Is ACDC an excellent inventory to purchase? We got here throughout a bullish thesis on ProFrac Holding Corp. on Petty Money’s Substack by Dean. On this article, we are going to summarize the bulls’ thesis on ACDC. ProFrac Holding Corp.’s share was buying and selling at $6.71 as of March twenty sixth. ACDC’s trailing and ahead P/E had been 93.91 and 16.16 respectively in accordance with Yahoo Finance.
ProFrac Holding Corp. operates as a technology-focused vitality providers holding firm in the US. ACDC reported This fall and full-year 2025 outcomes that mirrored a weaker North American completions market, however the firm demonstrated notable resilience as profitability exceeded expectations regardless of decrease exercise ranges.
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Income for the fourth quarter got here in at $436.5M with adjusted EBITDA of $61.1M, each forward of consensus estimates, highlighting stronger-than-anticipated price management and operational execution. Whereas outcomes declined year-over-year as a result of pricing stress and decrease utilization, EBITDA margins held at roughly 14%, signaling relative stability in a difficult setting. For the complete yr, ProFrac generated $1.94B in income and $310M in EBITDA, whereas sustaining optimistic free money circulate and decreasing capex considerably, underscoring a disciplined strategy to capital allocation.
The corporate’s vertically built-in mannequin continues to be a key differentiator, with its stimulation providers, proppant manufacturing, manufacturing, and Flotek segments working cohesively to drive efficiencies and assist margins. A big portion of phase revenues being intercompany displays this integration, which positions ProFrac to higher management prices and improve service choices over time. Administration has additionally initiated a price optimization plan focusing on $100M in annualized financial savings by mid-2026, which, mixed with early indicators of exercise restoration and tightening supply-demand dynamics within the frac market, may drive significant margin enlargement.
Regardless of near-term headwinds, together with weather-related disruptions and subdued completions exercise, business fundamentals counsel that present exercise ranges are beneath what’s required to maintain manufacturing, implying a possible rebound.
Buying and selling at comparatively low EBITDA multiples, ProFrac affords vital upside if exercise and pricing get well. Nonetheless, given its operational leverage, steadiness sheet publicity, and sensitivity to commodity cycles, ProFrac Holding Corp. represents a high-risk, high-reward funding alternative with substantial upside potential in a recovering market.
