Liberty Energy Q3 Loss Wider Than Expected, Revenues Miss

Liberty Energy Inc. LBRT 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. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.LBRT's revenues totaled $947 million, which missed the Zacks Consensus Estimate by $12 million. The top line also decreased from the prior-year quarter’s level of $1.1 billion by 17% due to softening of completions activity.Liberty Energy’s adjusted EBITDA was $128 million, representing a sharp decline of 48% from the year-ago quarter’s reported figure of $248 million. Moreover, the figure was also below our estimate of $157.1 million.Liberty Energy Inc. Price, Consensus and EPS Surprise Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. QuoteOther Important UpdatesThe Denver, CO-based oil and gas equipment company delivered the highest combined average daily pumping efficiency and safety performance in its history and also sold tons of sand from its mines.Liberty Energy recently launched Forge, its large language model for intelligent asset orchestration that empowers StimCommander through continuous AI optimization. The company also increased its total power generation capacity to over one gigawatt, which is expected to be delivered through 2027.Ahead of the earnings release, Liberty Energy’s board of directors increased the quarterly cash dividend by 13% to $0.09 per share, beginning in the fourth quarter of 2025. The increased dividend of $0.09 per share will be paid on Dec. 18, 2025, to its holders of record as of Dec. 4.During the quarter, the company returned $13 million to its shareholders through quarterly cash dividends.Costs & Expenses of LBRTLiberty Energy reported total costs and expenses of $949.8 million in the third quarter, decreasing 7.9% from the year-ago quarter’s level. However, our estimate for the metric was pegged at $938.7 million.Balance Sheet & Capital Expenditure of LBRTAs of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.Further, the company’s liquidity, cash balance and revolving credit facility amounted to $146 million.In the reported quarter, this Zacks Rank #4 (Sell) company spent $113 million in its capital program, down from our estimate of $158.2 million.LBRT’s Management Remarks & OutlookManagement believes that the frac activity in North America has dipped below the level required to sustain oil production as producers have slowed completions due to economic uncertainty and after having already surpassed production goals earlier in the year. While natural gas fleet demand remains supported by LNG export expansion and growing power needs, the overall slowdown in oil markets has weighed on total activity. This moderation is expected to be temporary, with global oil oversupply likely peaking in early 2026. Shale producers plan to keep oil output steady, requiring modest activity recovery next year, while gas-related completions should continue to grow. Current underutilization of fleets is pressuring prices, particularly for conventional units, but rising equipment attrition and cannibalization may rebalance supply and demand. Improved activity and tightening capacity could drive stronger pricing later in 2026.The company projects that the demand for next-generation frac fleets will remain strong as operators prioritize fuel efficiency, lower emissions and enhanced performance. Liberty Energy’s digiTechnologies platform continues to gain traction, benefiting from integrated services, scale and digital innovation. The company remains focused on strengthening its competitive edge to withstand short-term softness and capitalize on future demand recovery. Growing structural power demand, driven by AI computing, electrification and industrial reshoring, highlights opportunities for LBRT’s customizable on-site power solutions, which offer reliable, cost-stable alternatives amid grid constraints and rising energy prices. The company remains optimistic about the momentum it sees in its power opportunities and is well-positioned to deliver an unparalleled offering in the years ahead.Stocks to ConsiderInvestors interested in the energy sector may consider some better-ranked stocks like Cheniere Energy, Inc. LNG, TechnipFMC plc FTI and Archrock, Inc. AROC. While Cheniere Energy sports a Zacks Rank #1 (Strong Buy) at present, TechnipFMC and Archrock carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Houston, TX-based Cheniere Energy is primarily engaged in the business of liquefied natural gas (“LNG”). It constructs and operates LNG terminals and is also involved in LNG and natural gas marketing. The Zacks Consensus Estimate for LNG’s 2025 revenues indicates 30.6% year-over-year growth.Newcastle & Houston-based TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2025 earnings indicates 19.8% year-over-year growth.Archrock initially started as a broader energy services provider but has steadily refined and refocused its business to become a premier pure-play compression services company, primarily supporting natural gas production, processing and transportation. The Zacks Consensus Estimate for AROC’s 2025 earnings indicates 49.5% year-over-year growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 TechnipFMC plc (FTI): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Archrock, Inc. (AROC): 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