ProFrac (ACDC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose to $600M, up 32% sequentially, with adjusted EBITDA up 83% to $130M, driven by record operational efficiency and improved asset management.

• Net loss attributable to shareholders was $17.5M, narrowing from Q4 2024 but down from net income in Q1 2024.

• Free cash flow was negative at $(14)M, mainly due to working capital investments and sustained capex.

• Completed a $105M FloTech transaction, 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

• Q1 2025 revenue was $600M, up from $455M in Q4 2024; adjusted EBITDA reached $130M (22% margin), up from $71M (16% margin) in Q4.

• Net loss attributable to Class A shareholders was $18.8M, or $(0.12) per share.

• Free cash flow was a net use of $14M; net cash from operating activities was $39M.

• Capital expenditures totaled $53M, down from $63M in Q4.

• Total debt at quarter-end was $1.15B, with $76M in liquidity and $66M available under the credit facility.

Outlook and guidance

• Q2 2025 volumes expected to decline slightly, partially offset by favorable pricing and increased logistics activity.

• 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 are estimated at $150–$175M for maintenance and $100–$125M for growth, with flexibility to reduce by $70–$100M.

• Company believes current liquidity and cash flow will be sufficient for at least the next 12 months.

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