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Profrac Holding Corp. Class A (ACDC)
:ACDC
US Market

ProFrac Holding (ACDC) AI Stock Analysis

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AC

ProFrac Holding

(NASDAQ:ACDC)

Rating:57Neutral
Price Target:
$8.00
▲(8.84%Upside)
ProFrac Holding's overall score is driven by challenges in financial performance and valuation, despite positive technical signals and strategic initiatives. The earnings call and corporate events provide some optimism but are tempered by economic uncertainties and high leverage.

ProFrac Holding (ACDC) vs. SPDR S&P 500 ETF (SPY)

ProFrac Holding Business Overview & Revenue Model

Company DescriptionProFrac Holding Corp., a vertically integrated and energy services company, provides hydraulic fracturing, completion, and other products and services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, seats, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.
How the Company Makes MoneyProFrac Holding Corp generates revenue primarily through the provision of hydraulic fracturing services to oil and gas exploration and production companies. The company's key revenue streams include service contracts for fracturing operations, rental of equipment, and sales of related products. ProFrac's earnings are significantly influenced by the level of drilling and completion activity in the oil and gas industry, which is, in turn, affected by commodity prices, regulatory developments, and technological advancements. Strategic partnerships with major oil and gas operators, along with a focus on technology and efficiency, further enhance ProFrac's ability to secure contracts and generate steady revenue.

ProFrac Holding Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 61.18%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The call presented a mix of strong financial performance and operational efficiency in the first quarter, contrasted by concerns over economic uncertainty and its potential impact on future activity levels. The company remains optimistic about certain market opportunities, but challenges such as tariffs and supply chain issues create a cautious outlook.
Q1-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Revenue grew 32% to $600 million, while adjusted EBITDA increased 83% to $130 million compared to the previous quarter. This performance significantly exceeded consensus estimates.
Record Pumping Hours and Fleet Efficiency
ProFrac set a new record in total pumping hours and average pumping hours per fleet, attributing success to robust asset management and operational efficiency.
Successful Deployment of ProPilot Automation Software
The ProPilot automation software for hydraulic fracturing was successfully implemented, reducing human intervention and optimizing operations.
Strategic Transaction with Flotek
Completed a transaction with Flotek, enhancing growth potential and leveraging cutting-edge gas quality assurance and asset integrity solutions.
Positive Momentum in Proppant Segment
Significant volume gains in the proppant segment were achieved, with January levels 45% above December.
Negative Updates
Economic Uncertainty Impacting Future Outlook
Economic uncertainty from tariffs and OPEC's increased oil production announcement has impacted commodity prices and future activity outlook.
Second Quarter Activity Decline Expected
Operators are expected to reduce activity in the second quarter due to economic uncertainty, impacting overall company performance.
Challenges with Tariffs and Supply Chain
Tariffs have increased cost inputs and created uncertainty, requiring engagement with customers and vendors to navigate through the cycle.
Proppant Segment Ramp-up Costs
While volumes increased, ramp-up costs and planned mine improvements weighed on the performance of the proppant segment.
Company Guidance
During ProFrac's first quarter 2025 earnings call, the company reported a significant revenue increase of 32% to $600 million compared to the fourth quarter, with adjusted EBITDA rising by 83% to $130 million. The company highlighted the success of its record-breaking total pumping hours and the introduction of ProPilot automation software, aiming to enhance operational efficiency. ProFrac also completed a transaction with Flotek, focusing on innovative mobile power generation solutions. Despite economic uncertainty from tariffs and increased OPEC oil production, the company remains optimistic about the natural gas market in Haynesville, which could offset expected declines in the second quarter. ProFrac is implementing strategic capital allocation adjustments to maximize cash flow while maintaining service quality. The call also discussed future expectations, including a focus on natural gas activity, especially in Haynesville, and a disciplined approach to managing assets and capital.

ProFrac Holding Financial Statement Overview

Summary
ProFrac Holding is facing financial challenges with declining revenue and profitability pressures. The balance sheet shows high leverage, though there have been improvements in equity. Strong operating cash flow is a positive, but the decline in free cash flow due to high capital expenditures is concerning.
Income Statement
45
Neutral
ProFrac Holding shows a decline in revenue over the TTM period, indicating negative growth compared to the previous year. The company has been struggling with profitability, as evidenced by negative net profit margins and EBIT margins in recent periods. Gross profit margin has decreased significantly, highlighting challenges in cost management. While EBITDA margin remains positive, indicating fundamental operational cash generation, the overall profitability remains under pressure.
Balance Sheet
50
Neutral
The company's balance sheet reveals a substantial debt load with a high debt-to-equity ratio. The negative stockholders' equity in earlier years has improved but remains a concern. The equity ratio indicates moderate leverage, but the company's return on equity is negative due to continued losses. The balance sheet stability is mixed, with potential risks due to high leverage countered by some improvement in equity over time.
Cash Flow
55
Neutral
Operating cash flow remains strong, providing sufficient coverage for net income losses, which is a positive sign of cash flow resilience. However, free cash flow has declined significantly over the periods, reflecting increased capital expenditures and reduced cash generation. The ratios of operating and free cash flow to net income indicate an ability to generate cash despite earnings challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.21B2.19B2.63B2.43B768.35M547.70M
Gross Profit346.80M695.80M486.40M719.60M57.54M-30.00M
EBITDA163.40M72.70M535.30M741.90M128.39M55.97M
Net Income-235.60M-219.90M-97.70M342.70M-43.54M-118.50M
Balance Sheet
Total Assets3.02B2.99B3.07B2.93B664.57M577.28M
Cash, Cash Equivalents and Short-Term Investments16.00M14.80M25.30M35.10M5.38M2.95M
Total Debt1.28B1.27B1.16B1.04B301.57M275.71M
Total Liabilities1.96B1.91B1.74B1.58B516.46M400.46M
Stockholders Equity988.10M1.01B1.27B-1.18B147.07M176.81M
Cash Flow
Free Cash Flow77.00M112.30M286.50M59.00M-43.46M-2.90M
Operating Cash Flow328.00M367.30M553.50M415.20M43.94M45.10M
Investing Cash Flow-370.70M-372.30M-715.80M-1.03B-78.38M-44.60M
Financing Cash Flow30.40M-5.50M149.70M645.90M36.87M-15.30M

ProFrac Holding Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.35
Price Trends
50DMA
7.11
Positive
100DMA
6.88
Positive
200DMA
7.12
Positive
Market Momentum
MACD
0.01
Positive
RSI
48.99
Neutral
STOCH
26.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACDC, the sentiment is Positive. The current price of 7.35 is below the 20-day moving average (MA) of 8.60, above the 50-day MA of 7.11, and above the 200-day MA of 7.12, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACDC.

ProFrac Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$968.58M8.6513.19%7.24%8460.38%
72
Outperform
$1.09B26.324.51%3.09%-4.91%-46.51%
68
Neutral
$14.94B9.816.34%5.24%4.13%-66.99%
MRMRC
67
Neutral
$1.09B41.188.29%-9.84%-111.71%
61
Neutral
$641.12M-16.24%-13.32%-309.35%
57
Neutral
$1.18B-20.15%-6.13%-76.84%
47
Neutral
$35.15M73.91%-4.38%-3.77%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACDC
ProFrac Holding
7.89
-0.09
-1.13%
MRC
MRC Global
13.30
0.03
0.23%
VTOL
Bristow Group
34.78
0.26
0.75%
PUMP
Propetro Holding
6.64
-1.75
-20.86%
WTTR
Select Energy Services
9.71
-0.58
-5.64%
NINE
Nine Energy Service
0.92
-0.74
-44.58%

ProFrac Holding Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
ProFrac Holding Amends Loan Agreement and Issues Notes
Positive
Jun 30, 2025

On June 26, 2025, ProFrac Holding Corp. announced amendments to its Alpine Term Loan Credit Agreement, including a reduction in quarterly amortization payments and a deferral of the Total Net Leverage Ratio test to 2027. Additionally, ProFrac issued $60 million in Senior Secured Floating Rate Notes due 2029, with the first issuance purchased by Wilks Brothers, LLC. These strategic actions are expected to enhance liquidity by approximately $90 million in 2025, reflecting ProFrac’s proactive financial management amid market uncertainties.

The most recent analyst rating on (ACDC) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on ProFrac Holding stock, see the ACDC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
ProFrac Holding Stockholders Approve Key Proposals at Meeting
Positive
Jun 3, 2025

ProFrac Holding Corp. held its annual meeting of stockholders on May 28, 2025, where four key proposals were considered. The election of six directors was approved, with all nominees successfully elected. Additionally, the stockholders approved the compensation of the company’s executive officers, ratified the appointment of Grant Thornton LLP as the independent accountants for the fiscal year 2025, and endorsed the 2025 Employee Stock Purchase Plan.

The most recent analyst rating on (ACDC) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on ProFrac Holding stock, see the ACDC Stock Forecast page.

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: Jul 01, 2025