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Liberty Energy
(NYSE:LBRT)
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Rating:55Neutral
Price Target:
$23.00
▲(32.49% Upside)
Action:Reiterated
Date:07/25/26
LBRT scores as a balanced-to-cautious setup: low leverage supports resilience, but the most important offset is weakening cash generation (negative TTM free cash flow) and compressed profitability. Technicals are a significant drag with strong downside momentum, while valuation and dividend are only modestly supportive. The earnings call adds some upside from execution and multi-year power growth plans, but elevated near-term capex and delayed revenue realization keep risk elevated.
Positive Factors
Conservative Balance Sheet
Low leverage gives Liberty financial resilience through cyclical oilfield-service conditions and provides capacity to fund strategic investments. The improved debt-to-equity profile also reduces balance-sheet stress if customer activity or pricing weakens.
Negative Factors
Weak Free Cash Flow
Negative free cash flow reduces financial flexibility despite low leverage and indicates that reinvestment or working-capital demands currently exceed internally generated funds. Persistent weak conversion could constrain shareholder returns and increase reliance on financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage gives Liberty financial resilience through cyclical oilfield-service conditions and provides capacity to fund strategic investments. The improved debt-to-equity profile also reduces balance-sheet stress if customer activity or pricing weakens.
Read all positive factors
Liberty Energy (LBRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.63B
Dividend Yield1.64%
Average Volume (3M)4.29M
Price to Earnings (P/E)29.5
Beta (1Y)1.17
Revenue Growth2.29%
EPS Growth-43.28%
CountryUS
Employees5,800
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.75
Shares Outstanding163,191,420
10 Day Avg. Volume5,505,302
30 Day Avg. Volume4,292,245
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.50Price Target Upside69.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.26
Revenue Forecast (FY)$4.54B
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 primarily makes money by selling oilfield services tied to well completions, with hydraulic fracturing (pressure pumping) as its core offering. Revenue is generated from contracts and work orders with exploration and production (E&P...
Liberty Energy Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and strategic positives: sequential revenue growth (+16%), record utilization and operational metrics, progress on a sizeable power pipeline (equipment secured and JV formation), strong technology deployments (DigiPrime, slurry) and solid liquidity. Offsetting these positives are near-term margin pressure on product sales (sand/chemicals), rising net debt and heavy near-term capex needs (1.5B guidance for 2026 and multi‑billion build cost for 3 GW), dependency on investment gains in the quarter, and timing uncertainties for power revenue realization (meaningful earnings impact expected in 2028). On balance, the company presented substantial growth initiatives and execution achievements that outweigh the near-term challenges and timing risks.Positive Updates
Revenue Growth and Record Operational Performance
Revenue of $1.2 billion in Q2 2026, a 16% sequential increase from $1.0 billion driven by record utilization, pump hours, horsepower hours and proppant pumps; product sales represented the largest contribution to the sequential revenue gain.
Negative Updates
Product Margin Pressure (Sand & Chemicals)
While volumes increased, margins on product sales were pressured as sand and chemical markets have not meaningfully recovered; company noted higher product volumes but limited margin flow-through in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Record Operational Performance
Revenue of $1.2 billion in Q2 2026, a 16% sequential increase from $1.0 billion driven by record utilization, pump hours, horsepower hours and proppant pumps; product sales represented the largest contribution to the sequential revenue gain.
Read all positive updates
Company Guidance
Management updated financial and operational guidance emphasizing heavier near‑term investment and a multi‑year power buildout: they now expect approximately $1.5 billion of capital expenditures in 2026 (Q2 net capex and long‑term deposits were $221M, including $71M in power generation deposits), ended Q2 with $559M cash, $736M net debt (up $157M Q/Q) and ~ $1.0B total liquidity, paid $15M of cash dividends in Q2 and had ~$2M of asset sale proceeds; tax expense was $9M in Q2 (~18% of pretax) and management expects a ~25% pretax tax rate for the remainder of 2026 while not expecting material cash taxes this year; on power, the PowerBridge JV targets an initial Alpha Digital phase of >300 MW with first power in Q4‑2027 and development into H1‑2028 within a planned 2‑GW campus, management has line‑of‑sight to ~3 GW of capacity by year‑end 2029 (implying roughly $5–6B of total CapEx), with meaningful income statement contribution beginning in 2028 and full fall‑through by end‑2029, targeting 5–6 year cash payback and ~17–18% unlevered returns; Q2 operating metrics included revenue $1.2B, adjusted EBITDA $151M, net income $43M (adjusted net income $14M), diluted EPS $0.26 (adjusted $0.09), and management said utilization looks very strong into Q3 but reiterated H2 uncertainty from geopolitical and commodity volatility.Liberty Energy Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.20B | 4.01B | 4.32B | 4.75B | 4.15B | 2.47B |
| Gross Profit | 540.42M | 457.92M | 609.61M | 977.04M | 677.16M | -41.90M |
| EBITDA | 616.53M | 735.83M | 941.01M | 1.19B | 745.25M | 100.57M |
| Net Income | 122.42M | 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 | 555.36M | 27.55M | 19.98M | 36.78M | 43.68M | 20.00M |
| Total Debt | 1.61B | 873.37M | 533.61M | 405.31M | 348.92M | 243.63M |
| Total Liabilities | 2.52B | 1.48B | 1.32B | 1.19B | 1.08B | 810.22M |
| Stockholders Equity | 1.96B | 2.08B | 1.98B | 1.84B | 1.50B | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | -316.58M | 14.11M | 178.34M | 411.29M | 71.04M | -63.33M |
| Operating Cash Flow | 388.33M | 609.60M | 829.37M | 1.01B | 530.36M | 135.47M |
| Investing Cash Flow | -610.35M | -435.04M | -643.11M | -672.33M | -450.66M | -186.49M |
| Financing Cash Flow | 758.59M | -167.54M | -202.71M | -349.31M | -55.77M | 2.06M |
Liberty Energy Technical Analysis
Negative
17.36
Price Trends
23.58
Negative
27.06
Negative
24.51
Negative
Market Momentum
-0.50
Negative
48.16
Neutral
88.26
Negative
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 17.36 is below the 20-day moving average (MA) of 19.97, below the 50-day MA of 23.58, and below the 200-day MA of 24.51, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, 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% | |
58 Neutral | $2.92B | -15.09 | -9.76% | ― | 69.84% | -238.39% | |
56 Neutral | $552.56M | -4.89 | -17.80% | ― | -2.80% | -1752.76% | |
56 Neutral | $1.57B | -113.19 | -1.49% | ― | -15.14% | 92.26% | |
55 Neutral | $3.63B | 29.48 | 6.08% | 2.02% | 2.29% | -43.28% | |
55 Neutral | $1.46B | 63.42 | 2.07% | 2.93% | 25.36% | -59.73% | |
50 Neutral | $961.61M | -2.16 | -56.47% | ― | -16.18% | -32.58% |
* Energy Sector Average
LBRT
Liberty Energy
21.29
10.69
100.83%
OIS
Oil States International
8.97
3.93
77.98%
RES
RPC
6.32
2.06
48.25%
DNOW
Now
15.93
1.13
7.64%
PUMP
Propetro Holding
12.38
7.71
165.10%
ACDC
ProFrac Holding
5.09
1.14
28.86%
Liberty Energy Corporate Events
Business Operations and Strategy
Liberty Energy signs major long-term power equipment deal
Positive
Jun 25, 2026
On June 22, 2026, Liberty Advanced Equipment Technologies LLC signed a roughly $332.6 million supply contract with Wärtsilä North America for engines, balance-of-plant power generation equipment, and related services to support Liberty E...
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.