Liberty Energy (US:LBRT)2025-10-17 20:30Revenue 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]