Atlas Energy (NYSE: AESI) swings to 2025 loss as margins compress
Rhea-AI Filing Summary
Atlas Energy Solutions reported full-year 2025 revenue of $1.1 billion, up 3.7% from 2024, but swung to a net loss of $50.3 million after earning $59.9 million the prior year. Adjusted EBITDA declined to $221.7 million from $288.9 million as margins compressed.
For the fourth quarter, revenue was $249.4 million with a net loss of $22.2 million and Adjusted EBITDA of $36.7 million. Atlas shipped 21.6 million tons of volume in 2025, including 5.9 million tons on its Dune Express system, and is targeting about 500 MW of behind-the-meter power capacity deployed in 2027.
Positive
- None.
Negative
- Profitability deterioration: 2025 net results swung from a $59.9 million profit to a $50.3 million loss, with Adjusted EBITDA down to $221.7 million from $288.9 million and operating cash flow falling by more than half to $117.3 million.
Insights
Revenue grew modestly, but earnings and cash generation weakened.
Atlas Energy Solutions increased 2025 revenue 3.7% to
Operating cash flow dropped to
Strategically, Atlas is expanding into behind-the-meter power, evaluating more than
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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NYSE Texas, Inc. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 23, 2026, Atlas Energy Solutions Inc. (the “Company”) issued a press release providing information regarding earnings for the year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
Also on February 23, 2026, the Company posted an operations update on its website. The video, titled "Atlas Growth Projects Update February 2026,” may be found at http://ir.atlas.energy in the “Overview” section on the Company’s Investor Relations webpage. Investors should note that the Company announces financial information in filings with the U.S. Securities and Exchange Commission, press releases and public conference calls as well as on its website. The Company may use the “Investor Relations” webpage and other sections of its website to communicate with investors, and it is possible that the financial and other information posted there could be deemed to be material information.
In accordance with General Instruction B.2. of Form 8-K, the information contained in Item 2.02, this Item 7.01 and the accompanying Exhibit 99.1 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Description |
99.1 |
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Press Release of Atlas Energy Solutions Inc., dated February 23, 2026. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ATLAS ENERGY SOLUTIONS INC. |
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Date: |
February 23, 2026 |
By: |
/s/ John Turner |
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Name: John Turner |
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Exhibit 99.1 |
Atlas Energy Solutions Announces Fourth Quarter and Year End 2025 Results
Austin, TX – February 23, 2026 – Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”) today reported financial and operating results for the fourth quarter and fiscal year ended December 31, 2025.
Year End 2025 Financial Highlights and Operational Updates
Financial Summary
. |
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Year Ended |
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December |
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December |
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December |
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(in thousands, except percentages) |
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Revenue |
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$ |
1,095,310 |
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$ |
1,055,957 |
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$ |
613,960 |
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Net income (loss) |
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$ |
(50,304 |
) |
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$ |
59,944 |
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$ |
226,493 |
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Net Income (loss) Margin |
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(5 |
%) |
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6 |
% |
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37 |
% |
Adjusted EBITDA (1) |
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$ |
221,680 |
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$ |
288,902 |
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$ |
329,655 |
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Adjusted EBITDA Margin (1) |
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20 |
% |
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27 |
% |
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54 |
% |
Net cash provided by operating activities |
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$ |
117,346 |
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$ |
256,460 |
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$ |
299,027 |
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Adjusted Free Cash Flow (1) |
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$ |
152,005 |
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$ |
250,480 |
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$ |
291,131 |
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Adjusted Free Cash Flow Margin (1) |
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14 |
% |
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24 |
% |
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47 |
% |
John Turner, President & CEO, commented, “Our fourth quarter results exceeded our initial expectations primarily driven by stronger volumes relative to what we anticipated going into the holiday season. The seasonality we typically see at the end of the year was particularly muted as customers took minimal time off around the holidays. Despite challenging market conditions, we believe the team’s commercial efforts should allow Atlas to grow volumes in 2026. Leaning on our cost-advantaged mines and logistics network, we were able to increase our share of current customers’ sand procurement spend while also adding some key new customers relationships that we expect to grow in scale over the course of 2026 and beyond.
The quarter was highlighted by the highest levels of utilization for the Dune Express we have seen to date as customers in the Delaware Basin are beginning to realize the efficiency and reliability improvements the system generates in their logistics supply chains. We expect this to foreshadow the system’s utilization during 2026.
1
In November, we announced the order of 240 MWs of power generation equipment, accelerating our evolution into a leading provider of behind-the-meter long-term power solutions across a broad range of domestic industries – from energy to data centers and manufacturing. Our pipeline of opportunities continues to expand, and we are targeting more than 500 MWs deployed across our fleet in 2027 with substantial additional growth potential as we secure larger-scale projects and build on initial orders.”
Bud Brigham, Executive Chairman, said, “The growth case for Atlas is as exciting as it has ever been in my opinion. While waiting for Permian activity to recover, Atlas has an opportunity to redefine our cash flow and future with long-term behind-the-meter power contracts. I could not be more excited about the future of Atlas.”
Year End 2025 Financial Results
Total revenue for the year ended December 31, 2025 increased $39.4 million, or 3.7% when compared to the year ended December 31, 2024, to $1.1 billion. Product revenue decreased $37.4 million, or (7.3%) when compared to the prior year, to $478.0 million. Service revenue increased by $18.3 million, or 3.4% when compared to the prior year, to $558.8 million. Rental revenue for the year ended December 31, 2025 was $58.5 million.
Cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) for the year ended December 31, 2025 increased by $59.3 million, or 8.2% when compared to the prior year, to $784.5 million.
Selling, general and administrative expenses (“SG&A”) for the year ended December 31, 2025 increased by $32.6 million, or 30.7% when compared to the prior year, to $138.8 million. Included within our SG&A is $33.2 million in stock-based compensation, $2.7 million in other non-recurring costs and $7.0 million in other acquisition related costs.
Net income (loss) for the year ended December 31, 2025 was $(50.3) million, and Adjusted EBITDA for the year ended December 31, 2025 was $221.7 million.
Fourth Quarter 2025 Financial Results
Fourth quarter 2025 total revenue declined $10.2 million, or (3.9%) when compared to the third quarter of 2025, to $249.4 million. Product revenue declined by $1.6 million, or (1.5%) when compared to the third quarter of 2025, to $105.2 million. Fourth quarter 2025 product revenue volumes were 5.3 million tons, flat sequentially when compared to the levels in the third quarter of 2025. Service revenue declined $9.6 million, or (7.1%) when compared to the third quarter of 2025, to $126.1 million. Fourth quarter 2025 rental revenue increased $1.0 million, or 5.8% when compared to third quarter of 2025, to $18.1 million.
Fourth quarter 2025 cost of sales decreased by $7.9 million, or (4.0%) when compared to the third quarter of 2025, to $187.3 million. Cost of sales consisted of $60.6 million of plant operating costs, $115.2 million related to service costs, $7.0 million related to rental costs and $4.5 million in royalties.
SG&A for the fourth quarter of 2025 decreased by $2.6 million, or (7.2%) when compared to the third quarter of 2025, to $33.7 million.
Net (loss) for the fourth quarter of 2025 was ($22.2) million, and Adjusted EBITDA for the fourth quarter of 2025 was $36.7 million.
Liquidity, Capital Expenditures and Other
As of December 31, 2025, the Company’s total liquidity was $108.5 million, which was comprised of $40.6 million in cash and cash equivalents, and $67.9 million of availability under the Company’s 2023 ABL Credit Facility.
2
Future Guidance
The Company is providing financial guidance for the first quarter of 2026. Guidance is based on current outlook and plans and is subject to a number of known and unknown uncertainties and risks and constitutes a “forward-looking statement” within the meaning of Section 21E of the Securities Exchange Act of 1934 as further described under the Cautionary Statement below. Actual results may differ materially from the guidance set forth below.
For the first quarter of 2026, EBITDA is expected to be flat with fourth quarter results due to lower realized sand pricing and the impact of severe winter weather in January, which negatively impacted EBITDA generation by approximately $6 million, offsetting improved volumes in sand and logistics and increased contribution from the Power business.
Conference Call Information
The Company will host a conference call to discuss financial and operational results on February 24, 2026 at 9:00am Central Time (10:00am Eastern Time). Individuals wishing to participate in the conference call should dial (877) 407-4133. A live webcast will be available at https://ir.atlas.energy/. Please access the webcast or dial in for the call at least 10 minutes ahead of the start time to ensure a proper connection. An archived version of the conference call will be available on the Company’s website shortly after the conclusion of the call.
The Company will post an updated video titled "Atlas Growth Projects Update February 2026,” at https://ir.atlas.energy/ in the "Overview” tab on the Company’s Investor Relations webpage prior to the conference call.
About Atlas Energy Solutions
Atlas Energy Solutions Inc. (NYSE: AESI) is a leading solutions provider to the energy industry. Atlas’s portfolio of offerings includes oilfield logistics, distributed power systems, and the largest proppant supply network in the Permian Basin. With a focus on leveraging technology, automation, and remote operations to enhance efficiencies, Atlas is centered on a core mission of improving human access to the hydrocarbons that power our lives and, by doing so, maximizing value creation for our shareholders.
3
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words “may,” “assume,” “forecast,” “position,” “strategy,” “potential,” “continue,” “could,” “will,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Examples of forward-looking statements include, but are not limited to statements regarding:, expectations regarding the leverage profile and expectations of Atlas, our plans and expectations regarding our stock repurchase program; expected expansion and growth opportunities in Atlas’s power business, including our ability to enter into the behind-the-meter, long-term power segment, our business strategy, industry, future operations and profitability, expected capital expenditures and the impact of such expenditures on our performance, statements about our financial position, production, revenues and losses, our capital programs, management changes, current and potential future long-term contracts and our future business and financial performance.
Although forward-looking statements reflect our good faith beliefs at the time they are made, we caution you that these forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include but are not limited to: limitations on our financial flexibility due to our existing and any future indebtedness; our ability to successfully execute our share repurchase program or implement future share repurchase programs; higher than expected costs to operate our proppant production and processing facilities or the Dune Express; the volume of proppant we are able to sell and our ability to enter into supply contracts for our proppant on acceptable terms; the prices we are able to charge, and the margins we are able to realize, from our sales of proppant, logistics services, or mobile power generation; the demand for and price of proppant and power generation, particularly in the Permian Basin; the domestic and foreign supply of and demand for oil and natural gas; the effects of actions by, or disputes among or between, members of OPEC+ with respect to production levels or other matters related to the prices of oil and natural gas; customer concentration, the potential for future consolidation amongst current or potential customers and the possibility that customers may not continue to outsource their power system needs, which could affect demand for our products and services, especially in the power generation industry; inability of our customers to take delivery; any planned or future expansion projects or capital expenditures; inaccuracies in estimates of volumes and qualities of our frac sand reserves; volatility in political, legal and regulatory environments; and other factors discussed or referenced in our filings made from time to time with the U.S. Securities and Exchange Commission (“SEC”), including those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K, filed with the SEC on February 25, 2025, and Quarterly Reports on Form 10-Q, filed with the SEC on May 6, 2025, August 5, 2025 and November 4, 2025, respectively, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Investor Contact
Kyle Turlington
5918 W Courtyard Drive, Suite #500
Austin, Texas 78730
United States
T: 512-220-1200
IR@atlas.energy
4
Atlas Energy Solutions Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
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Three Months Ended |
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Year Ended |
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December |
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September |
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December |
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December |
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December |
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December |
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||||||
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(unaudited) |
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(unaudited) |
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(unaudited) |
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Product revenue |
|
|
|
$ |
105,173 |
|
|
$ |
106,839 |
|
|
$ |
128,445 |
|
|
$ |
477,985 |
|
|
$ |
515,434 |
|
|
$ |
468,119 |
|
Service revenue |
|
|
|
|
126,167 |
|
|
|
135,643 |
|
|
|
142,893 |
|
|
|
558,774 |
|
|
|
540,523 |
|
|
|
145,841 |
|
Rental revenue |
|
|
|
|
18,090 |
|
|
|
17,131 |
|
|
|
— |
|
|
|
58,551 |
|
|
|
— |
|
|
|
— |
|
Total revenue |
|
|
|
|
249,430 |
|
|
|
259,613 |
|
|
|
271,338 |
|
|
|
1,095,310 |
|
|
|
1,055,957 |
|
|
|
613,960 |
|
Cost of sales (excluding depreciation, depletion and accretion expense) |
|
|
|
|
187,298 |
|
|
|
195,230 |
|
|
|
190,967 |
|
|
|
784,495 |
|
|
|
725,196 |
|
|
|
260,396 |
|
Depreciation, depletion and accretion expense |
|
|
|
|
41,896 |
|
|
|
40,619 |
|
|
|
30,476 |
|
|
|
160,148 |
|
|
|
98,747 |
|
|
|
39,798 |
|
Gross profit |
|
|
|
|
20,236 |
|
|
|
23,764 |
|
|
|
49,895 |
|
|
|
150,667 |
|
|
|
232,014 |
|
|
|
313,766 |
|
Selling, general and administrative expense (including stock and unit-based compensation expense of $9,075, $9,344, $6,420, $33,227, $22,381 and $7,409, respectively.) |
|
|
|
|
33,724 |
|
|
|
36,322 |
|
|
|
25,511 |
|
|
|
138,829 |
|
|
|
106,223 |
|
|
|
48,608 |
|
Credit loss expense |
|
|
|
|
571 |
|
|
|
97 |
|
|
|
— |
|
|
|
4,778 |
|
|
|
25 |
|
|
|
28 |
|
Amortization expense of acquired intangible assets |
|
|
|
|
6,414 |
|
|
|
5,883 |
|
|
|
3,743 |
|
|
|
23,547 |
|
|
|
12,316 |
|
|
|
— |
|
Change in fair value of contingent consideration |
|
|
|
|
(3,360 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,360 |
) |
|
|
— |
|
|
|
— |
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Loss on disposal of assets |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,672 |
|
|
|
— |
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Insurance recovery (gain) |
|
|
|
|
(2,217 |
) |
|
|
— |
|
|
|
(10,098 |
) |
|
|
(2,217 |
) |
|
|
(20,098 |
) |
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|
— |
|
Operating income (loss) |
|
|
|
|
(14,896 |
) |
|
|
(18,538 |
) |
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|
30,739 |
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|
|
(10,910 |
) |
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|
113,876 |
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|
|
265,130 |
|
Interest (expense), net |
|
|
|
|
(16,110 |
) |
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|
(15,010 |
) |
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|
(12,018 |
) |
|
|
(57,996 |
) |
|
|
(38,647 |
) |
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|
(7,689 |
) |
Other income, net |
|
|
|
|
101 |
|
|
|
(3 |
) |
|
|
101 |
|
|
|
727 |
|
|
|
551 |
|
|
|
430 |
|
Income (loss) before income taxes |
|
|
|
|
(30,905 |
) |
|
|
(33,551 |
) |
|
|
18,822 |
|
|
|
(68,179 |
) |
|
|
75,780 |
|
|
|
257,871 |
|
Income tax expense (benefit) |
|
|
|
|
(8,661 |
) |
|
|
(9,830 |
) |
|
|
4,420 |
|
|
|
(17,875 |
) |
|
|
15,836 |
|
|
|
31,378 |
|
Net income (loss) |
|
|
|
$ |
(22,244 |
) |
|
$ |
(23,721 |
) |
|
$ |
14,402 |
|
|
$ |
(50,304 |
) |
|
$ |
59,944 |
|
|
$ |
226,493 |
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
|
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
$ |
0.13 |
|
|
$ |
(0.41 |
) |
|
$ |
0.55 |
|
|
$ |
1.50 |
|
Diluted |
|
|
|
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
$ |
0.13 |
|
|
$ |
(0.41 |
) |
|
$ |
0.55 |
|
|
$ |
1.48 |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
|
|
124,019 |
|
|
|
123,737 |
|
|
|
110,216 |
|
|
|
122,435 |
|
|
|
108,235 |
|
|
|
70,450 |
|
Diluted |
|
|
|
|
124,019 |
|
|
|
123,737 |
|
|
|
111,262 |
|
|
|
122,435 |
|
|
|
109,176 |
|
|
|
71,035 |
|
5
Atlas Energy Solutions Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
|
|
December |
|
|
September |
|
|
December |
|
|
December |
|
|
December |
|
|
December |
|
||||||
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
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|
||||||
Operating activities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) |
|
|
|
$ |
(22,244 |
) |
|
$ |
(23,721 |
) |
|
$ |
14,402 |
|
|
$ |
(50,304 |
) |
|
$ |
59,944 |
|
|
$ |
226,493 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and accretion expense |
|
|
|
|
43,430 |
|
|
|
42,048 |
|
|
|
31,342 |
|
|
|
165,459 |
|
|
|
102,207 |
|
|
|
41,634 |
|
Amortization expense of acquired intangible assets |
|
|
|
|
6,414 |
|
|
|
5,883 |
|
|
|
3,743 |
|
|
|
23,547 |
|
|
|
12,316 |
|
|
|
— |
|
Amortization of debt discount |
|
|
|
|
1,781 |
|
|
|
1,423 |
|
|
|
1,038 |
|
|
|
5,712 |
|
|
|
3,573 |
|
|
|
761 |
|
Amortization of deferred financing costs |
|
|
|
|
102 |
|
|
|
98 |
|
|
|
117 |
|
|
|
403 |
|
|
|
435 |
|
|
|
337 |
|
Change in fair value of contingent consideration |
|
|
|
|
(3,360 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,360 |
) |
|
|
— |
|
|
|
— |
|
Loss on disposal of assets |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,672 |
|
|
|
— |
|
Stock-based compensation |
|
|
|
|
9,075 |
|
|
|
9,344 |
|
|
|
6,420 |
|
|
|
33,227 |
|
|
|
22,381 |
|
|
|
7,409 |
|
Deferred income tax |
|
|
|
|
(6,665 |
) |
|
|
(9,207 |
) |
|
|
4,569 |
|
|
|
(17,495 |
) |
|
|
15,002 |
|
|
|
29,201 |
|
Credit loss expense |
|
|
|
|
571 |
|
|
|
97 |
|
|
|
— |
|
|
|
4,778 |
|
|
|
25 |
|
|
|
28 |
|
Other |
|
|
|
|
2,301 |
|
|
|
126 |
|
|
|
62 |
|
|
|
2,197 |
|
|
|
(1,618 |
) |
|
|
111 |
|
Changes in operating assets and liabilities: |
|
|
|
|
(27,698 |
) |
|
|
6,356 |
|
|
|
9,160 |
|
|
|
(46,818 |
) |
|
|
22,523 |
|
|
|
(6,947 |
) |
Net cash provided by operating activities |
|
|
|
|
3,707 |
|
|
|
32,447 |
|
|
|
70,853 |
|
|
|
117,346 |
|
|
|
256,460 |
|
|
|
299,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
|
|
|
(21,808 |
) |
|
|
(33,806 |
) |
|
|
(76,431 |
) |
|
|
(148,271 |
) |
|
|
(373,983 |
) |
|
|
(365,486 |
) |
Acquisition, net of cash acquired |
|
|
|
|
— |
|
|
|
(22,658 |
) |
|
|
(11,192 |
) |
|
|
(204,169 |
) |
|
|
(153,425 |
) |
|
|
— |
|
Proceeds from insurance recovery |
|
|
|
|
2,217 |
|
|
|
— |
|
|
|
4,700 |
|
|
|
7,615 |
|
|
|
14,700 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
|
|
(19,591 |
) |
|
|
(56,464 |
) |
|
|
(82,923 |
) |
|
|
(344,825 |
) |
|
|
(512,708 |
) |
|
|
(365,486 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from equity offering, net of issuance costs |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
253,070 |
|
|
|
— |
|
|
|
— |
|
Proceeds from term loan borrowing |
|
|
|
|
(2,000 |
) |
|
|
— |
|
|
|
20,000 |
|
|
|
186,805 |
|
|
|
168,500 |
|
|
|
— |
|
Proceeds from ABL credit facility |
|
|
|
|
25,000 |
|
|
|
25,000 |
|
|
|
20,000 |
|
|
|
50,000 |
|
|
|
70,000 |
|
|
|
— |
|
Principal payments on term loan borrowings |
|
|
|
|
(3,259 |
) |
|
|
(4,725 |
) |
|
|
(4,452 |
) |
|
|
(17,461 |
) |
|
|
(14,383 |
) |
|
|
(16,573 |
) |
Payment on ABL credit facility |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(70,000 |
) |
|
|
— |
|
|
|
— |
|
Payment on Deferred Cash Consideration Note |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(101,252 |
) |
|
|
— |
|
|
|
— |
|
Issuance costs associated with debt financing |
|
|
|
|
(135 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(281 |
) |
|
|
(1,189 |
) |
|
|
(4,397 |
) |
Payments under finance leases |
|
|
|
|
(1,340 |
) |
|
|
(941 |
) |
|
|
(851 |
) |
|
|
(3,972 |
) |
|
|
(2,625 |
) |
|
|
(2,001 |
) |
Repayment of equipment finance notes |
|
|
|
|
(1,804 |
) |
|
|
(1,607 |
) |
|
|
(1,036 |
) |
|
|
(5,475 |
) |
|
|
(3,563 |
) |
|
|
— |
|
Dividends |
|
|
|
|
— |
|
|
|
(30,940 |
) |
|
|
(26,451 |
) |
|
|
(92,281 |
) |
|
|
(96,895 |
) |
|
|
(62,163 |
) |
Taxes withheld on vesting RSUs |
|
|
|
|
(1,295 |
) |
|
|
(230 |
) |
|
|
(2,067 |
) |
|
|
(2,546 |
) |
|
|
(2,067 |
) |
|
|
— |
|
Repurchases of Common Stock under share repurchase program |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(200 |
) |
|
|
— |
|
|
|
— |
|
Prepayment fee on 2021 Term Loan Credit Facility |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,649 |
) |
Net proceeds from IPO |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
303,426 |
|
Payment of offering costs |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,020 |
) |
Member distributions prior to IPO |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,000 |
) |
Net cash provided by (used in) financing activities |
|
|
|
|
15,167 |
|
|
|
(13,443 |
) |
|
|
5,137 |
|
|
|
196,407 |
|
|
|
117,778 |
|
|
|
194,623 |
|
Net decrease in cash and cash equivalents |
|
|
|
|
(717 |
) |
|
|
(37,460 |
) |
|
|
(6,933 |
) |
|
|
(31,072 |
) |
|
|
(138,470 |
) |
|
|
128,164 |
|
Cash and cash equivalents, beginning of period |
|
|
|
|
41,349 |
|
|
|
78,809 |
|
|
|
78,637 |
|
|
|
71,704 |
|
|
|
210,174 |
|
|
|
82,010 |
|
Cash and cash equivalents, end of period |
|
|
|
$ |
40,632 |
|
|
$ |
41,349 |
|
|
$ |
71,704 |
|
|
$ |
40,632 |
|
|
$ |
71,704 |
|
|
$ |
210,174 |
|
6
Atlas Energy Solutions Inc.
Condensed Consolidated Balance Sheets
(in thousands)
|
|
|
|
As of |
|
|
As of |
|
|
||
|
|
|
|
December |
|
|
December |
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
$ |
40,632 |
|
|
$ |
71,704 |
|
|
Accounts receivable, including related parties, net |
|
|
|
|
180,783 |
|
|
|
165,967 |
|
|
Inventories, prepaid expenses and other current assets |
|
|
|
|
86,099 |
|
|
|
51,747 |
|
|
Total current assets |
|
|
|
|
307,514 |
|
|
|
289,418 |
|
|
Property, plant and equipment, net |
|
|
|
|
1,540,813 |
|
|
|
1,486,246 |
|
|
Right-of-use assets |
|
|
|
|
43,783 |
|
|
|
18,666 |
|
|
Goodwill |
|
|
|
|
152,903 |
|
|
|
68,999 |
|
|
Intangible assets |
|
|
|
|
182,238 |
|
|
|
105,867 |
|
|
Other long-term assets |
|
|
|
|
1,177 |
|
|
|
3,456 |
|
|
Total assets |
|
|
|
$ |
2,228,428 |
|
|
$ |
1,972,652 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
|
|
|
||
Accounts payable, including related parties |
|
|
|
|
69,203 |
|
|
|
119,244 |
|
|
Accrued liabilities and other current liabilities |
|
|
|
|
101,180 |
|
|
|
80,085 |
|
|
Current portion of long-term debt |
|
|
|
|
40,681 |
|
|
|
43,736 |
|
|
Total current liabilities |
|
|
|
|
211,064 |
|
|
|
243,065 |
|
|
Long-term debt, net of discount and deferred financing costs |
|
|
|
|
538,240 |
|
|
|
466,989 |
|
|
Deferred tax liabilities |
|
|
|
|
221,622 |
|
|
|
206,872 |
|
|
Other long-term liabilities |
|
|
|
|
48,578 |
|
|
|
19,170 |
|
|
Total liabilities |
|
|
|
|
1,019,504 |
|
|
|
936,096 |
|
|
Total stockholders' and members' equity |
|
|
|
|
1,208,924 |
|
|
|
1,036,556 |
|
|
Total liabilities and stockholders’ equity |
|
|
|
$ |
2,228,428 |
|
|
$ |
1,972,652 |
|
|
7
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted EBITDA, to assess our consolidated operating performance on a consistent basis across periods by removing the effects of development activities, provide views on capital resources available to organically fund growth projects and, in the case of Adjusted Free Cash Flow, assess the financial performance of our assets and their ability to sustain dividends or reinvest to organically fund growth projects over the long term without regard to financing methods, capital structure, or historical cost basis.
These measures do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA and Adjusted Free Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures may differ from computations of similarly titled measures of other companies.
Non-GAAP Measure Definitions:
8
Atlas Energy Solutions Inc. – Supplemental Information
Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income
(unaudited, in thousands)
|
|
|
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||||
|
|
|
|
December |
|
|
September |
|
|
December |
|
|
December |
|
|
December |
|
|
December |
|
|
||||||
Net income (loss) |
|
|
|
$ |
(22,244 |
) |
|
$ |
(23,721 |
) |
|
$ |
14,402 |
|
|
$ |
(50,304 |
) |
|
$ |
59,944 |
|
|
$ |
226,493 |
|
|
Depreciation, depletion and accretion expense |
|
|
|
|
43,430 |
|
|
|
42,048 |
|
|
|
31,342 |
|
|
|
165,459 |
|
|
|
102,207 |
|
|
|
41,634 |
|
|
Amortization expense of acquired intangible assets |
|
|
|
|
6,414 |
|
|
|
5,883 |
|
|
|
3,743 |
|
|
|
23,547 |
|
|
|
12,316 |
|
|
|
— |
|
|
Interest expense |
|
|
|
|
16,214 |
|
|
|
15,155 |
|
|
|
12,257 |
|
|
|
59,370 |
|
|
|
43,078 |
|
|
|
17,452 |
|
|
Income tax expense (benefit) |
|
|
|
|
(8,661 |
) |
|
|
(9,830 |
) |
|
|
4,420 |
|
|
|
(17,875 |
) |
|
|
15,836 |
|
|
|
31,378 |
|
|
EBITDA |
|
|
|
$ |
35,153 |
|
|
$ |
29,535 |
|
|
$ |
66,164 |
|
|
$ |
180,197 |
|
|
$ |
233,381 |
|
|
$ |
316,957 |
|
|
Stock and unit-based compensation |
|
|
|
|
9,075 |
|
|
|
9,344 |
|
|
|
6,420 |
|
|
|
33,227 |
|
|
|
22,381 |
|
|
|
7,409 |
|
|
Loss on disposal of assets (1) |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,672 |
|
|
|
— |
|
|
Insurance recovery (gain) (2) |
|
|
|
|
(2,217 |
) |
|
|
— |
|
|
|
(10,098 |
) |
|
|
(2,217 |
) |
|
|
(20,098 |
) |
|
|
— |
|
|
Other non-recurring costs (3) |
|
|
|
|
1,048 |
|
|
|
638 |
|
|
|
— |
|
|
|
6,833 |
|
|
|
14,335 |
|
|
|
4,838 |
|
|
Other acquisition related costs (4) |
|
|
|
|
(6,315 |
) |
|
|
669 |
|
|
|
750 |
|
|
|
3,640 |
|
|
|
19,231 |
|
|
|
451 |
|
|
Adjusted EBITDA |
|
|
|
$ |
36,744 |
|
|
$ |
40,186 |
|
|
$ |
63,236 |
|
|
$ |
221,680 |
|
|
$ |
288,902 |
|
|
$ |
329,655 |
|
|
Maintenance Capital Expenditures (5) |
|
|
|
$ |
14,351 |
|
|
$ |
18,202 |
|
|
$ |
16,162 |
|
|
$ |
69,675 |
|
|
$ |
38,422 |
|
|
$ |
38,524 |
|
|
Adjusted Free Cash Flow |
|
|
|
$ |
22,393 |
|
|
$ |
21,984 |
|
|
$ |
47,074 |
|
|
$ |
152,005 |
|
|
$ |
250,480 |
|
|
$ |
291,131 |
|
|
Atlas Energy Solutions Inc. – Supplemental Information
Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities
(unaudited, in thousands, except percentages)
|
|
|
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||||
|
|
|
|
December |
|
|
September |
|
|
December |
|
|
December |
|
|
December |
|
|
December |
|
|
||||||
Net cash provided by operating activities |
|
|
|
$ |
3,707 |
|
|
$ |
32,447 |
|
|
$ |
70,853 |
|
|
$ |
117,346 |
|
|
$ |
256,460 |
|
|
$ |
299,027 |
|
|
Current income tax expense (benefit) (5) |
|
|
|
|
(1,996 |
) |
|
|
(623 |
) |
|
|
(149 |
) |
|
|
(380 |
) |
|
|
834 |
|
|
|
2,177 |
|
|
Change in operating assets and liabilities |
|
|
|
|
27,698 |
|
|
|
(6,356 |
) |
|
|
(9,160 |
) |
|
|
46,818 |
|
|
|
(22,523 |
) |
|
|
6,947 |
|
|
Cash interest expense (5) |
|
|
|
|
14,331 |
|
|
|
13,634 |
|
|
|
11,102 |
|
|
|
53,255 |
|
|
|
39,070 |
|
|
|
16,354 |
|
|
Maintenance capital expenditures (5) |
|
|
|
|
(14,351 |
) |
|
|
(18,202 |
) |
|
|
(16,162 |
) |
|
|
(69,675 |
) |
|
|
(38,422 |
) |
|
|
(38,524 |
) |
|
Credit loss expense |
|
|
|
|
(571 |
) |
|
|
(97 |
) |
|
|
— |
|
|
|
(4,778 |
) |
|
|
(25 |
) |
|
|
(28 |
) |
|
Change in fair value of contingent consideration |
|
|
|
|
3,360 |
|
|
|
— |
|
|
|
— |
|
|
|
3,360 |
|
|
|
— |
|
|
|
— |
|
|
Other non-recurring costs (3) |
|
|
|
|
1,048 |
|
|
|
638 |
|
|
|
— |
|
|
|
6,833 |
|
|
|
14,335 |
|
|
|
4,838 |
|
|
Other acquisition related costs (4) |
|
|
|
|
(6,315 |
) |
|
|
669 |
|
|
|
750 |
|
|
|
3,640 |
|
|
|
19,231 |
|
|
|
451 |
|
|
Insurance recovery (gain) (2) |
|
|
|
|
(2,217 |
) |
|
|
— |
|
|
|
(10,098 |
) |
|
|
(2,217 |
) |
|
|
(20,098 |
) |
|
|
— |
|
|
Other |
|
|
|
|
(2,301 |
) |
|
|
(126 |
) |
|
|
(62 |
) |
|
|
(2,197 |
) |
|
|
1,618 |
|
|
|
(111 |
) |
|
Adjusted Free Cash Flow |
|
|
|
$ |
22,393 |
|
|
$ |
21,984 |
|
|
$ |
47,074 |
|
|
$ |
152,005 |
|
|
$ |
250,480 |
|
|
$ |
291,131 |
|
|
Adjusted EBITDA Margin |
|
|
|
|
15 |
% |
|
|
15 |
% |
|
|
23 |
% |
|
|
20 |
% |
|
|
27 |
% |
|
|
54 |
% |
|
Adjusted Free Cash Flow Margin |
|
|
|
|
9 |
% |
|
|
8 |
% |
|
|
17 |
% |
|
|
14 |
% |
|
|
24 |
% |
|
|
47 |
% |
|
Adjusted Free Cash Flow Conversion |
|
|
|
|
61 |
% |
|
|
55 |
% |
|
|
74 |
% |
|
|
69 |
% |
|
|
87 |
% |
|
|
88 |
% |
|
9
Atlas Energy Solutions Inc. – Supplemental Information
Reconciliation of Maintenance Capital Expenditures to Purchase of Property, Plant and Equipment
(unaudited, in thousands)
|
|
|
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||||
|
|
|
|
December |
|
|
September |
|
|
December |
|
|
December |
|
|
December |
|
|
December |
|
|
||||||
Maintenance Capital Expenditures, accrual basis reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
|
|
$ |
21,808 |
|
|
$ |
33,806 |
|
|
$ |
76,431 |
|
|
$ |
148,271 |
|
|
$ |
373,983 |
|
|
$ |
365,486 |
|
|
Changes in operating assets and liabilities associated with investing activities, equipment assets acquired through debt, and asset retirement obligations (1) |
|
|
|
|
2,088 |
|
|
|
4,601 |
|
|
|
(11,118 |
) |
|
|
(6,803 |
) |
|
|
(2,948 |
) |
|
|
66,132 |
|
|
Less: Equipment assets acquired through debt and asset retirement obligations |
|
|
|
|
(4,422 |
) |
|
|
(7,955 |
) |
|
|
772 |
|
|
|
(21,905 |
) |
|
|
(7,101 |
) |
|
|
(45,050 |
) |
|
Less: Growth capital expenditures and reconstruction of previously incurred growth capital expenditures |
|
|
|
|
(5,123 |
) |
|
|
(12,250 |
) |
|
|
(49,923 |
) |
|
|
(49,888 |
) |
|
|
(325,512 |
) |
|
|
(348,044 |
) |
|
Maintenance Capital Expenditures, accrual basis |
|
|
|
$ |
14,351 |
|
|
$ |
18,202 |
|
|
$ |
16,162 |
|
|
$ |
69,675 |
|
|
$ |
38,422 |
|
|
$ |
38,524 |
|
|
Atlas Energy Solutions Inc. – Supplemental Information
Reconciliation of Current Income Tax Expense to Income Tax Expense
(unaudited, in thousands)
|
|
|
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||||
|
|
|
|
December |
|
|
September |
|
|
December |
|
|
December |
|
|
December |
|
|
December |
|
|
||||||
Current tax expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax expense (benefit) |
|
|
|
$ |
(8,661 |
) |
|
$ |
(9,830 |
) |
|
$ |
4,420 |
|
|
$ |
(17,875 |
) |
|
$ |
15,836 |
|
|
$ |
31,378 |
|
|
Less: deferred tax expense (benefit) |
|
|
|
|
6,665 |
|
|
|
9,207 |
|
|
|
(4,569 |
) |
|
|
17,495 |
|
|
|
(15,002 |
) |
|
|
(29,201 |
) |
|
Current income tax expense (benefit) |
|
|
|
$ |
(1,996 |
) |
|
$ |
(623 |
) |
|
$ |
(149 |
) |
|
$ |
(380 |
) |
|
$ |
834 |
|
|
$ |
2,177 |
|
|
Atlas Energy Solutions Inc. – Supplemental Information
Cash Interest Expense to Interest Expense, Net
(unaudited, in thousands)
|
|
|
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||||
|
|
|
|
December |
|
|
September |
|
|
December |
|
|
December |
|
|
December |
|
|
December |
|
|
||||||
Cash interest expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
|
|
$ |
16,110 |
|
|
$ |
15,010 |
|
|
$ |
12,018 |
|
|
$ |
57,996 |
|
|
$ |
38,647 |
|
|
$ |
7,689 |
|
|
Less: Amortization of debt discount |
|
|
|
|
(1,781 |
) |
|
|
(1,423 |
) |
|
|
(1,038 |
) |
|
|
(5,712 |
) |
|
|
(3,573 |
) |
|
|
(761 |
) |
|
Less: Amortization of deferred financing costs |
|
|
|
|
(102 |
) |
|
|
(98 |
) |
|
|
(117 |
) |
|
|
(403 |
) |
|
|
(435 |
) |
|
|
(337 |
) |
|
Less: Interest income |
|
|
|
|
104 |
|
|
|
145 |
|
|
|
239 |
|
|
|
1,374 |
|
|
|
4,431 |
|
|
|
9,763 |
|
|
Cash interest expense |
|
|
|
$ |
14,331 |
|
|
$ |
13,634 |
|
|
$ |
11,102 |
|
|
$ |
53,255 |
|
|
$ |
39,070 |
|
|
$ |
16,354 |
|
|
10
FAQ
How did Atlas Energy Solutions (AESI) perform financially in 2025?
What were Atlas Energy Solutions’ fourth quarter 2025 results?
How did Atlas Energy Solutions’ 2025 cash flow and capex trend?
What are Atlas Energy Solutions’ growth plans in power generation?
How did Atlas Energy Solutions’ volumes and Dune Express usage look in 2025?
What guidance did Atlas Energy Solutions give for Q1 2026 EBITDA?
Filing Exhibits & Attachments
2 documentsPress Releases
