ProFrac (NASDAQ:ACDC) Posts Quarterly Earnings Results, Misses Estimates By $0.19 EPS

ProFrac (NASDAQ:ACDC) announced its quarterly 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 firm had revenue of $511.10 million during the quarter, compared to analysts’ expectations 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 Price Performance

ACDC opened at $3.01 on Friday. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.84 and a quick ratio of 0.59. ProFrac has a 1 year low of $2.66 and a 1 year high of $8.22. The firm’s fifty day moving average price is $4.58 and its two-hundred day moving average price is $5.51. The company has a market capitalization of $548.18 million, a price-to-earnings ratio of -1.38 and a beta of 1.48.

Insider Buying and Selling at ProFrac

In related news, major shareholder Holdings Lp Thrc bought 30,820 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were purchased at an average cost of $4.81 per share, with a total value of $148,244.20. Following the completion of the acquisition, the insider directly owned 83,816,235 shares in the company, valued at approximately $403,156,090.35. The trade was a 0.04% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Matthew Wilks bought 22,481 shares of the business’s stock in a transaction dated Tuesday, August 11th. The shares were purchased at an average price of $5.44 per share, for a total transaction of $122,296.64. Following the transaction, the chief executive officer directly owned 502,097 shares of the company’s stock, valued at approximately $2,731,407.68. This represents a 4.69% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 2,014,454 shares of company stock valued at $9,750,117 over the last ninety days. 2.23% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research analysts have weighed in on ACDC shares. Morgan Stanley dropped their target price on ProFrac from $5.00 to $4.50 and set an “underweight” rating on the stock in a research report on Thursday, August 20th. Wall Street Zen lowered ProFrac from a “hold” rating to a “sell” rating in a research note on Saturday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of ProFrac in a research report on Monday, September 21st. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus 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.