Atlas Revenue Accelerates as Services and Rentals Expand
Atlas targeted 180 to 200 megawatts of oilfield-power deployment by year-end.
Atlas Energy Solutions (AESI), a proppant producer and logistics provider, reported faster second-quarter revenue growth as its net loss narrowed from the prior period. Revenue rose 10.4% sequentially to $293.2 million, while the loss narrowed to $25.1 million from $47.3 million.
The sequential increase accelerated from 6.5% in the first quarter and lifted revenue 1.6% above the year-earlier level. The improvement came as Atlas shifted its sales mix toward services and rentals.
Service revenue increased 17.0% from the first quarter to $162.7 million, and rental revenue climbed 54.3% to $27.0 million. Product revenue fell 5.0% to $103.5 million. Compared with a year earlier, services grew 11.1% and rentals rose 71.6%, while product revenue declined 18.2%.
Gross profit increased to $25.9 million from $6.3 million sequentially as revenue outpaced a 3.4% rise in cost of sales excluding depreciation. Adjusted EBITDA climbed 65.5% to $49.5 million, and its margin widened to 17% from 11%. Both measures remained below year-earlier levels, with adjusted EBITDA down 30.5% and gross profit roughly halved.
Atlas achieved record quarterly volume on its Dune Express conveyor and a record 6 million tons of Last Mile shipments, alongside 5.6 million tons of proppant product sales. Adjusted free cash flow rebounded to $34.9 million from $5.3 million, though operating cash flow swung to a $0.6 million use of cash. Capital spending reached $153.8 million as growth and reconstruction expenditures rose to $131.5 million.
The company advanced its power expansion by completing a 26-megawatt bridge facility for the customer behind its first five-year, 120-megawatt agreement. Atlas expects the permanent project to start at the end of the first quarter of 2027, while its oilfield-power plan targets 180 to 200 megawatts of deployment by the end of 2026.
Results included a $6.8 million loss tied to the early payoff of lease financing and $2.6 million of net litigation-settlement expense. Atlas also revised its adjusted measures to add back certain prior-period litigation costs, raising comparable first-quarter adjusted EBITDA to $29.9 million from the $28.4 million originally reported and adjusted free cash flow to $5.3 million from $3.8 million.
Liquidity rose to $292.9 million at June 30, including $168.2 million of cash, after Atlas issued $436.5 million of convertible notes during the quarter. Cash had stood at $39.8 million three months earlier, leaving the company with a larger funding base as power deployment and capital spending accelerated.