Propetro Holding (PUMP) AI Stock Analysis

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Propetro Holding

(NYSE:PUMP)

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Rating:51Neutral

Price Target:$7.00▼(-2.51% Downside)

Action:reiterated

Date:10/29/26

Overall score is held back primarily by weaker financial performance (thin and inconsistent profitability, higher leverage, and negative TTM free cash flow) and a bearish technical trend. The key offset is a notably positive earnings-call outlook, with improving quarterly results and growing, contracted PROPWR deployments alongside tight completions capacity and pricing momentum. Valuation is difficult to support due to the negative P/E and lack of dividend yield data.

Positive Factors

Scarce completions capacityThe completions franchise has scarce available capacity, with ProPetro reportedly turning away work and seeing improving pricing. This supports utilization, contract visibility, and potential margin recovery as the company benefits from a tighter Permian market over the next several quarters.

Negative Factors

Higher leverage with negative returnsDebt has risen close to equity without a corresponding profitability improvement, increasing financial risk. Negative returns on equity indicate that the expanded balance-sheet commitment is not yet generating adequate shareholder returns, potentially limiting flexibility during an industry downturn.

Propetro Holding Key Performance Indicators (KPIs)

Revenue by SegmentBreaks down sales across business units so you can see which services drive growth or decline, how dependent the company is on any single market, and where demand trends are emerging or fading.

Chart Insights

Since 2023 the revenue mix has materially shifted: the large historical Completion Services line was effectively reclassified into Hydraulic Fracturing, which now drives the top line while wireline and cementing supply steadier, smaller revenue streams. PROPWR (power generation) is nascent on the revenue sheet but accelerating — management is pushing heavy capex and reports recent positive EBITDA and growing contracted MW, signaling a strategic diversification away from pure OFS cyclicality; near‑term margin drag and timing risk remain from lease costs and fleet stand‑up delays.

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The Fly

Propetro Holding (PUMP) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $882.15M
Dividend Yield: ―
Average Volume (3M): 3.97M
Price to Earnings (P/E): 362.6
Beta (1Y): 1.11
Revenue Growth: -6.04%
EPS Growth: ―
Country: US
Employees: 1,700
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Equipment & Services

Propetro Holding Business Overview & Revenue Model

Company Description

Based in Midland, Texas, ProPetro Holding Corp. is a dedicated provider of oilfield services. The company primarily specializes in hydraulic fracturing, offering essential support for oil and gas exploration and production. Beyond fracturing, its div...

How the Company Makes Money

ProPetro makes money by contracting with exploration and production (E&P) companies to perform hydraulic fracturing and completion work on oil and gas wells. Its primary revenue stream is providing fracturing “fleets” (pressure pumping equipment, cre...

Propetro Holding Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-5.03%|Next Earnings Date:May 31, 2020

Earnings Call SentimentPositive

The call was strongly constructive. ProPetro reported substantial sequential improvement in revenue, net income, and adjusted EBITDA, PROPWR reached positive adjusted EBITDA and expanded its contracted capacity, and the completions business is essentially sold out in a tightening market with pricing momentum. The principal challenges were completions rebuilding costs, fourth-quarter seasonality, working capital usage, labor inflation, extended data center contracting timelines, and the back-weighted timing of PROPWR earnings. Management nevertheless maintained its guidance and expressed strong confidence in the 2027 setup.

Positive Updates

Strong Third-Quarter Financial Performance

ProPetro generated total revenue of $355 million, an increase of 16% compared to the prior quarter. Net income was $13 million, or $0.09 per diluted share, compared with a net loss of $8 million, or $0.07 per diluted share, in the prior quarter. Adjusted EBITDA was $60 million, or 17% of revenue, up 33% sequentially. The increase was primarily driven by higher completions utilization and incremental PROPWR deployments.

Negative Updates

Completions Margin Pressure from Capacity Rebuilding

The cost of rebuilding completions capacity continued to weigh on margins. Rehiring field personnel, restocking inventory and spare parts, preparing additional pumps, and increased pressure on field operations and the maintenance shop cost more than originally anticipated. Management expects continued margin pressure in the fourth quarter and said the full benefit of cost optimization may take time in 2027.

Company Guidance

Management expects PROPWR deployments to reach between approximately 250 MW-275 MW deployed by the end of 2026 and more than 500 MW by early 2028, with 2027 earnings weighted towards the latter part of the year and growth following a stair-step pattern; capital costs are expected to be approximately $1.4 million-$1.5 million per megawatt, with target payback periods of four to six years and oil and gas and midstream projects closer to four years. Completions are expected to maintain approximately 13 active fleets in the fourth quarter, while full-year 2026 capital expenditures incurred are expected to be between $525 million and $575 million, including approximately $125 million-$145 million for completions and approximately $400 million-$430 million for PROPWR; FORCE buyout costs are expected to be between $15 million and $20 million, with at least three additional buyouts expected to occur in 2027, and 2027 PROPWR capital expenditures are expected to increase from 2026 levels.

Propetro Holding Financial Statement Overview

Summary

Financial statements are mixed but skew weak. Income performance is modest (TTM revenue +5.3%) with extremely thin profitability and cyclical earnings. Balance sheet risk increased materially as leverage rose (debt-to-equity ~0.90) alongside negative ROE. Cash flow quality is pressured with negative TTM free cash flow despite positive operating cash flow, suggesting elevated reinvestment needs and weaker cash conversion.

Income Statement

54Neutral

Balance Sheet

38Negative

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22B	1.27B	1.44B	1.63B	1.28B	874.51M
Gross Profit	124.13M	126.09M	167.04M	317.71M	268.77M	78.87M
EBITDA	187.27M	190.96M	62.68M	301.70M	137.10M	65.55M
Net Income	2.00M	824.00K	-137.86M	85.63M	2.03M	-54.19M
Balance Sheet
Total Assets	2.19B	1.29B	1.22B	1.48B	1.34B	1.06B
Cash, Cash Equivalents and Short-Term Investments	728.87M	91.33M	58.29M	41.10M	99.14M	111.92M
Total Debt	891.29M	248.87M	175.42M	148.58M	33.16M	466.00K
Total Liabilities	1.21B	461.05M	407.37M	481.92M	381.75M	234.93M
Stockholders Equity	976.32M	829.84M	816.27M	998.39M	954.03M	826.30M
Cash Flow
Free Cash Flow	-96.98M	42.48M	112.00M	3.87M	-19.25M	11.19M
Operating Cash Flow	195.16M	228.80M	252.29M	374.74M	300.43M	154.71M
Investing Cash Flow	-260.05M	-149.81M	-155.10M	-384.13M	-349.75M	-104.29M
Financing Cash Flow	727.22M	-38.10M	-80.11M	-46.12M	26.26M	-7.28M

Propetro Holding Technical Analysis

Technical Analysis SentimentNegative

Last Price7.18

Price Trends

50DMA9.43Negative

100DMA11.06Negative

200DMA12.56Negative

Market Momentum

MACD-0.62Negative

RSI31.88Neutral

STOCH26.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUMP, the sentiment is Negative. The current price of 7.18 is below the 20-day moving average (MA) of 7.94, below the 50-day MA of 9.43, and below the 200-day MA of 12.56, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 31.88 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PUMP.

Propetro Holding Risk Analysis

Propetro Holding disclosed 51 risk factors in its most recent earnings report. Propetro Holding reported the most risks in the "Finance & Corporate" category.

Finance & Corporate17
Tech & Innovation2
Legal & Regulatory8
Production7
Ability to Sell10
Macro & Political7

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Provisions in the Indenture could delay or prevent an otherwise beneficial takeover of us.Q2, 2026

2.The accounting method for the Convertible Notes could adversely affect our reported financial condition and results.Q2, 2026

3.The conditional conversion feature of the Convertible Notes, if triggered, may adversely affect our financial condition and operating results.Q2, 2026

Propetro Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

PUMP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WTTR	63Neutral	$2.35B	67.70	3.50%	1.53%	-1.95%	-17.11%
RES	59Neutral	$1.31B	-37.26	-2.93%	2.68%	17.77%	-170.20%
NINE	55Neutral	$103.23M	1.15	514.81%	―	-7.15%	―
PUMP	51Neutral	$858.81M	362.63	0.21%	―	-6.04%	―
ACDC	49Neutral	$795.88M	-1.70	-56.47%	―	-16.18%	-32.58%
LBRT	43Neutral	$2.40B	60.57	2.04%	2.43%	13.65%	-78.31%

* Energy Sector Average

Performance Comparison

PUMP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PUMP	Propetro Holding	7.18	-3.57	-33.21%
RES	RPC Inc	5.98	0.70	13.17%
WTTR	Select Energy Services	18.34	7.23	65.06%
LBRT	Liberty Energy Inc.	14.81	-2.33	-13.57%
ACDC	Profrac Holding Corp. Class A	4.17	-0.94	-18.40%
NINE	Nine Energy Service, Inc.	7.47	-0.73	-8.90%

Propetro Holding Corporate Events

Business Operations and StrategyExecutive/Board Changes

ProPetro Appoints Kyle Crowley to Board of Directors

Positive

Oct 19, 2026

On October 15, 2026, ProPetro’s board approved the expansion of its membership and appointed Kyle Crowley as an independent director, effective October 16, 2026, with his term running until the 2027 annual meeting of stockholders. The board aff...

Business Operations and Strategy

ProPetro expands long-term power contracts with Targa

Positive

Sep 22, 2026

On September 22, 2026, ProPetro announced that its PROPWR business unit signed new long-term contracts with a subsidiary of Targa Resources Corp. to commit approximately 230 megawatts of power generation capacity. With these agreements, PROPWR’...

Executive/Board Changes

ProPetro Holding Announces Chief Accounting Officer Resignation

Neutral

Sep 21, 2026

On September 16, 2026, ProPetro Holding Corp. announced that Chief Accounting Officer and principal accounting officer Celina Davila notified the company of her intention to resign, effective October 30, 2026. The company stated her decision was not...

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.

Date of analysis: Oct 29, 2026

Propetro Holding AI Stock Analysis