ProFrac (US:ACDC)2025-11-10 21:06Financial Performance - Total revenue for Q3 2025 was $403.1 million, a decrease of $172.2 million (30%) from Q3 2024, and for the nine months ended September 30, 2025, it was $1,505.3 million, down $230.9 million (13%) from the same period in 2024[114]. - Net loss attributable to ProFrac Holding Corp. for Q3 2025 was $100.9 million, an increase of $55.7 million (122%) from Q3 2024, and for the nine months ended September 30, 2025, it was $226.4 million, up $116.3 million (106%) from the same period in 2024[114]. - Stimulation Services revenue for Q3 2025 decreased by $164.2 million (48%) to $342.9 million compared to Q3 2024, and for the nine months, it decreased by $230.6 million (15%) to $1,299.4 million[120]. - Proppant Production revenue for Q3 2025 increased by $23.6 million (45%) to $76.4 million compared to Q3 2024, and for the nine months, it increased by $21.2 million (11%) to $221.2 million[121]. - Manufacturing revenue for Q3 2025 decreased by $13.4 million (22%) to $48.1 million compared to Q3 2024, while for the nine months, it increased by $8.8 million (5%) to $169.7 million[123]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $140.0 million, a decrease of $150.8 million (52%) from the same period in 2024[114]. - Net cash provided by operating activities was $140.0 million for the nine months ended September 30, 2025, down from $290.8 million in the same period in 2024[148]. - Total liquidity position at September 30, 2025, was $94.5 million, consisting of $53.4 million in cash and cash equivalents and $41.1 million available for borrowings[142]. Debt and Financing - Total principal amount of long-term debt was $1,094.0 million as of September 30, 2025, a decrease of $44.9 million (4%) from December 31, 2024[114]. - Total long-term debt outstanding as of September 30, 2025, was $1,094.0 million, with $158.6 million due within the next twelve months[153]. - The company plans to issue an additional $40.0 million of 2029 Senior Notes in December 2025, subject to customary closing conditions[143]. - A 1% increase in interest rates on variable-rate debt would increase annual interest payments by approximately $10.4 million[165]. - Interest expense, net decreased to $34.5 million and $105.5 million for the three and nine months ended September 30, 2025, respectively, compared to $40.6 million and $117.8 million in the same periods in 2024[135]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $8.9 million (17%) and $8.6 million (5%) for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[129]. - Depreciation, depletion, and amortization decreased by $9.7 million and $15.2 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[130]. - Acquisition and integration costs were $0 for the three months and $0.2 million for the nine months ended September 30, 2025, down from $2.0 million and $5.1 million in the same periods in 2024[131]. Future Outlook - The company expects Q4 2025 results to improve relative to Q3 2025, focusing on financial and operational discipline amid challenging market conditions[118]. - For the full year of 2025, capital expenditures are estimated to range from $115 million to $135 million for maintenance and an additional $45 million to $55 million for growth initiatives[157]. - Capital expenditures for the nine months ended September 30, 2025, were $133.3 million, reflecting investments in maintenance and next-generation technology[156]. Strategic Initiatives - The company’s growth strategy includes potential acquisitions, which may be suspended if liquidity improvement actions are ineffective[161]. - Historical funding for acquisitions has been through equity securities issuances, borrowings under credit agreements, and debt securities issuance[164]. - As of September 30, 2025, the company had purchase commitments of $30.9 million for hydraulic fracturing equipment components[159]. Taxation - The effective tax rate for the nine months ended September 30, 2025, was 6.7%, compared to 19.0% in the same period in 2024[137]. - The estimated tax receivable agreement obligations amount to $86.4 million, with $3.4 million due in the next twelve months[160]. Other - The company recorded a loss of $10.5 million from the disposal of its EKU Power Drives subsidiary in June 2025[116]. - In June 2025, the company amended the Alpine 2023 Term Loan, reducing required amortization payments from $15.0 million to $5.0 million for certain dates[115].