ProFrac (ACDC) Q2 FY26 earnings call: guidance and Q&A

What is the outlook for the pressure pumping market in 2027, given high demand and limited supply? What price increase would trigger adding more fleets?

Management sees 2027 as a 'nice step up' with RFP season starting earlier due to operators seeking certainty. They expect pricing to push higher as market tightness becomes evident, with a stronger H2 2026 already showing price improvements. A 15-20% price increase would accelerate upgrades but not necessarily trigger a new build cycle; long-term, stable pricing and commitment are required for full-cycle returns, not just short-term spot market economics.

“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, you know, 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.”

asked by Donald Crist · answered by Matthew Wilks

Would ProFrac consider selling some Flotek shares for financial flexibility, given its appreciation?

Management cannot comment on specific behavior but views Flotek as a 'phenomenal business' and is proud to be part of its future for a long time, citing synergies and collaboration.

“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. 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.”

asked by Donald Crist · answered by Matthew Wilks

What capacity is currently idle ('against the fence') and how much could be reactivated in the next three to six months?

All fuel-efficient, next-generation equipment is deployed. They have retained some diesel capacity for upgrade candidates or potential deployment if the market tightens significantly, but they prioritize efficiency and cost discipline over speculative activation. Reactivation depends on operator commitments and supporting supply chain.

“From a fuel efficiency standpoint, everything that's available in the market is deployed. All 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 were sold into foreign markets.”

asked by John Daniel · answered by Matthew Wilks

Clarify if a 15-20% price increase would accelerate upgrades of existing working fleets or trigger reactivation of idle fleets.

It would be a combination of both. A 10-15% price increase, depending on the commitment, would make them willing to activate fleets and do upgrades. They noted that pricing is already up in that ballpark year-to-date.

“Yes, it'd be a combination of the two. You know, 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, we'd be willing to do an upgrade.”

asked by John Daniel · answered by Matthew Wilks

Can Q3 EBITDA be up or flat, closer to consensus, considering segment contributions and Flotek's updated guidance?

Price increases will be fully reflected in Q3, with further improvements expected in H2. Flotek's team is 'phenomenal' and historically conservative on guidance, suggesting potential upside. Overall, management expects stronger H2 results.

“A lot of the price increases that we went through, you know, we've spoken a little bit about, a lot of them didn't go fully into effect until the beginning of July. And so we see price improvement fully reflected in Q3 and some further improvements as we move through the balance of this year.”

asked by Daniel Kutz · answered by Matthew Wilks