ProFrac (NASDAQ:ACDC) Releases Quarterly Earnings Results, Misses Expectations By $0.19 EPS

ProFrac (NASDAQ:ACDC) posted its earnings results on Thursday. The company reported ($0.45) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.26) by ($0.19), FiscalAI reports. ProFrac had a negative net margin of 22.83% and a negative return on equity of 45.18%. The company had revenue of $511.10 million during the quarter, compared to analyst estimates of $555.66 million.

Here are the key takeaways from ProFrac’s conference call:

• ProFrac’s Q3 adjusted EBITDA fell to $65 million from $69 million in Q2, as weaker proppant results and September downtime in stimulation services outweighed modest revenue growth; free cash flow improved to $14 million.
• Proppant Production was a major pressure point, with revenue down to $101 million from $121 million and adjusted EBITDA dropping to $2.4 million from $6 million, amid lower West Texas volumes, competitive pricing, and higher costs.
• Management sees a tightening frac market heading into 2027, citing retiring equipment, long replacement lead times, and customer inquiries for incremental dedicated fleets; it expects pricing gains to build, but said new capacity would require attractive contract economics and would not be built speculatively.
• Flotek revenue and adjusted EBITDA rose sequentially to $117 million and $22 million, respectively, while manufacturing revenue increased to $53 million; management pointed to demand tied to power infrastructure as a growth opportunity.
• Financing changes extended the Alpine term loan maturity to 2030, reduced near-term scheduled payments, and helped lower principal debt by $60 million through an affiliate-loan exchange; quarter-end principal debt was about $1.05 billion, with $113 million due in the next 12 months.

ProFrac Stock Down 31.7%

ProFrac stock traded down $1.26 during midday trading on Thursday, hitting $2.71. 6,080,182 shares of the stock were exchanged, compared to its average volume of 1,435,600. ProFrac has a 1 year low of $2.66 and a 1 year high of $8.22. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.84 and a quick ratio of 0.59. The firm has a market cap of $493.55 million, a P/E ratio of -1.16 and a beta of 1.48. The company has a 50 day moving average price of $4.67 and a two-hundred day moving average price of $5.53.

Insider Buying and Selling at ProFrac

In other ProFrac news, major shareholder Holdings Lp Thrc bought 363,757 shares of the stock in a transaction dated Monday, August 24th. The stock was bought at an average cost of $4.70 per share, for a total transaction of $1,709,657.90. Following the completion of the purchase, the insider directly owned 83,785,415 shares of the company’s stock, valued at approximately $393,791,450.50. The trade was a 0.44% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Matthew Wilks bought 57,519 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were acquired at an average cost of $4.86 per share, for a total transaction of $279,542.34. Following the completion of the transaction, the chief executive officer owned 479,616 shares of the company’s stock, valued at approximately $2,330,933.76. The trade was a 13.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 2,014,454 shares of company stock valued at $9,750,117 in the last ninety days. Insiders own 2.23% of the company’s stock.

Wall Street Analyst Weigh In

ACDC has been the topic of several recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of ProFrac in a research report on Monday, September 21st. Wall Street Zen cut ProFrac from a “hold” rating to a “sell” rating in a report on Saturday, October 24th. Finally, Morgan Stanley lowered their price objective on shares of ProFrac from $5.00 to $4.50 and set an “underweight” rating for the company in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $5.25.

ProFrac Company Profile

ProFrac Holding Corp. is an energy services company that provides hydraulic fracturing and other well-stimulation services to oil and natural gas producers. Through its operations, the company supports the development and completion of unconventional wells, primarily in North American onshore energy markets.

The company’s activities include pressure pumping and hydraulic fracturing services, proppant production and distribution, and the manufacture, sale, and maintenance of equipment used in well-completion operations.