Q2 2026 ProFrac Holding Corp Earnings Call

August 6, 2026

Speaker #1: Earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star 0 on your telephone keypad.

Speaker #1: It is now my pleasure to introduce your host, Michael Messina. Senior Vice President of Finance. Thank you. You may begin.

Speaker #2: Thank you, operator. Good morning, everyone. We appreciate you joining us for PROFAC Holding Corp's conference call and webcast to review our results for the second quarter ended June 30, 2026.

Speaker #2: With me today are Matt Wilkes, Executive Chairman; Ladd Wilkes, Chief Executive Officer; and Austin Harbor, Chief Financial Officer. Following my remarks, management will provide high-level commentary on the operational and financial highlights of the second quarter 2026 before opening up the call to your questions.

Speaker #2: A replay of today's call will be made available by webcast on the company's website at pfholdingscorp.com. More information on how to access the replay is included in the company's earnings release.

Speaker #2: Please note that information reported on this call speaks only as of today, August 6, 2026. Your advice at any time sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

Speaker #2: Also, comments on this call may contain forward-looking statements within the meaning of the United States Federal Securities Laws, including management's expectations of future financial and business performance.

Speaker #2: These, forward-looking statements reflect the current views of PROFAC's management and are not guarantees of future performance. Various risks, uncertainties, and contingencies could cause actual results/performance or achievements to differ materially from those expressed in management's forward-looking statements.

Speaker #2: The listener or reader is encouraged to read PROFAC's Form 10-K and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's investor relations website section under the SEC Filings tab to better understand those risks, uncertainties, and contingencies.

Speaker #2: The comments today also include certain non-GAAP financial measures, as well as other adjusted figures to exclude the contribution of flow tech. Additional details and reconciliations to the most directly comparable, consolidated, and GAAP financial measures are included in the earnings press release, which can be found on the company's website.

Speaker #2: Now, over to Mr. Matt Wilkes, Executive Chairman of PROFAC.

Speaker #1: Greetings and welcome to the ProFrac second quarter earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #3: Thank you, Michael. And hello, everyone. I'll kick off with some remarks on our overall performance. The broader market environment and progress on our strategic priorities.

Operator: Greetings, welcome to the ProFrac Q2 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star 0 on your telephone keypad. It is now my pleasure to introduce your host, Michael Messina, Senior Vice President of Finance. Thank you. You may begin.

Operator: Greetings, welcome to the ProFrac Q2 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Michael Messina, Senior Vice President of Finance. Thank you. You may begin.

Speaker #1: If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Michael Messina, Senior Vice President of Finance.

Speaker #3: I'll then hand it over to Austin, who will take you through the segment results in more detail. We're pleased to report that our second quarter results improved over Q1 results and again came in ahead of expectations.

Speaker #1: Thank you. You may begin.

Speaker #3: April carried forward the operational momentum we discussed on our last call, and while these levels moderated somewhat as we moved through May and June, utilization.

Speaker #2: Thank you, operator. Good morning, everyone. We appreciate you joining us for ProFrac Holding Corp's conference call and webcast to review our results for the second quarter ended June 30, 2026.

Michael Messina: Thank you, operator. Good morning, everyone. We appreciate you joining us for ProFrac Holding Corp.'s conference call, and webcast to review our results for Q2 ended 30 June 2026. With me today are Matt Wilks, Executive Chairman, Ladd Wilks, Chief Executive Officer, and Austin Harbour, Chief Financial Officer. Following my remarks, management will provide high-level commentary on the operational, and financial highlights of Q2 2026 before opening up the call to your questions. A replay of today's call will be made available by webcast on the company's website at pfholdingscorp.com. More information on how to access the replay is included in the company's earnings release. Please note that information reported on this call speaks only as of today, 6 August 2026. You are advised that any time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

Speaker #3: As I'll discuss in a moment, the market backdrop remains constructive, and we continue to see an open window for more favorable pricing dynamics. Consistent with what we said on our last call, the majority of that benefit is layering in through the back half of the year, rather than the second quarter itself.

Speaker #2: With me today are Matt Wilks, Executive Chairman, Ladd Wilks, Chief Executive Officer, and Austin Harbour, Chief Financial Officer. Following my remarks, management will provide high-level commentary on the operational and financial highlights of the second quarter 2026.

Speaker #3: Looking ahead to the third quarter and the back half of the year, our approach to pricing is to be constructive, not aggressive. We do not plan to deploy incremental fleets speculatively, and any gains we capture from here are about building toward a stronger 2027 rather than chasing a near-term spike.

Speaker #2: Before opening up the call to your questions, a replay of today's call will be made available by webcast on the company's website at pfholdingscorp.com.

Speaker #2: More information on how to access the replay is included in the company's earnings release. Please note that information reported on this call speaks only as of today, August 6, 2026.

Speaker #3: Given the constructive activity backdrop, RFP season conversations are already underway sooner than usual. We intend to be well-positioned through that process into 2027. To the extent we see incremental demand show up in the spot market later in the year, our preference is not to chase it with additional equipment, but rather to capture that value more durably through the RFP process.

Speaker #2: Your advise at any time sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Also, comments on this call may contain forward-looking statements within the meaning of the United States Federal Securities Laws, including management's expectations of future financial and business performance.

Michael Messina: Comments on this call may contain forward-looking statements within the meaning of the United States federal securities laws, including management's expectations of future financial, and business performance. These forward-looking statements reflect the current views of ProFrac's management, and are not guarantees of future performance. Various risks, uncertainties, and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in management's forward-looking statements. The listener or reader is encouraged to read ProFrac's Form 10-K, and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's investor relations website section under the SEC Filings tab to better understand those risks, uncertainties, and contingencies. The comments today also include certain non-GAAP financial measures, as well as other adjusted figures to exclude the contribution of Flotek.

Speaker #3: We expect efficiency to continue improving on a quarterly basis. As calendar whitespace tightens further, and we're encouraged by the consistency building through the back half of the year, during the quarter we experienced incremental competitive pricing pressure and sand in the West Texas region, while supply remains tight in both the South Texas and East Texas/North Louisiana markets, we remain focused on translating more of our order book into long-term commitments and improving throughput.

Speaker #2: These forward-looking statements reflect the current views of ProFrac's management and are not guarantees of future performance. Various risks, uncertainties, and contingencies could cause actual results performance or achievements to differ materially from those expressed in management's forward-looking statements.

Speaker #2: The listener or reader is encouraged to read ProFrac's Form 10-K and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's investor relations website section under the SEC filings tab to better understand those risks, uncertainties, and contingencies.

Speaker #3: As we've spoken about in the past, the operating leverage inherent in our profit business becomes increasingly evident as we drive higher utilization, and we continue to believe this business is capable of improved free cash flow as the efficiencies are realized.

Speaker #3: We continue to evaluate ways to further strengthen this business over time. From a regional perspective, South Texas continues to be our strongest performing market, both from a sell-through and a throughput standpoint.

Michael Messina: Additional details, and reconciliations to the most directly comparable consolidated, and GAAP financial measures are included in the earnings press release, which can be found on the company's website. Now over to Mr. Matt Wilks, Executive Chairman of ProFrac.

Speaker #3: We did see some minor weather-related disruption in the quarter from flooding activity, though it was manageable. Looking ahead, we continue to see the Haynesville as an attractive growth market for us, both on the frac side and on the sand side, as gas-directed activity builds in support of LNG export capacity and power demand.

Speaker #2: Now, over to Mr. Matt Wilks, Executive Chairman of ProFrac.

Speaker #3: Thank you, Michael. And hello, everyone. I'll kick off with some remarks on our overall performance. The broader market environment and progress on our strategic priorities.

Matt Wilks: Thank you, Michael, and hello, everyone. I'll kick off with some remarks on our overall performance, the broader market environment, and progress on our strategic priorities. I'll then hand it over to Austin, who will take you through the segment results in more detail. We're pleased to report that our Q2 results improved over Q1 results and again came in ahead of expectations. April carried forward the operational momentum we discussed on our last call. While these levels moderated somewhat as we moved through May and June, utilization remained strong. As I'll discuss in a moment, the market backdrop remains constructive, and we continue to see an open window for more favorable pricing dynamics. Consistent with what we said on our last call, the majority of that benefit is layering in through the H2 rather than the Q2 itself.

Speaker #3: We expect to see continued opportunity to increase activity across both of our core service lines. Zooming out to review the broader market environment, if there's one word that captures the last several months, it's volatility.

Speaker #3: April carried forward the operational momentum we discussed on our last call. And while these levels moderated somewhat as we moved through May and June, utilization remained strong.

Speaker #3: And we think that volatility itself is the signal worth paying attention to. Oil prices this year have ranged from a low in the first days of January to an April peak, that was precisely double that trough.

Speaker #3: Within the second quarter alone, prices fell roughly 40% from their peak to a subsequent low, only to rally back nearly 40% off that low in the following weeks.

Speaker #3: That is not the behavior of a market that has found its footing. We point to the underlying cause: the conflict in the Middle East has continued to defy expectations of a long-term resolution.

Matt Wilks: Looking ahead to Q3 and the H2, our approach to pricing is to be constructive, not aggressive. We do not plan to deploy incremental fleets speculatively, and any gains we capture from here are about building toward a stronger 2027 rather than chasing a near-term spike. Given the constructive activity backdrop, RFP season conversations are already underway sooner than usual. We intend to be well-positioned through that process into 2027. To the extent we see incremental demand show up in the spot market later in the year, our preference is not to chase it with additional equipment, but rather to capture that value more durably through the RFP process. We expect efficiency to continue improving on a quarterly basis as calendar white space tightens further, and we're encouraged by the consistency building through the H2.

Speaker #3: What is looked at various points, like a path forward toward de-escalation, has repeatedly given way to renewed military action. And recent weeks have brought further strikes and further retaliation.

Speaker #3: We continue to believe, as we've said on our prior calls, that this is not a transient supply shock but a structural shift in available global capacity.

Speaker #3: If anything, this extended period of uncertainty is only reinforced the case for domestic energy security. When global supply can swing this violently on geopolitical developments, the value of reliable, lower-risk North American production only becomes more apparent to operators, policy-makers, and importers.

Speaker #3: We continue to see this dynamic as a structural tailwind for our business. Turning to our cost structure, we remain committed to the $100 million of annualized savings program we outlined at the start of the year.

Speaker #3: During the quarter, we experienced incremental competitive pricing pressure and sand in the West Texas region, while supply remains tight in both the South Texas and East Texas North Louisiana markets.

Matt Wilks: During the quarter, we experienced incremental competitive pricing pressure in sand in the West Texas region. While supply remains tight in both the South Texas and East Texas, North Louisiana markets, we remain focused on translating more of our order book into long-term commitments and improving throughput. As we've spoken about in the past, the operating leverage inherent in our proppant business becomes increasingly evident as we drive higher utilization, and we continue to believe this business is capable of improved free cash flow as the efficiencies are realized. We continue to evaluate ways to further strengthen this business over time. From a regional perspective, South Texas continues to be our strongest performing market, both from a sell-through and a throughput standpoint. We did see some minor weather-related disruption in the quarter from flooding activity, though it was manageable.

Speaker #3: That program has three components: labor-related reductions that we have targeted at 35 to 45 million annualized, non-labor operating expense reductions, that include SG&A, repair and maintenance, and asset-level opex that together we have targeted at 30 to 40 million.

Speaker #3: We remain focused on translating more of our order book into long-term commitments and improving throughput. As we've spoken about in the past, the operating leverage inherent in our profit business becomes increasingly evident as we drive higher utilization and we continue to believe this business is capable of improved free cash flow as the efficiencies are realized.

Speaker #3: And lastly, capital expenditure efficiency that we've targeted at 20 to 30 million. We continue to work through each of these initiatives, and we remain confident in the full program as these efforts mature over the balance of the year.

Speaker #3: Our vertically integrated model and asset management platform remain central to how we think about our competitive position, not just this quarter but across the cycle.

Speaker #3: Our in-house manufacturing capability allows us to build, upgrade, and standardize equipment at a cost basis that's simply not available to others who rely on third parties.

Matt Wilks: Looking ahead, we continue to see the Haynesville as an attractive growth market for us, both on the frac side and on the sand side. As gas-directed activity builds in support of LNG export capacity and power demand, we expect to see continued opportunity to increase activity across both of our core service lines. Zooming out to review the broader market environment, if there's one word that captures the last several months, it's volatility, and we think that volatility itself is the signal worth paying attention to. Oil prices this year have ranged from a low in the first days of January to an April peak that was precisely double that trough. Within the Q2 alone, prices fell roughly 40% from their peak to a subsequent low, only to rally back nearly 40% off that low in the following weeks.

Speaker #3: And our asset management program continues to be a meaningful driver of fleet reliability and uptime. These aren't new initiatives. But they remain foundational to how we compete.

Speaker #3: And we continue to see them as a durable source of advantage as the cycle evolves. Irrespective of where we are in the market cycle, we execute on a routine upgrade program converting diesel equipment to dual fuel and natural gas-capable configurations.

Speaker #3: This quarter, we made the decision to accelerate a portion of that program while maintaining our disciplined approach to capital allocation. We are moving forward with additional engine orders ahead of our original schedule, given the continued strong demand we're seeing from operators for this higher-specification equipment.

Speaker #3: Within the second quarter alone, prices fell roughly 40% from their peak to a subsequent low, only to rally back nearly 40% off that low in the following weeks.

Speaker #3: That is not the behavior of a market that has found its footing. We point to the underlying cause, the conflict in the Middle East has continued to defy expectations of a long-term resolution, what is looked at various points like a path forward toward de-escalation has repeatedly given way to renewed military action, and recent weeks have brought further strikes and further retaliation.

Speaker #3: We view this as an investment decision rather than a departure from our cost discipline. Upgrading this equipment now, while demand for high-spec dual fuel capacity remains strong, reduces our repair and maintenance exposure over time, extends the useful life of these assets, and supports our strong positioning as we discussed 2027 plans with our customers.

Matt Wilks: That is not the behavior of a market that has found its footing. We point to the underlying cause. The conflict in the Middle East has continued to defy expectations of a long-term resolution. What is looked at various points like a path forward toward de-escalation has repeatedly given way to renewed military action, and recent weeks have brought further strikes and further retaliation. We continue to believe, as we've said on our prior calls, that this is not a transient supply shock, but a structural shift in available global capacity. If anything, this extended period of uncertainty has only reinforced the case for domestic energy security. When global supply can swing this violently on geopolitical developments, the value of reliable, lower-risk North American production only becomes more apparent to operators, policymakers, and importers. We continue to see this dynamic as a structural tailwind for our business.

Speaker #3: Additionally, I want to touch briefly on our eBlender program that we introduced on our last call. Deployment continues to progress, with a few additional units placed into service since our last call.

Speaker #3: We continue to believe, as we've said on our prior calls, that this is not a transient supply shock, but a structural shift in available global capacity.

Speaker #3: We're seeing the efficiency benefits we expected on the units we have deployed, including lower repair and maintenance spend as well as improved uptime relative to legacy equipment.

Speaker #3: By the end of the year, we expect to have deployed our new eBlender technology across our fleet. On technology, Makina continues to be central to how we think about our competitive positioning.

Matt Wilks: Turning to our cost structure, we remain committed to the $100 million of annualized savings program we outlined at the start of the year. That program has three components. Labor-related reductions that we have targeted at $35 to 45 million annualized. Non-labor operating expense reductions that include SG&A, repair and maintenance, and asset level OpEx that together we have targeted at $30 to 40 million. Lastly, CapEx efficiency that we've targeted at $20 to 30 million. We continue to work through each of these initiatives, and we remain confident in the full program as these efforts mature over the balance of the year. Our vertically integrated model and asset management platform remain central to how we think about our competitive position, not just this quarter, but across the cycle.

Speaker #3: Makina is our closed-loop frac solution. It combines ProPILOT 2.0 surface automation with real-time subsurface data providers like Sysmos; therefore, the platform doesn't just mean measure the frac.

Speaker #3: That program has three components. Labor-related reductions that we have targeted at 35 to 45 million annualized, non-labor operating expense reductions, that include SG&A, repair and maintenance, and asset-level opex that together we have targeted at 30 to 40 million.

Speaker #3: It acts on it while we're pumping. The near-term focus is uniformity, getting every cluster and every stage to take fluid the way it was designed to, rather than accepting the wide variance the industry has.

Speaker #3: That's the foundation for prescriptive completions. Designs that adjust in real time based on what the rock is telling us. Rather, than through a static pump schedule.

Speaker #3: We remain an active price discovery on the commercial model and customer feedback from deployments continues to be encouraging as we structure value share going forward.

Speaker #3: Our vertically integrated model and asset management platform remain central to how we think about our competitive position, not just this quarter, but across the cycle.

Speaker #3: Our in-house manufacturing capability allows us to build, upgrade, and standardize equipment at a cost basis that's simply not available to others who rely on third parties.

Matt Wilks: Our in-house manufacturing capability allows us to build, upgrade, and standardize equipment at a cost basis that's simply not available to others who rely on third parties. Our asset management program continues to be a meaningful driver of fleet reliability and uptime. These aren't new initiatives, but they remain foundational to how we compete, and we continue to see them as a durable source of advantage as the cycle evolves. Irrespective of where we are in the market cycle, we execute on a routine upgrade program converting diesel equipment to dual fuel and natural gas-capable configurations. This quarter, we made the decision to accelerate a portion of that program while maintaining our disciplined approach to capital allocation. We are moving forward with additional engine orders ahead of our original schedule, given the continued strong demand we're seeing from operators for this higher specification equipment.

Speaker #3: We also continue to see real promise in Makina's application to acreage that operators have effectively set aside. In many cases, nearby offset wells wastewater infrastructure where legacy completions create execution risk that leads operators to defer or shelve otherwise attractive locations.

Speaker #3: And our asset management program continues to be a meaningful driver of fleet reliability and uptime. These aren't new initiatives. But they remain foundational to how we compete.

Speaker #3: Makina's real-time subsurface intelligence and closed-loop control are designed to reduce that risk, which we believe can shift the economic calculus on certain locations and bring stranded inventory back into play without requiring the kind of upfront offset well infrastructure investment that sometimes runs as much as 1 to 2 million dollars.

Speaker #3: We'll continue to share more as our commercial discussions with customers progress. Wrapping up my opening comments, we delivered solid second-quarter results. Building on that momentum from earlier in the year, despite a volatile macro backdrop.

Matt Wilks: We view this as an investment decision rather than a departure from our cost discipline. Upgrading this equipment now, while demand for high spec dual fuel capacity remains strong, reduces our repair and maintenance exposure over time, extends the useful life of these assets, and supports our strong positioning as we discuss 2027 plans with our customers. Additionally, I want to touch briefly on our eBlender program that we introduced on our last call. Deployment continues to progress. With a few additional units placed into service since our last call, we're seeing the efficiency benefits we expected on the units we have deployed, including lower repair and maintenance spend, as well as improved uptime relative to legacy equipment. By the end of the year, we expect to have deployed our new eBlender technology across our fleet.

Speaker #3: That volatility—if anything—has only reinforced the structural case for domestic energy security and the long-term tailwind that represents for our business. Our cost optimization program continues to advance, and we're deploying capital thoughtfully, including accelerating our engine upgrade program to position the business for durable efficiency gains.

Speaker #3: Our new eBlenders are yielding the capital efficiency benefits we expected and incremental deployments remain on schedule. Makina continues to gain traction with customers, and we see real potential for it to unlock previously stranded inventory as commercial discussions progress.

Speaker #3: We're seeing the efficiency benefits we expected on the units we have deployed, including lower repair and maintenance spend as well as improved uptime relative to legacy equipment.

Speaker #3: In addition, we strengthened our ballot sheet this quarter through the ABL refinancing. Giving us a longer runway, improved liquidity, and greater flexibility heading into the back half of the year.

Speaker #3: Now, over to Austin to expand on segment results and more detail.

Matt Wilks: On technology, Machina continues to be central to how we think about our competitive positioning. Machina is our closed loop frac solution. It combines ProPilot 2.0 surface automation with real-time subsurface data providers like Seismos. Therefore, the platform doesn't just measure the frac, it acts on it while we're pumping. The near-term focus is uniformity, getting every cluster and every stage to take fluid the way it was designed to, rather than accepting the wide variance the industry has historically treated as normal. That's the foundation for prescriptive completions, designs that adjust in real time based on what the rock is telling us, rather than through a static pump schedule. We remain in active price discovery on the commercial model. Customer feedback from deployments continues to be encouraging as we structure value share going forward.

Speaker #1: Thanks, Matt. And the second quarter, revenues were $498 million, up from $450 million in the first quarter of 2026. We generated $69 million of adjusted EBITDA with an adjusted EBITDA margin of 14%, an increase from the $54 million or 12% of revenue we delivered in Q1.

Speaker #3: Makina is our closed-loop frac solution. It combines ProPilot 2.0's surface automation with real-time subsurface data providers like Seismos, therefore the platform doesn't just mean measure the frac.

Speaker #3: It acts on it while we're pumping. The near-term focus is uniformity, getting every cluster and every stage to take fluid the way it was designed to.

Speaker #1: Free cash flow was negative $8 million in the second quarter and improvement from negative $25 million in Q1. Turning to our segments, stimulation services revenues were $430 million in the second quarter, up from $407 million in the first quarter of 2026.

Speaker #3: Rather than accepting the wide variance, the industry has historically treated as normal. That's the foundation for prescriptive completions. Designs that adjust in real time based on what the rock is telling us.

Speaker #1: Adjusted EBITDA in Q2 was $39 million, up from $32 million in Q1, with margins of 9% compared to 8% in Q1. Results reflected an improvement in efficiency, lack of material weather-driven delays, as we experienced in Q1, and to a modest degree improved pricing.

Speaker #3: Rather, than through a static pump schedule. We remain an active price discovery on the commercial model and customer feedback from deployments continues to be encouraging as we structure value share going forward.

Matt Wilks: We also continue to see real promise in Machina's application to acreage that operators have effectively set aside. In many cases, nearby offset wells, wastewater infrastructure, where legacy completions create execution risk that leads operators to defer or shelve otherwise attractive locations. Machina's real-time subsurface intelligence and closed loop control are designed to reduce that risk, which we believe can shift the economic calculus on certain locations and bring stranded inventory back into play without requiring the kind of upfront offset well infrastructure investment that sometimes runs as much as $1 to 2 million. We'll continue to share more as our commercial discussions with customers progress. Wrapping up my opening comments, we delivered solid Q2 results, building on that momentum from earlier in the year despite a volatile macro backdrop.

Speaker #1: We again maintained our fleet count in the low 20s during the second quarter, consistent with the disciplined approach we've held throughout this market cycle.

Speaker #1: Put simply, this reflects our continued focus on returns over utilization for its own sake. While April carried forward the type of record efficiency levels we experienced in March, as we discussed on our last call, pumping hours per fleet, moderated somewhat and May and June relative to those peaks.

Speaker #1: This was primarily a function of more white space in the calendar than we had anticipated entering the quarter. Pricing was up slightly sequentially. As we noted on our May call, the majority of our increases carried renegotiation windows that pushed the benefit into the third and fourth quarters.

Speaker #1: Profit production generated $121 million of revenue in the second quarter, a touch higher than the $120 million of revenue we reported in the first quarter of 2026.

Speaker #3: That volatility if anything has only reinforced the structural case for domestic energy security and the long-term tailwind that represents for our business. Our cost optimization program continues to advance, and we're deploying capital thoughtfully, including accelerating our engine upgrade program to position the business for durable efficiency gains.

Matt Wilks: That volatility, if anything, has only reinforced the structural case for domestic energy security and the long-term tailwind it represents for our business. Our cost optimization program continues to advance, and we're deploying capital thoughtfully, including accelerating our engine upgrade program to position the business for durable efficiency gains. Our new eBlenders are yielding the capital efficiency benefits we expected, and incremental deployments remain on schedule. Machina continues to gain traction with customers, and we see real potential for it to unlock previously stranded inventory as commercial discussions progress. In addition, we strengthened our balance sheet this quarter through the ABL refinancing, giving us a longer runway, improved liquidity, and greater flexibility heading into the back half of the year. Now over to Austin to expand on segment results in more detail.

Speaker #1: Approximately 31% of volumes were sold to third-party customers during the second quarter, versus 28% in Q1. During the second quarter and into the third, we continued to navigate incremental competitive pricing pressure in the profit market, particularly in West Texas.

Speaker #1: We remained focused on operational improvements throughout the business while leveraging the potential we see in stronger markets, including the Haynesville and South Texas. Adjusted EBITDA for the profit and production segment was $6 million for the second quarter, broadly in line with Q1.

Speaker #1: On a margin basis, EBITDA margins were 5% in the second quarter versus 5% in Q1 2026. Total volumes were approximately 2.5 million tons. Our manufacturing segment generated second-quarter revenues of $48 million, in line with the first quarter.

Speaker #3: In addition, we strengthened our balance sheet this quarter through the ABL refinancing. Giving us a longer runway, improved liquidity, and greater flexibility heading into the back half of the year.

Speaker #1: Approximately 18% of segment revenues were generated from third-party sales, compared to approximately 14% in Q1. Adjusted EBITDA for the manufacturing segment was $6 million, compared to $7 million in Q1.

Speaker #3: Now, over to Austin to expand on segment results in more detail.

Austin Harbour: Thanks, Matt. In Q2, revenues were $498 million, up from $450 million in Q1 2026. We generated $69 million of adjusted EBITDA, with an adjusted EBITDA margin of 14%, an increase from the $54 million or 12% of revenue we delivered in Q1. Free cash flow was -$8 million in Q2, an improvement from -$25 million in Q1. Turning to our segments, Stimulation Services revenues were $430 million in Q2, up from $407 million in Q1 2026. Adjusted EBITDA in Q2 was $39 million, up from $32 million in Q1, with margins of 9% compared to 8% in Q1. Results reflected an improvement in efficiency, lack of material weather-driven delays as we experienced in Q1, and to a modest degree, improved pricing.

Speaker #1: FlowTech generated second-quarter revenues of $102 million, significantly higher than the $72 million reported in Q1. Approximately 42% of segment revenues were generated from third-party sales, compared to approximately 25% in Q1.

Speaker #1: Adjusted EBITDA for FlowTech was $19 million, or 19% of revenue, also improved relative to the $11 million reported in Q1. Selling general and administrative expenses were $44 million in the second quarter, flat with Q1.

Speaker #1: Cash capital expenditures of $32 million in the second quarter were down from $41 million in the first quarter of 2026. Consistent with the outlook we issued on our May call, we continue to expect total capital expenditures in 2026, including FlowTech spend, to be in the range of $155 million to $185 million.

Speaker #1: We again maintained our fleet count in the low 20s during the second quarter, consistent with the disciplined approach we've held throughout this market cycle.

Austin Harbour: We again maintained our fleet count in the low twenties during Q2, consistent with the disciplined approach we've held throughout this market cycle. Put simply, this reflects our continued focus on returns over utilization for its own sake. While April carried forward the type of record efficiency levels we experienced in March, as we discussed on our last call, pumping hours per fleet moderated somewhat in May and June relative to those peaks. This was primarily a function of more white space in the calendar than we had anticipated entering the quarter. Pricing was up slightly sequentially. As we noted on our May call, the majority of our increases carried renegotiation windows that pushed the benefit into Q3 and Q4.

Speaker #1: Excluding FlowTech, we expect our capex to be in a range of $145 million to $175 million. Total cash and cash equivalents, as of June 30, 2026, were approximately $19 million, including approximately $5 million attributable to FlowTech.

Speaker #1: Put simply, this reflects our continued focus on returns over utilization for its own sake. While April carried forward the record efficiency levels we experienced in March, as we discussed on our last call, pumping hours per fleet moderated somewhat in May and June relative to those peaks.

Speaker #1: Total liquidity at quarter end was approximately $72 million, including $58 million available under the ABL. Borrowings under the ABL credit facility ended the quarter at $162 million and increased from $116 million at first quarter end.

Speaker #1: On July 1st, we closed a new asset-based revolving credit facility with Eclipse business capital, and we think this transaction matters more than a typical refinancing headline might suggest.

Speaker #1: Profit production generated $121 million of revenue in the second quarter, a touch higher than the $120 million of revenue we reported in the first quarter of 2026.

Austin Harbour: Proppant production generated $121 million of revenue in Q2, a touch higher than the $120 million of revenue we reported in Q1 2026. Approximately 31% of volumes were sold to third-party customers during Q2 versus 28% in Q1. During Q2 and into Q3, we continued to navigate incremental competitive pricing pressure in the proppant market, particularly in West Texas. We remain focused on operational improvements throughout the business while leveraging the potential we see in stronger markets, including the Haynesville in South Texas. Adjusted EBITDA for the proppant production segment was $6 million for Q2, broadly in line with Q1. On a margin basis, EBITDA margins were 5% in Q2 versus 5% in Q1 2026. Total volumes were approximately 2.5 million tons.

Speaker #1: What we secured was a larger commitment, a longer runway, and improved advance rates against our collateral base, which together translate into increased relative liquidity versus our prior facility.

Speaker #1: This new $300 million facility replaces our previous $275 million ABL facility and extends our maturity profile. An addition to increasing total commitments by 25 million, the new facility incorporates the ability to request up to an additional $25 million of incremental commitments subject to lender approval and customary conditions.

Speaker #1: We remained focused on operational improvements throughout the business while leveraging the potential we see in stronger markets, including the Haynesville and South Texas. Adjusted EBITDA for the profit production segment was $6 million for the second quarter, broadly in line with Q1.

Speaker #1: We've said repeatedly that our approach to the balance sheet is disciplined and opportunistic. This transaction is that philosophy in practice, and it leaves us better positioned.

Speaker #1: On a margin basis, EBITDA margins were 5% in the second quarter versus 5% in Q1 2026. Total volumes were approximately 2.5 million tons. Our manufacturing segment generated second quarter revenues of $48 million, in line with the first quarter.

Speaker #1: The majority of our debt maturities remain concentrated in 2029 and beyond, and we believe we're well positioned from a liquidity perspective as we move through the remainder of 2026 and into 2027.

Austin Harbour: Our manufacturing segment generated Q2 revenues of $48 million, in line with Q1. Approximately 18% of segment revenues were generated from third-party sales, compared to approximately 14% in Q1. Adjusted EBITDA for the manufacturing segment was $6 million, compared to $7 million in Q1. Flotek generated Q2 revenues of $102 million, significantly higher than the $72 million reported in Q1. Approximately 42% of segment revenues were generated from third-party sales, compared to approximately 25% in Q1. Adjusted EBITDA for Flotek was $19 million, or 19% of revenue, also improved relative to the $11 million reported in Q1. Selling, General, and Administrative Expenses were $44 million in Q2, flat with Q1. Cash capital expenditures of $32 million in Q2 were down from $41 million in Q1 2026.

Speaker #1: At quarter end, we had approximately $1.1 billion of debt outstanding. We continue to manage the balance sheet the same way we always have, with discipline, an opportunistic mindset, and a focus on maintaining flexibility to act as conditions shift.

Speaker #1: FlowTech generated second quarter revenues of $102 million, significantly higher than the $72 million reported in Q1. Approximately 42% of segment revenues were generated from third-party sales, compared to approximately 25% in Q1.

Speaker #1: With that, I will now turn the call over to Lad.

Speaker #2: Thank you, Austin. As you saw in our earnings press release this morning, I'm resigning my position as Chief Executive Officer of PROFRAC. And I'll take up the board seat that is being vacated by Mr. Sergey Krylov.

Speaker #1: Adjusted EBITDA for FlowTech was $19 million, or 19% of revenue, also improved relative to the $11 million reported in Q1. Selling, general, and administrative expenses were $44 million in the second quarter, flat with Q1.

Speaker #2: I want to thank Mr. Krylov for his years of dedication and service to PROFRAC and for the thoughtful and diligent stewardship he has brought to the board throughout his tenure.

Speaker #2: This transition will take effect tomorrow, August 7th. As a member of the board of directors, I'll continue to help guide the future of the company that I love, and help build.

Austin Harbour: Consistent with the outlook we issued on our May call, we continue to expect total capital expenditures in 2026, including Flotek spend, to be in the range of $155 million to $185 million. Excluding Flotek, we expect our CapEx to be in a range of $145 million to $175 million. Total cash and cash equivalents as of 30 June 2026, were approximately $19 million, including approximately $5 million attributable to Flotek. Total liquidity at quarter end was approximately $72 million, including $58 million available under the ABL. Borrowings under the ABL credit facility ended the quarter at $162 million, an increase from $116 million at Q1 end. On 1 July, we closed a new asset-based revolving credit facility with Eclipse Business Capital, we think this transaction matters more than a typical refinancing headline might suggest.

Speaker #2: With an unwavering commitment to it. While I won't be involved in day-to-day decisions, I remain deeply devoted to this company and will always be available to its management and staff for guidance and support.

Speaker #1: Excluding FlowTech, we expect our capex to be in a range of $145 million to $175 million. Total cash and cash equivalents as of June 30, 2026, were approximately $19 million, including approximately $5 million attributable to FlowTech.

Speaker #2: PROFRAC isn't just a company to me. It's part of my family's legacy, and I'll continue to do everything I can to ensure its lasting success.

Speaker #2: When I think about my time as CEO, my first thought is about the people. The best people in the world work here. We have incredible leaders and employees in every district, region, and division in the PF Holdings family.

Speaker #2: And while our industry can be volatile at times, I believe the long-term future of our company and our industry has never been stronger. And I couldn't be more excited for Matt, who will become PROFRAC's next CEO, while also continuing to serve as Executive Chairman.

Speaker #1: On July 1st, we closed a new asset-based revolving credit facility with Eclipse business capital and we think this transaction matters more than a typical refinancing headline might suggest.

Austin Harbour: What we secured was a larger commitment, a longer runway, and improved advance rates against our collateral base, which together translate into increased relative liquidity versus our prior facility. This new $300 million facility replaces our previous $275 million ABL facility and extends our maturity profile. In addition to increasing total commitments by $25 million, the new facility incorporates the ability to request up to an additional $25 million of incremental commitments subject to lender approval and customary conditions. We've said repeatedly that our approach to the balance sheet is disciplined and opportunistic. This transaction is that philosophy in practice, and it leaves us better positioned. The majority of our debt maturities remain concentrated in 2029 and beyond, and we believe we're well-positioned from a liquidity perspective as we move through the remainder of 2026 and into 2027. At quarter end, we had approximately $1.1 billion of debt outstanding.

Speaker #2: Since the founding of PROFRAC, Matt has been one of the key drivers behind our growth and success. I've complete confidence that he will take PROFRAC to new heights and I couldn't be happier that he's the one leading our next chapter.

Speaker #1: This new $300 million facility replaces our previous $275 million ABL facility and extends our maturity profile. In addition to increasing total commitments by $25 million, the new facility incorporates the ability to request up to an additional $25 million of incremental commitments, subject to lender approval and customary conditions.

Speaker #2: And with that, I'll now turn the call over to the operator for Q&A.

Speaker #3: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up their handset before pressing the star keys.

Speaker #1: We've said repeatedly that our approach to the balance sheet is disciplined and opportunistic. This transaction is that philosophy in practice, and it leaves us better positioned.

Speaker #3: One moment, please, while we pull for questions. Our first question comes from the line of Don and Chris with Johnson Rice. Please proceed with your question.

Speaker #4: Good morning, guys. Thanks for letting me in here. I wanted to start on the pressure pumping side of the business. Throughout this earnings cycle, we've heard many of your competitors talk about their fleets being mostly dedicated for 2027.

Austin Harbour: We continue to manage the balance sheet the same way we always have: with discipline, an opportunistic mindset, and a focus on maintaining flexibility to act as conditions shift. With that, I will now turn the call over to Ladd.

Speaker #1: With that, I will now turn the call over to Lad.

Speaker #4: And the fact that not a lot of fleets have been added in relation to the increase in rig count. Can you just talk about what you're seeing out there and how you see 2027 shaping up?

Speaker #2: Thank you, Austin. As you saw in our earnings press release this morning, I'm resigning my position as Chief Executive Officer of ProFrac. And I'll take up the board seat that is being vacated by Mr. Sergey Krylov.

Ladd Wilks: Thank you, Austin. As you saw in our earnings press release this morning, I'm resigning my position as Chief Executive Officer of ProFrac, and I'll take up the board seat that is being vacated by Mr. Sergei Krylov. I want to thank Mr. Krylov for his years of dedication and service to ProFrac and for the thoughtful and diligent stewardship he has brought to the board throughout his tenure. This transition will take effect tomorrow, 7 August. As a member of the board of directors, I'll continue to help guide the future of the company that I love and helped build with an unwavering commitment to it. While I won't be involved in day-to-day decisions, I remain deeply devoted to this company and will always be available to its management and staff for guidance and support.

Speaker #4: Because as an analyst, I see a significant increase in pricing potential, given that we have a lot more demand than supply out there today.

Speaker #2: I want to thank Mr. Krylov for his years of dedication and service to ProFrac and for the thoughtful and diligent stewardship he has brought to the board throughout his tenure.

Speaker #2: This transition will take effect tomorrow, August 7th. As a member of the board of directors, I'll continue to help guide the future of the company that I love and help build.

Speaker #2: Yeah. I believe that's a fair assessment. We've seen a very disciplined operator group just 2026 budgets have been set. Everybody's relatively state disciplined to that.

Speaker #2: We've seen a lot of tightness in the schedules. And to build around that capital budget from these guys, there's been some private operators that have come back and increased activity.

Speaker #2: ProFrac isn't just a company to me. It's part of my family's legacy, and I'll continue to do everything I can to ensure its lasting success.

Ladd Wilks: ProFrac isn't just a company to me, it's part of my family's legacy, and I'll continue to do everything I can to ensure its lasting success. When I think about my time as CEO, my first thought is about the people. The best people in the world work here. We have incredible leaders and employees in every district, region, and division in the ProFrac Holding family. While our industry can be volatile at times, I believe the long-term future of our company and our industry has never been stronger. I couldn't be more excited for Matt, who will become ProFrac's next CEO while also continuing to serve as Executive Chairman. Since the founding of ProFrac, Matt has been one of the key drivers behind our growth and success.

Speaker #2: As we look into 2027, we see 2027 as being a nice step up. There'll be we're at the very beginning of RFP season. It's already started.

Speaker #2: And while our industry can be volatile at times, I believe the long-term future of our company and our industry has never been stronger. And I couldn't be more excited for Matt.

Speaker #2: It's been brought forward. One of the benefits of the RFP season starting so much earlier is I think a lot of these operators want to get in early and lock things down while they can, while they know that they can.

Speaker #2: Who will become ProFrac's next CEO, while also continuing to serve as Executive Chairman. Since the founding of ProFrac, Matt has been one of the key drivers behind our growth and success.

Speaker #2: As RFP season progresses, we expect to see it really, really start pushing pricing and as everybody realizes how much availability there isn't. Realize how tight the market is, there's not a lot of spare capacity.

Speaker #2: I have complete confidence that he will take ProFrac to new heights and I couldn't be happier that he's the one leading our next chapter.

Ladd Wilks: I have complete confidence that he will take ProFrac to new heights, and I couldn't be happier that he's the one leading our next chapter. With that, I'll now turn the call over to the operator for Q&A.

Speaker #2: And with that, I'll now turn the call over to the operator for Q&A.

Speaker #2: And as you move through RFP season, it's going to be it's going to be pretty interesting to see how this plays out as we guide into 2027.

Speaker #3: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, while we poll for a question. Our first question comes from the line of Don Crist with Johnson Rice. Please proceed with your question.

Speaker #2: Still early, early in the process, but we expect with RFP season kicking off early, that once 2027 budgets are set, and we've got better visibility into it, we don't think that we have to wait for 2027 for that environment.

Speaker #3: One moment, please, while we pull for questions. Our first question comes from the line of Don and Chris with Johnson Rice. Please proceed with your question.

Speaker #2: It will happen in this second half. We already see a stronger second half than what we had in the first half. A lot of the pricing that we pushed for earlier in this quarter are going into effect.

Don Crist: Morning, guys. Thanks for letting me in here. I wanted to start on the pressure pumping side of the business. Throughout this earnings cycle, we've heard many of your competitors talk about their fleets being mostly dedicated for 2027, and the fact that not a lot of fleets have been added in relation to the increase in rig count. Can you just talk about what you're seeing out there and how you see 2027 shaping up? As an analyst, I see a significant increase in pricing potential, given that we have a lot more demand than supply out there today.

Speaker #2: In Q3 and Q4. And we believe that there will be opportunities additional opportunities as we move through RFP season. Typically, what you see in a transition in the market like we have today, as we move through '26 into '27, we expect '27 activity to get pulled forward.

Speaker #4: And the fact that not a lot of fleets have been added in relation to the increase in rig count. Can you just talk about what you're seeing out there and how you see 2027 shaping up?

Speaker #4: Because as an analyst, I see a significant increase in pricing potential, given that we have a lot more demand than supply out there today.

Speaker #2: Very quickly, after the conclusion of RFPs. So it's pretty interesting time. Pretty excited to see this play out the way that it is. I think we've got a really disciplined peer class that has not gone in to on a speculative bet to build out equipment, build out capacity.

Speaker #2: Yeah. I believe that's a fair assessment. We've seen a very disciplined operator group just 2026 budgets have been set. Everybody's relatively stayed disciplined to that.

Matt Wilks: Yeah, I believe that's a fair assessment. We've seen a very disciplined operator group. 2026 budgets have been set. Everybody's relatively stayed disciplined to that. We've seen a lot of tightness in the schedules, and to build around that capital budget from these guys. There's been some private operators that have come back and increased activity. As we look into 2027, we see 2027 as being a nice step up. We're at the very beginning of RFP season. It's already started. It's been brought forward. One of the benefits of the RFP season starting so much earlier is I think a lot of these operators want to get in early and lock things down while they can, while they know that they can.

Speaker #2: We think the world of our customers and their disciplined. So are we if they increase capex, I think the service space will respond. But we will not speculate and build into that.

Speaker #2: As we look into 2027, we see 2027 as being a nice step up. There'll be at the very beginning of RFP season, it's already started.

Speaker #4: And just to you answered in your opening remarks, but it sounds like you're going to be very disciplined and not add any fleets on spec.

Speaker #4: But when would the decision point come in? If rates went up 15 or 20 percent across your entire fleet from where they are today are going to be in the third quarter, would that be the right point for a decision point to add more fleets to satisfy demand out there?

Matt Wilks: As RFP season progresses, we expect to see it really start pushing pricing, and as everybody realizes how much availability there isn't, realize how tight the market is. There's not a lot of spare capacity. As you move through RFP season, it's going to be pretty interesting to see how this plays out as we guide into 2027. Still early in the process, but we expect with RFP season kicking off early, that once 2027 budgets are set and we've got better visibility into it, we don't think that we have to wait for 2027 for that environment. It will happen in this H2. We already see a stronger H2 than what we had in the H1.

Speaker #2: I don't believe so. I think an increase of 15 to 20 percent would accelerate some upgrades. But I don't think that it would really trigger a build cycle.

Speaker #2: And as you move through RFP season, it's going to be it's going to be pretty interesting to see how this plays out as we guide into 2027.

Speaker #2: I think more than ever, and I can't speak for my peers, but they appear to have the same behavior. And Outlook on this, but what we need is certainty and a commitment.

Speaker #2: And we're not going to go in and chase short-term economics. We need long-term, stable pricing environment so that we can get a total return and full cycle returns new build economics is not something that you speculate on.

Matt Wilks: A lot of the pricing that we pushed for earlier in this quarter are going into effect in Q3 and Q4, and we believe that there will be additional opportunities as we move through RFP season. Typically, what you see in a transition in the market like we have today, as we move through 2026 into 2027, we expect 2027 activity to get pulled forward very quickly after the conclusion of RFPs. It's pretty interesting time. Pretty excited to see this play out the way that it is. I think we've got a really disciplined peer class that has not gone in on a speculative bet to build out equipment, build out capacity. We thank the world of our customers, and they're disciplined, so are we. If they increase CapEx, I think the service space will respond, but we will not speculate and build into that.

Speaker #2: This is a very challenging industry. We need reliable consistent returns and outcomes. And so if we have customers that come in and make the appropriate commitments, long-term, with a true commitment, then I think that really changes everything.

Speaker #2: It's more so about the stability than it is the economics. The economics obviously have to be there, but we're not going to just go in and build because the spot market is where we want to.

Speaker #2: Very quickly, after the conclusion of RFPs. So it's a pretty interesting time. I'm pretty excited to see this play out the way that it is. I think we've got a really disciplined peer class that has not gone in on a speculative bet to build out equipment or build out capacity.

Speaker #4: Yeah. I think to add to what Matt's saying, I think it's 10 or coupled with the pricing and the economics, right? And that certainty and that longevity is really what we're looking for before we push the button on adding incremental capacity.

Speaker #4: So it needs to be both.

Speaker #2: And I think the industry as a whole is in an interesting spot. I mean, there's a lot of technology and you're at this point of diminishing returns.

Speaker #2: We think the world of our customers and their disciplined. So are we if they increase CapEx, I think the service space will respond, but we will not speculate and build into that.

Speaker #2: There's no more hours in the day where efficiency is just incredible. And it's not just something that you can brag about or talk about.

Speaker #2: It's something that's expected and it should be. The only place to go from here is to focus on better recoveries, better execution, and what can technology bring for good partnerships.

Speaker #4: And just to you answered in your opening remarks, but it sounds like you're going to be very disciplined and not add any fleets on spec.

Don Crist: You answered it in your opening remarks, but it sounds like you're going to be very disciplined and not add any fleets on spec. When would the decision point come in? If rates went up 15% or 20% across your entire fleet from where they are today or are going to be in Q3, would that be the right point for a decision point to add more fleets to satisfy demand out there?

Speaker #2: And I think that you'll start seeing more of that from not just the operators, but the service companies that they partner with, where you're collaborating on better rates, better production, better execution, and the technology that's available with frack automation, and closed-loop frack, we're very excited to see the transformation that this industry is about to go through.

Speaker #2: I don't believe so. I think an increase of 15 to 20 percent would accelerate some upgrades. But I don't think that it would really trigger a build cycle.

Matt Wilks: I don't believe so. I think an increase of 15% to 20% would accelerate some upgrades, but I don't think that it would really trigger a build cycle.

Speaker #2: And I think that factors into it as well. We're looking for we're looking for partners. We'll build it. We'll line it all out. We're not afraid to deploy capital for the right relationships and commitments.

Don Crist: Okay.

Speaker #2: I think more than ever, and I can't speak for my peers, but they appear to have the same behavior. And Outlook on this, but what we need is certainty and a commitment.

Matt Wilks: I think more than ever, I can't speak for my peers, but they appear to have the same behavior and outlook on this. What we need is certainty and a commitment. We're not going to go in and chase short-term economics. We need long-term, stable pricing environment so that we can get a total return and full cycle returns. New build economics is not something that you speculate on. This is a very challenging industry. We need reliable, consistent returns, and outcomes. If we have customers that come in and make the appropriate commitments long term with a true commitment, then I think that really changes everything. It's more so about the stability than it is the economics. The economics obviously have to be there, we're not going to just go in and build because the spot market is where we want it.

Speaker #2: And for the right returns. But technology is a big part of it too. And I think we're starting to see all of this line up and these conversations these types of partnerships, that's what we focused on over the last year or two and it's really coming into fruition.

Speaker #2: And we're not going to go in and chase short-term economics. We need long-term stable pricing environment so that we can get a total return and full cycle returns new build economics is not something that you speculate on.

Speaker #2: And we look forward to updating not only our shareholders, but the overall market. This industry is about to it's about to break out and change what everybody thinks or expects from it.

Speaker #2: This is a very challenging industry. We need reliable consistent returns and outcomes. And so if we have customers that come in and make the appropriate commitments, long-term with a true commitment, then I think that really changes everything.

Speaker #4: I appreciate that color as an analyst that covers those flow tech and y'all. I'm going to ask a question you probably don't want to answer, but I'm going to answer it.

Speaker #4: I'm going to ask it anyway. Given the tightness in your financial flexibility and the amount of appreciation and flow tech stock, you've been very smart to hold on to it to date.

Speaker #4: But would you consider peeling off some shares here to promote your financial flexibility going forward and increase the float on flow tech? Just any thoughts around that?

Speaker #4: Yeah, I think to add to what Matt's saying, it's 10, or coupled with the pricing and the economics, right? And that certainty and that longevity is really what we're looking for before we push the button on adding incremental capacity.

Austin Harbour: I think to add to what Matt's saying, I think it's tenor coupled with the pricing and the economics, right? That certainty and that longevity is really what we're looking for before we push the button on adding incremental capacity. It needs to be both.

Speaker #2: Look, we can't comment to any particular behavior. I think we manage our portfolio as a portfolio. And we're economic animals. But at the same time, that's a phenomenal business.

Speaker #4: So it needs to be both.

Speaker #2: And I think the industry as a whole is in an interesting spot. I mean, there's a lot of technology and you're at this point of diminishing returns.

Matt Wilks: I think the industry as a whole is in an interesting spot. There's a lot of technology, you're at this point of diminishing returns. There's no more hours in the day where efficiency is just incredible. It's not just something that you can brag about or talk about. It's something that's expected, and it should be. The only place to go from here is to focus on better recoveries, better execution, what can technology bring for good partnerships. I think that you'll start seeing more of that from not just the operators, but the service companies that they partner with where you're collaborating on better rates, better production, better execution. The technology that's available with frac automation and closed-loop fracs, we're very excited to see the transformation that this industry's about to go through. I think that factors into it as well.

Speaker #2: There's no more hours in the day where efficiency is just incredible. And it's not just something that you can brag about or talk about.

Speaker #2: We're so proud of those guys over there. We're excited about their future. We're excited to be a part of it, to be a part of what they're building.

Speaker #2: And we're excited to be a part of their future for a very long time. And continue to support them. I think that there's a lot of synergies, a lot of collaboration between the two organizations.

Speaker #2: And that's not going to change.

Speaker #2: And I think that you'll start seeing more of that from not just the operators, but the service companies that they partner with, where you're collaborating on better rates, better production, better execution, and the technology that's available with frac automation and closed-loop frac. We're very excited to see the transformation that this industry is about to go through.

Speaker #4: I had to try anyway. I appreciate the color I'll turn it back.

Speaker #2: Definitely. Thank you.

Speaker #1: Thank you. Our next question comes from the line of John Daniel with Daniel Energy Partners. Please proceed with your question.

Speaker #4: Thank you. Matt, good luck on your next steps. If you find yourself. In the street looking for a job, give us a call.

Speaker #1: Thanks, John.

Speaker #4: First question is about the RFPs. Matt, you alluded to they're coming in early. I'm just curious if you've had the chance to dig into the RFPs and look to see how many are coming from public players and what are they asking for next year?

Matt Wilks: We're looking for partners. We'll build it. We'll line it all out. We're not afraid to deploy capital for the right relationships and commitments and for the right returns. Technology is a big part of it, too, I think we're starting to see all of this line up, these conversations, these types of partnerships. That's what we've focused on over the last year or two, it's really coming into fruition. We look forward to updating not only our shareholders, but the overall market. This industry is about to break out, change what everybody thinks or expects from it.

Speaker #4: And is that more than what they're running today?

Speaker #2: So with the guys that are starting early, this is we can only guess why they're starting early. We think that it's just to make sure that they haven't locked down.

Speaker #2: It's about certainty. If you're worried about tightness, you don't want to be last. You don't necessarily have to be first, but you can't be last.

Speaker #2: And I think from here on, it's only going to get tighter and tighter. And so the companies that lead off are going to get most likely the best economics.

Speaker #2: As we progress further into RFPs, we'll be able to give you better color on additional activity. But I think this early on, it's just the main indicator is just how early it is.

Speaker #4: I appreciate that color as an analyst that covers both flow tech and y'all. I'm going to ask a question you probably don't want to answer, but I'm going to answer it.

Don Crist: I appreciate that color. As an analyst that covers both Flotek and y'all, I'm going to ask a question you probably don't want to answer, but I'm going to ask it anyway. Given the tightness in your financial flexibility and the amount of appreciation in Flotek stock, you've been very smart to hold onto it to date, but would you consider peeling off some shares here to promote your financial flexibility going forward and increase the float on Flotek? Just any thoughts around that?

Speaker #4: I'm going to ask it anyway. Given the tightness in your financial flexibility and the amount of appreciation in Flowtech stock, you've been very smart to hold on to it to date.

Speaker #4: Okay. Fair enough. I'll bug you next quarter on it then. Two more questions for me. What is against the fence today? And if you made the decision to reactivate, I understand there's a lot of things that have to fall into place.

Speaker #4: But would you consider peeling off some shares here to promote your financial flexibility going forward and increase the float on flow tech? Just any thoughts around that?

Speaker #4: But if you made the decision to reactivate, how much could you bring back in the next three to six months?

Speaker #2: Look, we can't comment to any particular behavior. I think we manage our portfolio as a portfolio and we're economic animals. But at the same time, that's a phenomenal business.

Matt Wilks: Look, we can't comment to any particular behavior. I think we manage our portfolio as a portfolio, and we're economic animals. At the same time, that's a phenomenal business. We're so proud of those guys over there. We're excited about their future. We're excited to be a part of it, to be a part of what they're building, and we're excited to be a part of their future for a very long time and continue to support them. I think that there's a lot of synergies, a lot of collaboration between the two organizations, and that's not going to change.

Speaker #2: Man, I'll answer that question like this. From a fuel efficiency standpoint, everything is everything that's available in the market is deployed. All next-generation equipment, all fuel-efficient equipment is currently deployed.

Speaker #2: We're so proud of those guys over there. We're excited about their future. We're excited to be a part of it, to be a part of what they're building.

Speaker #2: Now, what we've seen across the landscape from a lot of our peers is that a lot of the diesel equipment has either been completely retired or sold into foreign markets.

Speaker #2: And that's not going to change.

Speaker #4: I had to try anyway. I appreciate the color—I'll turn it back.

Don Crist: I had to try anyway. I appreciate the color. I'll turn it back.

Speaker #2: We've been patient and we've retained some capacity there. And to have these for upgrade candidates or if it really tightens up, then we'd likely deploy some of those as is, as diesel.

Speaker #2: Definitely. Thank you.

Matt Wilks: Definitely. Thank you.

Speaker #1: Thank you. Our next question comes from the line of John Daniel with Daniel Energy Partners. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of John Daniel with Daniel Energy Partners. Please proceed with your question.

Speaker #4: Thank you. Matt, good luck on your next steps. If you find yourself. On the street looking for a job, give us a call.

John Daniel: Thank you. Matt, good luck on your next steps. If you find yourself-

Speaker #2: But for the most part, we're we're sitting tight. We're fully deployed on what we think that the market is looking for. And if it really came down to it, there is some capacity that we can bring back.

Matt Wilks: Thanks

John Daniel: on the street looking for a job, give us a call.

Speaker #1: Thanks, John.

Matt Wilks: Thanks, John.

John Daniel: First question is about the RFPs. Matt, you alluded to they're coming in early. I'm just curious if you've had the chance to dig into the RFPs and look to see how many are coming from public players, and what are they asking for next year, and is that more than what they're running today?

Speaker #2: We just we don't want to push it's not just how much does it cost to put a fleet out. Our position on it is what kind of supply chain do we need to support it?

Speaker #4: And is that more than what they're running today?

Speaker #2: So with the guys that are starting early, this is we can only guess why they're starting early. We think that it's just to make sure that they haven't locked it down.

Matt Wilks: With the guys that are starting early, we can only guess why they're starting early. We think that it's just to make sure that they have it locked down.

Speaker #2: Do we need to carry the inventory? Do I need to expand inventory? Do I need to hire people? I'd rather stick right where we're at, establish efficiencies, pursue further fully execute on our disciplined approach to cost.

Speaker #2: It's about certainty. If you're worried about tightness, you don't want to be last. You don't necessarily have to be first, but you can't be last.

John Daniel: Right.

Matt Wilks: It's about certainty. If you're worried about tightness, you don't want to be last. You don't necessarily have to be first, but you can't be last. I think from here on, it's only going to get tighter and tighter.

Speaker #2: And fully realize that. I think that favors the market that we're leading into very, very well. But we want to see more from we want to see more from the operators.

Speaker #2: And I think from here on, it's only going to get tighter and tighter. And so the companies that lead off are going to get most likely the best economics.

John Daniel: Right

Matt Wilks: The companies that lead off are going to get most likely the best economics. As we progress further into RFPs, we'll be able to give you better color on additional activity. I think this early on, the main indicator is just how early it is.

Speaker #2: Before we make a call and start activating fleets. And we can bring fuel efficiency out there. I think in some areas, after you include the cost of the fueler and the diesel itself, that many of these areas, diesels over five bucks, I mean, in some instances, compared to January, diesel costs more than the horsepower did.

Speaker #2: As we progress further into RFPs, we'll be able to give you better color on additional activity. But I think this early on, it's just the main indicator is just how early it is.

John Daniel: Okay. Fair enough. I'll bug you next quarter on it then. Two more questions from me. What is Against the Fence today? If you made the decision to reactivate, I understand there's a lot of things have to fall into place, but if you made the decision to reactivate, how much could you bring back in the next three to six months?

Speaker #2: Today, if you were buying diesel today, it would cost more than the frack fleet did. And so I think that tells you a lot about the bifurcation in the assets available to the market and why so many diesel fleets were sold into foreign markets.

Speaker #4: But if you made the decision to reactivate, how much could you bring back in the next three to six months?

Matt Wilks: Man, I'll answer that question like this. From a fuel efficiency standpoint, everything that's available in the market is deployed.

Speaker #2: But look, we can the economics are incredible for fuel-efficient fleets. We're happy to upgrade. There's all gas fleets. There's electric fleets. There's dual fuel fleets.

Speaker #2: And when you look at them and the displacement that you see for diesel, service companies are able to get a very respectable increase in revenue.

John Daniel: Yeah

Matt Wilks: next generation equipment, all fuel efficient equipment is currently deployed. Now, what we've seen across the landscape from a lot of our peers is that a lot of the diesel equipment has either been completely retired or sold into foreign markets. We've been patient, and we've retained some capacity there, and have these for upgrade candidates. If it really tightens up, then we'd likely deploy some of those as is, as diesel. For the most part, we're sitting tight. We're fully deployed on what we think that the market is looking for, and if it really came down to it, there is some capacity that we can bring back. We don't want to push. It's not just how much does it cost to put a fleet out. Our position on it is what kind of supply chain do we need to support it?

Speaker #2: Now, what we've seen across the landscape from a lot of our peers is that a lot of the diesel equipment has either been completely retired or sold into foreign markets.

Speaker #2: And the operator ends up with a favorable cost structure too that would be far superior to horsepower rates in January plus today's diesel rates.

Speaker #4: Okay. Fair enough. My final one, Matt, and then I'll turn it over. I'm sorry to be a phone hawk here, but I think in response to Don's question, you said that an extra 15 to 20 percent would, in terms of price, would accelerate upgrades.

Speaker #2: But for the most part, we're sitting tight. We're fully deployed on what we think that the market is looking for. And if it really came down to it, there is some capacity that we can bring back.

Speaker #4: Do you consider a reactivation and upgrade, or are you referring to an existing fleet that's working with 15, 20 percent you would upgrade that?

Speaker #4: If you could clarify.

Speaker #2: We just we don't want to push it's not just how much does it cost to put a fleet out. Our position on it is what kind of supply chain do we need to support it?

Speaker #2: Yeah. It'd be a combination of the two. We see a 10 to 15 percent increase in pricing I think that we'd be willing to activate fleets depending on the commitment that comes with it.

Speaker #2: Do we need to carry the inventory? Do I need to expand inventory? Do I need to hire people? I'd rather stick right where we're at, establish efficiencies, and pursue further—fully execute on our disciplined approach to cost.

John Daniel: Right.

Matt Wilks: Do we need to carry the inventory? Do I need to expand inventory? Do I need to hire people? I'd rather stick right where we're at, establish efficiencies, pursue further, fully execute on our disciplined approach to cost, and fully realize that. I think that favors the market that we're leading into very well. We want to see more from the operators.

Speaker #4: Commitment.

Speaker #2: There would be we'd be willing to do an upgrade.

Speaker #3: I'll just say too, Jon, I mean, from where pricing was to where we are today, we're up in that ballpark. Year to date. And in our prepared remarks, you saw we have a routine upgrade program that we prosecute almost irrespective of market cycles.

Speaker #2: And fully realize that. I think that favors the market that we're leading into very, very well. But we want to see more from—we want to see more from the operators.

Speaker #3: And we have accelerated that to some degree. Just on the upgrade side, not on the new build, to be clear.

John Daniel: Yeah

Matt Wilks: we make a call and start activating fleets. We can bring fuel efficiency out there. I think in some areas, after you include the cost of the fueler and the dyed diesel itself, that many of these areas, dyed diesel's over $5.

Speaker #4: Yeah. I mean, I guess in the final this is more of a comment, not a question, is I think Don's on top of this and I think we're all looking at the market.

Speaker #4: We see the rig count, call it up 60 rigs from the April low to by the end of this year. And it would seem that you're probably going to see a bit more of an increase next year, all else being equal.

Speaker #2: I mean, in some instances, compared to January, diesel costs more than the horsepower did. Today, if you were buying diesel today, it would cost more than the frack fleet did.

John Daniel: Right.

Matt Wilks: In some instances, compared to January, diesel cost more than the horsepower did today. If you were buying dyed diesel today, it would cost more than the frack fleet did. I think that tells you a lot about the bifurcation in the assets available to the market and why so many diesel fleets were sold into foreign markets.

Speaker #4: And clearly, there's going to be a call for more capacity. At the same time, the industry, the leaders in the industry are all being very disciplined now in terms of what they want to reactivate until pricing goes higher.

Speaker #2: And so I think that tells you a lot about the bifurcation in the assets available to the market and why so many diesel fleets were sold into foreign markets.

Speaker #4: And it just seems like we are at that intersection right now. Where things can change and inflect pretty hard. And so I think I guess we just have to step back and wait.

Speaker #4: And see how you guys and how the industry handles it. But it feels encouraging.

John Daniel: Right.

Speaker #2: But look, we get the economics are incredible for fuel-efficient fleets. We're happy to upgrade. There's all gas fleets. There's electric fleets. There's dual fuel fleets.

Matt Wilks: Look.

John Daniel: Well, look.

Matt Wilks: the economics are incredible for fuel efficient fleets. We're happy to upgrade. There's all gas fleets, there's electric fleets, there's dual fuel fleets. When you look at them and the displacement that you see for diesel, service companies are able to get a very respectable increase in revenue. The operator ends up with a favorable cost structure too, that would be far superior to horsepower rates in January plus today's diesel rates.

Speaker #2: Well, one thing I would highlight, just if you looked at the Permian, for example, the realized price per barrel and in the Permian, it's not just oil.

Speaker #2: And when you look at them, and the displacement that you see for diesel, service companies are able to get a very respectable increase in revenue.

Speaker #2: It's Waha. At some point, Waha was negative six, negative seven, in January and February. And there's been an additional pipeline capacity come on here recently.

Speaker #2: There's another two and a half BCF pipeline that's being commissioned right now. And now we're sitting in an environment where Waha is actually positive.

Speaker #2: And the operator ends up with a favorable cost structure too that would be far superior to horsepower rates in January plus today's diesel rates.

Speaker #2: And knock on wood, but I think when you look at that, the realized price per barrel in January and February was 31, 32 dollars.

Speaker #4: Okay, fair enough. My final one, Matt, and then I'll turn it over. I'm sorry to be a phone hawk here, but I think, in response to John's question, you said that an extra 15% to 20% in terms of price would accelerate upgrades.

John Daniel: Okay. Fair enough. My final one, Matt, then I'll turn it over. I'm sorry to be a phone hog here. I think in response to Don's question, you said that an extra 15% to 20% in terms of price would accelerate upgrades. Do you consider a reactivation an upgrade, or are you referring to an existing fleet that's working, with 15% and 20%, you would upgrade that? Just if you could clarify.

Speaker #2: And for a lot of operators, the break-even was 30. And that's what the 2026 budgets were set on. Now you look at it, we're mid-40s on a realized price per barrel.

Speaker #2: And believe it or not, the majority of that came from Waha. The majority of that increase came from gas. So now we're moving into 2027 RFPs and instead of the net margin on a realized barrel, being one or two dollars, it's 15.

Speaker #4: Do you consider a reactivation and upgrade, or are you referring to an existing fleet that's working with 15, 20 percent you would upgrade that?

Speaker #4: If you could clarify.

Speaker #2: Yeah, it’d be a combination of the two. We see a 10 to 15 percent increase in pricing. I think that we’d be willing to activate fleets.

Matt Wilks: Yeah, it'd be a combination of the two. We see a 10% to 15% increase in pricing. I think that we'd be willing to activate fleets, depending on the commitment that comes with it.

Speaker #2: I think that says a lot about what we're looking at. And maybe you continue to see discipline with a lot of the larger publics, but those are real economics.

Speaker #2: Depending on the commitment that comes with it, we’d be willing to do an upgrade.

Austin Harbour: Commitment

Matt Wilks: we'd be willing to do an upgrade.

Speaker #3: I'll just say too, John, I mean, from where pricing was to where we are today, we're up in that ballpark year to date. And in our prepared remarks, you saw we have a routine upgrade program that we prosecute almost irrespective of market cycles.

Austin Harbour: I'll just say too, John, from where pricing was to where we are today, we're up in that ballpark year to date. In our prepared remarks, you saw we have a routine upgrade program that we prosecute almost irrespective of market cycles, and we have accelerated that to some degree, just on the upgrade side, not on the new build, to be clear.

Speaker #2: That bring people out of the woodwork, brings things forward. It changes the economics on some of these different benches. And it brings the private side back as well.

Speaker #3: And we have accelerated that to some degree, just on the upgrade side—not on the new build, to be clear.

Speaker #2: But we're excited for this spot. Some of it feels a little bit like January and February of '22. But we've seen price improvement, better schedules, better calendars, better partnerships with our customers.

Speaker #4: Yeah. I mean, I guess in the final this is more of a comment, not a question, is I think John's on top of this and I think we're all looking at the market.

John Daniel: Yeah. This is more of a comment, not a question, is I think Don's on top of this, and I think we're all looking at the market. We see the rig count, call it up 60 rigs from the April low to by the end of this year. It would seem that you're probably going to see a bit more of an increase next year, all else being equal. Clearly, there's going to be a call for more capacity. At the same time, the industry, the leaders in the industry are all being very disciplined now in terms of what they want to reactivate until pricing goes higher. It just seems like we are at that intersection right now, where things can change and inflect pretty hard.

Speaker #4: We see the rig count—call it up 60 rigs from the April low—by the end of this year. And it would seem that you're probably going to see a bit more of an increase next year, all else being equal.

Speaker #2: But I think as we move through our peak season and get closer to '27, that I think there will be a very quick realization that there's nothing left on the sidelines.

Speaker #4: Right. I agree. Okay. Well, thanks for including me, guys. Good luck, live.

Speaker #4: And it just seems like we are at that intersection right now, where things can change and inflect pretty hard. So, I think we just have to step back and wait and see how you guys and how the industry handle it.

Speaker #2: Thanks, Jon.

Speaker #1: Thank you. And as a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the queue. Our next question comes from the line of Dan Kutz with Morgan Stanley.

John Daniel: I think, we just have to step back and wait, and see how you guys and how the industry handles it. It feels encouraging.

Speaker #4: But it feels encouraging.

Speaker #1: Please proceed with your question.

Speaker #2: Well, one thing I would highlight, just if you look at the Permian, for example, the realized price per barrel in the Permian—it's not just oil.

Matt Wilks: Well, one thing I would highlight, just if you looked at the Permian, for example, the realized price per barrel in the Permian, it's not just oil, it's Waha. At some points, Waha was -6, -7 in January and February.

Speaker #5: Hey. Thanks. Good morning. And congrats, Matt.

Speaker #2: Thank you.

Speaker #5: So I wanted to see if we could get any more specifics on the Outlook for the next quarter. And the second half of this year, I guess maybe just piecing together some of the components of the Outlook for the balance of this year that you guys have shared.

Speaker #2: It's Waha. At some point, Waha was negative six, negative seven, in January and February. And there's been an additional pipeline capacity come on here recently.

John Daniel: Right.

Matt Wilks: There's been an additional pipeline capacity come on here recently. There's another 2.5 BCF pipeline that's being commissioned right now. Now we're sitting in an environment where Waha is actually positive. Knock on wood, but I think when you look at that, the realized price per barrel in January and February was $31, $32. For a lot of operators, the break-even was 30. That's what the 2026 budgets were set on. Now you look at it, we're mid-40s on a realized price per barrel. Believe it or not, the majority of that came from Waha. The majority of that increase came from gas. Now we're moving into 2027 RFPs, and instead of the net margin on a realized barrel being $1 or $2, it's $15.

Speaker #2: There's another two and a half BCF pipeline that's being commissioned right now. And now we're sitting in an environment where Waha is actually positive.

Speaker #5: On the EBIT outline, do you think that the third quarter can be up or flat or closer to where consensus is in the mid-high 70s on a consolidated basis for the third quarter?

Speaker #2: And knock on wood, but I think when you look at that, the realized price per barrel in January and February was 31, 32 dollars.

Speaker #2: And for a lot of operators, break-even was $30. And that's what the 2026 budgets were set on. Now you look at it, we're at the mid-$40s on a realized price per barrel.

Speaker #5: And you guys said that you see prop in about flat, same services up, and then flow tech after pretty massive quarter they updated their guidance range for the year, but the updated guidance range would imply about a $5 billion step down in the third quarter.

Speaker #2: And believe it or not, the majority of that came from Waha. The majority of that increase came from gas. So now we're moving into 2027 RFPs, and instead of the net margin on a realized barrel being one or two dollars, it's $15.

Speaker #5: I guess in the second half on a quarterly basis, versus the big number they put up in the third quarter. So what I'm driving at is, do you think that the same services business can make up for maybe a bit less flow tech contribution and can it more than offset that and maybe get up closer to consensus?

Speaker #2: I think that says a lot about what we're looking at. And maybe you continue to see discipline with a lot of the larger publics, but those are real economics that bring.

John Daniel: Right.

Matt Wilks: I think that says a lot about what we're looking at. Maybe you continue to see discipline with a lot of the larger publics, those are real economics that bring

Speaker #5: But yeah, just wondering if you could help us piece together some of the Outlook components or to help us think about consolidated EBITDA in the third quarter.

Speaker #5: Thanks.

Speaker #2: Yeah. I'll say a few comments and then hand it off to Austin. A lot of the price increases that we went through, and we've spoken a little bit about, a lot of them didn't go fully into effect until the beginning of July.

Speaker #2: And so we see price improvement fully reflected in Q3. And some improvements through some further improvements as we move through the balance of this year.

Speaker #2: I think we're we don't want to overpromise. But if there's anything from a surprise standside, then it would be it's more likely to surprise to the upside than anything else.

Speaker #2: What I can say about flow tech is that team is phenomenal. They continue to execute really well. Historically, they've been relatively conservative on their guidance.

Speaker #2: I think you would agree looking at how they guide and how they deliver results. And I wouldn't change a thing over there. About how they execute.

Speaker #2: But I'm excited to see what kind of surprises they can bring for everybody. And I think their behavior supports continued improvements and growth above the guidance that they provide.

Speaker #2: But with that, Austin.

Speaker #3: Yeah. Dan, I don't have much to add. I think that's a fair kind of assessment of where we sit. I think our prepared comments really cover how we see the segments shaking out from a STEM perspective.

Speaker #3: As well as on the Alpine side, on sand and then I think Matt's comments really cover flow tech. So not much to add there.

Speaker #3: I think it's very consistent with our messaging and the prepared remarks.

Speaker #4: Okay. Great. Yeah. I mean, so I guess kind of maybe the takeaway is that mid-high 70s consensus number seems maybe just what on free cash.

Speaker #4: So year to date, you guys have had about a 40 million free cash outflow. You didn't change you reiterated the capex guidance range for the full year.

Speaker #4: Based on the amount that's been spent so far, that kind of implies a little bit less capex in the second half at the midpoint.

Speaker #4: So you have that. You have just kind of improving operational results so I guess do you think that you make back some of the 40 million free cash use in the second half?

Speaker #4: Do you think that the full year could be closer to break even? I think consensus is like a 10 million use for the full year.

Speaker #4: But yeah, just anything you could share is worth taking through free cash for this year. For the balance of the year. Thanks.

Speaker #3: Yeah. Yeah, Dan. No, great question. I think as we mentioned, we're going to pull forward some upgrades. So we reiterated the capex guidance range.

Speaker #3: And expect to fall within that. Probably a little bit higher than the midpoint right now. Based on what we know today, I think with respect to the free cash flow profile moving forward, so number one, like Matt mentioned, we're not anticipating adding any incremental fleets.

Speaker #3: And when we add fleets, that's usually the biggest driver of working capital drag when you think through the investment that we have to make in order to put a new fleet out from a structural perspective.

Speaker #3: I think too, as we continue to realize the cash and expense savings, through the P&L, but also the cash flow statement, that that'll help drive a higher fall through from EBITDA all the way to operating cash flow and then free cash flow.

Speaker #3: So I think as we move forward through the balance of the year, the impact of the cash savings coupled with the fact that we're not adding any incremental fleets, at least that's the plan today, should enable us to have a higher fall through on our free cash flow line.

Speaker #4: Great. All really helpful. Thank you both. Turn it back.

Speaker #3: Sure.

Speaker #2: Thank you.

Speaker #1: Thank you. And we have reached the end of the question and answer session. And therefore, I'd like to turn the floor back to Matt Wilkes for a closing remarks.

Speaker #2: Definitely. Thank you. I just want to say a special thank you for LAD. What an incredible partner. It's been I've worked with him in a lot of different a lot of different businesses and I think that PROFRAC is a really special company and a special business.

Speaker #2: I think that the partnership between LAD and myself has only grown and is continues to get stronger and stronger. And I'm just so proud of him, proud of the opportunities that he has available to him.

Speaker #2: And I'm especially excited that he's joining the board with me. But I take it as a huge vote of confidence that he's comfortable to leave this responsibility to me.

Speaker #2: I know that this wouldn't be possible if I didn't have such an amazing team around me. And we truly do have the best people in the industry that works here at PROFRAC Holdings.

Speaker #2: And look forward to the coming days we're very excited about the market that we're in. We've got incredible stakeholders from customers to the vendors to the great people here at PROFRAC.

Speaker #2: But look forward to next quarter and excited to deliver phenomenal results and I think we're going to have some really, really good days going forward.

Speaker #2: And perhaps we may even bring our hold music back, so. Anyways. Thank you.

Q2 2026 ProFrac Holding Corp Earnings Call

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