Liberty Energy Q3 Loss Wider Than Expected, Revenues Miss

Core Insights - Liberty Energy Inc. reported a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent, and a significant decrease from a profit of 45 cents in the same quarter last year [1][9] - Revenues totaled $947 million, missing the Zacks Consensus Estimate by $12 million and down 17% from the prior-year quarter's $1.1 billion due to a slowdown in completions activity [2][9] - Adjusted EBITDA was $128 million, a sharp decline of 48% from $248 million in the year-ago quarter and below the estimate of $157.1 million [2] Financial Performance - Total costs and expenses were reported at $949.8 million, a decrease of 7.9% from the previous year's level, but higher than the estimated $938.7 million [6] - The company returned $13 million to shareholders through quarterly cash dividends during the quarter [5] - As of September 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents, with long-term debt of $253 million, resulting in a debt-to-capitalization ratio of 10.9% [7] Operational Highlights - Liberty Energy achieved the highest combined average daily pumping efficiency and safety performance in its history and sold significant amounts of sand from its mines [3] - The company launched Forge, a large language model for intelligent asset orchestration, and increased its total power generation capacity to over one gigawatt, expected to be delivered through 2027 [4] Management Outlook - Management noted that frac activity in North America has dipped below levels needed to sustain oil production due to economic uncertainty, but expects a temporary moderation with a potential recovery in activity next year [8][10] - The demand for next-generation frac fleets is projected to remain strong as operators focus on fuel efficiency and lower emissions [11] - The company is optimistic about its power opportunities driven by AI computing, electrification, and industrial reshoring, positioning itself to deliver reliable, cost-stable power solutions [11]