Liberty Energy Inc. LBRT reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. The Denver, CO-based oil and gas equipment company's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.

The company's revenues totaled $977.5 million, which beat the Zacks Consensus Estimate by 3.4%. However, the top line was below the prior-year quarter’s level of $1.1 billion by 8.9%.

Liberty Energy Inc. Price, Consensus and EPS Surprise

Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. Quote

Liberty Energy’s adjusted EBITDA was $168.1 million, a decrease from $244.8 million in the year-ago quarter. However, the figure topped our prediction of $157.3 million.

Other Important Updates

Recently, LBRT announced the acquisition of IMG Energy Solutions, expanding Liberty Power Innovation’s distributed power systems offering.

Ahead of the earnings release, Liberty Energy’s board of directors declared a quarterly dividend of 8 cents per share to its Class A common shareholders of record as of June 6. The payout, which is unchanged from the previous quarter, will be made on June 20.

The company returned $37 million to its shareholders through the repurchase of 1% of shares and quarterly cash dividends in the first quarter of 2025. For the period, Liberty repurchased and retired more than 1.5 million shares of Class A common stock at an average price of $15.50 per share for a total of around $24 million.

Since the repurchase program launched on July 25, 2022, Liberty has repurchased and retired a cumulative 15.9% of shares outstanding. The company currently has about $270 million remaining in repurchase authorization.

Liberty successfully tested its latest advancement in digiPrime technology — the industry’s first variable-speed pump designed for natural gas. The company also set a new benchmark for the longevity of critical equipment components by leveraging its AI-driven predictive maintenance systems, which significantly reduced the total cost of asset ownership.

Costs & Expenses of LBRT

Liberty reported total costs and expenses of $959.3 million in the first quarter, increasing 0.2% from the year-ago quarter’s level. The figure was also higher than our estimation of $943.4 million.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Balance Sheet & Capital Expenditure of LBRT

As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.

Further, the company’s liquidity, cash balance and revolving credit facility amounted to $164 million.

In the reported quarter, this Zacks Rank #3 (Hold) company spent $120.9 million in its capital program, lower than our estimation of $151.8 million.

LBRT’s Management Remarks & Outlook

As the global oil markets are navigating tariff-related pressures, geopolitical tensions and supply uncertainties, the company expects the North American producers to consider multiple economic scenarios. Although a recent tariff pause has temporarily eased demand concerns, focus remains on supply dynamics such as OPEC+ strategies and export constraints from Iran, Russia and Venezuela. The natural gas outlook is more favorable, fueled by rising global LNG demand, supporting energy security.

While commodity price volatility hasn’t immediately altered North American oil activity, producers are preparing for potential price pressures. Gas producers may benefit from reduced associated gas production in oil-dominant areas. Unlike past cycles, current industry activity remains steadier across price shifts, bolstered by consolidation and capital discipline among larger, more resilient producers.

Liberty’s integrated service model — enhanced by advanced technology, fleet modernization and real-time data — delivers greater efficiency and cost savings, reinforcing its market leadership. The company expects sequential growth in the second quarter, supported by higher utilization and strong customer partnerships. Strategic investments, including the acquisition of IMG, are driving its expansion into new markets like distributed power, data centers and industrial electrification, positioning Liberty for long-term growth.

Stocks to Consider

Investors interested in the energy sector might look at some top-ranked stocks like Archrock, Inc. AROC, Delek Logistics Partners, LP DKL and Diversified Energy Company PLC DEC. While Archrock and Delek Logistics currently sport a Zacks Rank #1 (Strong Buy) each, Diversified Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston-based Archrock is a provider of natural gas contract compression services as well as a supplier of aftermarket services for compression equipment. AROC operates in the oil- and gas-producing regions primarily in the United States. The Zacks Consensus Estimate for AROC’s 2025 earnings indicates 56.19% year-over-year growth.

Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 34.45% year-over-year growth.

Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2025 earnings indicates 70.77% year-over-year growth.

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