ProFrac (ACDC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose to $600–$600.3 million, up 32% sequentially and $18.8 million year-over-year, driven by improved operational efficiency, record pump hours, and higher manufacturing revenues.

• Adjusted EBITDA increased 83% sequentially to $130 million (22% margin), but net loss attributable to shareholders was $15–$18.8 million, reflecting lower margins and higher costs.

• Free cash flow was negative at $(14) million, primarily due to working capital investments and sustained capital expenditures.

• Completed a strategic transaction with FloTech, enhancing gas quality assurance and asset integrity solutions.

• Management expects Q2 2025 results to decline due to lower commodity prices and reduced customer capital spending.

Financial highlights

• Stimulation Services revenue was $524.5–$525 million, up 1% year-over-year and 37% sequentially; Adjusted EBITDA $104.6–$105 million (20% margin).

• Proppant Production revenue was $67–$67.3 million, down 13% year-over-year but up 44% sequentially; Adjusted EBITDA $18–$18.3 million (27% margin, down from 31%).

• Manufacturing revenue was $65.8–$66 million, up 51% year-over-year and 6% sequentially; Adjusted EBITDA $4 million.

• Net cash from operating activities was $38.7–$39 million, down from $77 million sequentially.

• Capital expenditures totaled $52.5–$53 million, down from $63 million in Q4 2024.

Outlook and guidance

• Q2 2025 volumes expected to decline slightly, with partial offset from favorable pricing and increased logistics.

• Management anticipates a decline in consolidated results for Q2 2025 due to lower oil and gas prices and reduced customer capital spending.

• Capital expenditures for 2025 estimated at $150–$175 million for maintenance and $100–$125 million for growth, with flexibility to reduce by $70–$100 million.

• Company believes current liquidity and cash flow will be sufficient to fund operations and capital needs for at least the next 12 months.

• Anticipates upside in Haynesville natural gas activity in the second half of 2025.