Liberty Energy (LBRT) AI Stock Analysis

• Market Cap: $4.62B
• Dividend Yield: 1.78%
• Average Volume (3M): 4.74M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.26
• Revenue Growth: -12.05%
• EPS Growth: -46.45%
• Country: US
• Employees: 5,700
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.05
• Shares Outstanding: 162,051,530
• 10 Day Avg. Volume: 3,400,197
• 30 Day Avg. Volume: 4,741,605
• PEG Ratio: -0.39
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 211.98
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 11.70
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $27.45
• Price Target Upside: -3.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): -0.44
• Revenue Forecast (FY): $3.89B

• Rating: 66 Neutral
• Price Target: $30.00 ▲(5.34% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

LBRT scores as moderately attractive: the main offset is weakening financial performance (margin/ROE compression and uneven cash flow), partially balanced by a strong technical uptrend. Valuation is not especially cheap given recent profitability pressure, while the latest call and recent financing support long-term strategy but acknowledge near-term EBITDA headwinds and capital demands.

Positive Factors

Large distributed-power contracts

Securing multi-hundred-MW reservations and a 3 GW by-2029 target builds a multi-year project backlog outside cyclical completions. This provides structural revenue visibility, diversifies cash flows into long‑duration power contracts and supports scale advantages in project execution over several years.

Technology-led operational efficiency

The Atlas/Atlas IQ launches and AI-enabled asset optimization that cut maintenance costs by ~14% drive sustainable unit-cost advantages. Persistent efficiency gains improve margin resilience, raise competitive barriers, and allow more profitable scaling of both completions fleets and power projects over time.

Improved liquidity and capital flexibility

The $700M convertible raise plus a revolver amendment materially extends financing flexibility for multi-year capital programs. This reduces refinancing and interest-rate execution risk, funds long‑lead deposits and capex, and enables strategic deployment into power projects without immediate cash strain.

Negative Factors

Margin compression

Sharp, sustained margin decline has materially reduced earnings power and ROE, limiting retained earnings and reinvestment capacity. Lower margins make the business more vulnerable to volume shocks and raise the capital required to sustain returns on new, large-scale power investments.

Volatile free cash flow conversion

Wide swings in free cash flow reduce predictability of internally funded growth and shareholder returns. Irregular conversion increases reliance on external financing for capex and deposits, elevating execution and refinancing risk when pursuing multi-year power projects and fleet investments.

High near-term capital intensity

Large 2026 capex and long-lead deposit needs concentrate funding requirements into a near-term window while year-end cash was low. Reliance on project financing and bridge capacity raises execution risk, and delays or cost overruns on projects could strain liquidity and increase leverage.

Liberty Energy Business Overview & Revenue Model

Company Description

Liberty Energy Inc. provides hydraulic fracturing and wireline services, and related goods to onshore oil and natural gas exploration and production companies in North America. It also offers hydraulic fracturing pressure pumping services, including pressure pumping and pumpdown perforating services, as well wireline services, proppant delivery solutions, data analytics, related goods and technologies. In addition, the company owns operates two sand mines in the Permian Basin. As of December 31, 2021, it had a total of approximately 30 active frac fleets. The company offers its services primarily in the Permian Basin, the Eagle Ford Shale, the Denver-Julesburg Basin, the Williston Basin, and the Powder River Basin. The company was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022. Liberty Energy Inc. was founded in 2011 and is headquartered in Denver, Colorado.

How the Company Makes Money

Liberty Oilfield Services generates revenue primarily through the provision of hydraulic fracturing services, which is billed based on the volume of work performed and the complexity of the services rendered. The company has established key revenue streams through long-term contracts with major exploration and production companies, offering them reliable and customized service solutions. Additionally, Liberty benefits from economies of scale and operates a fleet of modern, efficient equipment that reduces operational costs and increases profitability. Significant partnerships with leading oil and gas companies and a strong focus on technological advancements further contribute to its earnings by enabling enhanced service delivery and improved production outcomes for clients.

Liberty Energy Financial Statement Overview

Summary

Financials are decent but weakening: revenue remains sizable yet has turned choppy (down in 2024 and modestly lower again in 2025), margins compressed sharply (gross margin ~20.6% in 2023 to ~11.4% in 2025; net margin ~11.7% to ~3.7%), and returns fell (ROE ~30% in 2023 to ~7% in 2025). Balance sheet leverage is still manageable (D/E ~0.42 in 2025) but trending higher, and free cash flow has been volatile year-to-year.

Income Statement

Revenue is well above 2020–2021 levels and has remained sizable, but growth has turned choppy (down in 2024 and modestly lower again in 2025). Profitability has also compressed meaningfully from the 2022–2023 peak: gross margin fell from ~20.6% (2023) to ~11.4% (2025), and net margin declined from ~11.7% (2023) to ~3.7% (2025). The company remains profitable in the last four annual periods (2022–2025), but the sharp step-down in earnings power versus prior years is the key concern.

Balance Sheet

The balance sheet looks generally solid with moderate leverage: debt-to-equity rose to ~0.42 in 2025 from ~0.22–0.27 in 2023–2024, but remains manageable for the sector. Equity has grown over time (from ~$1.15B in 2020 to ~$2.08B in 2025), supporting financial flexibility. Returns on equity have cooled materially (from ~30% in 2023 to ~7% in 2025), indicating weaker profitability rather than balance-sheet stress, but the rising debt trend bears monitoring.

Cash Flow

Operating cash flow has been strong in recent years (about $1.01B in 2023 and $0.61B in 2025), but cash generation quality is volatile. Free cash flow swung from strong (about $411M in 2023) to much weaker (about $178M in 2024), and while 2025 shows high free cash flow ($610M), the reported free-cash-flow growth is extremely negative, highlighting instability year to year. Cash flow has generally covered earnings well in 2023–2024, but the inconsistency in free cash flow conversion is a weakness.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.01B	4.32B	4.75B	4.15B	2.47B
Gross Profit	457.92M	609.61M	977.04M	677.16M	-41.90M
EBITDA	735.83M	941.01M	1.19B	745.25M	100.57M
Net Income	147.87M	316.01M	556.32M	399.60M	-179.24M
Balance Sheet
Total Assets	3.56B	3.30B	3.03B	2.58B	2.04B
Cash, Cash Equivalents and Short-Term Investments	27.55M	19.98M	36.78M	43.68M	20.00M
Total Debt	873.37M	533.61M	405.31M	348.92M	243.63M
Total Liabilities	1.48B	1.32B	1.19B	1.08B	810.22M
Stockholders Equity	2.08B	1.98B	1.84B	1.50B	1.21B
Cash Flow
Free Cash Flow	14.11M	178.34M	411.29M	71.04M	-63.33M
Operating Cash Flow	609.60M	829.37M	1.01B	530.36M	135.47M
Investing Cash Flow	-435.04M	-643.11M	-672.33M	-450.66M	-186.49M
Financing Cash Flow	-167.54M	-202.71M	-349.31M	-55.77M	2.06M

Liberty Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Positive. The current price of 28.48 is above the 20-day moving average (MA) of 26.25, above the 50-day MA of 22.39, and above the 200-day MA of 15.61, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 81.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LBRT.

Liberty Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LBRT	66 Neutral	$4.62B	31.41	7.29%	1.78%	-12.05%	-46.45%
OIS	66 Neutral	$781.47M	-6.85	-17.49%	―	-11.02%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
RES	61 Neutral	$1.33B	39.85	4.31%	2.94%	4.20%	-59.96%
PUMP	61 Neutral	$1.54B	1,879.10	-2.05%	―	-11.65%	87.57%
DNOW	54 Neutral	$2.25B	-41.79	-4.59%	―	3.18%	-53.71%
ACDC	52 Neutral	$935.10M	-2.52	-31.46%	―	-11.92%	-53.72%

Liberty Energy Corporate Events

Liberty Oilfield Services Raises Capital via Convertible Notes

On February 6, 2026, Liberty Energy Inc. completed a private offering of $700 million aggregate principal amount of 0.00% Convertible Senior Notes due 2031, after initial purchasers exercised in full a $70 million overallotment option on February 4, bringing net proceeds to approximately $746 million. The zero-coupon, senior unsecured notes, which mature on March 1, 2031, carry an initial conversion rate equivalent to a conversion price of about $34.50 per share—roughly a 32.5% premium to Liberty’s February 3, 2026 NYSE closing price—and include customary redemption, repurchase upon fundamental change, and default provisions, while allowing the company to settle conversion obligations in cash, stock, or a combination. Liberty has allocated roughly $109.3 million of the proceeds to capped call transactions designed to limit dilution and potential cash outlay upon conversion, and plans to use the remaining funds primarily to repay borrowings under its July 24, 2025 credit facility and for general corporate purposes, a move that should lower interest expense, extend its capital structure duration, and provide added financial flexibility for operations and stakeholders.

The most recent analyst rating on (LBRT) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Liberty Oilfield Services stock, see the LBRT Stock Forecast page.

Liberty Oilfield Services amends revolving credit facility terms

On February 3, 2026, Liberty Energy Inc. amended its existing revolving credit agreement, originally effective July 24, 2025, which provides a $750 million asset-based revolving credit facility backed by eligible receivables and inventory. The amendment allows the company and its borrower subsidiaries to incur up to $600 million of new bridge loan indebtedness by June 30, 2026, permits related secured liens subject to conditions, doubles the limit on permitted convertible indebtedness from $300 million to $600 million, and accelerates the revolving facility’s maturity to 91 days before the stated maturity of any outstanding bridge debt, while leaving the rest of the agreement’s terms unchanged, thereby expanding Liberty’s financing flexibility and potentially reshaping its near-term capital structure and liquidity profile.

The most recent analyst rating on (LBRT) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Liberty Oilfield Services stock, see the LBRT Stock Forecast page.