Liberty Energy (LBRT) Q4 2024 earnings summary

Executive summary

• Achieved $4.3 billion in revenue and $316 million net income for 2024, with adjusted EBITDA of $922 million and a 21% cash return on invested capital, outperforming long-term S&P averages.

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

• Advanced technology leadership in completion services and expanded power generation business, including the launch of a new natural gas variable-speed engine with Cummins.

• Set operational records, including a single crew pumping 7,143 hours in 2024, and deployed 130 MW of power, with 400 MW more scheduled by 2026.

• Founder Chris Wright appointed U.S. Secretary of Energy and launched Veteran Human Lives Foundation to address energy poverty in Africa.

Financial highlights

• 2024 revenue declined 9% year-over-year to $4.3 billion; adjusted EBITDA fell to $922 million from $1.2 billion.

• Net income was $316 million; adjusted net income was $277 million, excluding $39 million in tax-affected unrealized gains.

• Q4 revenue was $944 million, down 17% sequentially and 12% year-over-year; Q4 adjusted EBITDA was $156 million.

• Net capital expenditures were $627 million for the year; $127 million in share buybacks and $48 million in dividends paid.

• Ended 2024 with $20 million cash, $171 million net debt, and $135 million total liquidity.

Outlook and guidance

• Expect modest sequential revenue and adjusted EBITDA growth in Q1 2025.

• 2025 adjusted EBITDA guidance is $700–750 million, with completions capex moderating to $450 million and power capex at $200 million.

• Plan to deploy 150 MW of power generation by end of 2025 and 250 MW more by end of 2026.

• Free cash flow for completions expected to remain solid; overall company free cash flow projected to be positive but near break-even.

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