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Dec 31, 2024
ProFrac Q4 2024 Earnings Report
ProFrac reported a decline in revenue and profitability in Q4 2024 due to pricing pressure and seasonal challenges.
Key Takeaways
ProFrac reported Q4 2024 revenue of $455 million, down from $575 million in the prior quarter. The company posted a net loss of $102 million, reflecting adverse market conditions and lower activity levels. Adjusted EBITDA fell to $71 million, down from $135 million in Q3. The Stimulation Services segment remained the largest revenue contributor at $384 million. ProFrac expects market conditions to improve in 2025 with increased fleet deployment and better operational efficiency.
Revenue declined to $455 million from $575 million in Q3 due to pricing pressure and seasonal budget exhaustion.
Net loss widened to $102 million from $44 million in Q3, reflecting weaker market conditions.
Adjusted EBITDA dropped to $71 million from $135 million in Q3 as margins contracted.
Stimulation Services remained the largest segment, generating $384 million in revenue.
Revenue by Segment
Forward Guidance
ProFrac anticipates improved market conditions in 2025 with increased fleet deployment and enhanced operational efficiencies.
Positive Outlook
- Fleet deployment increased by 25% from Q4 lows, improving utilization.
- Pricing stabilization expected to support revenue growth.
- Proppant production volumes projected to rise with better commercial opportunities.
- Operational efficiencies expected to drive better cost performance.
- New Livewire Power business set to contribute additional revenue streams.
Challenges Ahead
- Continued pricing pressure in the hydraulic fracturing market.
- Increased capital expenditures planned for fleet upgrades and sand mine improvements.
- Interest expense remains elevated due to debt obligations.
- Proppant segment revenue remains significantly lower than prior-year levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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