ACDC Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenues: $498 million, up from $450 million in Q1 2026.

Adjusted EBITDA: $69 million (14% margin), an increase from $54 million (12% margin) in Q1.

Free Cash Flow: Negative $8 million, improved from negative $25 million in Q1.

Segment Performance:

Stimulation Services: Revenues of $430 million (up from $407 million), adjusted EBITDA of $39 million (9% margin).

Proppant Production: Revenues of $121 million (slightly up from $120 million), adjusted EBITDA of $6 million (5% margin).

Manufacturing: Revenues stable at $48 million, adjusted EBITDA of $6 million (down from $7 million).

Flotek: Revenues surged to $102 million (from $72 million), adjusted EBITDA of $19 million (19% margin).

2Strategic Updates and Business Highlights

Operational Momentum: Continued strong utilization and operational efficiency, with a disciplined approach to fleet management.

Cost Savings Program: On track for $100 million in annualized savings, focusing on labor, operating expenses, and capital efficiency.

Technology Initiatives: Progress on the eBlender program and the Machina closed-loop frac solution, aimed at improving efficiency and reducing execution risks.

Market Positioning: Focus on long-term commitments rather than speculative fleet additions, with an emphasis on capturing value through RFP processes.

3Forward Guidance and Outlook

Pricing Strategy: Expecting constructive pricing dynamics in the second half of 2026, with benefits from recent price increases reflected in Q3 and Q4.

RFP Season: Early commencement of RFP discussions suggests potential for improved pricing and activity in 2027.

Capital Expenditure: Guidance for total CapEx in 2026 remains at $155 million to $185 million, with expectations for improved free cash flow in the second half of the year.

4Bad News, Challenges, or Points of Concern

Competitive Pricing Pressure: Notable competitive pricing pressure in the proppant market, particularly in West Texas, which could impact margins.

Free Cash Flow Concerns: Despite improvements, the company has experienced a cumulative negative free cash flow of $40 million year-to-date.

Market Volatility: Ongoing geopolitical tensions affecting oil prices and overall market stability, which could pose risks to future performance.

5Notable Q&A Insights

Market Discipline: Management emphasized the disciplined behavior of operators, with no speculative fleet additions anticipated even with potential price increases.

RFP Insights: Early RFPs indicate a desire for certainty among operators, potentially leading to tighter market conditions and better pricing.

Capacity Management: Management remains cautious about reactivating fleets, focusing on long-term commitments rather than short-term market fluctuations.

Flotek Stock Considerations: Management acknowledged the potential for divesting Flotek shares for financial flexibility but did not commit to any specific actions. Overall, ProFrac demonstrated solid financial performance in Q2 2026, with strategic initiatives aimed at enhancing operational efficiency and positioning for future growth amidst a volatile market environment.