Liberty Energy Revenue Jumps 26% to $1.2 Billion Despite $39 Million Loss
Key Facts
Liberty Energy said on October 21 that revenue reached $1.2 billion in the third quarter of 2026, up 26% year over year and 1% from the previous quarter. But the company posted a net loss after tax of $39 million, compared with net income of $43 million in both the third quarter of 2025 and the second quarter of 2026. The results put sales growth alongside a clear decline in accounting profitability during the period. CEO Ron Gusek said revenue and adjusted EBITDA reflected "strong operational execution and modest pricing increases." He added that this was partly offset by "drilling-related delays and cost inflation pressures."
According to the company’s statement, adjusted EBITDA was $142 million, up 11% from $128 million a year earlier, but down 6% from $151 million in the second quarter. Adjusted net income was $10 million, after the company recorded an adjusted loss of $10 million in the third quarter of 2025; however, the figure was down from $14 million in the previous quarter. The divergence between the year-over-year and quarterly comparisons shows that improvement from the year-earlier period did not prevent some earnings measures from declining from the second quarter. Adjusted diluted earnings per share were $0.06, compared with an adjusted loss of $0.06 a year earlier and $0.09 in the second quarter. Zacks said adjusted earnings per share missed analyst estimates.
On a GAAP basis, diluted earnings per share turned into a loss of $0.24 in the third quarter, after profit of $0.26 in both the third quarter of 2025 and the second quarter of 2026. Cost of services rose to about $995 million from about $770 million in the year-earlier period. The increase in costs is consistent with what Gusek described as cost inflation pressures, alongside drilling-related delays, despite modest pricing increases that supported revenue. Second-quarter revenue was $1.2 billion, up 14% year over year, with net income of $43 million and diluted earnings of $0.26 per share. Annual revenue growth therefore accelerated in the third quarter, while net earnings were weaker than in the previous quarter.
On fuel efficiency, Liberty said natural gas substitution exceeded 60% of the total fuel consumed by its fleets and estimated annual customer savings at more than $1 billion. The company described this as a record level of gas substitution in its fracturing fleets, as its business faced drilling delays and higher costs. Gusek also linked an improving completion activity trajectory to strong customer engagement and improving market fundamentals, saying they offered "a more positive outlook heading into year-end." The company did not specify in these statements how much gas substitution contributed to third-quarter results, while it reported the savings as an estimated annual value for customers. These operating indicators come alongside management’s expectation that demand will remain strong, including work deferred from the third quarter.
The company cited an agreement to develop energy services for data centers that includes a large upfront payment for capacity fees. It set a phased schedule for beginning power supply, running from the fourth quarter of 2027 to the first quarter of 2029. This puts data center activity among its future plans, with implementation due to begin according to the phases and dates announced by the company. The information provided did not specify the value of the upfront payment or other financial details of the agreement. For the fourth quarter, management expects strong demand to partly offset the effects of weather and the holiday season, with activity deferred from the third quarter among the sources of demand.
On distributions, the board announced on October 20 an increase in the quarterly cash distribution to $0.10 per share. It is payable on December 18, 2026, to shareholders of record on December 4. Liberty reported its results on October 21, then held a call to discuss them on October 22. In share trading, EL7 data showed LBRT closing at $15.38 on October 22, after closing at $16.69 on October 21, $16.58 on October 20, $17.09 on October 19 and $16.60 on October 16. These closing prices put the stock’s moves in the days before and after the results announcement in context, without specifying the session highs or lows.