Liberty Energy (LBRT) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results amid oil market uncertainty and softer completions activity, with a focus on technology and operational execution driving superior performance and a resilient 13% CROCI.

• Full-year 2025 revenue was $4 billion, net income $148 million, and adjusted EBITDA $634 million, reflecting a year-over-year decline.

• Expanded Simul-Frac offering, reduced maintenance costs per unit by 14% via AI-driven asset optimization, and launched Atlas/Atlas IQ for real-time data insights.

• Advanced LPI distributed power platform, securing major agreements with Vantage Data Centers (1 GW, 400 MW firm for 2027) and another developer (330 MW in Texas), targeting 3 GW of power projects by 2029.

• Positioned to capitalize on surging U.S. power demand, especially from data centers, with a robust project pipeline and differentiated technology.

Financial highlights

• 2025 revenue was $4 billion, down from $4.3 billion in 2024; net income was $148 million, adjusted net income $25 million (excluding $123 million in tax-affected gains).

• Adjusted EBITDA for 2025 was $634 million, down from $922 million in 2024.

• Q4 2025 revenue was $1 billion, up 10% sequentially; Q4 net income was $14 million, adjusted net income $8 million, and adjusted EBITDA $158 million (up from $128 million in Q3).

• Returned $77 million to shareholders in 2025 via dividends and share buybacks; ended year with $28 million cash and $219 million net debt.

• Capital expenditures were $571 million for the year, including $203 million in Q4; monetized $151 million in investments.

Outlook and guidance

• Expect 2026 revenue to be flat year-over-year, with higher fleet utilization offset by pricing headwinds; adjusted EBITDA projected to decline due to completions pricing and increased LPI development costs.

• Completions capex to moderate to ~$250 million in 2026; anticipate delivery of 500 MW of power generation equipment.

• Capital expenditures in 2026 expected to be $275–$350 million in deposits and $450–$550 million in project-related spend, largely funded by project financing.

• Targeting 3 GW of deployed power plants by 2029, with project pipeline at various development stages.

• Expecting lower sequential revenue and adjusted EBITDA in Q1 2026 due to pricing headwinds and winter weather.