• Q4 Revenue: $455 million.
• Q4 Adjusted EBITDA: $71 million.
• Q4 Adjusted EBITDA Margin: 16%.
• Full Year 2024 Revenue: $2.19 billion.
• Full Year 2024 Adjusted EBITDA: $501 million.
• Full Year 2024 Adjusted EBITDA Margin: 23%.
• Q4 Free Cash Flow: $54 million.
• Full Year 2024 Free Cash Flow: $185 million.
• Stimulation Services Q4 Revenue: $384 million.
• Stimulation Services Q4 Adjusted EBITDA: $54 million.
• Stimulation Services Q4 EBITDA Margin: 14%.
• Proppant Production Q4 Revenue: $47 million.
• Proppant Production Q4 Adjusted EBITDA: $14 million.
• Proppant Production Q4 EBITDA Margin: 31%.
• Manufacturing Q4 Revenue: $62 million.
• Manufacturing Q4 Adjusted EBITDA: $3 million.
• Cash and Cash Equivalents (End of 2024): $15 million.
• Total Debt (End of 2024): Approximately $1.1 billion.

• Warning! GuruFocus has detected 5 Warning Signs with ACDC.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ProFrac Holding Corp (NASDAQ:ACDC) achieved a revenue of $455 million and adjusted EBITDA of $71 million in Q4 2024, despite typical fourth-quarter challenges.
• The company introduced a new business venture, Livewire Power, focusing on power generation for remote locations, which marks a significant step forward in their power generation strategy.
• ProFrac's integrated asset management program has improved equipment quality and operational efficiency, leading to better customer relationships.
• The company has seen a significant improvement in activity in its stimulation services business, with record efficiencies achieved in January 2025.
• ProFrac is strategically positioned to capitalize on increased natural gas completion activity in the Haynesville region, with a large proppant footprint and 10 million tons per annum capacity.

Negative Points

• ProFrac experienced a sharper than anticipated drop in active fleet count and pricing softened due to lower activity in Q4 2024.
• The North American completion industry faced competitive pressures from softening activity, impacting ProFrac's financial performance.
• Pricing in the proppant production segment experienced softness in Q4 2024, which carried over into Q1 2025.
• The company faced reactivation costs and labor costs associated with excess crews, impacting EBITDA in Q4 2024.
• ProFrac's total liquidity at year-end was approximately $81 million, with significant debt outstanding, requiring careful management of free cash flow and capital allocation.

Q & A Highlights

Q: Can you elaborate on the activity improvement in both stimulation and proppant sides early in the year? How should we think about profitability moving through 2025? A: Matthew Wilks, Executive Chairman, explained that the year started strong with operators resuming work and increasing demand for fleets and sand. The focus is on sustainable pricing and long-term customer relationships rather than aggressive pricing, aiming for stable cash flows and profitability over time.

Q: Regarding Livewire and CapEx guidance for 2025, how quickly will Livewire ramp up, and how is the $250 million to $300 million CapEx allocated? A: Matthew Wilks noted that Livewire's initial focus is on internal demand, with selective external opportunities. Austin Harbour, CFO, added that most CapEx will be on stimulation services and proppant production, ensuring investments meet economic return thresholds.

Q: What is your perspective on frac supply and demand, and attrition of older assets as we move through 2025? A: Matthew Wilks highlighted accelerated attrition due to high utilization rates, leading to less available equipment. The focus is on managing assets efficiently and maintaining long-term customer relationships, with potential for substantial price improvements as the market tightens.

Q: Can you provide a sense of current pricing compared to 12 months ago? A: Matthew Wilks declined to provide specific figures but emphasized the focus on maintaining customer relationships and sustainable pricing rather than short-term gains.

Q: How do you view the electrification of frac fleets and potential competition for power from other industries? A: Matthew Wilks stated that ProFrac's vertical integration allows for strategic allocation of resources, focusing on long-term customer commitments while evaluating opportunities in other segments.

Q: What is the current active frac fleet count, and is 30 a reasonable number to expect through 2025? A: Matthew Wilks confirmed that the low 30s is a safe estimate for the year, with a focus on maintaining a healthy market footprint and ensuring economic returns before increasing activity.

Q: Are market share gains expected in the proppant business, and how are you managing mine utilization? A: Matthew Wilks mentioned that one asset remains idle, but seven are operational with high utilization. The focus is on long-term commitments and optimizing mine utilization rather than immediate price increases.

Q: What was the $41 million in asset sales related to? A: Austin Harbour explained it was a sale leaseback of some stimulation services assets.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.