Steady Fracs; Power Business To Take CenterStage: Completions activity in the Permian slowed during the quarter, with holiday impacts and fleet reductions pressuring utilization. The company expects to operate 11 active frac spreads in Q1 2026, though winter weather disruptions in January are expected to weigh on first-quarter profitability. In Q4, the company averaged 11.4 active frac spreads.
PROPWR remains the central growth initiative. Management expects PROPWR to begin contributing meaningful earnings in 2H 2026. Total committed capacity increased to approximately 240 megawatts, with 550 megawatts delivered or on order, all expected by year-end 2027. The company targets at least 750 megawatts by 2028 and 1 gigawatt or more by 2030.
Solid Key Metrics In Q4
Quarter over quarter, total revenue declined approximately 1% in Q4, reflecting reduced hydraulic fracturing activity during the holiday period. Despite softer volumes, profitability improved materially, with adjusted EBITDA increasing roughly 46% sequentially. Operating margin expanded to 18% of revenue, driven by cost rationalization and lower service costs.
Segmentally, Hydraulic Fracturing revenue declined about 3%, while Wireline revenue increased roughly 6%. Cementing revenue fell approximately 6% sequentially. Net income improved from a loss in Q3 to modest profitability in Q4, reflecting stronger operating leverage despite lower activity levels.
PUMP's Cash Flows and Capex Guidance: For FY2025, operating cash flow declined roughly 8% year over year, reflecting lower completions activity. Capital expenditures increased materially, driven primarily by PROPWR expansion. Free cash flow from the completions business nearly doubled year over year, highlighting stronger underlying cash generation despite softer activity.
For 2026, capital expenditures are guided to $390–$435 million, with approximately $250–$275 million allocated to PROPWR, underscoring the capital intensity of the company’s power platform buildout.
Thanks for reading the PUMP Take Three, designed to give you three critical takeaways from PUMP's earnings report. Soon, we will present a second update on PUMP earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.
