Liberty Energy (LBRT) investor relations material

Executive summary

• Q1 2026 revenue rose 4% year-over-year to $1.02 billion, driven by strong demand, improved utilization, and technology-driven efficiency gains, despite pricing headwinds and winter weather disruptions.

• Net income increased to $23 million ($0.14 per diluted share), up from $20 million in Q1 2025 and $14 million in Q4 2025.

• Strategic investments and acquisitions, including IMG Energy Solutions, expanded distributed power capabilities and positioned the company for superior returns as energy security and distributed power demand accelerate.

• Issued $1.3 billion in convertible notes (2031 and 2032), paired with capped call transactions to minimize dilution and fund long-term growth.

• Advanced technology deployment included 100% natural gas pumps, digital fleet control systems, and upgrades to existing fleet.

Financial highlights

• Q1 2026 revenue was $1.02 billion, up 4% year-over-year but down 2% sequentially; net income was $23 million, and Adjusted EBITDA was $126 million.

• Adjusted Net Income per Diluted Share was $0.06, up from $0.04 in Q1 2025; diluted EPS was $0.14.

• General and administrative expenses were $59.5 million, down 9% year-over-year.

• Cash balance at quarter-end was $699 million, with total liquidity of $1.2 billion and net debt of $579 million.

• Capital expenditures for Q1 2026 were $133 million.

Outlook and guidance

• Sequential revenue growth and improved profitability expected in Q2 2026, driven by increased utilization and early pricing recovery.

• High single-digit revenue growth anticipated for Q2, with normal incremental margins to EBITDA.

• U.S. power demand, especially in Texas, is projected to quadruple by 2032, supporting distributed power growth.

• Tax expense for the remainder of 2026 expected at ~25% of pre-tax income, with no material cash taxes anticipated.

• CapEx guidance remains unchanged, with $1 billion planned for 2026, including a $300 million milestone payment for power projects.