Why Is Liberty Oilfield Services (LBRT) Up 10.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT). Shares have added about 10.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Liberty Oilfield Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Liberty Energy’s Q4 Earnings and Revenues Beat Estimates

Liberty Energy 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’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 dividend of 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

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

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, Liberty Energy spent $202.8 million in its capital program, up from our estimate of $139.6 million.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 24.11% due to these changes.

VGM Scores

At this time, Liberty Oilfield Services has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Liberty Oilfield Services is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Halliburton (HAL), a stock from the same industry, has gained 7%. The company reported its results for the quarter ended December 2025 more than a month ago.

Halliburton reported revenues of $5.66 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $0.69 for the same period compares with $0.70 a year ago.

For the current quarter, Halliburton is expected to post earnings of $0.52 per share, indicating a change of -13.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halliburton. Also, the stock has a VGM Score of A.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research