ProPetro Swings to Profit as PROPWR Contracts Reach 510 Megawatts

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was $355 million, up 16% from $306 million, as completions utilization and PROPWR deployments lifted Adjusted EBITDA to $60 million.

ProPetro Holding Corp. (PUMP), a Midland, Texas provider of completion services and PROPWR gas-to-power solutions, reported third-quarter 2026 revenue of $355 million, up 16% from $306 million in the second quarter, after a 13% sequential increase in that prior period.

The company swung to net income of $13 million, or $0.09 a share, from a net loss of $8 million, or $0.07 a share, in the second quarter. Operating income was $11.0 million versus an operating loss of $3.2 million.

Adjusted EBITDA rose 33% to $60 million, or 17% of revenue, from $45 million, or 15% of revenue, after a 23% sequential rise in the second quarter. ProPetro said the increase was driven by higher completions utilization and incremental PROPWR deployments, partially offset by higher costs of rebuilding completions infrastructure. Cost of services, exclusive of depreciation and amortization, was $270 million. General and administrative expense was $31 million; excluding $5 million of nonrecurring and noncash items, G&A was $26 million, or 7% of revenue.

PROPWR generated approximately $8 million of Adjusted EBITDA in the third quarter, which the company described as a meaningful sequential increase from deployment execution and reliability. Power generation capacity committed under contract reached approximately 510 megawatts, including about 230 megawatts under a newly announced Targa agreement, up from approximately 350 megawatts after two second-quarter awards.

Chief Executive Officer Sam Sledge said the company expects to deploy between approximately 250 and 275 megawatts by the end of 2026 and more than 500 megawatts by early 2028, from scaling contracted capacity, the Targa award scheduled for full deployment by early 2028, and one or more additional data center projects. He said the company continues advanced negotiations across several hundred megawatts of data center opportunities and is already operating on a hyperscaler site in the U.S. Midwest.

Capital expenditures paid were $123 million and incurred $171 million, including about $43 million for completions and about $128 million for PROPWR equipment orders, versus $61 million paid and $71 million incurred in the second quarter. Net cash provided by operating activities was $46 million, down from $66 million, which the company attributed to about $15 million of working-capital headwinds versus about $20 million of working-capital tailwinds in the prior quarter, partially offset by higher Adjusted EBITDA.

Cash and cash equivalents were $729 million as of September 30, 2026, including net proceeds from $690 million of convertible senior notes. Total liquidity was $934 million, including $185 million of available capacity under the ABL Credit Facility and $20 million under the Caterpillar Equipment Loan Agreement. Borrowings under the Caterpillar Financial Services agreement were $172 million.

The company anticipates full-year 2026 capital expenditures incurred of $525 million to $575 million, with completions still expected at about $125 million to $145 million and PROPWR at about $400 million to $430 million. The $1.4 million to $1.5 million per megawatt PROPWR cost guide remains unchanged.

Sledge said completions capacity is now essentially sold out after rebuilding following declining activity in 2024 and 2025, and that most contracted horsepower comes up for renewal in the first half of 2027. The company currently expects to maintain about 13 active frac fleets through the fourth quarter, with meaningful seasonality and continued margin pressure from rebuilding costs similar to those in the second and third quarters. It expects 2027 PROPWR capital expenditures to increase from 2026 levels and 2027 earnings to be weighted toward the latter part of the year as larger projects come online.