ProFrac Q4 revenue rises but net loss widens

Overview

• U.S. hydraulic fracturing firm's Q4 revenue rose sequentially

• Adjusted EBITDA for Q4 increased 49% from Q3, driven by higher activity and cost controls

• Company's net loss widened due to impairment costs pushing up operating expenses

Outlook

• ProFrac expects Stimulation Services segment's Q1 2026 results to be softer due to weather-related disruptions in January

• Company estimates January weather disruptions will impact Q1 2026 Adjusted EBITDA by $8 mln-$12 mln

• ProFrac expects 2026 capital expenditures to be $155 mln-$185 mln including Flotek

Result Drivers

• HIGHER ACTIVITY LEVELS - Co said Q4 results were helped by better than anticipated activity in Stimulation Services and Proppant Production

• IMPAIRMENT COSTS - Co reported $52.6 mln cost due to impairment of long-lived assets and goodwill, which pushed up total operating expenses to $541.5 mln

• COST SAVINGS PLAN - Co said labor-related savings have been fully implemented and non-labor operating expense reductions are progressing

Company press release: ID:nBw6fSZRva

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for ProFrac Holding Corp is $4.00, about 31.7% below its March 11 closing price of $5.86

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