LandBridge Accelerated Revenue Growth on Surface-Use Demand
Net income climbed 68% to $31.0 million as margins widened.
LandBridge (LB), a land and resource-management company, accelerated revenue growth to 41% in the second quarter as produced-water handling and other surface-use activity strengthened. The gain reversed the sequential decline recorded at the start of the year.
Revenue reached $66.8 million, up 31% from $51.0 million in the first quarter, when year-over-year growth was 16%. Net income increased 74% sequentially from $17.9 million, while the net income margin expanded to 46% from 35% and 39% a year earlier.
Adjusted EBITDA rose 41% from a year earlier and 33% sequentially to $59.8 million, reversing the first quarter's decline from $51.1 million in the final quarter of 2024. The adjusted EBITDA margin edged up to 89% from 88%, matching its year-earlier level.
Surface-use royalties and revenue accounted for nearly all of the quarter's $15.8 million sequential revenue increase. The category climbed $15.2 million to $52.2 million, driven by higher produced-water handling volumes and broader commercial activity, after falling $2.3 million in the first quarter.
The other revenue categories changed modestly. Resource sales and royalties held near $11.1 million, while oil-and-gas royalty revenue increased $0.6 million to $3.6 million as higher oil prices supported the business.
Cash generation lagged the earnings increase. Operating cash flow was essentially flat sequentially at $41.4 million, lowering its margin to 62% from 81%, while free cash flow slipped to $40.2 million and its margin narrowed to 60% from 80%. Both measures remained 11% above their year-earlier levels.
LandBridge reaffirmed 2026 adjusted EBITDA guidance of $210 million to $230 million, a range it raised in the first quarter from $205 million to $225 million. The company also expanded its disclosed power and digital-infrastructure opportunities to seven counterparties representing more than 10 gigawatts of potential generation, compared with the first quarter's highlighted agreement for up to 2 gigawatts of initial generation.
After the quarter ended, LandBridge increased its revolving-credit commitments by $100 million to $375 million and restored an option to expand the facility to $475 million. The company also reduced pricing-grid margins by 25 basis points, adding capacity as acquisition spending and its digital-infrastructure ambitions grew.