Liberty Energy Q2 Earnings Miss, Sales Beat Estimates, Both Fall Y/Y

Liberty Energy Inc. LBRT reported a second-quarter 2025 adjusted net income of 12 cents per share, missing the Zacks Consensus Estimate of 14 cents. Moreover, the bottom line decreased sharply from the year-ago quarter’s reported figure of 61 cents. The Denver, CO-based oil and gas equipment company's underperformance can be attributed to increased macroeconomic uncertainty combined with energy sector volatility and a reduction in customer activity.The company's revenues totaled $1 billion, which beat the Zacks Consensus Estimate by $37 million. However, the top line decreased from the prior-year quarter’s level of $1.2 billion by 10% due to softening of completions activity. Liberty Energy’s adjusted EBITDA was $180.8 million, a decrease from $273.3 million in the year-ago quarter. Moreover, the figure was also below our prediction of $194.1 million.Liberty Energy Inc. Price, Consensus and EPS Surprise Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. QuoteOther Important UpdatesRecently, LBRT announced a collaboration with Oklo, which will pave the way for advanced power solutions, blending its distributed natural gas power with future small modular nuclear reactors. This hybrid approach ensures reliable, long-term energy for large-load users through cutting-edge technology.Ahead of the earnings release, Liberty Energy’s board of directors declared a quarterly dividend of 8 cents per share to its Class A common shareholders of record as of Sept. 4. The payout, which is unchanged from the previous quarter, will be made on Sept. 18, 2025. During the quarter, the company returned $13 million to its shareholders through quarterly cash dividends.Liberty Energy is advancing tech leadership with the first variable-speed gas engine and sand slurry system to cut costs, boost reliability and reduce emissions.Due to rising power demand from data centers, Liberty Energy announced two strategic alliances for the development of power facilities. The company formed strategic coalitions in Pennsylvania and Colorado to deliver turnkey power services using on-site generation, LBRT microgrids and natural gas access to meet evolving energy needs.Costs & Expenses of LBRTLiberty Energy reported total costs and expenses of $1 billion in the second quarter, decreasing 1.2% from the year-ago quarter’s level. However, the figure beat our estimation of $963.3 million.Balance Sheet & Capital Expenditure of LBRTAs of June 30, Liberty Energy had approximately $19.6 million in cash and cash equivalents. The pressure pumper’s long-term debt of $160 million represented a debt-to-capitalization of 7.3%.Further, the company’s liquidity, cash balance and revolving credit facility amounted to $276 million.In the reported quarter, this Zacks Rank #5 (Strong Sell) company spent $134 million in its capital program, down from our estimation of $165.7 million.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LBRT’s Management Remarks & OutlookOil markets remain in flux amid global economic shifts and geopolitical tensions, yet North America’s production has held steady. Despite mixed signals from tariffs, regional conflicts and fluctuating global demand, North America’s output has seen little change. Well-capitalized operators with efficient operations and solid balance sheets have managed volatility well, leveraging intra-quarter price swings to hedge risk.Most producers are aiming for stable production, maintaining just enough completion activity to offset natural declines in output. However, activity is expected to slow in the second half of the year, indicating cautious capital spending. This will likely increase equipment attrition and cannibalization, tightening service supply and gradually improving long-term industry balance.Today’s large operators demand high-performance, technically advanced services — something few providers can match. Liberty Energy stands apart with its broad service portfolio, integrated operations and strong engineering expertise, enabling greater efficiency and customer value.In light of reduced near-term activity, Liberty Energy plans to slightly scale down its deployed fleet, reallocating capacity to support growing simul frac business for key long-term clients. Thanks to its scale, advanced tech, vertical integration and strong financials, Liberty Energy remains agile and well-positioned for continued growth amid changing market dynamics.Important Earnings at a GlanceWhile we have discussed LBRT’s second-quarter results in detail, let us take a look at three other key reports.A leading oilfield services company,Core Laboratories Inc. CLB, reported second-quarter 2025 adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 18 cents. However, the bottom line decreased from the year-ago quarter’s reported figure of 22 cents due to the underperformance of the Reservoir Description segment.This oil-field service provider reported operating revenues of $130.2 million, which beat the Zacks Consensus Estimate of $128 million. This can be attributed to the rebound of the maritime movement and trading of crude oil and the company’s associated laboratory assay services. However, the top line decreased marginally by 0.3% from the year-ago quarter’s $130.6 million due to decreased revenues from the Production Enhancement segment.As of June 30, 2025, the company had cash and cash equivalents of $31.2 million and long-term debt of $124.6 million. CLB’s debt-to-capitalization was 31.8%. Net cash provided by operating activities in the second quarter totaled $13.9 million, while capital expenditure amounted to $3.5 million. This led to a positive free cash flow of $10.4 million.Another oil and gas equipment and services provider, Halliburton Company HAL, reported second-quarter 2025 adjusted net income per share of 55 cents, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, revenues of $5.5 billion were 5.5% lower year over year but beat the Zacks Consensus Estimate by 1.1%. As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. HAL bought back $250 million worth of its stock during the April-June period. The company generated $896 million of cash flow from operations in the second quarter, leading to a free cash flow of $582 million.   Energy infrastructure provider Kinder Morgan KMI reported second-quarter 2025 adjusted earnings per share of 28 cents, which met the Zacks Consensus Estimate. The bottom line increased year over year from 25 cents. Kinder Morgan’s quarterly revenues of $4 billion beat the Zacks Consensus Estimate of $3.9 billion. The better-than-expected quarterly earnings were primarily due to robust natural gas demand and higher contributions from its Natural Gas Pipelines and Terminals segments.For 2025, Kinder Morgan reiterated its projected net income of $2.8 billion (up 8% from the 2024 level) and an adjusted EPS of $1.27 (up 10%). The company expects dividends of $1.17 per share, up 2% from the prior-year figure. Kinder Morgan also anticipates a budgeted adjusted EBITDA of $8.3 billion, up 4% from the previous year’s level.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL): Free Stock Analysis Report Core Laboratories Inc. (CLB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks