Why Is ProPetro (PUMP) Down 13.1% Since Last Earnings Report?

It has been about a month since the last earnings report for ProPetro Holding (PUMP). Shares have lost about 13.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is ProPetro due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.ProPetro Q3 Earnings Loss Narrower Than Expected, Sales BeatProPetro 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.Midland, 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.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 PositionTotal 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.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates revision.VGM ScoresAt this time, ProPetro has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerProPetro belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Baker Hughes (BKR), has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Baker Hughes reported revenues of $7.01 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $0.68 for the same period compares with $0.67 a year ago.For the current quarter, Baker Hughes is expected to post earnings of $0.67 per share, indicating a change of -4.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Baker Hughes. Also, the stock has a VGM Score of C.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(PUMP): Free Stock Analysis Report Baker Hughes Company (BKR): 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