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LandBridge Company LLC Class A
(NYSE:LB)
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Rating:71Outperform
Price Target:
$84.00
▲(10.05% Upside)
Action:Reiterated
Date:08/06/26
LB’s score is driven primarily by strong financial performance (notably robust free cash flow and improved profitability) and a positive earnings update with reaffirmed guidance and strong quarterly execution. The main offsets are a rich valuation (high P/E with a modest yield) and only moderate technical momentum, alongside leverage and execution/regulatory timing risks highlighted on the call.
Positive Factors
Strong revenue growth and operating margins
Record revenue growth and an 89% adjusted EBITDA margin indicate strong operating leverage and monetization of the asset base. If sustained, this combination can support durable earnings growth while reaffirmed guidance anchors execution.
Negative Factors
Leverage remains at the upper end of the target range
Leverage at the ceiling of management's target limits financial flexibility and increases sensitivity to weaker operating conditions. Although maturities are distant, elevated borrowings could constrain acquisitions, investment or shareholder returns if cash generation softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and operating margins
Record revenue growth and an 89% adjusted EBITDA margin indicate strong operating leverage and monetization of the asset base. If sustained, this combination can support durable earnings growth while reaffirmed guidance anchors execution.
Read all positive factors
LandBridge Company LLC Class A (LB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.13B
Dividend Yield0.54%
Average Volume (3M)349.77K
Price to Earnings (P/E)34.7
Beta (1Y)1.48
Revenue Growth44.09%
EPS Growth62.65%
CountryUS
Employees4
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)2.29
Shares Outstanding28,404,484
10 Day Avg. Volume222,892
30 Day Avg. Volume349,771
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)4.70
Price to Sales (P/S)8.03
P/FCF Ratio13.11
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$82.75Price Target Upside8.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.94
Revenue Forecast (FY)$244.76M
LandBridge Company LLC Class A Business Overview & Revenue Model
Company Description
LandBridge Company LLC focuses on overseeing land and natural assets to bolster and optimize oil and natural gas production across the United States. The company possesses substantial surface acreage, specifically within and adjacent to the Delawa...
How the Company Makes Money
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LandBridge Company LLC Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial performance: record revenue, very high adjusted EBITDA and free cash flow margins, expanding liquidity, strong commercial traction in digital infrastructure (seven counterparties / >10 GW), and disciplined capital allocation including dividends and buybacks. Identified risks are execution and timing on converting LOIs to firm projects, regulatory scrutiny in the Texas data center approval process, and the company sitting at the upper end of its leverage target. Overall, the highlights (strong growth, high margins, cash generation, sizable water and land assets, and meaningful pipeline momentum) materially outweigh the lowlights, which are largely execution and timing risks rather than immediate financial deterioration.Positive Updates
Record Revenue Growth
Q2 revenue of $66.8M, up 41% year-over-year and 31% sequentially, reported as a record quarter.
Negative Updates
Opportunities Still Largely Non-Binding
The >10GW digital pipeline is largely LOI/option/late-stage diligence and not yet converted to firm contracts or revenue; conversion gating items include power availability, interconnection timing, financing, and diligence.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue Growth
Q2 revenue of $66.8M, up 41% year-over-year and 31% sequentially, reported as a record quarter.
Read all positive updates
Company Guidance
LandBridge reaffirmed its full-year 2026 adjusted EBITDA guidance of $210 million to $230 million (a raise announced last quarter) after reporting record Q2 revenue of $66.8 million (+41% YoY, +31% sequential) and Q2 adjusted EBITDA of $59.8 million (+41% YoY, +33% sequential) at an 89% margin; operating cash flow was $41.4 million and free cash flow $40.2 million (+11% YoY) with a 60% free cash flow margin, while capital expenditures were $1.1 million and net investing cash use totaled $11.3 million (including $10.2 million of bolt‑on acquisitions). The company ended the quarter with total liquidity of $269.8 million (cash $39.8 million and $230 million revolver), total borrowings of $545.2 million with no maturities until 2030 and net leverage of 2.5x (targeting 2.0–2.5x); subsequent to quarter end the revolver was increased to $375 million (expandable to $475 million) and pricing improved by 25 bps. Management emphasized modest capital needs, a $0.12 per‑share quarterly dividend, a $50 million repurchase program through December 2027, continued commercialization progress (seven digital/power counterparties representing >10 GW), access to ~13.4 million acre‑feet of brackish groundwater, and that oil & gas royalties remain a limited exposure (~5% of Q2 revenue) with prevailing produced‑water royalty rates near $0.15/barrel.LandBridge Company LLC Class A Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 225.45M | 199.09M | 109.95M | 72.86M | 51.78M |
| Gross Profit | 208.33M | 181.08M | 98.97M | 60.66M | 41.22M |
| EBITDA | 149.06M | 125.64M | -7.47M | 79.16M | 3.63M |
| Net Income | 46.32M | 30.13M | 5.11M | 63.17M | -6.36M |
Balance Sheet | |||||
| Total Assets | 1.38B | 1.37B | 1.00B | 288.95M | 276.02M |
| Cash, Cash Equivalents and Short-Term Investments | 39.80M | 30.74M | 37.03M | 37.82M | 25.35M |
| Total Debt | 535.72M | 560.28M | 381.24M | 128.68M | 61.01M |
| Total Liabilities | 545.46M | 572.07M | 395.41M | 138.20M | 66.06M |
| Stockholders Equity | 355.53M | 340.30M | 436.01M | 150.75M | 209.96M |
Cash Flow | |||||
| Free Cash Flow | 170.05M | 122.04M | 66.65M | 50.26M | 17.21M |
| Operating Cash Flow | 155.52M | 126.27M | 67.64M | 53.04M | 20.50M |
| Investing Cash Flow | -226.55M | -233.07M | -724.35M | -2.77M | -11.67M |
| Financing Cash Flow | 90.48M | 100.51M | 655.92M | -37.80M | 3.27M |
LandBridge Company LLC Class A Risk Analysis
LandBridge Company LLC Class A disclosed 57 risk factors in its most recent earnings report. LandBridge Company LLC Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LandBridge Company LLC Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.89B | 61.72 | 6.75% | 1.02% | 21.79% | -55.76% | |
71 Outperform | $6.13B | 34.71 | 14.12% | 0.58% | 44.09% | 62.65% | |
71 Outperform | $6.68B | 75.14 | 5.55% | 3.25% | 8.23% | -6.88% | |
70 Outperform | $6.67B | 18.25 | 21.52% | 1.18% | -7.17% | -22.96% | |
58 Neutral | $7.70B | 81.29 | 1.53% | 2.02% | -1.63% | -78.44% | |
56 Neutral | $6.05B | 6.40 | 31.33% | ― | -13.22% | 249.28% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
LB
LandBridge Company LLC Class A
80.82
27.43
51.38%
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VAL
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LandBridge Company LLC Class A Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
LandBridge Reports Record Q2 Results and Strategic Actions
Positive
Aug 5, 2026
For the quarter ended June 30, 2026, LandBridge reported record revenue of $66.8 million, up 41% year-over-year, and net income of $31.0 million, with a 46% margin, alongside Adjusted EBITDA of $59.8 million and robust free cash flow generation. T...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Shareholders Back LandBridge Governance, Annual Say-on-Pay Votes
Positive
Jun 24, 2026
On June 18, 2026, LandBridge Company LLC held its 2026 annual meeting of shareholders, with approximately 93.21% of total voting power represented, and shareholders elected all 11 board-nominated directors to one-year terms ending at the 2027 annu...
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.