Liberty Energy Reports 9% Revenue Decline and 75% Drop in Net Income for Q1 2025

Liberty Energy Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue of $977.5 million, down 9% from $1.1 billion in the same period last year. The decrease in revenue was primarily attributed to lower service and materials pricing, despite an increase in activity levels due to improved fleet efficiency. The company's net income also fell significantly, totaling $20.1 million compared to $81.9 million in the first quarter of 2024, reflecting a 75% decrease. This resulted in a diluted net income per share of $0.12, down from $0.48 a year earlier.

In terms of operational metrics, Liberty Energy's cost of services decreased by 3% to $761.6 million, driven by lower materials costs and reduced repairs and maintenance expenses. However, general and administrative expenses rose by 24% to $65.8 million, largely due to increased stock-based compensation related to the resignation of former CEO Christopher A. Wright. The company also recorded a loss on asset disposals of $3.3 million, contrasting with a gain of $1.2 million in the prior year. Overall, operating income plummeted to $18.2 million from $115.4 million in the previous year.

Strategically, Liberty Energy completed the acquisition of IMG Energy Solutions on March 3, 2025, for approximately $19.6 million. This acquisition is expected to enhance the company's capabilities in distributed power systems, integrating advanced engineering designs and software control systems into its operations. The company has also launched Liberty Power Innovations LLC, aimed at providing alternative fuel and power solutions, which is part of its broader strategy to transition towards lower emissions technologies.

As of March 31, 2025, Liberty Energy's total assets increased to $3.36 billion from $3.30 billion at the end of 2024, while total liabilities rose to $1.38 billion. The company reported a cash and cash equivalents balance of $24.1 million, up from $20.0 million at the end of the previous year. The company’s employee headcount remained stable, and it continues to focus on maintaining operational flexibility and investing in technological innovations to enhance efficiency and reduce emissions.

Looking ahead, Liberty Energy anticipates that the oil and gas industry will continue to face challenges from geopolitical tensions and fluctuating commodity prices. The company expects modest production growth in 2025, with a focus on maintaining current oil production levels. The average WTI price for the first quarter of 2025 was $71.78 per barrel, down from $77.50 in the same quarter of 2024. Liberty Energy remains committed to leveraging its technological advancements and strategic acquisitions to navigate the evolving market landscape and enhance its competitive position.