Smart Sand Raises 2026 Volume Outlook After Sequential Sales Dip

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

Third-quarter revenue was $112.3 million as tons sold fell 4% from a second-quarter record, and the company now expects a 20% to 30% increase in 2026 sales volumes versus 2025.

Smart Sand, Inc. (SND), a supplier of Northern White frac sand and industrial sand, sold 1,783,000 tons in the third quarter of 2026, a 4% sequential decline from a record 1,864,000 tons in the second quarter after a 25% sequential increase in that prior period. Year over year, volumes were still up 21% from 1,472,000 tons in the third quarter of 2025.

Revenue was $112.3 million, down from $115.1 million in the second quarter. The company said the sequential decrease was primarily driven by the 4% volume drop, only partially offset by slightly higher average selling prices. Versus $92.8 million a year earlier, revenue rose on the 21% volume increase and higher prices.

Gross profit slipped to $19.2 million from $19.8 million sequentially on lower volumes. Contribution margin was $26.4 million, or $14.82 a ton, compared with $27.1 million, or $14.54 a ton, in the second quarter. Adjusted EBITDA was $18.0 million, down from $18.7 million sequentially. The company attributed the sequential declines in contribution margin and Adjusted EBITDA to lower sales volumes.

Net income was $8.4 million, or $0.20 a share on a diluted basis, compared with $10.2 million, or $0.25 a share diluted, in the second quarter. The company said the sequential decrease was primarily due to lower sales volumes, only partially offset by lower cost of goods sold associated with those volumes, and that income tax expense of $0.6 million, versus $0.1 million in the second quarter, further contributed to the difference.

Free cash flow swung to $17.3 million from a $1.4 million outflow in the second quarter. Operating cash flow rose to $21.1 million from $3.4 million, which the company said was primarily due to an increase in conversion of working capital. Capital expenditures were $3.8 million.

Chief Executive Officer Charles Young said the company continues to see robust activity in its core operating basins and currently expects those activity levels to continue through the fourth quarter and into 2027. He said Industrial Product Solution sales volumes continued to grow and that SmartSystems performed well in the quarter.

For the full year 2026, the company currently expects sales volumes to increase by 20% to 30% compared with 2025, a higher range than the 10% to 20% outlook given after the second quarter and the 5% to 10% range after the first quarter. It reiterated an expectation of positive free cash flow in 2026.

Through September 30, 2026, the company had spent about $10.8 million in capital expenditures and projects full-year 2026 capital expenditures of $15.0 million to $20.0 million, excluding acquisitions and potential investments in new terminals. Cash on hand was $21.7 million at September 30, with $50.0 million undrawn under the FCB ABL credit facility.

The company said it returned approximately $14.3 million to shareholders year to date in 2026 through dividends and share repurchases, including a special dividend of $0.05 a share declared November 5, payable November 30, 2026, that will return about $2.2 million. It repurchased no shares in the third quarter under the $20.0 million program approved in February 2026. Young said the company has continued to invest in growth, including acquiring the right to operate a terminal in Williamsport, Pennsylvania, that will become operational in 2027, and the right to a site in Fort St. John, British Columbia, for potential future terminal development.