LandBridge Company LLC Announces Third Quarter 2025 Results
Delivered sixth consecutive public quarter of revenue and Adjusted EBITDA growth, with Q3 revenue growth of
Closed ~37,500 acre acquisition supporting strategy of optimizing and diversifying revenue streams and asset value and increasing total holdings to more than 300,000 surface acres
Declared quarterly cash dividend of
Third Quarter 2025 Financial Highlights
-
Revenues of
$50.8 million 78% year-over-year and7% quarter-over-quarter -
Net income(1) of
$20.3 million -
Net income margin(1) of
40% -
Adjusted EBITDA(2) of
$44.9 million 79% year-over-year and6% quarter-over-quarter -
Adjusted EBITDA Margin(2) of
88% -
Cash flows from operating activities of
$34.9 million -
Free Cash Flow(2) of
$33.7 million -
Operating cash flow margin of
69% -
Free Cash Flow Margin(2) of
66%
(1) 3Q25 net income and net income margin include a non-cash expense of |
|
(2) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See “Comparison of Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. |
Recent Milestones
-
Acquired approximately 37,500 total acres across
Loving ,Reeves ,Winkler andWard counties,Texas from 1918 Ranch & Royalty, LLC. The transaction, which closed in November, includes additional high-quality pore space adjacent to LandBridge's large contiguous acreage position inLoving County , expanding the Company's ability to meet rising demand for high-quality pore space for customers seeking produced water handling resources. The acquisition also enables potential future surface use for alternative energy developments, emphasizing LandBridge's focus on diversifying revenue streams to optimize the commercial and strategic value of its acreage position. -
Finalized the sale of a 3,000-acre solar energy generation project in
Reeves County, Texas to a leading, publicly-traded energy infrastructure developer. In connection with the transaction, LandBridge received an up-front cash payment and the right to receive contingent future cash payments based on the achievement of certain developmental milestones. The solar project has a proposed generation capacity of up to 250 MW. -
Entered into a long-term lease with a subsidiary of ONEOK Inc. for a natural gas processing facility in
Loving County, Texas . -
Dual listed on NYSE Texas as a founding member, underscoring LandBridge's commitment to
Texas's thriving economy and energy industry.
Jason Long, Chief Executive Officer of LandBridge, stated, “As we advance our business plan and trajectory, we have shifted the paradigm of active land ownership with a strategy that maximizes the value of over 300,000 optimally located and largely contiguous surface acres. We have already established partnerships with industry-leading operators and developers that provide reliable and diverse revenue streams, and have only scratched the surface in terms of the many compelling opportunities we are evaluating. LandBridge provides our business partners with unparalleled access to expansive surface acreage for conventional and alternative energy development, digital infrastructure build-out, power storage, waste management, and many other commercial uses."
Scott McNeely, Chief Financial Officer of LandBridge, said, “LandBridge delivered its sixth consecutive public quarter of strong growth, driven by increases across all key revenue streams and underpinned by a high-margin, highly capital-efficient and asset-light business model. In addition, we have further diversified our revenue portfolio with the recent 1918 acquisition, which will provide our customers with increased access to pore space and surface acreage well-suited to alternative energy development. Finally, the successful sale of the
Third Quarter 2025 Consolidated Financial Information
Revenue for the third quarter of 2025 was
Adjusted EBITDA was
Net income margin was
Diversified Revenue Streams
Surface Use Royalties and Revenue: Generated revenues of
Resources Sales and Royalties: Generated revenues of
Oil and Gas Royalties: Generated revenues of
Free Cash Flow Generation
Cash flow from operations for the third quarter of 2025 was
Capital expenditures for the third quarter of 2025 were
Net cash used in financing activities during the third quarter of 2025 was
Strong Balance Sheet with Ample Liquidity
Total liquidity was
As of September 30, 2025, the Company had approximately
Total cash and cash equivalents were
Third Quarter 2025 Dividend
The LandBridge Board of Directors declared a dividend on our Class A shares of
Outlook
The Company reaffirms the midpoint of its outlook for fiscal year 2025, with Adjusted EBITDA expected to be between
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue. We are unable to reasonably predict these because they are uncertain and depend on various factors not yet known, which could have a material impact on GAAP results for the guidance period. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Quarterly Report on Form 10-Q
Our financial statements and related footnotes are available in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, which was filed with the
Conference Call and Webcast Information
The Company will hold a conference call on Thursday, November 13, 2025, at 9:30 a.m. Central Time to discuss third quarter results. A live webcast of the conference call will be available on the Events and Presentations section of the LandBridge Investor Relations website at https://www.landbridgeco.com/investor-relations/events-and-presentations. To listen to the live broadcast, go to the site at least 10-15 minutes prior to the scheduled start time to register and install any necessary audio software.
To access the live conference call, participants must pre-register online at https://registrations.events/direct/Q4I3477957 to receive unique dial-in information. Pre-registration may be completed at any time up to the call start time. An audio replay will be available following the conclusion of the call and can be accessed via the same link.
About LandBridge
LandBridge owns approximately 300,000 surface acres across
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on LandBridge’s beliefs, as well as assumptions made by, and information currently available to, LandBridge, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” or “could,” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts, including our estimated future financial performance. You should not place undue reliance on forward-looking statements. Although LandBridge believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, LandBridge may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: our customers’ demand for and use of our land and resources; the success of our affiliates, including WaterBridge, in executing their business strategies, including their ability to construct infrastructure, attract customers and operate successfully on our land; our customers’ ability to develop our land or any potential acquired acreage to accommodate any future surface use developments, such as the DBR Solar lease; our ability to continue the payment of dividends; the domestic and foreign supply of, and demand for, energy sources, including the impact of political instability or armed conflict in oil and natural gas producing regions, including the
The historical financial information presented below reflects only our historical financial results and the historical financial results of our predecessor, DBR Land Holdings LLC, as applicable.
THIRD QUARTER 2025 RESULTS
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Surface use royalties |
|
$ |
8,235 |
|
|
$ |
4,227 |
|
|
$ |
27,775 |
|
|
$ |
9,129 |
|
Surface use royalties - Related party |
|
|
10,152 |
|
|
|
5,627 |
|
|
|
24,743 |
|
|
|
11,902 |
|
Easements and other surface-related revenues |
|
|
15,840 |
|
|
|
5,176 |
|
|
|
36,552 |
|
|
|
15,018 |
|
Easements and other surface-related revenues - Related party |
|
|
807 |
|
|
|
1,465 |
|
|
|
6,388 |
|
|
|
4,224 |
|
Resource sales |
|
|
4,501 |
|
|
|
4,874 |
|
|
|
17,122 |
|
|
|
11,908 |
|
Resource sales - Related party |
|
|
731 |
|
|
|
57 |
|
|
|
1,098 |
|
|
|
329 |
|
Resource royalties |
|
|
3,929 |
|
|
|
2,686 |
|
|
|
11,927 |
|
|
|
6,803 |
|
Resource royalties - Related party |
|
|
1,604 |
|
|
|
1,472 |
|
|
|
5,558 |
|
|
|
2,579 |
|
Oil and gas royalties |
|
|
3,332 |
|
|
|
2,903 |
|
|
|
9,452 |
|
|
|
11,563 |
|
Other |
|
|
1,700 |
|
|
|
- |
|
|
|
1,700 |
|
|
|
- |
|
Total revenues |
|
|
50,831 |
|
|
|
28,487 |
|
|
|
142,315 |
|
|
|
73,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Resource sales-related expense |
|
|
438 |
|
|
|
423 |
|
|
|
1,384 |
|
|
|
1,739 |
|
Other operating and maintenance expense |
|
|
1,160 |
|
|
|
708 |
|
|
|
3,349 |
|
|
|
1,837 |
|
General and administrative expense |
|
|
15,864 |
|
|
|
22,131 |
|
|
|
45,356 |
|
|
|
98,114 |
|
Depreciation, depletion, amortization and accretion |
|
|
2,584 |
|
|
|
2,038 |
|
|
|
7,730 |
|
|
|
6,294 |
|
Other operating (income) expense, net |
|
|
(100 |
) |
|
|
- |
|
|
|
71 |
|
|
|
- |
|
Operating income (loss) |
|
|
30,885 |
|
|
|
3,187 |
|
|
|
84,425 |
|
|
|
(34,529 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
7,889 |
|
|
|
7,071 |
|
|
|
23,745 |
|
|
|
16,235 |
|
Other income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(241 |
) |
Income (loss) from operations before taxes |
|
|
22,996 |
|
|
|
(3,884 |
) |
|
|
60,680 |
|
|
|
(50,523 |
) |
Income tax expense (benefit) |
|
|
2,705 |
|
|
|
(1,128 |
) |
|
|
6,455 |
|
|
|
(890 |
) |
Net income (loss) |
|
$ |
20,291 |
|
|
$ |
(2,756 |
) |
|
$ |
54,225 |
|
|
$ |
(49,633 |
) |
Net loss prior to the IPO |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(46,877 |
) |
Net income (loss) attributable to noncontrolling interest |
|
|
12,184 |
|
|
|
(5,412 |
) |
|
|
32,153 |
|
|
|
(5,412 |
) |
Net income attributable to LandBridge Company LLC |
|
$ |
8,107 |
|
|
$ |
2,656 |
|
|
$ |
22,072 |
|
|
$ |
2,656 |
|
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
28,316 |
|
|
$ |
37,032 |
|
Accounts receivable, net |
|
|
19,669 |
|
|
|
12,544 |
|
Related party accounts receivable |
|
|
4,564 |
|
|
|
2,111 |
|
Prepaid expenses and other current assets |
|
|
4,821 |
|
|
|
1,628 |
|
Total current assets |
|
|
57,370 |
|
|
|
53,315 |
|
|
|
|
|
|
|
|
||
Non-current assets: |
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
917,975 |
|
|
|
902,742 |
|
Intangible assets, net |
|
|
41,845 |
|
|
|
45,265 |
|
Deferred tax assets |
|
|
59,116 |
|
|
|
29,416 |
|
Other assets |
|
|
1,614 |
|
|
|
1,741 |
|
Total non-current assets |
|
|
1,020,550 |
|
|
|
979,164 |
|
Total assets |
|
$ |
1,077,920 |
|
|
$ |
1,032,479 |
|
|
|
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
637 |
|
|
$ |
489 |
|
Taxes payable |
|
|
702 |
|
|
|
2,286 |
|
Related party accounts payable |
|
|
902 |
|
|
|
686 |
|
Accrued liabilities |
|
|
7,322 |
|
|
|
7,185 |
|
Current portion of long-term debt |
|
|
924 |
|
|
|
424 |
|
Deferred revenue |
|
|
2,238 |
|
|
|
1,221 |
|
Other current liabilities |
|
|
1,094 |
|
|
|
2,119 |
|
Total current liabilities |
|
|
13,819 |
|
|
|
14,410 |
|
|
|
|
|
|
|
|
||
Non-current liabilities: |
|
|
|
|
|
|
||
Long-term debt, net of debt issuance costs |
|
|
366,081 |
|
|
|
380,815 |
|
Other long-term liabilities |
|
|
192 |
|
|
|
183 |
|
Total non-current liabilities |
|
|
366,273 |
|
|
|
380,998 |
|
Total liabilities |
|
|
380,092 |
|
|
|
395,408 |
|
|
|
|
|
|
|
|
||
Class A shares, unlimited shares authorized and 25,337,028 shares issued and outstanding as of September 30, 2025. Unlimited shares authorized and 23,255,419 shares issued and outstanding as of December 31, 2024 |
|
|
254,007 |
|
|
|
208,427 |
|
Class B shares, unlimited shares authorized and 51,093,505 shares issued and outstanding as of September 30, 2025. Unlimited shares authorized and 53,227,852 shares issued and outstanding as of December 31, 2024 |
|
|
- |
|
|
|
- |
|
Retained earnings |
|
|
17,981 |
|
|
|
3,349 |
|
Total shareholders’ equity attributable to LandBridge Company LLC |
|
|
271,988 |
|
|
|
211,776 |
|
Noncontrolling interest |
|
|
425,840 |
|
|
|
425,295 |
|
Total shareholders’ equity |
|
|
697,828 |
|
|
|
637,071 |
|
Total liabilities and equity |
|
$ |
1,077,920 |
|
|
$ |
1,032,479 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
|
Nine Months Ended
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
54,225 |
|
|
$ |
(49,633 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation, depletion, amortization and accretion |
|
|
7,730 |
|
|
|
6,294 |
|
Amortization of debt issuance costs |
|
|
1,619 |
|
|
|
1,177 |
|
Share-based compensation |
|
|
33,636 |
|
|
|
84,196 |
|
Deferred income tax expense (benefit) |
|
|
2,265 |
|
|
|
(1,276 |
) |
Other |
|
|
5 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(7,130 |
) |
|
|
1,640 |
|
Related party accounts receivable |
|
|
(2,452 |
) |
|
|
(1,124 |
) |
Prepaid expenses and other assets |
|
|
(3,906 |
) |
|
|
(341 |
) |
Accounts payable |
|
|
65 |
|
|
|
(50 |
) |
Related party accounts payable |
|
|
216 |
|
|
|
51 |
|
Deferred revenue |
|
|
1,017 |
|
|
|
166 |
|
Accrued liabilities and other liabilities |
|
|
(565 |
) |
|
|
(387 |
) |
Taxes payable |
|
|
1,432 |
|
|
|
(5 |
) |
Net cash provided by operating activities |
|
|
88,157 |
|
|
|
40,708 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
||
Acquisitions |
|
|
(18,767 |
) |
|
|
(431,260 |
) |
Capital expenditures |
|
|
(2,496 |
) |
|
|
(761 |
) |
Proceeds from disposal of assets |
|
|
210 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
(21,053 |
) |
|
|
(432,021 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities |
|
|
|
|
|
|
||
Proceeds from issuance of Class A shares, net of underwriting discounts and fees |
|
|
- |
|
|
|
278,263 |
|
Taxes paid related to net share settlement of RSUs |
|
|
(5,728 |
) |
|
|
- |
|
Contributions from member |
|
|
- |
|
|
|
120,000 |
|
Dividends, dividend equivalents, and distributions paid |
|
|
(52,773 |
) |
|
|
(170,854 |
) |
Proceeds from term loan |
|
|
- |
|
|
|
265,000 |
|
Repayments on term loan |
|
|
(5,750 |
) |
|
|
(93,750 |
) |
Proceeds from revolver |
|
|
15,000 |
|
|
|
15,000 |
|
Repayments on revolver |
|
|
(25,000 |
) |
|
|
(35,000 |
) |
Debt issuance costs |
|
|
(55 |
) |
|
|
(3,437 |
) |
Offering costs |
|
|
(1,110 |
) |
|
|
(6,997 |
) |
Other |
|
|
(404 |
) |
|
|
(318 |
) |
Net cash (used in) provided by financing activities |
|
|
(75,820 |
) |
|
|
367,907 |
|
Net decrease in cash and cash equivalents |
|
|
(8,716 |
) |
|
|
(23,406 |
) |
Cash and cash equivalents - beginning of period |
|
|
37,032 |
|
|
|
37,823 |
|
Cash and cash equivalents - end of period |
|
$ |
28,316 |
|
|
$ |
14,417 |
|
Comparison of Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are supplemental non-GAAP measures that we use to evaluate current, past and expected future performance. Although these non-GAAP financial measures are important factors in assessing our operating results and cash flows, they should not be considered in isolation or as a substitute for net income, gross margin or any other measures presented under GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness. We define Adjusted EBITDA as net income (loss) before interest; taxes; depreciation, amortization, depletion and accretion; share-based compensation; non-recurring transaction-related expenses and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired.
The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated.
|
|
Three Months Ended |
|||||||||||
|
|
September 30,
|
|
|
June 30, 2025 |
|
|
September 30,
|
|
|
|||
|
|
(in thousands) (unaudited) |
|||||||||||
Net income (loss) |
|
$ |
20,291 |
|
|
$ |
18,475 |
|
|
$ |
(2,756 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||
Depreciation, depletion, amortization and accretion |
|
|
2,584 |
|
|
|
2,545 |
|
|
|
2,038 |
|
|
Interest expense, net |
|
|
7,889 |
|
|
|
7,879 |
|
|
|
7,071 |
|
|
Income tax expense (benefit) |
|
|
2,705 |
|
|
|
2,148 |
|
|
|
(1,128 |
) |
|
EBITDA |
|
|
33,469 |
|
|
|
31,047 |
|
|
|
5,225 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||
Share-based compensation - Incentive Units |
|
|
9,144 |
|
|
|
9,044 |
|
|
|
9,830 |
|
|
Share-based compensation - RSUs |
|
|
2,081 |
|
|
|
2,227 |
|
|
|
1,794 |
|
|
Transaction-related expenses (1) |
|
|
- |
|
|
|
135 |
|
|
|
351 |
|
|
Non-recurring expenses (2) |
|
|
- |
|
|
|
- |
|
|
|
7,825 |
|
|
Other |
|
|
156 |
|
|
|
- |
|
|
|
(13 |
) |
|
Adjusted EBITDA |
|
$ |
44,850 |
|
|
$ |
42,453 |
|
|
$ |
25,012 |
|
|
Net income (loss) margin |
|
|
40 |
% |
|
|
39 |
% |
|
|
(10 |
%) |
|
Adjusted EBITDA Margin |
|
|
88 |
% |
|
|
89 |
% |
|
|
88 |
% |
|
(1) |
Transaction-related expenses consist of non-capitalizable transaction costs associated with both completed or attempted acquisitions, debt amendments and entity structuring charges. |
(2) |
Non-recurring expenses consist primarily of |
Free Cash Flow and Free Cash Flow Margin are used to assess our ability to repay our indebtedness, return capital to our shareholders and fund potential acquisitions without access to external sources of financing for such purposes. We define Free Cash Flow as cash flow from operating activities less investment in capital expenditures. We define Free Cash Flow Margin as Free Cash Flow divided by total revenues.
We believe Free Cash Flow and Free Cash Flow Margin are useful because they allow for an effective evaluation of both our operating and financial performance, as well as the capital intensity of our business, and subsequently the ability of our operations to generate cash flow that is available to distribute to our shareholders, reduce leverage or support acquisition activities.
The following table sets forth a reconciliation of cash flows from operating activities determined in accordance with GAAP to Free Cash Flow and Free Cash Flow Margin, respectively, for the periods indicated.
|
|
Three Months Ended |
|||||||||||
|
|
September 30,
|
|
|
June 30, 2025 |
|
|
September 30,
|
|
|
|||
|
|
(in thousands) (unaudited) |
|||||||||||
Net cash provided by operating activities |
|
$ |
34,912 |
|
|
$ |
37,332 |
|
|
$ |
7,450 |
|
|
Net cash used in investing activities |
|
|
(1,107 |
) |
|
|
(2,079 |
) |
|
|
(1,053 |
) |
|
Net cash provided by operating and investing activities |
|
|
33,805 |
|
|
|
35,253 |
|
|
|
6,397 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||
Acquisitions |
|
|
5 |
|
|
|
944 |
|
|
|
750 |
|
|
Proceeds from disposal of assets |
|
|
(85 |
) |
|
|
(105 |
) |
|
|
- |
|
|
Free Cash Flow |
|
$ |
33,725 |
|
|
$ |
36,092 |
|
|
$ |
7,147 |
|
|
Operating cash flow margin (1) |
|
|
69 |
% |
|
|
79 |
% |
|
|
26 |
% |
|
Free Cash Flow Margin |
|
|
66 |
% |
|
|
76 |
% |
|
|
25 |
% |
|
(1) |
Operating cash flow margin is calculated by dividing net cash provided by operating activities by total revenue. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251112800799/en/
Scott McNeely
Chief Financial Officer
LandBridge Company LLC
Contact@LandBridgeco.com
Mae Herrington
Director, Investor Relations
LandBridge Company LLC
ir@LandBridgeco.com
Media
Daniel Yunger / Nathaniel Shahan
Kekst CNC
daniel.yunger@kekstcnc.com / nathaniel.shahan@kekstcnc.com
Source: LandBridge Company LLC
