NYSE:LBRT
Liberty Energy Inc.
A diversified independent power producer generating renewable and thermal energy across North America with strong operating cash flows.
Key Metrics
Investment Thesis
Bull Case
Liberty Energy offers attractive value through its robust $609.6M operating cash flow which provides a cushion against fuel price spikes and supports consistent dividend payments. The diversified asset base across thermal and renewable sources creates a stable revenue profile less susceptible to single-sector downturns in the energy transition era.
Bear Case
Profitability has deteriorated sharply from $556.4M in 2023 to $147.9M in 2025 despite only modest revenue declines, indicating significant margin erosion or hidden liabilities. The company carries substantial long-term debt obligations which could become a burden if interest rates do not normalize or if credit spreads widen.
About Liberty Energy Inc.
Liberty Energy Inc. is a leading independent power producer serving the North American energy market with a diversified portfolio of thermal, hydroelectric, wind, and solar generation assets. The company operates across key regions including Texas, Louisiana, New York, and California, providing reliable electricity to utilities and industrial customers. With over $4 billion in annual revenue and a robust cash flow generation capability, the firm focuses on operational efficiency and strategic asset management.
Analysis
Management Discussion
Despite a year-over-year revenue decline from $4.75B in 2023 to $4.01B in 2025, the company maintained positive profitability with net income of $147.9M and strong operating cash flow of $609.6M. The substantial cash flow from operations significantly exceeds capital expenditures, allowing for shareholder returns through dividends and buybacks while funding minor acquisitions. However, the widening gap between revenue growth and profit contraction suggests margin compression or one-time charges impacting the bottom line.
Industry Overview
The North American power generation industry is undergoing a rapid transition from fossil fuels to renewable sources, driven by climate goals and consumer demand for clean energy. While regulatory headwinds persist, the sector remains resilient due to essential infrastructure status and long-term power purchase agreements with utilities.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.15B | $4.75B | $4.32B | $4.01B |
| Cost of Revenue | $3.15B | $3.35B | $3.20B | $3.17B |
| Gross Profit | $1.00B | $1.40B | $1.11B | $838.0M |
| Operating Expenses | $504.3M | $638.0M | $725.2M | $765.3M |
| Operating Income | $495.9M | $760.6M | $389.5M | $72.7M |
| G&A | $180.0M | $221.4M | $225.5M | $247.4M |
| Stock-Based Comp | $23.1M | $33.0M | $32.4M | $41.9M |
| D&A | $323.0M | $421.5M | $505.1M | $500.3M |
| Depreciation | $302.3M | $387.8M | $448.1M | $428.3M |
| Other OpEx | $324.3M | $416.6M | $499.7M | $517.9M |
| Non-Operating Income | $-96.4M | $-25.7M | $13.8M | $122.5M |
| Interest Income | — | $2.0M | $478.0K | $0 |
| Pre-Tax Income | $399.5M | $734.9M | $403.3M | $195.2M |
| Income Tax | $-793.0K | $178.5M | $87.3M | $47.3M |
| Continuing Ops | $400.3M | $556.4M | $316.0M | $147.9M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $400.3M | $556.4M | $316.0M | $147.9M |
| Minority Interest | $700.0K | $91.0K | $0 | $0 |
| Net to Common | $399.6M | $556.3M | $316.0M | $147.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $956.7M | $954.3M | $848.5M | $878.0M |
| Cash & Equivalents | $43.7M | $36.8M | $20.0M | $27.6M |
| Accounts Receivable | $410.3M | — | — | — |
| Inventory | $214.5M | $205.9M | $203.5M | $188.1M |
| Prepaid Expenses | $112.5M | $124.1M | $85.2M | $56.9M |
| Other Current Assets | $175.7M | $587.5M | $539.9M | $605.4M |
| Long-Term Assets | $1.62B | $2.08B | $2.45B | $2.68B |
| PP&E (Net) | $1.36B | $1.65B | $1.89B | $2.05B |
| Operating Leases | $97.2M | $92.6M | $73.3M | $65.0M |
| Other LT Assets | $159.7M | $341.3M | $483.6M | $561.2M |
| Total Assets | $2.58B | $3.03B | $3.30B | $3.56B |
| Current Liabilities | $649.5M | $639.4M | $666.5M | $720.4M |
| Accounts Payable | $326.8M | $293.7M | $314.1M | $358.6M |
| Current Debt | $1.0M | $0 | — | $5.1M |
| Current Leases | $27.3M | $27.5M | $28.6M | $22.4M |
| Deferred Revenue | $3.9M | — | $40.8M | $7.9M |
| Other Current Liab | $11.4M | $57.1M | $76.3M | $94.2M |
| Long-Term Liabilities | $429.1M | $552.7M | $651.0M | $759.1M |
| Long-Term Debt | $217.4M | $140.0M | $190.5M | $241.5M |
| LT Operating Leases | $69.3M | $64.3M | $44.4M | $41.8M |
| Other LT Liab | $23.5M | $236.0M | $341.2M | $408.9M |
| Total Liabilities | $1.08B | $1.19B | $1.32B | $1.48B |
| Shareholders' Equity | $1.50B | $1.84B | $1.98B | $2.08B |
| Paid-In Capital | $1.27B | $1.09B | $977.5M | $978.4M |
| Retained Earnings | $234.5M | $752.3M | $1.02B | $1.11B |
| AOCI | $-7.4M | $-6.1M | $-19.8M | $-13.9M |
| Total L&E | $2.58B | $3.03B | $3.30B | $3.56B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $400.3M | $556.4M | $316.0M | $147.9M |
| Non-Cash Adjustments | $-260.4M | $436.8M | $586.0M | $268.4M |
| Working Capital Changes | $390.5M | $21.4M | $-72.7M | $193.3M |
| Cash from Operations | $530.4M | $1.01B | $829.4M | $609.6M |
| Cash from Investing | $-450.7M | $-672.3M | $-643.1M | $-435.0M |
| Share Buybacks | $125.3M | $203.1M | $129.2M | $24.9M |
| Dividends Paid | $9.2M | $37.7M | $48.3M | $54.5M |
| Cash from Financing | $-55.8M | $-349.3M | $-202.7M | $-167.5M |
| FX Effect | $-260.0K | $168.0K | $-356.0K | $554.0K |
| Net Change in Cash | $23.9M | $-7.1M | $-16.4M | $7.0M |
| Beginning Cash | $20.0M | $43.7M | $36.8M | $20.0M |
| Ending Cash | $43.7M | $36.8M | $20.0M | $27.6M |
Frequently Asked Questions
How does Liberty Energy Inc. make money?
Thermal Generation: Operates natural gas-fired steam, cogeneration, and combined cycle plants providing baseload and peaking power. Renewable Energy: Manages a portfolio of hydroelectric, wind, and solar facilities contributing to low-carbon energy solutions. Utility Sales: Supplies wholesale electricity to investor-owned utilities and municipal authorities in competitive markets. Industrial Services: Provides on-site generation and energy management services to large industrial customers.
What are the main risks for LBRT?
Fuel Price Volatility: Fluctuations in natural gas prices directly impact thermal generation costs and overall profitability. Regulatory Changes: Evolving environmental policies and carbon pricing mechanisms could increase compliance costs or limit operational flexibility. Interest Rate Sensitivity: High levels of long-term debt expose the company to increased borrowing costs if rates remain elevated.
What is LBRT's competitive advantage?
Diversified Generation Mix: A balanced portfolio of thermal and renewable assets reduces exposure to fuel price volatility and regulatory shifts toward green energy. Strong Asset Locations: Strategic placement in high-demand regions like Texas and California ensures consistent revenue streams and contract stability. Operational Efficiency: Advanced technology and experienced management drive low cost-of-revenue relative to industry peers, enhancing margins.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.