ProPetro Holding's Q3 Loss Narrower Than Expected, Sales Beat

ProPetro Holding Corp. PUMP reported a third-quarter 2025 adjusted net loss of 2 cents per share, which was narrower than the Zacks Consensus Estimate of an 11-cent loss due to a 44.4% year-over-year decrease in costs and expenses. However, the bottom line declined from the year-ago quarter’s reported figure of 12 cents profit. This underperformance could be primarily attributed to weak pricing and reduced activity in the reported quarter.Revenues of $294 million beat the consensus mark of $258 million. This outperformance can be attributed to $157 million in revenues generated by the Power Generation segment, along with stronger-than-expected service revenues in the Wireline segment, which totaled $52.2 million — 29.5% above the consensus estimate. However, the top line decreased 8.6% from the year-ago quarter’s level of $361 million. This was due to a year-over-year decline in service revenues from Hydraulic Fracturing and Cementing segment.ProPetro Holding Corp. Price, Consensus and EPS Surprise ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. QuoteMidland, TX-based oil and gas equipment and services company’s adjusted EBITDA amounted to $35 million, down 29% from $50 million reported in the previous quarter. The decline was caused by softer revenues and costs incurred during the fleet downsizing process. The figure also missed our model estimate of $44.7 million.In May 2025, PUMP extended the duration of its previously authorized $200 million stock repurchase program by an additional 19 months, now set to expire at the end of December 2026. The extension reflects the company’s continued commitment to returning capital to its shareholders while maintaining financial flexibility.  Since the program began in May 2023, it has bought back 13 million shares, which equate to nearly 11% of the total common shares outstanding. No repurchases were made during the third quarter of 2025, as the company continues to concentrate its efforts on launching and scaling the PROPWR business.The company reported strong progress in its PROPWR business, including the first field deployments showing high reliability and efficiency. PUMP recently secured a long-term contract for 60 megawatts to power a hyperscaler’s Midwest data center, expanding beyond oilfield applications. This builds on its earlier 80-megawatt microgrid agreement and a new in-field power deal with a Permian E&P customer. An additional 70-megawatt contract is in advanced negotiation, with total contracted capacity expected to exceed 220 megawatts by year-end.To support growth, ProPetro ordered 140 megawatts of equipment, bringing total delivered or on-order capacity to 360 megawatts, with a goal of 750 megawatts by 2028. The estimated cost per megawatt is $1.1 million. The company also signed a letter of intent for a $350 million leasing facility to fund expansion, leveraging long-term contracts and durable assets.Looking ahead, ProPetro aims to scale PROPWR in both oilfield and data center markets, targeting 1 gigawatt of installed capacity by 2030.PUMP’s Pressure Pumping SegmentProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review.Service revenues from this unit decreased 18.6% to $293.9 million from the prior-year quarter’s level. Moreover, the figure was up from our estimate of $259.2 million.Costs & Financial Position of PUMPTotal costs and expenses were $300 million for the third quarter, which was down 44.4% from the prior-year quarter’s level.  However, the amount surpassed our prediction of $273.2 million.The cost of services (exclusive of depreciation and amortization) was $236.5 million compared with $267.6 million in the prior-year quarter. On the other hand, general and administrative expenses (inclusive of stock???based compensation) were $22.5 million compared with $26.6 million in the prior-year quarter. Depreciation and amortization were reduced 26.4% to $41.7 million from the prior-year quarter's level.As of Sept. 30, 2025, PUMP had $66.5 million in cash and cash equivalents and $45 million in borrowings under its ABL Credit Facility. Total liquidity was $158 million, including $91 million in available credit at September-end. Long-term debt amounted to $86.9 million. The total debt-to-total capital was 9.5%.In the third quarter of 2025, the company spent $98.4 million on capital projects but paid $44 million during the period.During the third quarter, the company reported $41.7 million in net cash provided by operating activities, $42.5 million in net cash used in investing activities and $25.2 million in free cash flow from the Completions Business.PUMP’s GuidanceFor the full-year 2025, this Zacks Rank #4 (Sell) company has revised its capital expenditure guidance to a range of $270 million to $290 million, narrowing and lowering from the previous range of $270 million to $310 million shared in its second-quarter guidance. Within this total, the completions segment is now expected to require between $80 million and $100 million, indicating reduced activity levels and continued efforts to streamline costs.The company also projects approximately $190 million in spending for its PROPWR business in 2025, driven by faster-than-anticipated equipment deliveries and initial payments for expanded orders.Looking ahead to 2026, PROPWR-related investments are estimated to fall between $200 million and $250 million, depending on the pace of deliveries and additional procurement. These figures are based on 360 megawatts of PROPWR capacity currently in the pipeline, to reach roughly 750 megawatts by the close of 2028. Importantly, these totals represent gross equipment costs and do not factor in financing structures that are expected to ease near-term cash requirements.Operationally, ProPetro plans to run 10 to 11 hydraulic fracturing fleets through the fourth quarter of 2025, accounting for seasonal slowdowns typically seen during the holidays. While the opportunity to expand fleet count remains limited in the near term, the company expects performance gains in the PROPWR segment to help counterbalance seasonal effects and support margin resilience. Assuming current market dynamics persist, ProPetro anticipates maintaining this level of fleet deployment into 2026.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Important Earnings at a GlanceWhile we have discussed PUMP’s third-quarter results in detail, let us take a look at three other key reports in this space.Liberty Energy Inc. LBRT, a leading pressure pumping and oilfield services firm headquartered in Denver, posted 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.As 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%.San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.Houston-based Halliburton Company HAL, one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.As of Sept. 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 41.1.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Valero Energy Corporation (VLO): Free Stock Analysis Report ProPetro Holding Corp. (PUMP): 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