ProFrac (NASDAQ:ACDC) reported higher third-quarter revenue but lower adjusted earnings as weaker frac sand results and a less efficient pumping schedule offset a stronger contribution from Flotek. Management said activity improved in October and expects a tighter equipment market and higher pricing to support results into 2027.
Revenue rose to $511 million for the quarter ended Sept. 30, 2026, from $498 million in the second quarter, Chief Financial Officer Austin Harbour said on the Nov. 5 earnings call. Adjusted EBITDA fell to $65 million from $69 million, with the margin declining to 13% from 14%. Free cash flow improved to positive $14 million from negative $8 million.
Chief Executive Officer and Executive Chairman Matt Wilks said the quarter was more volatile than expected. September brought more gaps between pumping jobs than the company had anticipated, while lower sales and throughput in West Texas weighed on its proppant business.
Pumping Activity Improves After September Slowdown
Stimulation Services revenue declined to $421 million from $430 million in the second quarter. Adjusted EBITDA slipped to $37 million from $39 million, with a margin of about 9% that Harbour said was comparable to the prior quarter.
Harbour said fleet count remained broadly consistent with the second quarter, but pumping hours per fleet softened in September. Lower cost absorption and higher materials and operating expenses offset price increases realized during the quarter.
Wilks said activity improved in October and the company expects a normalized fleet count in the fourth quarter. Although ProFrac has included customary year-end seasonality in its plans, he expects less of a slowdown than historically experienced because of limited equipment availability and few signs that customers have exhausted their budgets.
Harbour said the benefit from this year’s price increases is still working through contracts as they reset. He expects pricing to contribute more in the fourth quarter and support sequential improvement heading into 2027.
Sand Results Weaken, While Flotek Grows
Proppant Production revenue fell to $101 million from $121 million in the second quarter, while adjusted EBITDA dropped to $2.4 million from $6 million. Total volumes were approximately 2.5 million tons, and about 45% were sold to third parties, up from 31% in the preceding quarter.
Harbour attributed the weaker results partly to competitive pricing in West Texas, which reduced sales volumes and throughput. Lower operating leverage and higher costs also hurt margins. Wilks said the company is focused on improving pricing and throughput across its frac sand operations and is encouraged by early signs of improvement.
Manufacturing revenue increased to $53 million from $48 million, with adjusted EBITDA of $6 million roughly in line with the second quarter. Wilks said the segment is seeing demand for power generation packaging and rebuild work from other industry participants.
Flotek revenue rose to $117 million from $102 million, while adjusted EBITDA increased to $22 million from $19 million. Third-party customers accounted for approximately 49% of Flotek revenue, compared with 42% in the second quarter.
Management Sees Tight Market Extending Into 2027
Wilks said equipment retirements, long component lead times and limited investment in new frac fleets are tightening the pumping market. He said ProFrac is pursuing longer-term contracts and cost pass-throughs rather than adding equipment to chase spot work. The company will not build fleets speculatively, he added.
During the question-and-answer session, Wilks said customer inquiries include dedicated work for next year. “I am pretty confident that 2027 will see positive net income,” he said, adding that the company is already seeing signs of improvement in the fourth quarter.
Wilks estimated that hourly customer rates fell about 50% from the previous peak to the trough and have since risen roughly 50% to 60% from that low, while remaining below peak levels. He cautioned that increased pumping hours improve some cost efficiencies but also accelerate equipment wear.
ProFrac expects all units in its e-blender program to be delivered by year-end and most to be working by then, with some deployments extending into early 2027. Wilks said engine lead times have slowed the upgrade program and affected the e-blender transition.
Debt Amendments and Capital Spending
ProFrac narrowed its full-year capital spending forecast to $160 million to $180 million, including Flotek, from a prior range of $155 million to $185 million. Excluding Flotek, it expects spending of $145 million to $165 million. Third-quarter cash capital expenditures were approximately $40 million.
Harbour said the company ended the quarter with approximately $1.05 billion in principal debt outstanding, including $113 million due over the following 12 months. It had approximately $44 million in cash and cash equivalents, including about $25 million attributable to Flotek, and total liquidity of approximately $97 million.
During the quarter, ProFrac closed a new $300 million asset-based revolving facility and amended its Alpine term loan, extending the loan’s maturity to February 2030 and eliminating scheduled amortization through the first quarter of 2028. The amendment also allows the company to pay approximately 60% of interest in kind at current rates for the next 12 months, while requiring quarterly payments of excess free cash flow.
Separately, $60 million of term loans held by affiliated lenders was repaid and canceled in exchange for Flotek shares held by a ProFrac subsidiary. Harbour said the transactions reduce near-term scheduled principal and cash interest payments and provide additional financial flexibility.
About ProFrac (NASDAQ:ACDC)
ProFrac Holding Corp. is an energy services company that provides hydraulic fracturing and other well-stimulation services to oil and natural gas producers. Through its operations, the company supports the development and completion of unconventional wells, primarily in North American onshore energy markets.
The company’s activities include pressure pumping and hydraulic fracturing services, proppant production and distribution, and the manufacture, sale, and maintenance of equipment used in well-completion operations.
