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Liberty Energy
(NYSE:LBRT)
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Rating:52Neutral
Price Target:
$15.50
▼(-15.67% Downside)
Action:Reiterated
Date:10/23/26
LBRT’s score is held back primarily by weakening financial performance (compressed profitability, higher leverage, and negative TTM free cash flow). Technicals are also bearish with the stock in a downtrend despite oversold momentum. Offsetting these factors, the earnings call was notably constructive with improving pricing, strong utilization, and progress on long-term power initiatives, while valuation remains challenging due to a high P/E.
Positive Factors
Strong utilization and pricing
High fleet utilization and improving service pricing support revenue durability in the core completions business. Customer demand for additional crews and a relatively tight frac market can help Liberty defend margins and convert operating scale into stronger earnings over the next several quarters.
Negative Factors
Higher leverage and weak free cash flow
A materially more leveraged capital structure combined with recent negative free cash flow reduces financial flexibility in a cyclical industry. Liberty may have less capacity to absorb weaker completions demand or fund power expansion internally without relying on financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong utilization and pricing
High fleet utilization and improving service pricing support revenue durability in the core completions business. Customer demand for additional crews and a relatively tight frac market can help Liberty defend margins and convert operating scale into stronger earnings over the next several quarters.
Read all positive factors
Liberty Energy (LBRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.71B
Dividend Yield2.16%
Average Volume (3M)4.02M
Price to Earnings (P/E)68.3
Beta (1Y)1.29
Revenue Growth2.29%
EPS Growth-43.28%
CountryUS
Employees5,800
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding163,191,420
10 Day Avg. Volume4,020,310
30 Day Avg. Volume4,020,909
Financial Highlights & Ratios
PEG Ratio-0.39
Price to Book (P/B)1.44
Price to Sales (P/S)0.75
P/FCF Ratio211.98
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit6.49
Enterprise Value/Ebitda8.96
Forecast
1Y Price Target
$26.71Price Target Upside45.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.21
Revenue Forecast (FY)$4.51B
Liberty Energy Business Overview & Revenue Model
Company Description
Liberty Energy Inc. operates across North America, delivering crucial hydraulic fracturing and wireline services, along with associated products, to land-based companies focused on oil and natural gas exploration and production. Its extensive serv...
How the Company Makes Money
Liberty Energy makes money by providing well-completion services to E&P companies under service contracts, with revenue largely tied to the level of drilling and completion activity and the pricing of completion services. Its primary revenue strea...
Liberty Energy Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly constructive overall. Liberty reported solid operational execution, record natural-gas substitution and customer savings, strong frac utilization, improving pricing conditions, an 11% dividend increase and a major 1.2-gigawatt AI power agreement with substantial prepayment potential. These positives outweighed lower quarterly earnings, investment-related losses, drilling-related delays, cost inflation and remaining ESA, financing and permitting execution steps.Positive Updates
Improved Completions Performance and Solid EBITDA
Liberty said its completions trajectory improved meaningfully from early-year cyclical lows. Third-quarter revenue was $1.2 billion and adjusted EBITDA was $142 million, reflecting strong operational execution and modest price increases, partially offset by drilling-related delays and cost inflation.
Negative Updates
Quarterly Net Loss and Lower Adjusted Earnings
Third-quarter net loss was $39 million versus net income of $43 million in the prior quarter. Adjusted net income declined to $10 million from $14 million, adjusted net income per diluted share fell to $0.06 from $0.09, and fully diluted loss per share was $0.24 versus earnings per share of $0.26 in the prior quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Improved Completions Performance and Solid EBITDA
Liberty said its completions trajectory improved meaningfully from early-year cyclical lows. Third-quarter revenue was $1.2 billion and adjusted EBITDA was $142 million, reflecting strong operational execution and modest price increases, partially offset by drilling-related delays and cost inflation.
Read all positive updates
Company Guidance
Management expects fourth quarter weather and holiday seasonality to be partially offset by continued strength in demand, including activity deferred from the third quarter, resulting in a “slightly smaller than normal seasonal breakdown for Q4”; it expects pricing to continue moving upward over the coming quarters, with “modest pricing increases quarter on quarter” and “modest additional price increases” over inflationary impacts, supported by demand for 15 to 18 incremental frac crews. For power, Liberty expects to execute the first ESA for approximately 500 megawatts by December 2026 within the 1.2 gigawatts agreement, with phased energization from Q4 2027 through Q1 2029, a 15 year ESA term with a renewal opportunity, a prepayment of “hundreds of millions of dollars” amortized over the first 5 years, project-level financing to launch in early 2027, and SPV financing targeted at around 20% equity and about 80% debt; management continues to target “high teens rate of return on the invested capital” and “around a 5-times cash on cash payback,” with 3 gigawatts available to execute and have energized by the end of 29.Liberty Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.44B | 4.01B | 4.32B | 4.75B | 4.15B | 2.47B |
| Gross Profit | 686.87M | 457.92M | 609.61M | 977.04M | 677.16M | -41.90M |
| EBITDA | 497.73M | 735.83M | 941.01M | 1.19B | 745.25M | 100.57M |
| Net Income | 40.31M | 147.87M | 316.01M | 556.32M | 399.60M | -179.24M |
Balance Sheet | ||||||
| Total Assets | 4.49B | 3.56B | 3.30B | 3.03B | 2.58B | 2.04B |
| Cash, Cash Equivalents and Short-Term Investments | 118.97M | 27.55M | 19.98M | 36.78M | 43.68M | 20.00M |
| Total Debt | 1.60B | 873.37M | 533.61M | 405.31M | 348.92M | 243.63M |
| Total Liabilities | 2.57B | 1.48B | 1.32B | 1.19B | 1.08B | 810.22M |
| Stockholders Equity | 1.92B | 2.08B | 1.98B | 1.84B | 1.50B | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | -652.46M | 14.11M | 178.34M | 411.29M | 71.04M | -63.33M |
| Operating Cash Flow | 559.74M | 609.60M | 829.37M | 1.01B | 530.36M | 135.47M |
| Investing Cash Flow | -1.12B | -435.04M | -643.11M | -672.33M | -450.66M | -186.49M |
| Financing Cash Flow | 665.32M | -167.54M | -202.71M | -349.31M | -55.77M | 2.06M |
Liberty Energy Technical Analysis
Negative
18.38
Price Trends
19.17
Negative
21.67
Negative
24.67
Negative
Market Momentum
-0.85
Positive
28.93
Positive
10.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Negative. The current price of 18.38 is above the 20-day moving average (MA) of 18.22, below the 50-day MA of 19.17, and below the 200-day MA of 24.67, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 28.93 is Positive, neither overbought nor oversold. The STOCH value of 10.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBRT.
Liberty Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $2.42B | 69.32 | 3.50% | 1.49% | -1.95% | -17.11% | |
55 Neutral | $1.39B | 63.52 | 2.07% | 2.53% | 25.36% | -59.73% | |
52 Neutral | $2.71B | 68.26 | 2.04% | 2.40% | 2.29% | -43.28% | |
52 Neutral | $937.15M | -67.70 | -1.49% | ― | -15.14% | 92.26% | |
50 Neutral | $1.17B | -9.88 | -10.04% | 2.67% | -8.11% | -822.25% | |
48 Neutral | $752.17M | -1.69 | -56.47% | ― | -16.18% | -32.58% |
* Energy Sector Average
LBRT
Liberty Energy
15.38
-0.59
-3.72%
RES
RPC
6.02
1.38
29.69%
PUMP
Propetro Holding
7.22
0.89
14.06%
WTTR
Select Energy Services
17.54
6.08
53.00%
ACDC
ProFrac Holding
3.86
-0.50
-11.47%
AESI
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8.60
-1.99
-18.79%
Liberty Energy Corporate Events
Business Operations and Strategy
Liberty Energy Signs Major Long-Term Power Equipment Contract
Positive
Sep 18, 2026
On February 13, 2026, Liberty Energy’s purchasing subsidiary entered into a $493.2 million contract with NES-WES to purchase engines, balance-of-plant equipment and related services for a prospective data center and distributed power project...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.