LandBridge Q4 Earnings Call Highlights

Key Points

• Strong 2025 results: Revenue rose 81% to $199.1M and Adjusted EBITDA reached $177M (about an 89% margin), with full-year free cash flow of $122M and 2026 Adjusted EBITDA guidance of $205M–$225M (>20% growth at midpoint).
• Commercial and land-portfolio progress: Management signed major projects including a Samsung BESS deal for an aggregate 350 MW, a 3,000‑acre solar sale (~250 MW), a ONEOK midstream lease and a potential 1.1 GW NRG gas plant for data centers, while average revenue per acre (SUEE) rose to $658 with long‑term targets of $2,500–$3,500 per acre.
• Balance-sheet and shareholder actions: LandBridge issued $500M senior notes, secured a $275M revolver, finished the year with $236M liquidity and 2.8x covenant net leverage, and boosted capital returns with a 20% dividend increase to $0.12 per share plus a $50M buyback authorization.

LandBridge NYSE: LB executives highlighted rapid growth, expanding commercial activity across West Texas acreage, and a higher shareholder return framework during the company’s fourth-quarter and full-year 2025 results call.

2025 results: revenue up 81%, EBITDA up 83%

Chief Executive Officer Jason Long said 2025 was “a year of accretive expansion,” with the fourth quarter marking LandBridge’s seventh consecutive quarter of revenue growth as a public company. Long said the company grew revenue 81% and Adjusted EBITDA 83% year-over-year in 2025, reaching an Adjusted EBITDA margin of 89%. In the fourth quarter, LandBridge posted sequential increases of 12% in revenue and 14% in Adjusted EBITDA.

Chief Financial Officer Scott McNeely reported fourth-quarter total revenue of $56.8 million, up 12% sequentially and 56% year-over-year. For the full year, revenue totaled $199.1 million, also up 81% year-over-year.

Adjusted EBITDA was $51.1 million in the fourth quarter, up 14% sequentially and 61% year-over-year, with a 90% margin. For the year, Adjusted EBITDA totaled $177 million, which McNeely said was above the upper end of the company’s guidance range, representing an 89% margin.

LandBridge generated $36.4 million of free cash flow in the fourth quarter (a 64% margin) and $122 million for the full year (a 61% margin).

What drove Q4 growth: surface use and resource sales offset lower oil and gas royalties

McNeely attributed fourth-quarter sequential revenue growth primarily to surface use royalties and revenues, which increased 12% from the prior quarter. He pointed to higher royalties tied to WaterBridge activity, including the “bpx Kraken” development, along with new project easement payments.

Resource sales and royalties revenue increased 12% sequentially, which management said was attributable to water and sand sales. That growth came despite a 6% sequential decline in oil and gas royalties due to lower activity on LandBridge’s acreage.

Management emphasized limited commodity exposure, noting oil and gas royalties represented less than 10% of total revenue for 2025.

Active land management and higher revenue per acre

Long described the company’s strategy as “active land management,” combining acquisitions of “strategic, high-quality land positions” with “capital-light” commercial efforts to increase revenue opportunities across energy, power, digital infrastructure, and industrial development.

LandBridge’s footprint totals more than 315,000 mostly contiguous acres across the Delaware Basin, management said.

Executives also discussed “surface use economic efficiency” (SUEE), which the company uses to measure average revenue per acre over time for acreage with similar acquisition vintages. Long said LandBridge’s legacy acreage position of about 72,000 acres generated less than $465 per acre at acquisition and averaged almost $1,160 per acre last year, representing nearly 150% growth since 2022. For 2024 vintage acreage, including East Stateline and Wolf Bone Ranches, he said the company achieved 145% year-over-year growth in 2025.

Across the full acreage portfolio, Long said LandBridge delivered SUEE growth of 21% year-over-year, with average revenue per acre rising from $543 to $658. Management also cited “approximately 450 new easements and agreements” in 2025.

During Q&A, management said $1,000-plus per acre is “not just achievable” for 2024 and 2025 acquisitions, but “actionable in the near term,” and reiterated a medium-to-long-term target of $2,500 to $3,500 per acre over a seven- to 10-year period.

Commercial agreements: storage, solar, gas processing, and data-center-linked power

Management highlighted several large agreements and projects discussed during the call:

• Battery storage: Two BESS facility development agreements with Samsung C&T Renewables executed in December, granting exclusive rights to develop facilities with an aggregate capacity of 350 MW. Management said the projects could reach commercial operation as soon as year-end 2028.
• Solar: Finalization of the sale of a 3,000-acre solar project with proposed generation capacity of up to 250 MW.
• Midstream: A long-term lease with a subsidiary of ONEOK for a natural gas processing facility.
• Power for data centers: A strategic agreement with NRG Energy for the potential construction of a 1.1 GW grid-connected natural gas power generation facility intended to power a data center.

In discussing data centers, Long said West Texas has “all the necessary components” for digital infrastructure development, including low-cost energy, abundant water volumes, proximity to fiber, and a favorable regulatory environment. In response to analyst questions, management said Texas’ business-friendly regulatory approach has become a more notable advantage as other states face growing resistance to data center development tied to power and water concerns.

Balance sheet actions, dividend increase, and new buyback authorization

McNeely said LandBridge “optimized” its balance sheet in November through an inaugural $500 million senior notes offering and a new $275 million revolving credit agreement. He said the transactions improved cost of capital, increased liquidity, reduced interest expense, and provided more scalable financing to support potential future M&A.

LandBridge ended the year with $236 million of total liquidity, including $31 million of cash and $205 million available under its revolver. The company’s covenant net leverage ratio was 2.8x at the end of the fourth quarter, which management said reflected financing for the 1918 Ranch acquisition. McNeely reiterated a long-term net leverage target of 2x to 2.5x.

On capital returns, McNeely said the company declared a 20% increase to its quarterly dividend to $0.12 per share. The board also authorized a $50 million share repurchase program through December 2027.

Management reiterated three capital allocation priorities: value-enhancing M&A, maintaining a strong balance sheet, and returning capital to shareholders over time through dividends and opportunistic repurchases. Executives said the M&A pipeline remains “incredibly robust” and that the company continues to evaluate opportunities, including potentially outside the Delaware Basin, while being “very thoughtful” about expanding to another region.

For 2026, LandBridge issued Adjusted EBITDA guidance of $205 million to $225 million, which management said represents more than 20% year-over-year growth at the midpoint. In Q&A, management pointed to expected produced water volume growth tied to WaterBridge’s bpx Kraken project, the Speedway Pipeline coming online mid-year, and broader surface use expectations linked to oil and gas activity, while also describing potential upside from additional WaterBridge projects, higher commodity-driven activity levels, and commercialization efforts at 1918 Ranch that are not substantially reflected in guidance.

LandBridge also announced an Investor Day on March 19 in New York City, featuring presentations by Long, board chairman David Capobianco, and McNeely, along with a fireside chat focused on the West Texas data center thesis.

About LandBridge NYSE: LB

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.

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