LandBridge Company (LB) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $70.9 million, up 39% YoY and 6% QoQ; net income was $34.0 million, up 68% YoY.

• Adjusted EBITDA was $63.7 million, up 42% YoY, with a 90% margin; Free Cash Flow was $49.0 million, up 45%, with a 69% margin.

• Growth reflected produced-water handling and infrastructure easements, alongside acreage acquisitions and expanding commercial opportunities.

Financial highlights

• Q3 operating cash flow was $49.6 million; Free Cash Flow was $49.0 million, up 45% YoY and 22% QoQ.

• 9M revenue grew 33% to $188.7 million; operating income rose 44% to $121.6 million and net income increased 53% to $83.0 million.

• 9M operating cash flow was $132.1 million; acquisition-heavy investing outflows were $280.8 million.

Outlook and guidance

• FY 2026 Adjusted EBITDA guidance increased to $220 million-$235 million, raising the midpoint to $227.5 million; recent acquisitions are expected to contribute beginning in Q4.

• Alpha Phase I construction began in September; the initial phase is expected to exceed 300 MW within a planned 2 GW campus, with first power anticipated in Q4 2027.

• Alpha ground rent is expected to begin in 2027; at potential 2 GW scale, management described $20 million-$40 million in annual revenue as a long-term target, not a 2027 run rate.

• Long-term net leverage target is 2.0x-2.5x; quarter-end net debt / Covenant EBITDA was 3.0x.