Conference Call Details 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] - Presenting Liberty's results will be Ron Gusek, President and Chief Executive Officer, and Michael Stock, Chief Financial Officer[18] - Access details for the live webcast and a telephone replay (available until October 24, 2025) are provided[19] About Liberty Energy Inc. 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] - 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] - Founded in 2011 and headquartered in Denver, Colorado, Liberty focuses on value creation through innovation and next-generation technology[20] Non-GAAP Financial Measures Explanation Definition and Use of Non-GAAP Measures 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] - 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] - 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] - 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] - 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][25] Forward-Looking Statements Forward-Looking Statements Disclaimer 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] - These statements involve certain assumptions, risks, and uncertainties, and actual results may differ materially from those indicated or implied[26] - 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][27] Contact Information Investor Relations Contact 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] - Phone: 303-515-2851; Email: IR@libertyenergy.com[28] Selected Financial Data (Tables) Statement of Operations Data 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 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 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 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 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 % | | |