Liberty Energy (LBRT) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in 2024, with $4.3B revenue, $316M net income, and $922M adjusted EBITDA, despite industry softness and declining activity through the year.

• Advanced technology innovation, cost optimization, and expansion into power generation services, positioning for growth in data center and industrial electrification markets.

• Distributed $550M to shareholders since July 2022 via share buybacks and dividends, retiring 15% of shares; $175M distributed in 2024.

• Entering 2025 with strategic priorities in completion services innovation and significant growth in power generation business.

• Achieved 17% Adjusted Pre-Tax ROCE and 21% CROCI for 2024, exceeding long-term S&P averages.

Financial highlights

• 2024 revenue was $4.3B, down 9% from $4.7B in 2023; net income $316M; adjusted net income $277M.

• Adjusted EBITDA for 2024 was $922M, down from $1.2B in 2023.

• Q4 2024 revenue was $944M, a 17% sequential decline; Q4 net income $52M, adjusted net income $17M.

• Diluted EPS for 2024 was $1.87; adjusted EPS $1.64.

• Ended 2024 with $20M cash, $191M total debt, and $135M total liquidity.

Outlook and guidance

• Modest sequential increase in revenue and adjusted EBITDA expected in Q1 2025.

• 2025 adjusted EBITDA guidance: $700–750M, reflecting pricing headwinds offset by fleet optimization.

• 2025 capital expenditures expected at $650M: $450M for completions (including $175M maintenance) and $200M for power generation.

• Anticipate delivery of 150MW power generation in 2025 and 250MW in 2026.

• Plans significant investment in power infrastructure to capture rising demand from data centers and industrial electrification.