ACDC

ProFrac’s results in Q2 were met with a negative market reaction, despite the company exceeding Wall Street’s revenue and adjusted EBITDA expectations. Management attributed the flat year-on-year sales to persistent volatility in the oil and gas sector and noted that competitive pricing pressure, especially in proppant (sand) markets in West Texas, impacted margins. Executive Chairman Matt Wilks cited ongoing operational momentum, particularly in South Texas, and highlighted the importance of efficiency and cost optimization efforts, stating, “We remain committed to the $100 million of annualized savings program we outlined at the start of the year.” Is now the time to buy ACDC? Find out in our full research report (it’s free). Revenue: $498.1 million vs analyst estimates of $473.2 million (flat year on year, 5.3% beat) Adjusted EPS: -$0.38 vs analyst expectations of -$0.30 (28.2% miss) Adjusted EBITDA: $69.4 million vs analyst estimates of $64.34 million (13.9% margin, 7.9% beat) Operating Margin: -7.6%, up from -11.6% in the same quarter last year Market Capitalization: $936.1 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Donald Crist (Johnson Rice): asked about the likelihood of fleet additions given rising demand and tightness in supply. Executive Chairman Matt Wilks reiterated that ProFrac will not add speculative fleets and will only consider expansions with long-term customer commitments. Donald Crist (Johnson Rice): inquired whether a 15-20% rate increase would prompt new fleet additions. Wilks clarified that such rate hikes would accelerate upgrades but not trigger new builds without contractual certainty. John Daniel (Daniel Energy Partners): questioned how much idle capacity could be reactivated quickly. Wilks responded that all next-generation, fuel-efficient equipment is currently deployed, and any reactivation would require strong economic incentives and supply chain support. Daniel Kutz (Morgan Stanley): sought specifics on Q3 and second-half EBITDA expectations and the potential for stimulation services to offset fluctuations in other segments. Wilks and CFO Austin Harbour indicated that price improvements would be more fully realized in Q3, with stimulation services expected to lead growth. Daniel Kutz (Morgan Stanley): asked about free cash flow expectations for the rest of the year. Harbour responded that lower capital spending and advancing cost-saving initiatives should improve free cash flow in the second half. In the coming quarters, the StockStory team will watch (1) the pace at which negotiated price increases translate into improved margins, (2) evidence of efficiency gains from technology upgrades and the eBlender rollout, and (3) progress in securing long-term customer contracts during the early RFP season. Leadership execution on cost savings and the impact of the recent CEO transition will also be important signposts. ProFrac currently trades at $5.53, up from $4.51 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11 a.m. ET Senior Vice President of Finance - Michael Messina Executive Chairman - Matt Wilks Chief Executive Officer - Ladd Wilks Chief Financial Officer - Austin Harbour Operator: Greetings and welcome to the ProFrac Second Quarter Earnings Conference Call. [Operator Instructions] It is now my pleasure to introduce your host, Michael Messina, Senior Vice President of Finance. Michael Messina: Thank you, operator. Good morning, everyone. We appreciate you joining us for ProFrac Holding Corp.'s conference call and webcast to review our results for the second quarter ended June 30, 2026. With me today are Matt Wilks, Executive Chairman, Ladd Wilks, Chief Executive Officer, and Austin Harbour, Chief Financial Officer. Following my remarks, management will provide high-level commentary on the operational and financial highlights of the second quarter 2026, before opening up the call to your questions. A replay of today's call will be made available by webcast on the company's website at pfholdingscorp.com. More information on how to access the replay is included in the company's earnings release. Please note that information reported on this call speaks only as of today, August 6, 2026. You are advised that any time-sensitive information may no longer be accurate as of the time of any replay listening or transmission. Also, comments on this call may contain forward-looking statements within the meaning of the United States Federal Securities Laws, including management's expectations of future financial and business performance. These forward-looking statements reflect the current views of ProFrac's management and are not guarantees of future performance. Various risks, uncertainties, and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in management's forward-looking statements. The listener or reader is encouraged to read ProFrac's Form 10-K and other filings with the Securities and Exchange Commission, which can be found on the website at SEC.gov or on the company's investor relations website section under the SEC filings tab to better understand those risks, uncertainties, and contingencies. The comments today also include certain non-GAAP financial measures, as well as other adjusted figures to exclude the contribution of Flotek. Additional details and reconciliations to the most directly comparable, consolidated, and GAAP financial measures are included in the earnings press release, which can be found on the company's website. Now over to Mr. Matt Wilks, Executive Chairman of ProFrac. Matthew Wilks: Thank you, Michael, and hello, everyone. I'll kick off with some remarks on our overall performance, the broader market environment, and progress on our strategic priorities. I'll then hand it over to Austin, who will take you through the segment results in more detail. We're pleased to report that our second quarter results improved over Q1 results and again came in ahead of expectations. April carried forward the operational momentum we discussed on our last call. And while these levels moderated somewhat as we moved through May and June, utilization remained strong. As I'll discuss in a moment, the market backdrop remains constructive, and we continue to see an open window for more favorable pricing dynamics. Consistent with what we said on our last call, the majority of that benefit is layering in through the back half of the year rather than the second quarter itself. Looking ahead to the third quarter and the back half of the year, our approach to pricing is to be constructive, not aggressive. We do not plan to deploy incremental fleets speculatively, and any gains we capture from here are about building toward a stronger 2027 rather than chasing a near-term spike. Given the constructive activity backdrop, RFP season conversations are already underway sooner than usual. We intend to be well positioned through that process into 2027. To the extent we see incremental demand show up in the spot market later in the year, our preference is not to chase it with additional equipment, but rather to capture that value more durably through the RFP process. We expect efficiency to continue improving on a quarterly basis as calendar white space tightens further, and we're encouraged by the consistency building through the back half of the year. During the quarter, we experienced incremental competitive pricing pressure in sand in the West Texas region. While supply remains tight in both the South Texas and East Texas, North Louisiana markets, we remain focused on translating more of our order book into long-term commitments and improving throughput. As we've spoken about in the past, the operating leverage inherent in our proppant business becomes increasingly evident as we drive higher utilization, and we continue to believe this business is capable of improved free cash flow as the efficiencies are realized. We continue to evaluate ways to further strengthen this business over time. From a regional perspective, South Texas continues to be our strongest performing market, both from a sell-through and a throughput standpoint. We did see some minor weather-related disruption in the quarter from flooding activity, though it was manageable. Looking ahead, we continue to see the Haynesville as an attractive growth market for us, both on the frac side and on the sand side. As gas-directed activity builds in support of LNG export capacity and power demand, we expect to see continued opportunity to increase activity across both of our core service lines. Zooming out to review the broader market environment, if there's one word that captures the last several months, it's volatility. We think that volatility itself is the signal worth paying attention to. Oil prices this year have ranged from a low in the first days of January to an April peak that was precisely double that trough. Within the second quarter alone, prices fell roughly 40% from their peak to a subsequent low, only to rally back nearly 40% off that low in the following weeks. That is not the behavior of a market that has found its footing. We point to the underlying cause. The conflict in the Middle East has continued to defy expectations of a long-term resolution. What has looked at various points like a path forward toward de-escalation has repeatedly given way to renewed military action, and recent weeks have brought further strikes and further retaliation. We continue to believe, as we've said on our prior calls, that this is not a transient supply shock but a structural shift in available global capacity. If anything, this extended period of uncertainty has only reinforced the case for domestic energy security. When global supply can swing this violently on geopolitical developments, the value of reliable, lower-risk North American production only becomes more apparent to operators, policymakers, and importers. We continue to see this dynamic as a structural tailwind for our business. Turning to our cost structure, we remain committed to the $100 million of annualized savings program we outlined at the start of the year. That program has three components. Labor-related reductions that we have targeted at $35 million to $45 million annualized, non-labor operating expense reductions that include SG&A, repair and maintenance, and asset-level OPEX that together we have targeted at $30 million to $40 million. And lastly, capital expenditure efficiency that we've targeted at $20 million to $30 million. We continue to work through each of these initiatives, and we remain confident in the full program as these efforts mature over the balance of the year. Our vertically integrated model and asset management platform remain central to how we think about our competitive position, not just this quarter, but across the cycle. Our in-house manufacturing capability allows us to build, upgrade, and standardize equipment at a cost basis that's simply not available to others who rely on third parties. Our asset management program continues to be a meaningful driver of fleet reliability and uptime. These aren't new initiatives, but they remain foundational to how we compete, and we continue to see them as a durable source of advantage as the cycle evolves. Irrespective of where we are in the market cycle, we execute on a routine upgrade program converting diesel equipment to dual fuel and natural gas capable configurations. This quarter, we made the decision to accelerate a portion of that program while maintaining our disciplined approach to capital allocation. We're moving forward with additional engine orders ahead of our original schedule, given the continued strong demand we're seeing from operators for this higher specification equipment. We view this as an investment decision rather than a departure from our cost discipline. Upgrading this equipment now, while demand for high spec dual fuel capacity remains strong, reduces our repair and maintenance exposure over time, extends the useful life of these assets, and supports our strong positioning as we discussed 2027 plans with our customers. Additionally, I want to touch briefly on our eBlender program that we introduced on our last call. Deployment continues to progress. With a few additional units placed into service since our last call, we're seeing the efficiency benefits we expected on the units we have deployed, including lower repair and maintenance spend as well as improved uptime relative to legacy equipment. By the end of the year, we expect to have deployed our new eBlender technology across our fleet. On technology, Machina continues to be central to how we think about our competitive positioning, Machina is our closed-loop frac solution. It combines ProPilot 2.0 surface automation with real-time subsurface data providers like Seismos. The platform doesn't just mean measure the frac. It acts on it while we're pumping. The near-term focus is uniformity, getting every cluster and every stage to take fluid the way it was designed to, rather than accepting the wide variance the industry has historically treated as normal. That's the foundation for prescriptive completions, designs that adjust in real time based on what the rock is telling us, rather than through a static pump schedule. We remain in active price discovery on the commercial model, and customer feedback from deployments continues to be encouraging as we structure value share going forward. We also continue to see real promise in Machina's application to acreage that operators have effectively set aside. In many cases nearby offset wells, wastewater infrastructure, where legacy completions create execution risk that leads operators to defer or shelve otherwise attractive locations. Machina's real-time subsurface intelligence and closed-loop control are designed to reduce that risk, which we believe can shift the economic calculus on certain locations and bring stranded inventory back into play without requiring the kind of upfront offset well infrastructure investment that sometimes runs as much as $1 million to $2 million. We'll continue to share more as our commercial discussions with customers progress. Wrapping up my opening comments, we delivered solid second quarter results, building on that momentum from earlier in the year despite a volatile macro backdrop. That volatility, if anything, has only reinforced the structural case for domestic energy security and the long-term tailwind it represents for our business. Our cost optimization program continues to advance, and we're deploying capital thoughtfully, including accelerating our engine upgrade program to position the business for durable efficiency gains. Our new eBlenders are yielding the capital efficiency benefits we expected, and incremental deployments remain on schedule. Machina continues to gain traction with customers, and we see real potential for it to unlock previously stranded inventory as commercial discussions progress. In addition, we strengthened our balance sheet this quarter through the ABL refinancing, giving us a longer runway, improved liquidity, and greater flexibility heading into the back half of the year. Now over to Austin to expand on segment results in more detail. Austin Harbour: Thanks, Matt. In the second quarter revenues were $498 million, up from $450 million in the first quarter of 2026. We generated $69 million of adjusted EBITDA with an adjusted EBITDA margin of 14%, an increase from the $54 million or 12% of revenue we delivered in Q1. Free cash flow was negative $8 million in the second quarter, an improvement from negative $25 million in Q1. Turning to our segments, stimulation services revenues were $430 million in the second quarter, up from $407 million in the first quarter of 2026. Adjusted EBITDA in Q2 was $39 million, up from $32 million in Q1, with margins of 9% compared to 8% in Q1. Results reflected an improvement in efficiency, lack of material weather-driven delays as we experienced in Q1, and to a modest degree, improved pricing. We again maintained our fleet count in the low 20s during the second quarter, consistent with the disciplined approach we've held throughout this market cycle. Put simply, this reflects our continued focus on returns over utilization for its own sake. While April carried forward the type of record efficiency levels we experienced in March, as we discussed on our last call, pumping hours per fleet moderated somewhat in May and June relative to those peaks. This was primarily a function of more white space in the calendar than we had anticipated entering the quarter. Pricing was up slightly sequentially. As we noted on our May call, the majority of our increases carried renegotiation windows that pushed the benefit into the third and fourth quarters. Proppant production generated $121 million of revenue in the second quarter, a touch higher than the $120 million of revenue we reported in the first quarter of 2026. Approximately 31% of volumes were sold to third-party customers during the second quarter versus 28% in Q1. During the second quarter and into the third, we continue to navigate incremental competitive pricing pressure in the proppant market, particularly in West Texas. We remain focused on operational improvements throughout the business while leveraging the potential we see in stronger markets, including the Haynesville and South Texas. Adjusted EBITDA for the proppant production segment was $6 million for the second quarter, broadly in line with Q1. On a margin basis, EBITDA margins were 5% in the second quarter versus 5% in Q1 2026. Total volumes were approximately 2.5 million tons. Our manufacturing segment generated second quarter revenues of $48 million, in line with the first quarter. Approximately 18% of segment revenues were generated from third-party sales compared to approximately 14% in Q1. Adjusted EBITDA for the manufacturing segment was $6 million compared to $7 million in Q1. Flotek generated second quarter revenues of $102 million, significantly higher than the $72 million reported in Q1. Approximately 42% of segment revenues were generated from third-party sales compared to approximately 25% in Q1. Adjusted EBITDA for Flotek was $19 million, or 19% of revenue, also improved relative to the $11 million reported in Q1. Selling, general, and administrative expenses were $44 million in the second quarter, flat with Q1. Cash capital expenditures of $32 million in the second quarter were down from $41 million in the first quarter of 2026. Consistent with the outlook we issued on our May call, we continue to expect total capital expenditures in 2026, including Flotek spend, to be in the range of $155 million to $185 million. Excluding Flotek, we expect our CapEx to be in a range of $145 million to $175 million. Total cash and cash equivalents as of June 30, 2026, were approximately $19 million, including approximately $5 million attributable to Flotek. Total liquidity at quarter end was approximately $72 million, including $58 million available under the ABL. Borrowings under the ABL credit facility ended the quarter at $162 million, an increase from $116 million at first quarter end. On July 1st, we closed a new asset-based revolving credit facility with Eclipse Business Capital, and we think this transaction matters more than a typical refinancing headline might suggest. What we secured was a larger commitment, a longer runway, and improved advance rates against our collateral base, which together translate into increased relative liquidity versus our prior facility. This new $300 million facility replaces our previous $275 million ABL facility and extends our maturity profile. In addition to increasing total commitments by $25 million, the new facility incorporates the ability to request up to an additional $25 million of incremental commitments subject to lender approval and customary conditions. We've said repeatedly that our approach to the balance sheet is disciplined and opportunistic. This transaction is that philosophy in practice, and it leaves us better positioned. The majority of our debt maturities remain concentrated in 2029 and beyond, and we believe we're well positioned from a liquidity perspective as we move through the remainder of 2026 and into 2027. At quarter end, we had approximately $1.1 billion of debt outstanding. We continue to manage the balance sheet the same way we always have, with discipline, an opportunistic mindset, and a focus on maintaining flexibility to act as conditions shift. With that, I will now turn the call over to Ladd. Ladd Wilks: Thank you, Austin. As you saw in our earnings press release this morning, I'm resigning my position as Chief Executive Officer of ProFrac. I'll take up the board seat that is being vacated by Mr. Sergei Krylov. I want to thank Mr. Krylov for his years of dedication and service to ProFrac and for the thoughtful and diligent stewardship he has brought to the board throughout his tenure. This transition will take effect tomorrow, August 7th. As a member of the board of directors, I'll continue to help guide the future of the company that I love and help build with an unwavering commitment to it. While I won't be involved in day-to-day decisions, I remain deeply devoted to this company and will always be available to its management and staff for guidance and support. ProFrac isn't just a company to me. It's part of my family's legacy, and I'll continue to do everything I can to ensure its lasting success. When I think about my time as CEO, my first thought is about the people. The best people in the world work here. We have incredible leaders and employees in every district, region, and division in the ProFrac Holdings family. And while our industry can be volatile at times, I believe the long-term future of our company and our industry has never been stronger. And I couldn't be more excited for Matt, who will become ProFrac's next CEO, while also continuing to serve as executive chairman. Since the founding of ProFrac, Matt has been one of the key drivers behind our growth and success. I have complete confidence that he will take ProFrac to new heights, and I couldn't be happier that he's the one leading our next chapter. And with that, I'll now turn the call over to the operator for Q&A. Operator: [Operator Instructions] Our first question comes from the line of Donald Crist with Johnson Rice. Please proceed with your question. Donald Crist: Good morning, guys. I wanted to start on the pressure pumping side of the business. Throughout this earning cycle, we've heard many of your competitors talk about their fleets being mostly dedicated for '27 and the fact that not a lot of fleets have been added in relation to the increase in rig count. Can you just talk about what you're seeing out there and how you see '27 shaping up? Because as an analyst, I see a significant increase in pricing potential given that we have a lot more demand than supply out there today. Matthew Wilks: Yes, I believe that's a fair assessment. We've seen a very disciplined operator group. Just 2026 budgets have been set. Everybody's relatively stayed disciplined to that. We've seen a lot of tightness in the schedules and to build around that capital budget from these guys. There's been some private operators that have come back and increased activity. As we look into 2027, we see 2027 as being a nice step up. We're at the very beginning of RFP season. It's already started, it's been brought forward. One of the benefits of the RFP season starting so much earlier is, you know, I think a lot of these operators want to get in early and lock things down while they can, while they know that they can. As RFP season progresses, we expect to see it, you know, really start pushing pricing. And as everybody realizes how much availability there isn't, realize how tight the market is. There's not a lot of spare capacity. And as you move through RFP season, it's going to be pretty interesting to see how this plays out as we guide into 2027. Still early in the process, but we expect with RFP season kicking off early, that once 2027 budgets are set and we've got better visibility into it, we don't think that we have to wait for 2027 for that environment. It will happen in this second half. We already see a stronger second half than what we had in the first half. A lot of the pricing that we pushed for earlier in this quarter are going into effect in Q3 and Q4. And we believe that there will be additional opportunities as we move through RFP season. Typically, what you see in a transition in the market like we have today, as we move through '26 into '27, we expect '27 activity to get pulled forward very quickly after the conclusion of RFPs. So it's a pretty interesting time. Pretty excited to see this play out the way that it is. I think we've got a really disciplined peer class that has not gone in on a speculative bet to build out equipment, build out capacity. You know, we think the world of our customers and they're disciplined. So are we. If they increase CapEx, I think the service base will respond, but we will not speculate and build into that. Donald Crist: And just to follow up on your opening remarks, but it sounds like you're going to be very disciplined and not add any fleets on spec. But when would the decision point come in? If rates went up 15% or 20% across your entire fleet from where they are today or are going to be in the third quarter, would that be the right point for a decision point to add more fleets to satisfy demand out there? Matthew Wilks: I don't believe so. I think an increase of 15% to 20% would accelerate some upgrades, but I don't think that it would really trigger a build cycle. You know, I think more than ever, and I can't speak for my peers, but they appear to have the same behavior and outlook on this, but what we need is certainty and a commitment. And we're not going to go in and chase short-term economics. We need long-term, stable pricing environment so that we can get a total return and full cycle returns. New build economics is not something that you speculate on. This is a very challenging industry. We need reliable, consistent returns and outcomes. And so if we have customers that come in and make the appropriate commitments long term with a true commitment, then I think that really changes everything. It's more so about the stability than it is the economics. Economics obviously have to be there, but we're not going to just go in and build because the spot market is where we want it. Austin Harbour: Yes, I think to add to what Matt's saying, I think it's tenor coupled with the market pricing and the economics, right? And that certainty and that longevity is really what we're looking for before we push the button on adding incremental capacity. So it needs to be both. Matthew Wilks: And I think the industry as a whole is in an interesting spot. I mean, you know, there's a lot of technology and you're at this point of diminishing returns, there's no more hours in the day where efficiency is just incredible. And it's not just something that you can brag about or talk about. It's something that's expected and it should be. The only place to go from here is to focus on better recoveries, better execution, and what can technology bring for good partnerships. And I think that you'll start seeing more of that from not just the operators, but the service companies that they partner with, where you're collaborating on better rates, better production, better execution, and the technology that's available with frac automation and closed-loop frac, you know, we're very excited to see the transformation that this industry is about to go through. And I think that factors into it as well. We're looking for partners. We'll build it. You know, we'll line it all out. We're not afraid to deploy capital for the right relationships and commitments and for the right returns. But technology is a big part of it too. And I think we're starting to see all of this line up and these conversations. These types of partnerships, that's what we've focused on over the last year or two, and it's really coming into fruition. And we look forward to updating not only our shareholders, but the overall market. This industry is about to break out and change what everybody thinks or expects from it. Donald Crist: I appreciate that color. And as an analyst that covers both Flotek and y'all, I'm going to ask a question you probably don't want to answer, but I'm going to ask it anyway. You know, given the tightness in your financial flexibility and the amount of appreciation in Flotek stock, you've been very smart to hold on to it to date, but would you consider peeling off some shares here to promote your financial flexibility going forward and increase the float on Flotek? Just any thoughts around that? Matthew Wilks: We can't comment to any particular behavior. I think we manage our portfolio as a portfolio and we're economic animals. But at the same time, that's a phenomenal business. We're so proud of those guys over there. We're excited about their future. We're excited to be a part of it, to be a part of what they're building. And we're excited to be a part of their future for a very long time and continue to support them. I think that there's a lot of synergies, a lot of collaboration between the two organizations that's not going to change. Donald Crist: I had to try anyway. I appreciate the color. I'll turn it back. Matthew Wilks: Definitely. Thank you. Operator: Thank you. Our next question comes from the line of John Daniel with Daniel Energy Partners. Please proceed with your question. John Daniel: Ladd, good luck on your next steps. If you find yourself on the street looking for a job, give us a call. First question is about the RFPs. Matt, you alluded to they're coming in early. I'm just curious if you've had the chance to dig into the RFPs and look to see how many are coming from public players? And what are they asking for next year? And is that more than what they're running today? Matthew Wilks: So with the guys that are starting early, you know, we can only guess why they're starting early. We think that it's just to make sure that they haven't locked down. It's about certainty. And if you're worried about tightness, you don't want to be last. You don't necessarily have to be first, but you can't be last. And I think from here on, it's only going to get tighter and tighter. And so the companies that lead off are going to get, most likely, the best economics. As we progress further into RFPs, we'll be able to give you better color on additional activity. But I think this early on, the main indicator is just how early it is. John Daniel: Okay, fair enough. I'll bug you next quarter on it then. Two more questions for me. What is against the fence today? And if you made the decision to reactivate, I understand there's a lot of things that have to fall into place, but if you made the decision to reactivate, how much could you bring back in the next three to six months? Matthew Wilks: Man, that's... I'll answer that question like this. From a fuel efficiency standpoint, everything that's available in the market is deployed. All next generation equipment, all fuel-efficient equipment is currently deployed. Now, what we've seen across the landscape from a lot of our peers is that a lot of the diesel equipment has either been completely retired, or were sold into foreign markets. We've been patient and we've retained some capacity there and have these for upgrade candidates or if it really tightens up, then, you know, we would likely deploy some of those as is as diesel. But for the most part, we're sitting tight. We're fully deployed on what we think that the market is looking for. And if it really came down to it, there is some capacity that we can bring back. We just, you know, we don't want to push. It's not just how much does it cost to put a fleet out. Our position on it is, what kind of supply chain do we need to support it? Do we need to carry the inventory? Do I need to expand inventory? Do I need to hire people? I'd rather stick right where we're at, establish efficiencies, pursue further projects, you know, fully execute on our disciplined approach to cost and fully realize that. I think it favors the market that we're leading into very, very well. But we want to see more from the operators before we make a call and start activating fleets. And we can bring fuel efficiency out there. I think in some areas, after you include the cost of the fueler and the dyed diesel itself, that many of these areas dyed diesel is over $5. I mean, it's, you know, in some instances, compared to January, diesel cost more than the horsepower did. Today, if you were buying dyed diesel today, it would cost more than the frac fleet did. And so I think that tells you a lot about the bifurcation and the assets available to the market and why so many diesel fleets were sold into foreign markets. But look, we get the economics are incredible for fuel efficient fleets. We're happy to upgrade. You know, there's all gas fleets, there's electric fleets, there's dual fuel fleets. And when you look at them and the displacement that you see for diesel, service companies are able to get a very respectable increase in revenue, and the operator ends up with a favorable cost structure too, that would be far superior to horsepower rates in January plus today's diesel rates. John Daniel: Fair enough. My final one, Matt, and then I'll turn it over. I'm sorry to be a phone hog here, but I think in response to Don's question, you said that an extra 15% to 20% in terms of price would accelerate upgrades. Like do you consider a reactivation and upgrade? Are you referring to an existing fleet that's working with 15%, 20%, you would upgrade that? Just if you could clarify. Matthew Wilks: Yes, it'd be a combination of the two. You know, we see a 10% to 15% increase in pricing, I think that we'd be willing to activate fleets, depending on the commitment that comes with it, we'd be willing to do an upgrade. Austin Harbour: I'll just say too, John, I mean, from where pricing was to where we are today, you know, we're up in that ballpark. Year to date and in our prepared remarks you saw we have a routine upgrade program that we prosecute almost irrespective of market cycles. We have accelerated that to some degree, just on the upgrade side, not on the new build, to be clear. John Daniel: Yes. I mean, I guess the debate in the final is more of a comment, not a question is, I think Don's on top of this and I think we're all looking at the market. We see the rig count, call it up 60% from the April low to by the end of this year. And it would seem that you're probably going to see a bit more of an increase next year, all else being equal. And clearly there's going to be a call for more capacity. At the same time, the industry, the leaders in the industry are all being very disciplined now in terms of what they want to reactivate until pricing goes higher, and just seems like we are at that intersection right now where things can change and inflect pretty hard. And so I think, you know, I guess we just have to step back and wait and see how you guys and how the industry handles it. But it feels encouraging. Matthew Wilks: Well, one thing I would highlight, just if you looked at the Permian, for example, the realized price per barrel in the Permian, it's not just oil, it's Waha. You know, at some points, Waha was negative six, you know, negative seven in January and February. And there's been an additional pipeline capacity come on here recently. There's another 2.5 Bcf pipeline that's being commissioned right now. And now we're sitting in an environment where Waha is actually positive and, you know, knock on wood, but I think when you look at that, the realized price per barrel in January and February was $31, $32. And for a lot of operators, the break-even was $30. And, you know, that's what the 2026 budgets were set on. Now you look at it, you know, we're mid-$40s on a realized price per barrel. And believe it or not, the majority of that came from Waha. The majority of that increase came from gas. So now we're moving into 2027 RFPs and instead of the net margin on a realized barrel being $1 or $2, it's $15. I think that says a lot about what we're looking at. And maybe you continue to see discipline with a lot of the larger publics, but those are real economics that bring people out of the woodwork, brings things forward. It changes the economics on some of these different benches. And it brings the private side back as well. But we're excited for this spot. Some of it feels a little bit like January and February of '22. But we've seen price improvement, better schedules, better calendars, better partnerships with our customers. But I think as we move through our fee season and get closer to '27, I think there will be a very quick realization that there's nothing left on the sidelines. John Daniel: Right. I agree. Okay. Well, thanks for including me, guys. Good luck, Ladd. Operator: Thank you. [Operator Instructions] Our next question comes from the line of Daniel Kutz with Morgan Stanley. Please proceed with your question. Daniel Kutz: Good morning, and congrats, Matt. So I wanted to see if we could get any more specifics on the outlook for the next quarter and the second half of this year? I guess maybe you could just piecing together some of the components of the outlook for the balance this year that on the EBITDA line, do you think that the third quarter can be up or flat or closer to where consensus is in the mid-high 70s on a consolidated basis for the third quarter? You guys said that you see proppant about flat, stim services up. And then Flotek after a pretty massive quarter, updated their guidance range for the year, but the updated guidance range would imply about a $5 million step down in the third quarter, I guess, in the second half on a quarterly basis versus the big number they put up in the third quarter. So what I'm driving at is do you think that the stim services business can make up for maybe a bit less Flotek contribution and more than offset and maybe get up closer to consensus. But yes, just wondering if you could help us piece together some of the outlook components for help us think about consolidated EBITDA in the third quarter. Thanks. Matthew Wilks: Yes, I'll say a few comments and then hand it off to Austin. A lot of the price increases that we went through, you know, we've spoken a little bit about, a lot of them didn't go fully into effect until the beginning of July. And so we see price improvement fully reflected in Q3 and some further improvements as we move through the balance of this year. You know, I think we're, we don't want to over-promise, but if there's anything from a surprise stand side, then it would be, you know, it's more likely to surprise to the upside than anything else with what I can say about Flotek, that team is phenomenal. They continue to execute really well. Historically, they've been relatively conservative on their guidance. I think you would agree, looking at how they guide and how they deliver results. I wouldn't change a thing over there about how they execute. But you know, I'm excited to see what kind of surprises they can bring for everybody. And I think their behavior supports continued improvements and growth above the guidance that they provide. But with that, Austin. Austin Harbour: Yes, Dan, I don't have much to add. I think that's a fair kind of assessment of where we sit. I think our prepared comments really cover how we see the segments shaken out from a stimulation perspective as well as on the Alpine side on sand. And then I think Matt's comments really cover Flotek. So not much to add there. I think it's very consistent with our messaging and the prepared remarks. Thank you. Daniel Kutz: Okay, great. Yes, I mean, so I guess kind of maybe the takeaway is that, like, the mid-high 70s consensus number seems... Maybe just one on free cash. So, you know, year-to-date, you guys have had, I think, about a $40 million free cash outflow. You didn't change, you reiterated the CapEx guidance range for the full year based on the amount that's been spent so far, that kind of implies a little bit less CapEx in the second half. At the midpoint, so you have that, you have, you know, just kind of improving operational results. So I guess, do you think that you make back some of the $40 million free cash use in the second half? Do you think that the full year could be closer to breakeven? I think in consensus it's like a $10 million use for the full year. But, yes, just anything you can share thoughts on free cash for this year for the balance of the year. Thanks. Austin Harbour: Yes, Dan, no, great question. I think as we mentioned, we're going to pull forward some upgrades. So we reiterated the CapEx guidance range expect to fall within that. Probably a little bit higher than the midpoint right now based on what we know today. I think with respect to the free cash flow profile moving forward, so number one, like Matt mentioned, we're not anticipating adding any incremental fleets. And when we add fleets, that's usually the biggest driver of working capital drag when you think through the investment that we have to make in order to put a new fleet out from a structural perspective. I think, too, as we continue to realize that the cash and expense savings through the P&L, but also the cash flow statement, that'll help drive a higher fall-through from EBITDA all the way to operating cash flow and then free cash flow. So I think as we move forward through the balance of the year, the impact of the cash savings coupled with the fact that we're not adding any incremental fleet, at least that's the plan today, should enable us to have a higher fall through on our free cash flow line. Daniel Kutz: Great. All really helpful. Thank you both. Turn it back. Operator: Thank you. And we have reached the end of the question and answer session and therefore I would like to turn the floor back to Matt Wilks for closing remarks. Matthew Wilks: Definitely. Thank you. I just want to say a special thank you for Ladd. What an incredible partner. It's been, you know, I've worked with him in a lot of different businesses. And I think that ProFrac is a really special company and special business. I think that the partnership between Ladd and myself has only grown and continues to get stronger and stronger. And I'm just so proud of him, proud of the opportunities that he has available to him, and I'm especially excited that he's joining the board with me. But I take it as a huge vote of confidence that he's comfortable to leave this responsibility to me. I know that this wouldn't be possible if I didn't have such an amazing team around me. And we truly do have the best people in the industry that works here at ProFrac Holdings. And look forward to the coming days. We're very excited about the market that we're in. We've got incredible stakeholders from customers to the vendors to the great people here at ProFrac. But I look forward to next quarter. And, you know, I'm excited to deliver phenomenal results and I think we're going to have some really, really good days going forward. And perhaps we may even bring our hold music back. Anyways, thank you. Operator: Thank you. And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation. Before you buy stock in ProFrac, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ProFrac wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ProFrac (ACDC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

For the quarter ended June 2026, ProFrac Holding Corp. (ACDC) reported revenue of $498.1 million, down 0.8% over the same period last year. EPS came in at -$0.44, compared to -$0.67 in the year-ago quarter. The reported revenue represents a surprise of +10.95% over the Zacks Consensus Estimate of $448.95 million. With the consensus EPS estimate being -$0.29, the EPS surprise was -51.72%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how ProFrac Holding Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Stimulation services: $429.5 million versus $410.83 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.6% change. Revenues- Manufacturing: $47.8 million compared to the $45.8 million average estimate based on two analysts. The reported number represents a change of -14.3% year over year. Revenues- Other: $3.6 million versus $73.58 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -94.5% change. Revenues- Eliminations: $-205.9 million compared to the $-177.31 million average estimate based on two analysts. The reported number represents a change of +60.4% year over year. Revenues- Proppant production: $121.3 million compared to the $96.25 million average estimate based on two analysts. The reported number represents a change of +56.5% year over year. Adjusted EBITDA- Stimulation services: $39.3 million versus the two-analyst average estimate of $44.51 million. Adjusted EBITDA- Proppant production: $6.3 million compared to the $6.92 million average estimate based on two analysts. Adjusted EBITDA- Eliminations: $-1.8 million versus the two-analyst average estimate of $-3.5 million. Adjusted EBITDA- Other: $0.4 million compared to the $9.11 million average estimate based on two analysts. Adjusted EBITDA- Manufacturing: $6.1 million compared to the $4.27 million average estimate based on two analysts. View all Key Company Metrics for ProFrac Holding Corp. here>>> Shares of ProFrac Holding Corp. have returned -11.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. 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 ProFrac Holding Corp. (ACDC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WILLOW PARK, Texas, August 06, 2026--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac", or the "Company") today announced financial and operational results for its 2026 second quarter ended June 30, 2026. Second Quarter 2026 Results Total revenue was $498 million compared to first quarter revenue of $450 million Net loss was $75 million compared to net loss of $81 million in the first quarter Adjusted EBITDA¹ was $69 million compared to $54 million in the first quarter; 14% of revenue in the second quarter compared to 12% of revenue in the first quarter Net cash provided by operating activities was $23 million compared to $9 million in the first quarter Capital expenditures totaled $32 million compared to $41 million in the first quarter Free cash flow² was negative $8 million compared to negative $25 million in the first quarter "Our second quarter results extended the momentum we built during the first quarter, reflecting the continued strength of our operating model and the discipline we've applied throughout this cycle against a market backdrop that was broadly stronger sequentially. Volatility has defined the broader energy landscape in recent months, and if anything, we believe that only reinforces the structural case for domestic energy security as a durable tailwind for our business. At the same time, it's a reminder of why flexibility matters across every facet of our business," stated Executive Chairman, Matt Wilks. "We believe we are well positioned for the future, given the tighter market backdrop and growing operator demand for higher-specification equipment after years of attrition in the industry. We're seeing pricing increases layering in for the third quarter in hydraulic fracturing, and we're taking a thoughtful, disciplined approach in the back half of the year and into RFP season, which is commencing very early this year. High-spec fleets are in high demand and the market for that equipment continues to tighten. We believe these factors will drive improvement in our frac calendar in the back half of 2026." "We remain committed to our cost optimization program, and our continued investment in differentiated technology strengthens the value we deliver to customers and supports our returns through the cycle. To that end, we continue to execute on our fleet upgrade program to allow us to lean further into the momentum we see building in the industry. We believe the investments we're making today position us well through the balance of the year and beyond," concluded Mr. Wilks. Outlook In Stimulation Services, ProFrac expects third quarter 2026 results to improve on second quarter performance, driven by pricing increases and steady utilization. RFP season conversations are also unfolding earlier than typical demonstrating potential equipment tightness into 2027. In Proppant Production, ProFrac expects approximately flat results on stable volumes in the third quarter. The Company continues to navigate incremental competitive pricing pressure in the proppant market, particularly in West Texas, while remaining focused on operational improvements and leveraging the potential it sees in stronger markets, including the Haynesville and South Texas. Business Segment Information The Stimulation Services segment generated revenues of $430 million in the second quarter, which resulted in $39 million of Adjusted EBITDA and a margin of 9%. The Proppant Production segment generated revenues of $121 million in the second quarter, which resulted in $6 million of Adjusted EBITDA and a margin of 5%. Approximately 87% of the Proppant Production segment’s second quarter 2026 revenue was intercompany. The Manufacturing segment generated revenues of $48 million in the second quarter, which resulted in $6 million of Adjusted EBITDA and a margin of 13%. Approximately 82% of the Manufacturing segment’s second quarter 2026 revenue was intercompany. Flotek Industries, Inc. ("Flotek") generated revenues of $102 million in the second quarter, which resulted in $19 million of Adjusted EBITDA and a margin of 19%. Approximately 58% of Flotek’s second quarter 2026 revenue was intercompany. Other Business Activities generated revenues of $3.6 million in the second quarter, which resulted in $0.4 million of Adjusted EBITDA and a margin of 11%. Capital Expenditures and Capital Allocation Cash capital expenditures totaled $32 million in the second quarter, down from $41 million reported in first quarter 2026. For full year 2026, ProFrac maintains its expectation that capital expenditures will be in the range of $155 million to $185 million, which includes Flotek’s current capital expenditure plan. Excluding Flotek, the Company expects capital expenditures to be in a range of $145 million to $175 million for 2026. Balance Sheet and Liquidity Total principal debt outstanding as of June 30, 2026 was approximately $1.10 billion; net debt³ outstanding was approximately $1.08 billion. Total cash and cash equivalents as of June 30, 2026 was approximately $19 million, of which approximately $5 million was related to Flotek and not accessible by the Company. As of June 30, 2026 the Company had approximately $72 million of liquidity, including approximately $14 million of cash and cash equivalents, excluding Flotek, and $58 million of availability under its asset-based credit facility. Subsequent to quarter-end, on July 1, 2026, the Company refinanced and replaced its existing $275 million asset-based revolving credit facility with a new $300 million asset-based revolving credit facility that extends its debt maturity profile and provides enhanced borrowing base terms to support additional liquidity and financial flexibility. As of July 1, 2026, the maximum availability under the new ABL credit facility was limited to our eligible borrowing base of approximately $243 million, with $173 million of borrowings outstanding, resulting in approximately $71 million of remaining availability. Management and Board Transitions Effective Friday, August 7, 2026, Ladd Wilks will resign his position of Chief Executive Officer of ProFrac. We are excited to announce that Ladd will continue to serve the Company as a member of the Board of Directors, replacing Mr. Sergei Krylov. Matt Wilks will take on the newly combined role of Chief Executive Officer and Executive Chairman. "I am honored to transition from my role as the Chief Executive Officer of ProFrac to a member of the Board of Directors. I look forward to continuing as an active leader of the Company in this new capacity. ProFrac isn’t just a company to me, it’s part of our family’s legacy, and I remain committed to supporting its lasting success. I also thank Mr. Krylov for his years of dedication and service to ProFrac and for the thoughtful and diligent stewardship he has brought to ProFrac’s board throughout his tenure," stated Ladd Wilks. Footnotes Conference Call ProFrac has scheduled a conference call on August 6, 2026, at 11:00 a.m. Eastern / 10:00 a.m. Central. To register for and access the event, please click here. An archive of the webcast will be available shortly after the call’s conclusion on the IR Calendar section of ProFrac’s investor relations website for 90 days. About ProFrac Holding Corp. ProFrac Holding Corp. is a technology-focused, vertically integrated, innovation-driven energy services holding company providing hydraulic fracturing, proppant production, other completion services and other complementary products and services including distributed power generation to leading upstream oil and natural gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources throughout the United States. ProFrac operates in four business segments: Stimulation Services, Proppant Production, Manufacturing, and Flotek. For more information, please visit ProFrac’s website at www.PFHoldingsCorp.com. Cautionary Statement Regarding Forward-Looking Statements Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "momentum," or similar words. Forward-looking statements relate to future events or the Company’s future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company’s strategies and plans for growth; the Company’s positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; customer contracts, activity, relations, or pricing; fleet deployment levels; the Company’s expectations about price fluctuations, global activity, market reactions and macroeconomic conditions impacting the industry; competitive conditions in the industry; success of the Company’s ongoing strategic initiatives; the Company’s intention to increase the number of fully integrated fleets; the Company’s currently expected guidance regarding its 2026 financial and operational results; the Company’s ability to earn its targeted rates of return; the Company’s ability to achieve or realize benefits from its asset optimization program; pricing of the Company’s services in light of the prevailing market conditions; the Company’s currently expected guidance regarding its planned capital expenditures; statements regarding the Company’s liquidity and debt obligations; the Company’s anticipated timing for operationalizing and amount of contribution from its fleets and its sand mines; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company’s outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability to achieve the anticipated benefits of the Company’s acquisitions, mining operations, and vertical integration strategy, including risks and costs relating to integrating acquired assets and personnel; risks that the Company’s actions intended to achieve its 2026 financial and operational guidance will be insufficient to achieve that guidance, either alone or in combination with external market, industry or other factors; the failure to operationalize or utilize to the extent anticipated the Company’s fleets and sand mines in a timely manner or at all; the Company’s ability to deploy capital in a manner that furthers the Company’s growth strategy, as well as the Company’s general ability to execute its business plans; risks relating to the implementation of the Company’s leadership transition, including the timing of the transition and the Company’s ability to execute its strategy and operational priorities following the transition; the risk that the Company may need more capital than it currently projects or that capital expenditures could increase beyond current expectations; risks regarding the ability to access to additional capital on acceptable terms or at all; industry conditions, including fluctuations in supply, demand and prices for the Company’s products and services and for oil and natural gas; global and regional economic and financial conditions, including as they may be affected by hostilities in the Middle East and in Ukraine, as well as the instability in Venezuela; the effectiveness of the Company’s risk management strategies; and other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company’s filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC’s website at www.sec.gov. Forward-looking statements are also subject to the risks and other issues described below under "Non-GAAP Financial Measures," which could cause actual results to differ materially from current expectations included in the Company’s forward-looking statements included in this press release. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved, in whole or part, or that any of the contemplated results of such forward-looking statements will be realized, including without limitation any expectations about the Company’s operational and financial performance or achievements through and including 2026. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law. Non-GAAP Financial Measures Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures and should not be considered as a substitute for net income (loss), net cash from operating activities, or GAAP measurements of debt, respectively, or any other performance measure derived in accordance with GAAP or as an alternative to net cash provided by operating activities as a measure of our profitability or liquidity. Adjusted EBITDA, Free Cash Flow and Net Debt are supplemental measures utilized by our management and other users of our financial statements such as investors, commercial banks, research analysts and others, to assess our financial performance. We believe Adjusted EBITDA is an important supplemental measure because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income tax rates). We believe Free Cash Flow is an important supplemental liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions, and Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. We believe Net Debt is an important supplemental measure of indebtedness for management and investors because it provides a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) loss or gain on disposal of assets, net, (v) stock-based compensation, and (vi) other charges, such as certain credit losses, gain or loss on extinguishment of debt, unrealized loss or gain on investments, acquisition and integration expenses, litigation expenses and accruals for legal contingencies, acquisition earnout adjustments, severance charges, goodwill impairments, gains on insurance recoveries, transaction costs, third-party supply commitment charges, lease termination costs, and impairments of long-lived assets. We define Free Cash Flow as net cash provided by or (used in) operating activities less investment in property, plant and equipment plus proceeds from sale of assets. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss). Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect the most directly comparable GAAP financial measure. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Net cash provided by operating activities is the GAAP measure most directly comparable to Free Cash Flow. Free Cash Flow should not be considered as an alternative to net cash provided by operating activities. Free Cash Flow has important limitations as an analytical tool including that Free Cash Flow does not reflect the cash requirements necessary to service our indebtedness and Free Cash Flow is not a reliable measure for actual cash available to the Company at any one time. Because Free Cash Flow may be defined differently by other companies in our industry, our definition of this Non-GAAP Financial Measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Net Debt is defined as total debt plus unamortized debt discounts, premiums, and issuance costs less cash and cash equivalents. Total debt is the GAAP measure most directly comparable to Net Debt. Net Debt should not be considered as an alternative to total debt. Net Debt has important limitations as a measure of indebtedness because it does not represent the total amount of indebtedness of the Company. The presentation of Non-GAAP Financial Measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. The following tables present a reconciliation of the Non-GAAP Financial Measures of Adjusted EBITDA, Free Cash Flow and Net Debt to the most directly comparable GAAP financial measure for the periods indicated. – Tables to Follow – ProFrac Holding Corp.Austin Harbour – Chief Financial OfficerMichael Messina – SVP of [email protected] ICR, [email protected] Source: ProFrac Holding Corp. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806780903/en/ Contacts ProFrac Holding Corp. Austin Harbour – Chief Financial OfficerMichael Messina – SVP of [email protected] ICR, Inc. [email protected]

Interested in ProFrac Holding Corp.? Here are five stocks we like better. Second-quarter results improved: Revenue rose to $498 million from $450 million sequentially, while adjusted EBITDA increased to $69 million from $54 million and the margin expanded to 14%. Free-cash-flow usage narrowed to $8 million. Stimulation services drove the gains, helped by better efficiency, fewer weather disruptions and modest pricing improvements; most negotiated pricing increases are expected in the third and fourth quarters. ProFrac plans to avoid speculative fleet additions and prioritize longer-term customer commitments. ProFrac strengthened its financial position and leadership structure: It refinanced its ABL facility with a larger $300 million revolver and extended maturities, while Matt Wilks will become CEO as Ladd Wilks transitions to the board. The company also continues pursuing $100 million in annualized savings and expects to deploy eBlender technology across its fleet by year-end. 3 Mid-Caps Below $20 That Wall Street Loves ProFrac (NASDAQ:ACDC) reported higher second-quarter revenue and adjusted EBITDA as its stimulation-services business benefited from improved efficiency, modestly better pricing and fewer weather-related disruptions than in the prior quarter. The company also said it refinanced its asset-based lending facility and announced a leadership transition effective Aug. 7. Revenue for the quarter ended June 30 was $498 million, up from $450 million in the first quarter, while adjusted EBITDA rose to $69 million from $54 million. Adjusted EBITDA margin increased to 14% from 12%, according to Chief Financial Officer Austin Harbour. Free cash flow was negative $8 million, improving from negative $25 million in the first quarter. → 3 Drone Stocks That Should Soar After the Summer Slump Chief Executive Officer Ladd Wilks said he will resign from the CEO role and join ProFrac's board of directors, filling the seat vacated by Sergei Krylov. Executive Chairman Matt Wilks will become CEO while retaining his role as executive chairman. “I have complete confidence that he will take ProFrac to new heights,” Ladd Wilks said of Matt Wilks. Matt Wilks said Ladd Wilks' move to the board represented “a huge vote of confidence” and said the company has an experienced operating team in place. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Stimulation-services revenue reached $430 million in the second quarter, compared with $407 million in the first quarter. Segment adjusted EBITDA increased to $39 million from $32 million, and margin improved to 9% from 8%. Harbour said the results reflected higher efficiency, the absence of material weather delays that affected the first quarter, and modest pricing improvement. The company maintained its fleet count in the low 20s, continuing what management described as a returns-focused approach rather than pursuing utilization by adding capacity. → Jersey Mike's Serves Fresh Gains After IPO Stumble Management said April retained the high operational efficiency seen in March, though pumping hours per fleet moderated in May and June because of more open calendar periods than anticipated. Pricing increased slightly during the quarter, but management said most negotiated pricing improvements are expected to take effect during the third and fourth quarters. Matt Wilks said ProFrac does not plan to deploy incremental fleets speculatively, even if spot-market demand rises later in the year. Instead, the company intends to seek longer-term customer commitments through the request-for-proposal process for 2027 work. During the question-and-answer session, Wilks said an additional 15% to 20% increase in pricing would likely accelerate equipment upgrades but would not alone trigger a new-build cycle. Decisions to add capacity would require both favorable economics and longer-duration customer commitments, he said. Management said all of its next-generation and fuel-efficient equipment is currently deployed. ProFrac has retained some diesel capacity that could potentially be reactivated or upgraded if demand tightens further. The company is accelerating some engine upgrades because of demand for dual-fuel and natural-gas-capable equipment. ProFrac's proppant-production business generated $121 million in second-quarter revenue, compared with $120 million in the first quarter. Segment adjusted EBITDA was $6 million, broadly flat sequentially, while adjusted EBITDA margin remained 5%. Total volumes were approximately 2.5 million tons. Third-party customers accounted for approximately 31% of proppant volumes, up from 28% in the first quarter. Management said it continued to face competitive pricing pressure in West Texas sand markets during the second quarter and into the third quarter. However, it cited South Texas and the Haynesville as stronger markets and said South Texas remained its best-performing region for sell-through and throughput. Matt Wilks said the company sees the Haynesville as a growth opportunity for both hydraulic fracturing and sand services as gas-directed activity develops in support of LNG export capacity and power demand. Management reiterated its target for $100 million in annualized savings, including $35 million to $45 million of labor-related reductions, $30 million to $40 million in non-labor operating expenses, and $20 million to $30 million in capital-expenditure efficiencies. The company said its eBlender rollout is progressing, with additional units deployed during the quarter. Management said the units have produced lower repair and maintenance spending and better uptime than legacy equipment. ProFrac expects to deploy the eBlender technology across its fleet by year-end. ProFrac also discussed its Machina closed-loop fracturing platform, which combines surface automation with real-time subsurface data. Management said it remains in price discovery on the commercial model but has received encouraging customer feedback. The company believes the technology could help reduce execution risks on certain deferred drilling locations, potentially bringing previously stranded inventory back into development. Manufacturing revenue was $48 million, in line with the first quarter, while segment adjusted EBITDA was $6 million versus $7 million in the prior quarter. Flotek generated $102 million in revenue and $19 million in adjusted EBITDA, compared with $72 million and $11 million, respectively, in the first quarter. Harbour said Flotek's adjusted EBITDA margin was 19%. Cash capital expenditures declined to $32 million from $41 million in the first quarter. ProFrac reaffirmed expected 2026 capital expenditures of $155 million to $185 million including Flotek, or $145 million to $175 million excluding Flotek. Harbour said spending could be above the midpoint of the range as the company pulls forward upgrades. At June 30, ProFrac had approximately $19 million in cash and cash equivalents and total liquidity of about $72 million, including $58 million of availability under its prior ABL facility. Total debt outstanding was approximately $1.1 billion. On July 1, ProFrac closed a new $300 million asset-based revolving credit facility with Eclipse Business Capital, replacing its previous $275 million facility. The new facility also provides the ability to request up to $25 million of additional commitments, subject to lender approval and customary conditions. Harbour said the refinancing provides a larger commitment, improved advance rates and an extended maturity profile, with most debt maturities remaining concentrated in 2029 and beyond. ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ProFrac Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at oilfield services stocks, starting with ProFrac (NASDAQ:ACDC). Oilfield services companies provide equipment, technology, and services enabling exploration and production activities, including drilling, completion, well intervention, and reservoir evaluation. Their fortunes closely track upstream capital spending cycles. Tailwinds include increased drilling activity during favorable commodity environments, demand for efficiency-enhancing technologies, and growing offshore and unconventional resource development. Headwinds include significant revenue volatility tied to oil and gas price swings and producer spending discipline. Intense competition pressures pricing and margins, while the energy transition may structurally reduce long-term demand. Workforce availability and technological disruption require continuous adaptation. The 26 oilfield services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.8%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.9% since the latest earnings results. Operating one of the largest electric-powered fracturing fleets in North America, ProFrac (NASDAQ:ACDC) provides hydraulic fracturing services that help oil and gas companies extract hydrocarbons from underground shale formations. ProFrac reported revenues of $449.6 million, down 25.1% year on year. This print exceeded analysts’ expectations by 8.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates. “Our first quarter 2026 results exceeded expectations despite weather-related disruptions early in the period, which reduced Adjusted EBITDA by approximately $9 million,” stated Executive Chairman, Matt Wilks. ProFrac delivered the slowest revenue growth among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 32.7% since reporting and currently trades at $4.80. Is now the time to buy ProFrac? Access our full analysis of the earnings results here, it’s free. Managing over 24 billion barrels of produced water annually across major U.S. shale plays, Select Water Solutions (NYSE:WTTR) provides water sourcing, recycling, disposal, and treatment services for oil and gas producers. Select Water Solutions reported revenues of $366 million, down 2.3% year on year, outperforming analysts’ expectations by 6.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. The market seems happy with the results as the stock is up 16.7% since reporting. It currently trades at $20.13. Is now the time to buy Select Water Solutions? Access our full analysis of the earnings results here, it’s free. Operating one of the world's youngest jack-up fleets with an average age under eight years, Borr Drilling (NYSE:BORR) operates jack-up rigs that drill oil and gas wells in shallow waters up to 400 feet deep for exploration and production companies. Borr Drilling reported revenues of $247 million, up 14% year on year, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. Borr Drilling delivered the weakest performance against analyst estimates of the whole group. As expected, the stock is down 32.3% since the results and currently trades at $4.18. Read our full analysis of Borr Drilling’s results here. Operating across 16 countries from Algeria to Indonesia, NESR (NASDAQ:NESR) provides oilfield services like hydraulic fracturing, cementing, and drilling to oil and gas companies. NESR reported revenues of $404.6 million, up 33.5% year on year. This print topped analysts’ expectations by 9.8%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS and EBITDA estimates. The stock is up 24.8% since reporting and currently trades at $28.84. Read our full, actionable report on NESR here, it’s free. Operating the world's largest fleet of offshore drilling rigs across six continents, Valaris (NYSE:VAL) provides offshore drilling rigs and crews to oil and gas companies exploring and producing in deep waters and shallow seas. Valaris reported revenues of $465.4 million, down 25% year on year. This number beat analysts’ expectations by 5.6%. Overall, it was an incredible quarter as it also put up a beat of analysts’ EPS estimates. The stock is down 25.5% since reporting and currently trades at $76.35. Read our full, actionable report on Valaris here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Solid quarterly results have pushed ProFrac Holding (ACDC) into focus, with the stock recently up 70.7% to $7.29. That jump, along with questions about profitability and reinvestment, is drawing closer investor scrutiny. See our latest analysis for ProFrac Holding. The latest quarterly update and the earlier 70.7% surge have come with sharp swings, including a 1-day share price return that fell 14.02% and a year-to-date share price return of 71.53%. At the same time, the 1-year total shareholder return is down 21.87%. Taken together, these figures underline how quickly sentiment around profitability and reinvestment prospects can shift. If ProFrac’s recent volatility has your attention, it can be useful to see what else is moving in related areas of the market with 33 power grid technology and infrastructure stocks With ProFrac posting solid quarterly results, a recent 70.7% surge and an intrinsic value estimate that sits well above the current US$6.93 share price, the key question is whether there is still an opportunity here or if the market is already pricing in future growth. With ProFrac Holding’s fair value estimate at $4.87 versus a last close of $6.93, the most followed narrative frames the recent share price as stretched and heavily dependent on execution of efficiency and growth plans. Read the complete narrative. Curious what kind of revenue profile, margin uplift, and future earnings multiple are baked into that higher fair value estimate and lower P/E assumption? The narrative blends modest top line growth, improving profitability, and a compressed valuation multiple into one tight model investors will want to see for themselves. Result: Fair Value of $4.87 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the narrative still leans heavily on higher margin assumptions while the company runs a loss of $440.4 million and carries about $1.11b of debt. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. While the analyst narrative and price target frame ProFrac as 42.3% overvalued at $6.93 versus a $4.87 fair value estimate, the SWS DCF model points in almost the opposite direction, with a future cash flow value of $21.98. That gap raises a simple question: which story do you trust more, earnings multiples or cash flows? Look into how the SWS DCF model arrives at its fair value. With both risks and rewards in play around ProFrac right now, it makes sense to move quickly, review the underlying data yourself, and weigh the 2 key rewards and 2 important warning signs. If ProFrac has sharpened your focus, do not stop here. The next move could come from a stock you have not even reviewed yet. Spot potential turnaround stories early by scanning 24 elite penny stocks with strong financials that already show stronger financial footing than many investors expect. Zero in on quality at a reasonable price with the 49 high quality undervalued stocks and see which stocks combine solid fundamentals with appealing valuations. Prioritise consistency and capital preservation using the 61 resilient stocks with low risk scores to find companies with more resilient profiles when markets feel uncertain. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ACDC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

What a fantastic six months it’s been for ProFrac. Shares of the company have skyrocketed 70.7%, hitting $7.29. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is there a buying opportunity in ProFrac, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. Despite the momentum, we’re sitting this one out for now. Here are three reasons why there are better opportunities than ACDC, plus one stock we’d rather own. In any given year, energy gross margins are heavily influenced by prices, hedging, and cost inflation, but over a full cycle these gross margins reveal which producers are structurally advantaged through superior “rock” quality, infrastructure access, and cost position. ProFrac, which averaged 32.5% gross margin over the last five years, exhibited bottom-tier unit economics in the sector. It means the company will struggle at higher commodity prices than peers with better gross margins. Adjusted EBITDA margin captures the true operating profitability of an energy producer by removing accounting noise around depletion and capitalized drilling costs. It reveals how much cash the asset base generates before capital structure and reinvestment requirements shape reported earnings. Analyzing the trend in its profitability, ProFrac’s EBITDA margin decreased by 8.1 percentage points over the last year. ProFrac’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its EBITDA margin for the trailing 12 months was 13.1%. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. ProFrac has shown weak cash profitability relative to peers over the last five years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 3.9%, below what we’d expect for an upstream and integrated energy business. ProFrac isn’t a terrible business, but it doesn’t pass our bar. Following the recent surge, the stock trades at $7.29 per share (or a forward price-to-sales ratio of 0.6×). The market typically values companies like ProFrac based on their anticipated profits for the next 12 months, but there aren’t enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. Let us point you toward a dominant aerospace business that has perfected its M&A strategy. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

ProFrac’s first quarter results were met with a sharply negative market reaction, despite exceeding Wall Street’s revenue and adjusted EBITDA expectations. Management attributed the year-on-year revenue decline to operational disruptions from severe winter weather and lower proppant production volumes, especially early in the quarter. Executive Chairman Matt Wilkes described how "harsh winter conditions across much of our operating areas created some operational disruptions that resulted in approximately $9 million of adjusted EBITDA impact." The company also noted that market dynamics improved late in the quarter, with higher efficiency in stimulation services, but margin pressures persisted due to cost headwinds and a competitive landscape. Is now the time to buy ACDC? Find out in our full research report (it’s free). Revenue: $449.6 million vs analyst estimates of $415 million (25.1% year-on-year decline, 8.3% beat) Adjusted EPS: -$0.44 vs analyst expectations of -$0.38 (16.7% miss) Adjusted EBITDA: $54 million vs analyst estimates of $49.48 million (12% margin, 9.1% beat) Operating Margin: -10.3%, down from 2.7% in the same quarter last year Market Capitalization: $1.29 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dan Kootz (Morgan Stanley) asked for clarification on the timing and magnitude of pricing improvements versus balanced pricing commentary. CEO Ladd Wilkes explained that while Q1 pricing was stable, material price increases are being implemented through Q2 and the rest of the year as market tightness increases. Dan Kootz (Morgan Stanley) also inquired about the sequential profitability outlook for Q2, highlighting the weather impact and cost initiatives. CFO Austin Harbour confirmed that Q2 is expected to be up versus Q1, with additional cost savings and price increases driving improvement. Patrick O'Leary (Stifel) sought color on current pricing relative to 2022 and the potential for further recovery. CEO Ladd Wilkes stated that current pricing is about 55%-60% of 2022 peak levels, with significant room for improvement but more industry efficiency. Patrick O'Leary (Stifel) asked about frac sand pricing trends through year-end. Ladd Wilkes noted that sand markets are tightening across regions, with price and volume improvements occurring in all key basins. Bill Austin (Daniel Energy) questioned the mix of activity between public and private operators and ProFrac’s approach to incremental fleet deployment. CEO Ladd Wilkes indicated a rise in private operator activity and emphasized the company’s disciplined focus on committed, reliable schedules over speculative expansions. In the coming quarters, our analysts will monitor (1) the pace at which price increases for stimulation services flow through to profitability, (2) the effectiveness of ongoing cost optimization and e-blender deployment in reducing expenses, and (3) operational recovery in proppant production volumes, especially in Texas. Additionally, customer adoption and monetization of the Makena optimization suite will be a key marker for future differentiation and growth. ProFrac currently trades at $7.28, up from $7.13 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.