Q2 2025 Atlas Energy Solutions Inc Earnings Call Transcript
Key Points
- Atlas Energy Solutions Inc (AESI) reported $70.5 million of adjusted EBITDA on $288.7 million of sales, achieving a 24% adjusted EBITDA margin.
- The company anticipates a sequential increase in volumes for the third quarter, supported by market share gains and a strong customer base.
- Atlas has expanded its market share significantly, from 15% at the time of its IPO to approximately 35% of all sand sold today.
- The Dune Express is fully operational, reducing public road traffic and emissions, and has already delivered over 1.5 million tons of proppant.
- The acquisition of Moser Energy Systems and PropFlow positions Atlas for growth in the power business and enhances its market position in proppant delivery.
- The second-quarter results were at the low end of guidance due to a slowdown in Permian Basin completion activity.
- There has been a significant decline in the Permian frac crew count, impacting sand volumes and operational efficiency.
- Spot prices for West Texas sand remain low, insufficient to justify continued reinvestment for much of the industry.
- Economic and commodity price uncertainty has led to cautious behavior from customers, resulting in deferred scheduled completions.
- Cash SG&A was elevated during the quarter due to third-party consulting costs and litigation expenses.
Greetings and welcome to the second quarter 2025 financial and operational results conference call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kyle Turlington, Vice President, Investor Relations. Thank you. You may begin.
Hello and welcome to the Atlas Energy Solutions conference call and webcast for the second quarter of 2025. With us today are John Turner, President and CEO; Blake McCarthy, CFO; Chris Scholla, EVP and President of Sand and Logistics; and Bud Brigham, Executive Chair. We will be sharing their comments on the company's operational and financial performance for the first quarter of 2025, after which we will open the call for Q&A.
Before we begin our prepared remarks, I would like to remind everyone that this call will include forward-looking statements as defined under the US securities laws. Such statements are based on the current information and management's
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