Liberty Energy (LBRT) Down 1.9% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Liberty Energy (LBRT). Shares have lost about 1.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Liberty Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Liberty Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Liberty Energy reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses.

LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.

Liberty Energy’s adjusted EBITDA was $151 million, representing a 16% decrease from the year-ago quarter’s $181 million. However, the figure beat our model estimate of $120.1 million.

Ahead of the earnings release, Liberty Energy’s board of directors approved a cash dividend of 9 cents per share on Class A common stock. The dividend will be payable on Sept. 18, 2026, to its shareholders on record as of Sept. 4.

The company distributed $15 million in cash dividends to its shareholders this quarter.

Q2 Costs & Expenses

Liberty Energy reported total costs and expenses of $1.2 billion in the second quarter, increasing 17% from the year-ago quarter’s level. Moreover, our estimate for the metric was pegged at $1 billion.

Other Important Updates

During this quarter, Liberty Energy continued to strengthen its long-term growth strategy through several strategic initiatives. The company formed a strategic alliance with SLB to deliver modular infrastructure and integrated power generation solutions for global data center projects while advancing related technologies. It also launched Liberty Wholesale Commodities (LWC), expanding its ChorusSM platform through direct participation in ERCOT power markets.

To support its power generation roadmap through 2030, Liberty Energy secured additional long-term equipment purchase agreements with leading OEMs. The company is also deploying its first digiPrimeSM fleet in Canada for a cross-border customer and has begun commercial operations of its proprietary SLXRRYTM last-mile sand slurry delivery system, which lowers delivered sand costs while reducing truck traffic, road wear, dust and emissions.

Joint Venture With PowerBridge

Liberty Energy announced a joint venture with PowerBridge to develop powered data center campuses, initially supporting a planned 2-GW facility in West Texas. The partnership will combine PowerBridge’s digital campus infrastructure with Liberty Power Innovations’ modular power generation and energy management capabilities to accelerate deployment for hyperscale and AI customers.

Balance Sheet & Capital Expenditure

As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%. Further, the company’s total liquidity, including availability under the credit facility, amounted to $1 billion.

In the reported quarter, the company spent $221.5 million on its capital program, down from our estimate of $296 million.

Management Remarks & Outlook

LBRT’s management highlighted the company’s continued progress in strengthening its integrated power platform while reinforcing its leadership in completion services. The company emphasized that its LPI platform combines advanced power system architecture with energy market optimization, enabling flexible integration of power generation equipment from multiple global manufacturers.

During the quarter, LBRT expanded its supply chain by securing additional equipment purchase agreements with Bergen Engines, Wärtsilä and other leading suppliers, enhancing its ability to optimize power generation across diverse operating environments. The formation of Liberty Wholesale Commodities (LWC) further extends the company’s Chorus offering by enabling direct participation in ERCOT power markets while integrating on-site generation with both ERCOT and PJM markets for large-load customers. Management believes these initiatives strengthen the company’s ability to deliver resilient, integrated energy solutions while creating a differentiated competitive advantage. The company also reiterated its commitment to disciplined capital allocation, operational excellence and long-term investments that enhance shareholder value.

Looking ahead, management remains constructive on the long-term outlook for North American energy despite near-term geopolitical and macroeconomic uncertainties. The company expects heightened concerns surrounding global energy security and supply diversification to increase demand for North American oil, natural gas and refined products, supported by expanding LNG demand, storage infrastructure investments and replenishment of strategic reserves. While oil markets experienced considerable volatility during the quarter due to Middle East conflicts and supply chain disruptions, management believes these events reinforce the strategic importance of reliable North American energy supplies.

In the oilfield services business, modest improvements in frac activity and pricing, combined with sustained demand for next-generation technologies, are expected to support market recovery, although producer spending is likely to remain measured amid commodity price volatility. At the same time, accelerating investments in AI-driven data centers and industrial power infrastructure continue to create significant opportunities for the company’s integrated power business. Management noted that customers increasingly seek partners capable of delivering end-to-end power solutions encompassing infrastructure development, energy management and long-term operational support.

Entering the third quarter, LBRT remains encouraged by recent business momentum and is focused on executing growth opportunities across the evolving energy ecosystem while prudently navigating an uncertain global environment.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 11.7% due to these changes.

VGM Scores

Currently, Liberty Energy has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Liberty Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Liberty Energy is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Halliburton (HAL), a stock from the same industry, has gained 9.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Halliburton reported revenues of $5.71 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $0.55 for the same period compares with $0.55 a year ago.

Halliburton is expected to post earnings of $0.58 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.

Halliburton has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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