ProFrac (NASDAQ:ACDC) Releases Quarterly Earnings Results, Misses Estimates By $0.19 EPS

Key Points

• ProFrac reported a quarterly loss of $0.45 per share, missing estimates by $0.19, while revenue of $511.1 million also fell short of expectations of $555.7 million.
• Adjusted EBITDA declined to $65 million from $69 million in the prior quarter. Proppant was a key weakness, with revenue falling to $101 million and adjusted EBITDA dropping to $2.4 million amid lower volumes, competitive pricing and higher costs.
• Management said it sees a tightening frac market heading into 2027 and expects pricing gains to build. Financing changes extended the Alpine term loan maturity to 2030 and reduced principal debt by $60 million through a loan exchange.

ProFrac (NASDAQ:ACDC - Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.45) earnings per share for the quarter, missing the consensus estimate of ($0.26) by ($0.19), FiscalAI reports. ProFrac had a negative return on equity of 45.18% and a negative net margin of 22.83%. The company had revenue of $511.10 million for the quarter, compared to analysts' expectations of $555.66 million.

Here are the key takeaways from ProFrac's conference call:

• ProFrac’s Q3 adjusted EBITDA fell to $65 million from $69 million in Q2, as weaker proppant results and September downtime in stimulation services outweighed modest revenue growth; free cash flow improved to $14 million.
• Proppant Production was a major pressure point, with revenue down to $101 million from $121 million and adjusted EBITDA dropping to $2.4 million from $6 million, amid lower West Texas volumes, competitive pricing, and higher costs.
• Management sees a tightening frac market heading into 2027, citing retiring equipment, long replacement lead times, and customer inquiries for incremental dedicated fleets; it expects pricing gains to build, but said new capacity would require attractive contract economics and would not be built speculatively.
• Flotek revenue and adjusted EBITDA rose sequentially to $117 million and $22 million, respectively, while manufacturing revenue increased to $53 million; management pointed to demand tied to power infrastructure as a growth opportunity.
• Financing changes extended the Alpine term loan maturity to 2030, reduced near-term scheduled payments, and helped lower principal debt by $60 million through an affiliate-loan exchange; quarter-end principal debt was about $1.05 billion, with $113 million due in the next 12 months.

ProFrac Trading Down 31.7%

Shares of NASDAQ ACDC traded down $1.26 during midday trading on Thursday, hitting $2.71. The stock had a trading volume of 6,080,182 shares, compared to its average volume of 1,435,600. The company has a market capitalization of $493.55 million, a price-to-earnings ratio of -1.16 and a beta of 1.48. ProFrac has a 1-year low of $2.66 and a 1-year high of $8.22. The company has a quick ratio of 0.59, a current ratio of 0.84 and a debt-to-equity ratio of 1.42. The company has a fifty day moving average price of $4.67 and a 200 day moving average price of $5.53.

Insider Transactions at ProFrac

In other ProFrac news, major shareholder Holdings Lp Thrc bought 30,820 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was purchased at an average price of $4.81 per share, with a total value of $148,244.20. Following the transaction, the insider owned 83,816,235 shares in the company, valued at $403,156,090.35. This trade represents a 0.04% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder Dan H. Wilks purchased 30,820 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was acquired at an average price of $4.81 per share, for a total transaction of $148,244.20. Following the acquisition, the insider directly owned 88,107,422 shares of the company's stock, valued at $423,796,699.82. This trade represents a 0.03% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders bought 2,014,454 shares of company stock worth $9,750,117. 2.23% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Morgan Stanley dropped their price target on shares of ProFrac from $5.00 to $4.50 and set an "underweight" rating for the company in a research report on Thursday, August 20th. Weiss Ratings reiterated a "sell (d-)" rating on shares of ProFrac in a report on Monday, September 21st. Finally, Wall Street Zen cut shares of ProFrac from a "hold" rating to a "sell" rating in a research note on Saturday, October 24th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $5.25.

About ProFrac

ProFrac Holding Corp. is an energy services company that provides hydraulic fracturing and other well-stimulation services to oil and natural gas producers. Through its operations, the company supports the development and completion of unconventional wells, primarily in North American onshore energy markets.

The company's activities include pressure pumping and hydraulic fracturing services, proppant production and distribution, and the manufacture, sale, and maintenance of equipment used in well-completion operations.

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