Key Takeaways Liberty Energy posted Q4 EPS of 5 cents, beating estimates, down from the year-ago quarter's 10 cents.Liberty Energy's revenue was $1B, up 10% year over year, driven by activity levels that exceeded the industry.Liberty Energy signed power deals, scaled its power platform and approved a 9-cent per share dividend in Q4.Liberty Energy Inc. (LBRT) reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable m ...

Core 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].

Core Viewpoint - Liberty Energy Inc. (LBRT) is expected to report a fourth-quarter earnings loss of 16 cents per share on revenues of $853 million, reflecting ongoing challenges in the oil and gas sector [2][10]. Group 1: Previous Performance - In the last reported quarter, LBRT experienced an adjusted net loss of 6 cents per share, which was wider than the consensus estimate of a loss of 1 cent, attributed to macroeconomic headwinds and a slowdown in frac activity [4]. - Revenues for the previous quarter totaled $947 million, missing the consensus estimate by $12 million, with an average negative surprise of 117.46% over the last four quarters [4][5]. Group 2: Fourth Quarter Expectations - The Zacks Consensus Estimate for fourth-quarter earnings indicates a 260% year-over-year decline, while revenues are expected to decrease by 9.57% compared to the previous year [5]. - LBRT's operating expenses are projected to decline by 4.1% to $880.9 million, with service costs expected to drop from $741.8 million to $704.7 million, providing some relief amid reduced revenues [6]. Group 3: Factors Influencing Performance - The company's digiTechnologies platform and expanding power solutions are anticipated to perform well, driven by demand from AI computing and electrification [7]. - However, revenues are likely to face pressure due to diminished customer activity and a steady slowdown in completions and frac operations [8]. Group 4: Earnings Prediction - The earnings model predicts an earnings beat for LBRT, supported by a positive Earnings ESP of +23.08% and a Zacks Rank of 3 [11][12].

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]