Atlas Energy Solutions Announces Q4 and Full Year 2025 Results: Revenue Growth, Net Loss, and Strategic Power Expansion Plans

Key Financial and Operational Highlights for Investors

Austin, TX – February 23, 2026 – Atlas Energy Solutions Inc. (NYSE: AESI) has released its financial and operating results for the fourth quarter and full year ended December 31, 2025. The report reveals both challenges and opportunities for shareholders, with several items that could potentially impact the company’s valuation.

Key Points from the Report

• Full Year 2025 Financials:
  • Revenue: \$1.1 billion (up from \$1.06 billion in 2024 and \$614 million in 2023)
  • Net Loss: (\$50.3) million (compared to net income of \$59.9 million in 2024 and \$226.5 million in 2023)
  • Adjusted EBITDA: \$221.7 million (down from \$288.9 million in 2024 and \$329.7 million in 2023)
  • Adjusted Free Cash Flow: \$152.0 million (down from \$250.5 million in 2024 and \$291.1 million in 2023)
  • Total sand volumes: 21.6 million tons
  • Dune Express shipments: 5.9 million tons
• Q4 2025 Financials:
  • Revenue: \$249.4 million
  • Net Loss: (\$22.2) million
  • Adjusted EBITDA: \$36.7 million
  • Sand volumes: 5.3 million tons
• Liquidity:
  • Total liquidity at year-end: \$108.5 million
  • Cash and cash equivalents: \$40.6 million
  • Availability under ABL Credit Facility: \$67.9 million
• Operational Updates:
  • Highest utilization levels to date for Dune Express in the Delaware Basin
  • Actively evaluating over 2 GW of potential power generation opportunities
  • Targeting approximately 500 MW of power generation capacity by 2027

CEO Commentary and Strategic Initiatives

John Turner, President & CEO, noted that Q4 volumes exceeded expectations due to stronger customer demand and muted year-end seasonality. The company’s cost-advantaged mines and logistics network enabled Atlas to increase its share of customers’ sand procurement spend and acquire new key customer relationships. The company expects these relationships to scale in 2026 and beyond.

Turner highlighted the growing efficiency and reliability of the Dune Express, particularly in the Delaware Basin, which has seen record utilization levels.

Future Guidance and Outlook

• Q1 2026 Guidance:
  • EBITDA expected to be flat compared to Q4 2025 due to lower realized sand pricing and severe winter weather in January, which negatively impacted EBITDA by approximately \$6 million.
  • Improved volumes in sand and logistics and increased contribution from the Power business are expected to partially offset these headwinds.
• Power Business Expansion:
  • Atlas is evaluating power generation opportunities representing over 2 GW and targeting 500 MW of deployed capacity by 2027, indicating a potential strategic diversification and growth area.

Other Notable Financial Details

• Selling, General & Administrative (SG&A) Expenses:
  • Q4 2025 SG&A decreased by \$2.6 million (7.2%) quarter-over-quarter to \$33.7 million, suggesting ongoing cost management efforts.
• Adjusted EBITDA Margin:
  • 20% for 2025, down from 27% in 2024 and 54% in 2023, indicating margin compression.
• Adjusted Free Cash Flow Margin:
  • 14% for 2025, down from 24% in 2024 and 47% in 2023.

Potentially Price-Sensitive and Shareholder-Relevant Information

• Shift to Net Loss: The company swung to a net loss in 2025 after two consecutive years of profits. This may raise investor concerns about profitability and operational challenges.
• Margin Compression: Both Adjusted EBITDA and Free Cash Flow margins declined sharply compared to prior years, which could impact the stock’s valuation multiples.
• Significant Capital Investments and Cash Flow Decline: Despite top-line growth, free cash flow and adjusted EBITDA have dropped, which may affect dividend sustainability or future investment capacity.
• Strategic Pivot to Power Generation: The company’s significant exploration of the distributed power market, targeting 500 MW deployed by 2027, signals a possible shift or diversification in business model. Execution and capital allocation risks associated with this expansion could be material.
• Q1 2026 Guidance: The projection of flat EBITDA against Q4 2025 levels and the impact of weather-related disruptions, along with lower sand prices, may create short-term headwinds for the share price.

Conference Call and Additional Information

Atlas Energy Solutions will host a conference call on February 24, 2026 at 9:00am Central Time (10:00am Eastern Time) to discuss these results. Investors are encouraged to participate or access the webcast at https://ir.atlas.energy/. An updated video on “Atlas Growth Projects Update February 2026” will also be posted prior to the call.

For more information, investors can contact Kyle Turlington, Investor Relations, at [email protected] or 512-220-1200.

Conclusion

Summary for Investors: Atlas Energy Solutions delivered solid revenue growth in 2025 but experienced a significant decline in profitability and cash flows, swinging to a net loss and seeing margin compression. The company’s aggressive push into the power generation market could represent a strategic inflection point, but brings new risks and execution challenges. Q1 2026 guidance is cautious, reflecting continued pressure from market conditions and operational disruptions. These developments are material and may impact the company’s share price as investors reassess the risk-reward profile.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should perform their own research or consult a professional advisor before making investment decisions. The information is based on publicly available data from Atlas Energy Solutions’ Q4 and FY2025 earnings release and may be subject to change.

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