StepStone (US:STEP) Businesswire·2025-11-05 23:02Core Insights - STEP Energy Services Ltd. reported a consolidated revenue of $227.2 million for Q3 2025, a decrease of 11% from $256.0 million in Q3 2024, but consistent with $228.0 million in Q2 2025 [5][26]. - The company achieved a net income of $6.8 million in Q3 2025, compared to a net loss of $5.5 million in Q3 2024, and an increase from $5.9 million in Q2 2025 [12][5]. - Adjusted EBITDA for Q3 2025 was $45.2 million, representing 20% of revenue, down from $49.4 million (19% of revenue) in Q3 2024 but up from $34.8 million (15% of revenue) in Q2 2025 [11][8]. - Free Cash Flow for Q3 2025 was $23.3 million, lower than $28.4 million in Q3 2024 but higher than $17.3 million in Q2 2025 [13][8]. Financial Review - Consolidated revenue for the nine months ended September 30, 2025, was $762.9 million, down 6% from $807.5 million in the same period of 2024 [26]. - The company reported total operating expenses of $194.6 million for Q3 2025, a decrease from $229.5 million in Q3 2024 [25]. - The net debt decreased to $36.3 million as of September 30, 2025, from $52.7 million at the end of 2024 [13][8]. Operational Review - Fracturing operating days decreased to 345 in Q3 2025 from 360 in Q3 2024, with proppant pumped down to 524,000 tonnes from 594,000 tonnes in the same period [4][10]. - Coiled tubing operating days were 1,260 in Q3 2025, down from 1,340 in Q3 2024 [4][10]. - The company operated six fracturing crews in Q3 2025, down from seven in the same period last year [27]. Market Outlook - The fourth quarter of 2025 is expected to start strong, with high utilization anticipated in the first half before slowing down due to annual capital program wind-downs [20]. - The long-term outlook for oilfield services remains positive, with expected growth in LNG export capacity in North America [23].