Liberty Energy (US:LBRT) Businesswire·2026-01-28 22:33Core Viewpoint - Liberty Energy Inc. reported strong fourth quarter results for 2025, demonstrating resilience amid oil market uncertainty and a focus on technological innovation, achieving a Cash Return on Capital Invested (CROCI) of 13% [3][9][11]. Financial Performance - For the year ended December 31, 2025, Liberty generated revenues of $4.0 billion, a decrease of 7% from $4.3 billion in 2024 [9][17]. - Net income for 2025 was $148 million, or $0.89 per diluted share, down from $316 million, or $1.87 per diluted share in 2024 [9][18]. - Adjusted EBITDA for 2025 was $634 million, a 31% decrease from $922 million in 2024 [9][18]. - Fourth quarter 2025 revenue was $1.0 billion, a 10% increase from $944 million in Q4 2024 [20]. - Fourth quarter net income was $14 million, down from $52 million in Q4 2024 [20]. Operational Highlights - The company expanded its simulfrac offering and reduced total maintenance costs per unit of work by approximately 14% through AI-driven asset optimization software [3][4]. - Liberty announced a 1 GW power development agreement with Vantage Data Centers, with a firm reservation of 400 MW to be delivered in 2027 [3][9]. - A preliminary energy services agreement (ESA) for a 330 MW data center expansion in Texas was also executed, with operations expected to begin in phases starting in Q4 2027 [4][9]. Industry Context - U.S. power demand is rising rapidly, driven by AI-driven data center expansion and increased industrial electrification, with data center demand for power projected to grow threefold by 2030 [6][11]. - The North American oil and gas market has stabilized after a period of softening activity, with completions demand expected to remain firm in 2026 [7][8]. - Industry fundamentals are anticipated to improve as supply-side dynamics gradually rebalance with completions demand [8]. Strategic Initiatives - Liberty is focused on driving value creation through its completions business and power growth platform, planning to deploy approximately 3 GW of power projects by 2029 [5][11]. - The company aims to leverage its experience in the design and operation of complex, industrial-scale assets to meet the evolving energy needs of large consumers [4][11].