ProPetro's Q3: Shrinking Completions vs. Power Sector Push Drive Mixed Results

ProPetro Holding Corp (PUMP) is navigating a mixed landscape in Q3 2025, with a narrower net loss and strategic growth in its Pro Power segment offsetting a revenue decline in its core completions business. The company reported total revenue of $294 million, a 10% drop from the prior quarter, driven by challenging market conditions in the hydraulic fracturing sector, according to a Yahoo Finance report. Despite this, ProPetro generated a net loss of $2 million, or $0.02 per share—an improvement from the $7 million loss in Q2 2025, according to a GuruFocus summary. Adjusted EBITDA fell to $35 million, representing 12% of revenue, down 29% quarter-over-quarter, as noted in the earnings call transcript.

The company's Pro Power segment emerged as a bright spot, securing a 60-megawatt contract to power a hyperscale data center in the Midwest and expanding its contracted capacity to over 150 megawatts, with a target of 220 megawatts by year-end, as reported in a Zacks piece on TradingView. ProPetro has ordered 140 megawatts of additional equipment, bringing total on-order capacity to 360 megawatts, with a long-term goal of 750 megawatts by 2028, according to the SEC 10-Q. Management highlighted a $350 million leasing facility to fund this expansion, signaling confidence in the segment's profitability in a GuruFocus report.

However, the completions segment faced ongoing headwinds. Active Permian frac fleets dropped to 70 from 90–100 at the start of 2025, with three fleets idled due to unsustainable pricing, as noted in a Seeking Alpha preview. Service revenues from this unit fell 18.6% to $293.9 million, though costs and expenses declined 44.4% to $300 million, contributing to improved margins, according to MarketBeat. ProPetro's balance sheet remains resilient, with $67 million in cash and $158 million in total liquidity as of September 30, 2025, per Morningstar.

Looking ahead, ProPetro projects 2025 capital expenditures of $270 million–$290 million, allocating $80 million–$100 million to completions and $190 million to Pro Power, according to an InvestorsHub report. Management anticipates sequential improvement in the Pro Power segment to offset holiday seasonality in Q4, though near-term demand visibility in completions remains limited. Analysts remain divided on the stock, with a consensus price target of $6.80 reflecting cautious optimism. Recent price action saw shares surge 19% after the data center contract announcement, but estimates for full-year 2025 revenue have fallen from $1.3 billion to $1.21 billion, underscoring sector-wide uncertainty.