Executive Summary

Q1 2025 came in ahead of Street: revenue $359.4M vs $344.3M consensus (+4.4%), EPS $0.09 vs $0.06 consensus, and EBITDA ~$69.3M vs $62.9M consensus; management also delivered $22.0M of free cash flow and lowered 2025 capex guidance midpoint by ~9% *.
Mix and execution drove the beat: utilization was strong, pricing held “steady” in contracted next-gen fleets, and cost discipline lifted Adjusted EBITDA to $73.0M (20% margin) despite macro volatility; lease expense for e-fleets was $15M .
Outlook tempered near term: Q2 active fleets guided down to 13–14 (from 14–15 in Q1) on commodity softness (tariffs/OPEC+) and price discipline in spot diesel; ~50% of horsepower now under long‑term contracts helps buffer volatility .
Strategic pivot gaining traction: PROPWR ordered capacity raised to ~220 MW with LOIs for ~75 MW; management prioritizes capital to power/e-fleets with take‑or‑pay returns (~4‑yr payback, ~$300k EBITDA/MW/yr) .
Governance/leadership: CFO departed March 4; Chief Accounting Officer Celina Davila is interim PFO, and led the quarter’s detailed financial update, with intent to extend the $200M buyback program, subject to Board approval .

Note: Consensus values marked with * are from S&P Global; values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Strong execution and resilience despite macro: “another great quarter… our strategy is working… despite macroeconomic volatility,” with revenue up 12% QoQ to $359M and Adjusted EBITDA up 38% to $73M (20% margin) .
- Mix/contracting improved durability: 75% of frac capacity is next‑gen (Tier IV DGB + FORCE e‑fleets); ~50% of active HHP under long‑term contracts; pricing “very steady” in contracted next‑gen .
- Capital discipline/FCF: Q1 free cash flow $21.9–$22.0M with capex $39M; liquidity $197M; 2025 capex guidance cut to $295–$345M, driven largely by optimization in completions; intent to extend buyback .
What Went Wrong
- Macro-driven near-term softness: Management guiding Q2 active fleets to 13–14 vs 14–15 in Q1 due to lower oil prices linked to tariffs and OPEC+ supply; will not run sub‑economic work .
- Spot diesel pressure: Some low-price pockets in diesel/spot; management is willing to walk away; confirms consolidation via attrition as uneconomic competitors price at negative FCF .
- Non-GAAP/one-time noise: Q1 included a $10M loss on asset disposal (Tier II diesel sales), and e‑fleet operating lease expense of $15M; Q4 2024 had a $24M goodwill impairment in wireline, highlighting ongoing portfolio shaping .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025 Actual	Q1 2025 Consensus*
Revenue ($M)	$405.8	$320.6	$359.4	$344.3*
Diluted EPS ($)	$0.18	($0.17)	$0.09	$0.06*
Adjusted EBITDA ($M)	$93.4	$52.7	$73.0	$62.9*
Adjusted EBITDA Margin (%)	23.0% (=$93.4/$405.8)	16.4% (=$52.7/$320.6)	20.0%	—

Segment performance – Q1 2025:

Segment revenue and profitability

Segment	Service Revenue ($M)	Adjusted EBITDA ($M)	D&A ($M)
Hydraulic Fracturing	$269.4	$68.3	$41.3
Wireline	$53.4	$10.5	$5.4
Cementing	$36.6	$8.1	$1.9
Operating lease expense on FORCE e‑fleets	—	—	—
Operating lease expense (cost of services)	$15.3	—	—

Key KPIs – Q1 2025:

Fleet/contracting/power and cash metrics

KPI	Q1 2025
Active frac fleets (Q1)	14–15
Q2 2025 active fleets (guidance)	13–14
Next-gen frac mix (Tier IV DGB + FORCE)	~75% of fleet
Long‑term contracts	~50% of active HHP (6 fleets under LT contracts)
PROPWR ordered capacity	~220 MW by mid‑2026
PROPWR LOIs	~75 MW (two operators)
Cash from Ops / FCF	$54.7–$55.0M / $21.9–$22.0M
Capex (incurred)	$39.0M
Liquidity (cash + ABL availability)	$197.0M
e‑fleet operating lease expense	$15.0–$15.3M
Revenue mix (slide)	75% Frac / 15% Wireline / 10% Cementing

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Capex	FY 2025	$300–$400M (Feb-19 PR)	$295–$345M	Lowered (~9% at midpoint)
Completions Capex	FY 2025	$150–$200M (subset of total)	$125–$175M	Lowered
PROPWR Capex	FY 2025 / 2026	$150–$200M (FY25)	$170M (FY25), $60M (FY26); $104M financed	Narrowed/Specified
Active Frac Fleets	Q1 2025 → Q2 2025	Run 14–15 in Q1 2025	Guide 13–14 in Q2 2025	Lowered

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
Electrification (FORCE e‑fleets)	4 e‑fleets operating; fifth planned; Q3’24 impairment of Tier II highlights shift	4 e‑fleets under LT contracts; fifth to deploy in 2025; e‑fleets built for simul‑frac	Maturing growth; steady expansion
PROPWR (mobile power)	Announced Dec’24; >110 MW ordered + 30 MW; majority H2’25/’26 deliveries	Ordered ~220 MW; LOIs ~75 MW; mid‑2026 full delivery; returns ~4‑yr payback, ~$300k EBITDA/MW/yr	Scaling with improving visibility
Pricing environment	Q4 seasonal weakness; maintained pricing broadly	Contracted next‑gen pricing “very steady”; spot/diesel pressure on fringes; will walk from uneconomic work	Bifurcated: steady in LT/next‑gen, soft in spot
Utilization/Activity	Q4 seasonality; 14 fleets expected in Q1’25	Q1 ran 14–15; guide to 13–14 in Q2 on macro softness; industry Permian fleets could slip from ~85–90 to 75–85 into summer	Near‑term moderation
Capex/Optimization	2024 capex -57% YoY; capex flexibility emphasized	2025 capex cut to $295–$345M; completions capex lowered largely via optimization	Further optimized
Capital returns	Raised buyback to $200M (Apr’24); $111M repurchased to date	Intend to extend program (Board approval pending)	Continuing

Management Commentary

Strategic positioning: “Our performance underscores… strong execution… despite macroeconomic volatility… our new PROPWR offering and FORCE electric fleet transition ensure [we] deliver durable returns over time.” – Sam Sledge, CEO .
Contracting/portfolio: “We currently operate seven Tier IV DGB dual‑fuel fleets… four FORCE fleets in the field under long‑term contracts… six fleets under contract (~50% of active HHP).” .
Capital allocation: “We believe in a dynamic capital allocation strategy… pursue growth through M&A, PROPWR, and FORCE… generated strong free cash flow, solid adjusted EBITDA and lower‑than‑expected capex relative to guidance.” .
On optimization: “Lower capex is a strong tailwind for free cash flow… 2025 capex to be $295–$345M… completions $125–$175M; PROPWR $170M in 2025 and $60M in 2026; $104M financed.” – Celina Davila, Interim PFO .
Near-term activity: “We anticipate operating approximately between 13 and 14 fleets in the second quarter… we will not compromise [fleet health] by operating… sub‑economic.” – CEO .

Q&A Highlights

PROPWR scope beyond Permian: While initial contracts are Permian oil & gas, management is seeing opportunities across other geographies/industries; building a platform with flexibility and modularity .
Pricing color: Contracted next‑gen pricing is steady given long‑term customer orientation; diesel/spot shows isolated underpricing—PUMP is willing to walk away to preserve returns .
Capital allocation stack: Prioritizing power and e‑fleets given known, contract‑backed returns (take‑or‑pay), alongside M&A, wireline/cementing, and buybacks while protecting the balance sheet .
Industry activity cadence: Permian fleets could drift from ~85–90 toward 75–85 into summer; PUMP expects to pull at least one fleet in June absent macro change; running four simul‑frac fleets heading into May .
PROPWR returns: Targeting ~4‑year paybacks and ~$300k EBITDA per MW per year on contracts; customer interest is strong .

Estimates Context

Beat vs S&P Global consensus: Q1 revenue $359.4M vs $344.3M*; EPS $0.09 vs $0.06*; EBITDA ~$69.3M* actual vs $62.9M* consensus, with four EPS estimates and five revenue estimates contributing *.
Implications: Model updates likely include higher near‑term EBITDA/FCF on utilization/cost control and lower FY25 capex; however, Q2 activity moderation and spot market pricing caution may temper outer‑quarter revenue assumptions .
Note: Consensus values marked with * are from S&P Global; values retrieved from S&P Global.

Key Takeaways for Investors

Execution-led beat with improved cash conversion: solid utilization/pricing and cost control drove EBITDA and FCF upside; e‑fleet leases embedded in COGS are manageable within margin structure .
Defensive posture into softer Q2: fleet guidance trimmed to 13–14 and firm price discipline in spot diesel support cycle‑through returns; ~50% contracted HHP and 75% next‑gen mix reduce volatility .
PROPWR is a growing growth vector: ordered capacity to ~220 MW with early LOIs (75 MW) and contract‑like returns (take‑or‑pay) can add durable, less cyclical earnings over time .
2025 capex haircut boosts FCF durability: completions capex cut via optimization; explicit PROPWR spend/financing improves visibility; expect share repurchase extension pending Board approval .
Watch catalysts: formalization of PROPWR contracts (LOIs → executed agreements), e‑fleet #5 deployment, Q2 utilization trajectory vs guide, pricing discipline in diesel/spot, and CFO successor appointment .

Appendix: Additional detail from primary sources

GAAP financials (Q1 2025): Revenue $359.416M; Net income $9.602M; Diluted EPS $0.09; CFFO $54.689M; FCF $21.853M; Cash $63.392M; Liquidity $197M .
Non-GAAP: Adjusted EBITDA $72.686M; Lease expense on e‑fleets $15.339M; Segment Adjusted EBITDA totals reconciled in exhibits .

Footnotes: Consensus values marked with * are from S&P Global; values retrieved from S&P Global.

ProPetro Holding Corp. (PUMP)·Q1 2025 Earnings Summary