ProFrac (NASDAQ:ACDC) Posts Quarterly Earnings Results

Key Points

• Mixed Q1 results — ProFrac reported a ($0.46) EPS that missed estimates by $0.09 but posted revenue of $449.6M and adjusted EBITDA of $54M (11.9% margin); management expects Q2 to trend higher and says the Business Optimization Program has realized the majority of its $100M annualized savings target.
• Operational drag in proppant production — the proppant segment's adjusted EBITDA dropped to $7M from $16M in Q4, with volumes expected to remain down into Q2 while mines and uptime are optimized.
• Market reaction and analyst stance — shares fell about 7.7% to $6.58 on the news, and analysts' consensus is a "Reduce" rating with an average target of $5.83.

ProFrac (NASDAQ:ACDC - Get Free Report) issued its earnings results on Thursday. The company reported ($0.46) EPS for the quarter, missing the consensus estimate of ($0.37) by ($0.09), FiscalAI reports. The business had revenue of $449.60 million for the quarter, compared to the consensus estimate of $426.39 million. ProFrac had a negative net margin of 18.97% and a negative return on equity of 33.18%.

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

• Q1 results beat expectations — revenues were $450 million with adjusted EBITDA of $54 million (11.9% margin) despite ~ $9M of weather-related EBITDA headwinds, and management expects Q2 to trend higher sequentially.
• Pricing and calendar tightening — geopolitical-driven market tightening led to material price increases secured for the majority of active fleets (phased into Q2 and the back half of 2026), with disciplined fleet deployment tied to contract duration.
• Cost-savings progress — the Business Optimization Program has realized the majority of the $100M annualized target (labor savings at/above midpoint of $35M–$45M; CapEx efficiencies at the high end of $20M–$30M), with further non-labor and R&M savings expected to ramp through the year.
• Proppant production weakness — operational issues and lower throughput reduced proppant segment adjusted EBITDA to $7M in Q1 (from $16M in Q4), and management expects volumes to be down into Q2 while mines and uptime are optimized.
• Machina platform upside — commercial testing is encouraging for the closed-loop well optimization suite (claims up to ~33% perforation performance gains) and management believes it could unlock previously uneconomic/stranded acreage, though commercial pricing is still in discovery.

ProFrac Trading Down 7.7%

Shares of ACDC traded down $0.55 during trading hours on Thursday, reaching $6.58. The stock had a trading volume of 2,502,670 shares, compared to its average volume of 1,280,983. The company has a quick ratio of 0.56, a current ratio of 0.81 and a debt-to-equity ratio of 1.08. ProFrac has a 52 week low of $3.08 and a 52 week high of $10.70. The firm has a 50-day moving average of $6.26 and a 200 day moving average of $5.08. The company has a market cap of $1.19 billion, a P/E ratio of -2.99 and a beta of 1.51.

Hedge Funds Weigh In On ProFrac

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Barclays PLC boosted its stake in ProFrac by 261.0% in the 4th quarter. Barclays PLC now owns 62,516 shares of the company's stock worth $243,000 after purchasing an additional 45,198 shares during the period. Jain Global LLC acquired a new position in ProFrac in the 4th quarter worth $160,000. Mercer Global Advisors Inc. ADV boosted its stake in ProFrac by 89.6% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 27,898 shares of the company's stock worth $109,000 after purchasing an additional 13,187 shares during the period. Creative Planning acquired a new position in ProFrac in the 2nd quarter worth $102,000. Finally, Wellington Management Group LLP boosted its stake in ProFrac by 49.0% in the 4th quarter. Wellington Management Group LLP now owns 23,198 shares of the company's stock worth $90,000 after purchasing an additional 7,624 shares during the period. 12.75% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have commented on the stock. Wall Street Zen upgraded shares of ProFrac from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. Morgan Stanley upped their target price on shares of ProFrac from $5.00 to $6.00 and gave the company an "underweight" rating in a research report on Wednesday, April 15th. Weiss Ratings reiterated a "sell (d-)" rating on shares of ProFrac in a research report on Friday, March 27th. UBS Group restated a "positive" rating on shares of ProFrac in a research report on Thursday, March 12th. Finally, Zacks Research upgraded shares of ProFrac from a "strong sell" rating to a "hold" rating in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, ProFrac presently has a consensus rating of "Reduce" and an average target price of $5.83.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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