NASDAQ$ACDC

ProFrac Holding Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported lower results due to market softness and operators reducing drilling and completion activity.

ProFrac reported sequentially lower results in Q2 2024 due to market challenges, particularly in natural gas regions, as operators reduced drilling and completion activity. However, the company achieved records for average pump hours per fleet and efficiencies while upgrading its fleet with electric and Tier 4 dual fuel systems.

  • Achieved records for average pump hours per fleet and efficiencies.
  • Upgraded fleet with additional electric and Tier 4 dual fuel systems.
  • Fielding new inbound requests for additional deployments with high demand for electric and Tier 4 dual fuel technologies.
  • 70% of active fleets include e-fleet or natural gas-capable equipment.

Headline financials

Total Revenue

$579M

Previous: $709M-18.3%
EPS

-$0.42

Previous: -$0.02-2000.0%
Adjusted EBITDA

$136M

No prior period
Capital Expenditures

-$122M

Previous: -$181M+32.8%
Free Cash Flow

-$189M

Previous: -$184M-2.3%
Net Income

-$66.7M

Previous: -$2.9M-2200.0%
Operating Income

-$49.2M

Previous: $53.7M-191.6%
Gross Profit

-$497M

Previous: -$577M+13.9%
Cash & Equivalents

$24M

Previous: $26.9M-10.8%
Total Assets

$3.16B

Previous: $3.45B-8.3%
Stock-Based Comp

$2.9M

Previous: $9.8M-70.4%

Revenue & EPS history

ProFrac · Revenue · Quarterly

$579M

Q2 2024-18.3%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

ProFrac · $632M total across 3 segments · Q3 2023

  • Stimulation services
    $490M-26.8%
  • Proppant production
    $98.4M+300.0%
  • Manufacturing
    $43.8M-10.1%

Forward guidance

In the Stimulation Services segment, the Company anticipates pricing will remain steady. In the Proppant Production segment, the Company currently anticipates that total volumes and pricing will continue to decline followed by a gradual recovery.

Tailwinds

  • Pricing will remain steady in Stimulation Services.
  • Opportunities to further improve profitability per fleet due to superior cost structure and operating leverage.
  • Fielding new inbound requests for additional integrated fleet deployments with the highest demand for electric and Tier 4 dual fuel technologies.
  • Reduction in profitability in Proppant Production segment will be partially offset by operating cost reductions.
  • Idling of one underperforming mine in the Haynesville region.

Headwinds

  • Market for services has been challenged as operators have reduced drilling and completion activity.
  • Market softness in the second quarter led to sequentially lower results.
  • Total volumes and pricing will continue to decline in Proppant Production segment.
  • Goodwill impairment of $67.7 million related to the Company’s Haynesville Proppant reporting unit.
  • Approximately 74% of the Manufacturing segment’s revenue was intercompany.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.4%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+7.2%

Avg return

30 days after

53%

8 / 15 earnings

Positive

+19.6%

Q3 2024

Best reaction

-21.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%+8.4%+5.5%
Q4 2025+18.6%+15.5%+0.3%
Q3 2025-20.1%-24.1%-9.9%
Q1 2025-7.3%+8.3%+94.5%
Q4 2024+0.6%+10.9%-21.1%
Q3 2024+19.6%+11.7%+32.2%
Q2 2024-19.9%-12.4%-10.6%
Q1 2024+12.0%+22.8%+23.1%
Q4 2023-1.8%-1.4%+6.6%
Q3 2023-4.9%+6.0%-5.0%
Q2 2023-11.3%-18.3%-12.3%
Q1 2023+8.2%+2.9%+25.5%
Q4 2022-21.6%-24.4%-20.5%
Q3 2022+7.3%+5.6%-11.9%
Q2 2022+13.7%+7.5%+11.0%
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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