Liberty Energy's Q4 Earnings and Revenues Beat Estimates

Liberty Energy Inc. LBRT reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable margin. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 10 cents.

LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $862 million. The top line also increased from the prior-year quarter’s $944 million by 10%, driven by higher activity levels that meaningfully exceeded the industry. 

Liberty Energy Inc. Price, Consensus and EPS Surprise

Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. Quote

Liberty Energy’s adjusted EBITDA was $158 million, representing 1% increase from the year-ago quarter’s reported figure of $156 million. Moreover, the figure beat our model estimate of $93.4 million.

Other Important Updates

The Denver, CO-based oil and gas equipment company entered into a 1 gigawatt (GW) power development deal with Vantage Data Centers, backed by a firm 400 MW capacity reservation contract.

Liberty Energy signed a 330 MW power reservation along with a preliminary energy services agreement with a leading data center developer to support a Texas site expansion last week. It also accelerated the deployment plan for distributed power projects to 3 GW by 2029.

Ahead of the earnings release, Liberty Energy’s board of directors approved a cash dividendof 9 cents per share on Class A common stock. The dividend will be payable on March 18, 2026, to shareholders on record as of March 4, 2026.

During the quarter, the company returned about $15 million to its shareholders through quarterly cash dividends.

Costs & Expenses of LBRT

Liberty Energy reported total costs and expenses of $1 billion in the fourth quarter, increasing 10.9% from the year-ago quarter’s level. However, our estimate for the metric was pegged at $880.9 million.

Balance Sheet & Capital Expenditure of LBRT

As of Dec. 31, Liberty Energy had approximately $28 million in cash and cash equivalents. The pressure pumper’s long-term debt of $241.5 million represented a debt-to-capitalization of 10.4%.

Further, the company’s total liquidity, including availability under the asset-based revolving credit facility, amounted to $281 million.

In the reported quarter, this Zacks Rank #3 (Hold) company spent $202.8 million in its capital program, up from our estimate of $139.6 million.

LBRT’s Management Remarks & Outlook

Management believes that Liberty Energy is well-positioned to outperform across market cycles, supported by its leading completions business and a rapidly expanding power infrastructure platform. In 2025, the company reinforced its oilfield services operations while scaling its presence in the U.S. power market, where demand is accelerating at the fastest pace in decades. Growth is being driven by AI-led data center expansion, domestic manufacturing reshoring and rising electrification.

Data center power demand is expected to triple by 2030, while interconnection delays continue to worsen, increasing the need for flexible, scalable capacity. Liberty Energy’s power platform offers predictable, long-term pricing and is increasingly competitive as grid costs rise, positioning the company to deploy nearly 3 GW of power projects by 2029.

Meanwhile, North American oilfield activity has stabilized after prolonged softness. Fourth-quarter completions exceeded seasonal expectations, and demand is projected to remain steady in 2026. Equipment attrition, underinvestment and fewer available crews have tightened service capacity, reinforcing a quality check among producers seeking advanced, efficient solutions. Liberty’s technology-driven, integrated service model aligns well with rising demand for multi-frac, continuous operations and AI-enabled automation, strengthening its market leadership.

While the company’s first-quarter results are expected to be adversely impacted by the full effect of pricing pressures and winter-related disruptions, leading to a sequential decline in revenue and adjusted EBITDA, it expects market stabilization, growing demand for its digiTechnologies platform and long-term upside from expanding power and data center demand.

Other Important Earnings at a Glance

Let us also take a look at three other key reports in the Oil/Energy space.

A leading oilfield services company, Baker Hughes Company BKR, reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.

As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.

Another oil and gas equipment and services provider, Halliburton Company HAL, reported fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.

Houston, TX-based oil and gas equipment and services company’s revenues of $5.7 billion increased 0.8% year over year and beat the Zacks Consensus Estimate by 4.7%.

As of Dec. 31, 2025, the company had approximately $2.2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5. 

Houston, TX-based midstream energy infrastructure provider, Kinder Morgan Inc. KMI, reported fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, which beat the Zacks Consensus Estimate of 37 cents. The bottom line also increased year over year from 32 cents.

Total quarterly revenues of $4.5 billion beat the Zacks Consensus Estimate of $4.4 billion. The top line also increased from $4 billion in the prior-year quarter. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of Dec. 31, 2025, KMI reported $63 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $30.6 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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