LandBridge Company LLC

Revenue in the second quarter was a record $66.8 million, up 41% year over year and 31% sequentially. Adjusted EBITDA was $59.8 million, up 41% year over year and 33% sequentially, with an 89% margin. Cash flow from operations was $41.4 million and free cash flow was $40.2 million, up 11% year over year with a 60% free cash flow margin. Management reaffirmed full-year 2026 adjusted EBITDA guidance of $210 million to $230 million. No next-quarter revenue or EBITDA guidance was given.

Jason Long emphasized that the quarter showed record revenue, strong execution, and the durability of LandBridge’s surface-based model across its Delaware Basin acreage. He framed digital infrastructure as a major long-term opportunity, highlighting LandBridge’s combination of contiguous land, power access, fiber, and water resources, including approximately 13.4 million acre-feet of brackish groundwater. His tone was upbeat and confident, and he pointed to the company’s second year as a public company having delivered more than 150% growth in revenue, free cash flow, and adjusted EBITDA since IPO, along with about 360% total shareholder return.

Scott McNeely focused on the financial strength of the quarter, citing $66.8 million of revenue, $59.8 million of adjusted EBITDA, $41.4 million of operating cash flow, and $40.2 million of free cash flow. He said capital spending remained modest at $1.1 million, while net cash used in investing was $11.3 million, including $10.2 million for bolt-on acquisitions. He also highlighted liquidity of $269.8 million at quarter end, including $39.8 million of cash and $230 million of revolver availability, with borrowings of $545.2 million and net leverage of 2.5x. After quarter end, the revolver was expanded from $275 million to $375 million, with capacity to increase to $475 million, and borrowing costs were cut by 25 basis points across the pricing grid.

Analysts pressed management on the economics of the Delaware landfill deal, broader M&A opportunities, and whether LandBridge is seeing improved pricing or a changed market since IPO. Management said the landfill acquisition implies a high single-digit run rate on a go-forward basis, with option value on the surface, and that LandBridge would do similar deals with third parties, not just WaterBridge. On data centers, management said the seven counterparties are not casual conversations: some are already signed and in diligence, others are in final-doc negotiation, and success over the next 12 months would mean multiple LOIs and options turning into firm leases with revenue starting by the end of next year. They also said the ERCOT-related directive is more of an audit/disclosure exercise than a moratorium, and that LandBridge projects should be relatively insulated because they are behind the meter and use brackish or treated produced water.