Liberty Energy Inc.

Second quarter 2026 revenue was $1.2 billion versus $1 billion in the prior quarter, a 16% sequential increase. Adjusted EBITDA was $151 million. Net income was $43 million versus $23 million in the prior quarter, and fully diluted EPS was $0.26 versus $0.14. Adjusted net income was $14 million versus $10 million, and adjusted net income per diluted share was $0.09 versus $0.06. G&A was $67 million versus $60 million. Cash ended at $559 million, net debt was $736 million, and total liquidity was about $1 billion. Net capital expenditures and long-term deposits were $221 million, including $71 million in power generation deposits. The company now expects approximately $1.5 billion of capital expenditures in 2026. Management said the tax rate for the remainder of 2026 should be about 25% of pretax income and that it does not expect to pay material cash taxes in the year.

Ron Gusek emphasized that Liberty is benefiting from technology investment, execution, and customer relationships in completions, while also building a differentiated power platform. He highlighted DigiPrime’s expansion into Canada, the launch of slurry, and the PowerBridge JV and SLB alliance as signs that Liberty’s addressable market is broadening. His tone was optimistic but measured, repeatedly noting geopolitical and commodity volatility as a backdrop.

Michael Stock framed Q2 as a quarter of record operational performance and disciplined investment. He walked through the sequential revenue and earnings growth, the $67 million of G&A, the $40 million of other income including $43 million of gains on investments, and the quarter-end cash and net debt position. He also said the company’s 2026 capex plan has risen to about $1.5 billion because of deposits for long-lead power generation equipment, and reiterated that power projects are expected to be funded through SPVs and project financing, with nonrecourse debt and cash recycling back to the parent.

Analysts focused heavily on the power business: return hurdles, timing of income statement contribution, the 3 GW buildout, capex funding, and whether the PowerBridge Alpha Digital campus will be leased and qualify in ERCOT’s batch 0 process. Management said the power business is still targeted at a 5- to 6-year cash-on-cash payback and a 17% to 18% unlevered return, with meaningful income statement impact not expected until 2028, and full 3 GW fall-through by end-2029. On the completions side, questions centered on pricing, margins, and Q4 seasonality; management said price traction is improving but sand and chemical margins remain challenged, and that Q4 is too early to call given macro volatility.