Atlas Energy Solutions (US:AESI)2025-11-03 21:35Financial Performance - Total revenue for Q3 2025 was $259.6 million, a decrease of $29.1 million or 10.1% compared to Q2 2025[8]. - Net loss for Q3 2025 was $23.7 million, with an Adjusted EBITDA of $40.2 million, reflecting a margin of 15%[4][10]. - Adjusted Free Cash Flow for Q3 2025 was $22.0 million, down from $48.9 million in Q2 2025[6]. - Total revenue for the three months ended September 30, 2025, was $259.613 million, a decrease of 10.04% from $288.676 million in the previous quarter[22]. - Product revenue decreased to $106.839 million from $126.328 million, a decline of 15.3% quarter-over-quarter[22]. - Service revenue also saw a decline, dropping to $135.643 million from $146.355 million, a decrease of 7.7%[22]. - Gross profit for the quarter was $23.764 million, significantly lower than $52.139 million in the previous quarter, reflecting a gross margin contraction[22]. - Operating loss for the quarter was $(18.538) million compared to an operating income of $7.193 million in the previous quarter[22]. - Net loss for the quarter was $(23.721) million, compared to a net loss of $(5.558) million in the previous quarter[22]. - Adjusted EBITDA for the same period was $40,186,000, down from $70,459,000 in the previous quarter, reflecting a decrease of approximately 43%[31]. - The Adjusted EBITDA Margin for the quarter was 15%, down from 24% in the previous quarter, showing a decline of 9 percentage points[33]. - The Adjusted Free Cash Flow Margin was 8%, a decrease from 17% in the prior quarter, reflecting a decline of 9 percentage points[33]. - Net cash provided by operating activities for the quarter was $32,447,000, a significant decrease from $88,642,000 in the previous quarter[33]. Cash and Assets - Cash and cash equivalents at the end of the period were $41.349 million, down from $78.809 million at the beginning of the period[24]. - Total assets increased to $2.233 billion as of September 30, 2025, up from $1.973 billion as of December 31, 2024[26]. - Long-term debt increased to $518.427 million from $466.989 million, indicating a rise in leverage[26]. - The company reported a stock-based compensation expense of $9.344 million for the quarter, up from $8.290 million in the previous quarter[24]. - The company incurred other non-recurring costs of $638,000 during the quarter, down from $4,298,000 in the previous quarter[33]. - The loss on disposal of assets was recorded as zero for the quarter, compared to $8,574,000 in the same quarter last year[31]. Operational Initiatives - The company announced the suspension of its quarterly dividend to strengthen its balance sheet and pursue growth opportunities[6][7]. - An organizational efficiency initiative has been instituted, targeting $20 million in annualized cost savings[6][5]. - The company is positioned to exceed 10 million tons down the Dune Express Conveyor System in 2026[6][5]. - The power business is expanding rapidly, with a target of over 400 megawatts of power generation capacity deployed by early 2027[6][7]. - The company has placed an order for 240 megawatts of power generation assets, expected for delivery in late 2026[6][7]. - Operating expenses per ton are expected to remain elevated temporarily due to lower fixed cost absorption and issues at the Kermit facility[14]. Future Guidance - Future guidance indicates that Adjusted EBITDA for Q4 2025 is projected to be lower sequentially, with volumes forecasted at approximately 4.8 million tons[13][14]. - Maintenance Capital Expenditures for the quarter were $18,202,000, compared to $21,589,000 in the previous quarter, indicating a decrease of approximately 16%[31]. - The company reported a cash interest expense of $13,634,000 for the quarter, compared to $13,459,000 in the previous quarter, indicating a slight increase[41].