ProFrac Holding Corp. Q4 FY2025 earnings call

• Fourth quarter results improved from Q3, total adjusted EBITDA up 49% due to better activity levels, operational execution, and cost/ capital management initiatives. Prop and production segment had exceptional results. • 2025 was challenging for completions industry with commodity price volatility and operator caution. Company's vertical integration and asset management platform helped navigate. • Introduced business optimization plan targeting $100 million annualized savings by end of 2026, with strong progress in capital expenditure efficiency, labor-related savings, and non-labor operating expenses. • Technology initiatives: Strategic partnership with Seismos for closed-loop fracturing, and Mocubus (Machina) as complete well optimization suite integrating various aspects for continuous improvement.

Stimulation services: Fourth quarter revenues were $384 million, up from $343 million in Q3. Adjusted EBITDA was $33 million in Q4, up from $20 million in Q3, with margins increasing to 8.7% from 5.7%. Full year 2025 revenues were $1.68 billion, adjusted EBITDA $209 million, margin 12.4%. Prop and services: Fourth quarter revenues stepped up ~50% from Q3, segment adjusted EBITDA doubled. Volumes reached over 2 million tons. Q1 volumes expected to be down. Manufacturing segment: Fourth quarter revenues $43 million, same as Q3. Full year 2025 revenues $212 million, adjusted EBITDA $19 million, margin 8.7%.

• Expect total capital expenditures in 2026, including Flowtech spend, to be in range of $155 million to $185 million. Excluding Flowtech, range is $145 million to $175 million, split between maintenance and growth-oriented investments. • Q1 results expected to be softer than strong fourth quarter due to January weather disruption, but operational momentum positions well for second quarter.

• Terror-driven economic uncertainty and OPEC's supply increase rattled commodity prices and prompted operator reassessment. • Middle East conflict disrupting tanker flows and Gulf energy infrastructure, impact on physical supply and demand balances. • Commodity volatility, broader economic and geopolitical uncertainty causing operators to be cautious with activity. • Weather disruptions can impact operational performance and results.

Q: Please provide more color on the new technology.

A: ProPILOT is frack automation on every fleet in the data van. Machina is customer-facing software for well optimization, allows pulling real-time data, writing rules for equipment response. Technology helps open more perfs.

Q: Did customers share production uplift from technology?

A: Too early to tell, focus on perfs opened.

Q: Q1 down relative to Q4, gut feel on Q2?

A: Exit in Q1 in line to slightly better than Q4 due to weather disruption compressing Q1 but tightening calendar.

Q: More phone calls due to Middle East impact?

A: Fielding a lot of calls, conversations around ducks pulled forward.

Q: How much higher completions activity needed for maintenance level?

A: Depending on inventory, from half a million to a million feet per month of completed lateral feet.

Q: Plans for spare fleet capacity?

A: Remain disciplined with fleet count unless true call on assets, will respond appropriately when there's motivated push to deploy CapEx from operators