Liberty Energy Posts $39 Million Third-Quarter Loss On 26% Revenue Growth, Plus A 1.2 GW AI Power Agreement
Revenue reached $1.2 billion, the dividend rises 11% to $0.10, and a development agreement targets a first roughly 500 MW contract by December 2026.
Liberty Energy reported a third-quarter net loss of $39 million, or $(0.24) per share, against net income of $43 million a year earlier, even as revenue rose 26% to $1.2 billion. The earnings release, furnished with an 8-K on Wednesday, also described a strategic development agreement with a frontier AI lab for 1.2 GW of power services at data center campuses.
The quarter in numbers
Revenue of $1.2 billion compared with $0.9 billion in the third quarter of 2025 and was up 1% from the second quarter. Adjusted net income was $10 million, or $0.06 per diluted share, versus an adjusted net loss of $10 million a year earlier.
Adjusted EBITDA was $142 million, up 11% from $128 million a year earlier and down 6% from $151 million in the second quarter. In the second quarter, net income had been $43 million, or $0.26 per share.
The income statement shows a $62.9 million net loss on investments this quarter, versus a $42.9 million gain in the second quarter and a $68.4 million gain a year earlier. Operating income was $19.3 million. Pre-tax, the company lost $49.5 million, with a $10.4 million tax benefit.
Capital spending was $621.9 million, against $221.5 million in the second quarter. Cash was $119 million and total debt about $1.3 billion, mostly senior convertible notes issued in the first quarter. Liquidity was about $669 million, and nothing was drawn on the credit facility apart from $30.2 million in letters of credit.
The AI power agreement
Liberty Power Innovations entered a strategic development agreement with a leading frontier AI lab and a dedicated infrastructure platform. It covers 1.2 GW of integrated power services, includes a significant prepayment of capacity fees, and targets the first energy service agreement, for about 500 megawatts, by December 2026.
The agreement sets a phased energization schedule from the fourth quarter of 2027 through the first quarter of 2029. CEO Ron Gusek called it "the culmination of months of work on engineering and design." He said the companies are already working on additional projects at other sites. The first supply contract is a target, not yet signed.
Dividend and completions
The board declared a dividend of $0.10 per share, up 11% from $0.09, payable December 18 to holders of record on December 4. Liberty paid about $15 million in dividends in the quarter.
Gusek said the completions business has "improved meaningfully from early year cyclical lows." He cited record natural gas substitution of over 60% of fuel consumed by its fleets. He also pointed to "drilling-related delays and cost inflation headwinds" that partly offset modest price increases.
Liberty hosts its earnings call Thursday at 10:00 a.m. Eastern, and the December 2026 target for the first power contract is the next date on the calendar.
