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.
“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.
Stimulation services improves as pricing gains shift to second half
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.
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.
Sand business faces West Texas pricing pressure
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.
Technology, cost savings and capital plans
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%.
ABL refinancing extends maturity profile
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.
About ProFrac (NASDAQ:ACDC)
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.
