Executive Summary

Q2 2025 underperformed vs expectations: revenue fell 9% q/q to $326.2M, driving a net loss of $7.2M (-$0.07 diluted EPS) as utilization dropped and ProPetro proactively idled fleets rather than accept sub‑economic work . Versus S&P Global consensus, revenue was slightly below ($326.2M vs $329.5M*), Adjusted EBITDA missed ($49.6M vs $58.7M*) and EPS missed (-$0.07 vs $0.03*) as weather, transition/idle costs, and lower activity weighed on results .
Management cut full‑year 2025 incurred capex to $270–$310M (from $295–$345M prior), trimmed completion capex to $100–$140M (from $125–$175M), and guided to 10–11 average active frac fleets in Q3 (down from 13–14 in Q2) amid Permian softness and weaker price discipline at the low end of the market .
Strategic positives: the inaugural 10‑year PROPWR 80MW contract begins deploying in Q3 (take‑or‑pay, availability guarantee), with 220MW on order and intent to fully contract by YE25; over 50% of active HHP now on long‑term contracts; ~75% of fleet next‑gen (Tier IV DGB + FORCE electric) with stable pricing and strong demand .
Near‑term stock catalysts: additional long‑term PROPWR awards, clarity on Q4 seasonality vs activity trough, evidence of diesel capacity attrition or overseas sales, and any stabilization in Permian fleet counts around ~70 units that could tighten pricing/utilization .

What Went Well and What Went Wrong

What Went Well
- Signed PROPWR’s first 10‑year, 80MW contract (turnkey microgrid power, take‑or‑pay) with deployments starting Q3; 220MW on order with expectations to contract all by YE25 .
- Contracted base and next‑gen mix provide resilience: over 50% of active HHP under long‑term contracts; ~75% of fleets are next‑gen (Tier IV DGB + FORCE electric) with “very strong” demand and “no disruptions to pricing or activity” on the high end .
- Positive cash generation in core completions despite market: Free Cash Flow for Completions Business was $26.2M in Q2; liquidity stood at $178M (cash $75M + $103M ABL capacity) .
What Went Wrong
- Utilization and weather drove topline/EBITDA declines: revenue -9% q/q to $326.2M; Adjusted EBITDA down to $49.6M (15% margin) on lower activity, one‑time transition/idle costs, and unabsorbed weather impacts .
- Guidance points to further near‑term pressure: average 10–11 fleets in Q3 (vs 13–14 in Q2) as management idles fleets rather than accept sub‑economic work; capex plan reduced in response to lower activity .
- Street misses: EPS -$0.07 vs $0.03*; Adjusted EBITDA $49.6M vs $58.7M*; revenue $326.2M vs $329.5M*—reflecting weaker utilization and transition/idle costs .
  Values retrieved from S&P Global.*

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$357.0	$359.4	$326.2
Net (Loss) Income ($USD Millions)	$(3.7)	$9.6	$(7.2)
Diluted EPS ($)	$(0.03)	$0.09	$(0.07)
Adjusted EBITDA ($USD Millions)	N/A	$72.7	$49.6
Adjusted EBITDA Margin (%)	N/A	20%	15%

Actual vs S&P Global consensus (Q2 2025)

Metric	Consensus*	Actual	Beat/Miss
Revenue ($USD)	$329.5M*	$326.2M	Miss
Adjusted EBITDA ($USD)	$58.7M*	$49.6M	Miss
EPS (Primary/Diluted)	$0.03*	$(0.07)	Miss
Values retrieved from S&P Global.*

Segment results (Service Revenue, Adjusted EBITDA)

Segment ($USD Thousands)	Q1 2025	Q2 2025
Hydraulic Fracturing – Revenue	$269,399	$245,741
Hydraulic Fracturing – Adj. EBITDA	$68,340	$51,983
Wireline – Revenue	$53,442	$47,995
Wireline – Adj. EBITDA	$10,473	$7,855
Cementing – Revenue	$36,633	$32,443
Cementing – Adj. EBITDA	$8,066	$4,651
All Other (PROPWR) – Revenue	$0	$0
All Other (PROPWR) – Adj. EBITDA	$(710)	$(2,231)
Reconciling Items – Adj. EBITDA	$(13,483)	$(12,651)
Total – Revenue	$359,416	$326,151
Total – Adjusted EBITDA	$72,686	$49,607

KPIs and Operating Metrics

KPI	Q1 2025	Q2 2025
Active frac fleets (avg)	14–15 (guide referenced)	13–14
Q3 fleet guidance (avg)	—	10–11
Next‑gen fleet mix (Tier IV DGB + FORCE)	~75%	~75%
HHP under long‑term contracts	~50%	>50%
FORCE operating lease expense	$15.339M	$14.462M
Free Cash Flow – Completions	$40.681M	$26.206M
Liquidity (Cash + ABL availability)	$197M	$178M (Cash $75M; ABL $103M)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital expenditures incurred (Total)	FY 2025	$295–$345M	$270–$310M	Lowered
Completions business capex incurred	FY 2025	$125–$175M	$100–$140M	Lowered
PROPWR equipment spending	FY 2025	~$170M (plus $60M in 2026; ~$104M financed)	~$170M (plus $60M in 2026; ~$104M financed)	Maintained
Average active frac fleets	Q3 2025	N/A	10–11	New item
PROPWR ordered capacity deliveries	Through mid‑2026	220MW by mid‑2026	220MW by mid‑2026	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 = Q‑2; Q1 2025 = Q‑1)	Current Period (Q2 2025)	Trend
Permian completions market/oversupply	Seasonal utilization drop in Q4; planning 14–15 fleets for Q1	Permian fleet counts “approaching 70” with weak price discipline at low end; idling fleets to avoid sub‑economic work	Deteriorating near‑term
Next‑gen fleet penetration & pricing	Emphasis on FORCE and Tier IV DGB; 4 FORCE fleets under contract; fifth planned	~75% next‑gen; stable pricing at high end; simul‑frac a growing share	Structurally positive
Long‑term contracts/visibility	Moving to long‑term contracts across next‑gen fleets	>50% active HHP under long‑term contracts; stable price formulas with low single‑digit adjustments	Improving visibility
PROPWR pipeline & contracts	140MW ordered; planning 150–200MW early 2026; demand seen as significant	220MW on order; first 80MW 10‑yr contract; aim to contract all 220MW by YE25; more LOIs expected	Accelerating
Capital allocation	Balanced across e‑fleets, PROPWR, M&A, buybacks; strong FCF focus	Total capex cut; prioritize PROPWR/e‑fleets while preserving balance sheet	More defensive near‑term
Macro/tariffs/OPEC+	Flagged tariff and OPEC+ uncertainties	Continued macro uncertainty; conservative 2H view	Persistent headwind

Management Commentary

“We have proactively chosen to idle certain fleets, rather than run our fleets at sub‑economic levels, preserving them for more favorable market conditions.” — Sam Sledge, CEO .
“Approximately 75% of our fleet is next generation between the Tier IV DGB dual‑fuel and FORCE electric fleets... over 50% of ProPetro’s active hydraulic horsepower is now under long‑term contracts.” — Sam Sledge, CEO .
“We currently have approximately 220 megawatts on order... our inaugural contract... commits 80 megawatts... a 10‑year midstream‑like agreement.” — Sam Sledge, CEO .
“Adjusted EBITDA totaled $50 million, was 15% of revenue... One attributable factor... is our strategic decision to maintain our idle fleets in optimal working conditions.” — Celina Davila, CAO/PFO .
“Accordingly, in the third quarter, we expect to operate an average of 10 to 11 fleets... with the possibility of running fewer fleets in the fourth quarter.” — Sam Sledge, CEO .

Q&A Highlights

Market capacity and pricing: Management expects Permian looseness to persist into 2026, with diesel equipment most disrupted; ProPetro will not chase uneconomic work, prioritizing margins and equipment health .
PROPWR growth and returns: Initial 80MW contract begins Q3 with modest startup costs; deliveries ramp linearly through mid‑2026; additional large orders under evaluation; long‑term returns framed by take‑or‑pay structures .
Seasonality and activity trajectory: Q4 seasonality plus current pessimistic near‑term view warrant conservative outlook, though project wins could alter trajectory quickly .
Segment dynamics: Wireline and cementing track completion activity; cementing saw a full‑quarter effect of drilling slowdowns .
Contract stability: Long‑term dual‑fuel/electric contracts include semi‑annual formulaic price adjustments, generally low single‑digit and stable .

Estimates Context

Q2 2025 vs S&P Global consensus: Revenue $329.5M* vs actual $326.2M (Miss) ; Adjusted EBITDA $58.7M* vs $49.6M (Miss) ; EPS $0.03* vs $(0.07) (Miss) .
Values retrieved from S&P Global.*
Implications: Street models likely move lower near‑term to reflect reduced activity (10–11 fleets in Q3), lower utilization and transition/idle costs. Conversely, PROPWR’s 10‑year contract and expected additional LT awards may support medium‑term EBITDA durability and reduce cyclicality .

Key Takeaways for Investors

Near‑term earnings risk remains: lower fleet count into Q3 and continued Permian softness should pressure volumes/margins until activity stabilizes; management is prioritizing returns over utilization .
Quality mix matters: next‑gen fleets (DGB/electric) with LT contracts and stable pricing are insulating the model versus subscale diesel competitors; attrition at the low end is a potential medium‑term tailwind .
PROPWR is a structural growth vector: the 80MW 10‑year contract and 220MW on order (with intent to fully contract by YE25) create multi‑year visibility; watch for additional LT awards and equipment orders .
Capital prudence in place: management cut 2025 capex plan and maintained strong liquidity, preserving flexibility for PROPWR, e‑fleets and opportunistic buybacks/M&A .
Modeling notes: bake in Q3 fleet average of 10–11 and conservative Q4 seasonality; include PROPWR ramp from Q3‑2025 through mid‑2026 with take‑or‑pay underpinnings .
Potential upside catalysts: additional PROPWR contracts, signs of diesel capacity attrition/exports, stabilization in Permian fleet counts, simul‑frac expansion in FORCE fleets .
Risks: extended macro/tariff/OPEC+ uncertainty, deeper utilization declines, slower PROPWR contracting cadence, or supply‑chain lead times on power equipment .

Notes: We did not find a standalone “8‑K 2.02” filing for Q2 2025; the company issued a detailed earnings press release (with financial statements) and hosted the earnings call on July 30, 2025 .

ProPetro Holding Corp. (PUMP)·Q2 2025 Earnings Summary