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ProPetro Holding Corp. (PUMP)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue of $294.0M declined 10% QoQ but beat Wall Street consensus ($264.0M*); diluted EPS of -$0.02 also beat consensus (-$0.146*) as cost actions cushioned lower utilization in fracturing .
  • Adjusted EBITDA was $35.2M (12% of revenue), down 29% QoQ; management emphasized discipline (idled three fleets, maintained pricing) and maintenance-mode capex in completions .
  • PROPWR accelerated: signed a 60 MW long-term hyperscaler data center contract, took total contracted to >150 MW with expectations ≥220 MW by year-end, and raised orders to 360 MW; executed LOI for a $350M lease facility to fund growth .
  • Guidance reset: FY25 capex incurred now $270–$290M (down from $270–$310M); completions $80–$100M (lower), PROPWR ~$190M in 2025 and $200–$250M in 2026 (higher) given accelerated deliveries; expect 10–11 active fleets in Q4 and at least that level into 2026 .
  • Stock reaction catalyst: entry into data center power with hybrid BESS/recip engines and flexible external financing; an analyst noted shares were up ~28–29% early on the call day, highlighting investor interest in the power pivot .

What Went Well and What Went Wrong

What Went Well

  • Completions generated Free Cash Flow for Completions of $25.2M despite activity headwinds; net cash from operations was $41.7M, demonstrating industrialized operations and cost control .
  • PROPWR milestones: 60 MW hyperscaler data center contract; total contracted >150 MW (target ≥220 MW by YE); equipment orders lifted to 360 MW; long-term LOI for $350M lease financing to scale projects .
  • Management tone on discipline and positioning: “We proactively chose to idle certain fleets… preserving them for more favorable market conditions” and “approximately 70% of our active hydraulic horsepower is now secured under long-term contracts,” supporting earnings resiliency .

What Went Wrong

  • Lower utilization in hydraulic fracturing drove a 10% sequential revenue decline and a 29% drop in Adjusted EBITDA; adjusted EBITDA margin compressed to 12% .
  • CFO acknowledged completions free cash flow has been below earlier-year expectations, making external capital “essential for the meaningful expansion” of PROPWR .
  • Permian completions market remains depressed (~70 operating frac fleets vs. ~90–100 at the year’s start) with pricing softness at the market’s lower end; three fleets idled to avoid sub-economic work .

Financial Results

Reported results (sequential)

Metric (USD)Q1 2025Q2 2025Q3 2025
Revenue ($M)$359.4 $326.2 $293.9
Operating Income (Loss) ($M)$9.5 $(3.2) $(6.1)
Net Income (Loss) ($M)$9.6 $(7.2) $(2.4)
Diluted EPS ($)$0.09 $(0.07) $(0.02)
Adjusted EBITDA ($M)$72.7 $49.6 $35.2
Adjusted EBITDA Margin (%)20% 15% 12%

Actual vs Wall Street consensus (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
Revenue – Actual ($M)$359.4 $326.2 $293.9
Revenue – Consensus ($M)*$344.3$329.5$264.0
Diluted EPS – Actual ($)$0.09 $(0.07) $(0.02)
Diluted EPS – Consensus ($)*$0.055$0.033$(0.146)
EBITDA – Actual ($M)*$69.3$45.1$30.5
EBITDA – Consensus ($M)*$62.9$58.7$37.1

Values marked with * retrieved from S&P Global.

Year-over-year (Q3 2025 vs Q3 2024)

Metric (USD)Q3 2024Q3 2025
Revenue ($M)$360.9 $293.9
Net Income (Loss) ($M)$(137.1) $(2.4)
Diluted EPS ($)$(1.32) $(0.02)

Segment revenue and EBITDA

SegmentQ2 2025 Revenue ($M)Q3 2025 Revenue ($M)Q2 2025 Adj. EBITDA ($M)Q3 2025 Adj. EBITDA ($M)
Hydraulic Fracturing$245.7 $210.2 $52.0 $35.4
Wireline$48.0 $52.2 $7.9 $10.9
Cementing$32.4 $31.6 $4.7 $5.6
Power Generation (PROPWR)$0.0 $0.2 $(2.2) $(4.1)
Operating lease expense on FORCE® fleets (incl. in EBITDA)$14.5 $14.9 ——

KPIs and cash metrics

KPIQ2 2025Q3 2025
Net Cash from Operating Activities ($M)$54.2 $41.7
Free Cash Flow ($M)$18.5 $(0.8)
Free Cash Flow for Completions Business ($M)$26.2 $25.2
Liquidity ($M)$178 (incl. cash and ABL availability) $158 (incl. cash and ABL availability)
Capex Paid ($M)$37.1 $44.0
Capex Incurred ($M)$73.1 $98.4
PROPWR Equipment on Order (MW)~220 360
Contracted PROPWR Capacity (MW)LOIs/executed: 80 MW 10-yr (Q2) >150 MW; expect ≥220 MW YE
Contracted Frac Fleets (count)6 (Q1 context) 7 (incl. two large simul-frac)
% Active HP under LT contracts>50% (Q2) ~70% (Q3)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Capex IncurredFY 2025$270–$310M $270–$290M Lowered
Completions CapexFY 2025$100–$140M $80–$100M Lowered
PROPWR CapexFY 2025~$170M ~ $190M Raised
PROPWR CapexFY 2026~$60M $200–$250M Raised
Active Frac Fleets (Next Q)Q4 202510–11 in Q3 (prior outlook) 10–11; sustain at least this level into 2026 Maintained/sequential commentary

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Permian completions activity and pricing disciplineQ1: Anticipated downtick; idling fleets vs sub-economic pricing . Q2: ~70 Permian fleets; pricing softness at lower end; idled fleets .Persisting weakness; ~70 fleets vs 90–100 start of year; idled 3 fleets; maintained pricing discipline .Negative activity; disciplined supply response.
FORCE® electric fleets and contracted horsepowerQ1: 4 FORCE fleets under LT; 75% gas-burning fleet mix .~70% of active frac HP under LT; FORCE lease expense ~$15M .Structural de-risking of earnings via contracts.
PROPWR growth and financingQ2: 80 MW 10-yr oilfield microgrid contract; ~220 MW on order .60 MW hyperscaler data center; >150 MW contracted, targeting ≥220 MW YE; orders to 360 MW; LOI for $350M lease facility .Accelerating commercialization and funding clarity.
Technology choices (data center prime power)Q2: Mix of turbines and recip engines .Data center solution uses recip engines + BESS; focus on prime power (not backup) .Differentiated hybrid design; prime power focus.
Macro: tariffs, OPEC+ impactsQ1: Tariffs/OPEC+ pressuring activity . Q2: Continued uncertainty .Continued uncertainty cited; outlook cautious into 2026 .Ongoing headwind.
Consolidation via attritionQ1/Q2: Commentary on bottom-tier attrition .Reinforced view: consolidation via attrition benefits disciplined providers .Structural tailwind over time.

Management Commentary

  • CEO: “We proactively chose to idle certain fleets, rather than run our fleets at sub-economic levels, preserving them for more favorable market conditions” .
  • CEO: “Approximately 70% of our active hydraulic horsepower is now secured under long-term contracts” .
  • CFO: “While our completions business has demonstrated resilience… it has not generated the level of free cash flow we anticipated earlier this year, making access to external capital essential for the meaningful expansion of our power generation business” .
  • PROPWR President on technology: “It’s reciprocating engines and battery energy storage systems… driven by a customer request… a differentiator for us” .
  • CEO outlook: “Expect to maintain 10 to 11 active fleets in the fourth quarter… anticipate a sequential improvement in the PROPWR segment… sustain at least this level of frac fleet activity into 2026” .

Q&A Highlights

  • Data center contract specifics: Prime-power application using recip engines + BESS; optionality to expand capacity and term; economics broadly similar across oilfield vs data center verticals .
  • Funding strategy: $350M lease facility is flexible (draw-as-needed); PROPWR can support more leverage given take-or-pay contracts; prioritize organic FCF first .
  • Fleet discipline: Simul-frac counted as one fleet; significant gap in margins between contracted FORCE fleets and others; idled three fleets to avoid unsustainable pricing .
  • Strategic posture: M&A remains horizontal/tactical; consolidation happening via attrition even without deals .

Estimates Context

  • Q3 2025 beats/misses versus S&P Global consensus: Revenue beat ($293.9M vs $264.0M*), EPS beat (-$0.02 vs -$0.146*), EBITDA miss ($30.5M* vs $37.1M*). Sequentially, Q2 was a miss on revenue/EPS/EBITDA; Q1 was a beat across all three metrics .
  • Implications: Street likely underappreciated the benefit of cost actions and pricing discipline; estimate revisions may raise revenue and EPS for Q4/2026 in light of PROPWR ramp and stabilized completions base, while EBITDA mix will reflect non-GAAP vs GAAP differences (Adjusted EBITDA vs EBITDA).
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • The quarter was operationally disciplined: revenue/EPS beats despite lower utilization; Adjusted EBITDA compressed but within management’s expectations for maintenance-mode completions .
  • PROPWR is becoming a second engine: hyperscaler win, >150 MW contracted, orders at 360 MW, and flexible $350M lease financing de-risks execution; watch near-term contract signings toward ≥220 MW by YE .
  • Completions free cash flow remains robust ($25.2M), funding part of PROPWR without stressing the balance sheet; liquidity at $158M provides buffer .
  • Guidance shifts matter: lower completions capex ($80–$100M) and higher PROPWR capex reflect accelerated delivery schedules; expect continued maintenance mode in OFS and PROPWR margin uplift sequentially .
  • Narrative likely to drive the stock: data center prime power entry and take-or-pay constructs could support a rerating path; monitor execution pace and mix of contracts (term/returns) .
  • Risk checks: persistent Permian softness and tariffs/OPEC+ uncertainty; management emphasized idling rather than uneconomic work, preserving asset quality and pricing integrity .
  • Near-term trading: catalysts include additional PROPWR contracts, clarity on financing terms, and Q4 commentary on fleet activity/margins; upside if PROPWR ramps offsets holiday seasonality as guided .