Key Financial Highlights

• Fourth Quarter 2025:
  • Revenues: \$56.8 million, up 56% year-over-year and 12% quarter-over-quarter
  • Net Income: \$18.2 million, with a net income margin of 32%
  • Adjusted EBITDA: \$51.1 million, up 61% YoY and 14% QoQ; Adjusted EBITDA Margin: 90%
  • Cash flows from operating activities: \$38.1 million; Free Cash Flow: \$36.4 million
  • Operating cash flow margin: 67%; Free Cash Flow Margin: 64%
• Fiscal Year 2025:
  • Revenues: \$199.1 million, up 81% year-over-year
  • Net Income: \$72.4 million; Net income margin: 36%
  • Adjusted EBITDA: \$177.2 million, up 83% YoY; Adjusted EBITDA Margin: 89%
  • Cash flows from operating activities: \$126.3 million; Free Cash Flow: \$122.0 million
  • Operating cash flow margin: 63%; Free Cash Flow Margin: 61%

Recent Milestones and Strategic Developments

• Surface Use Economic Efficiency (SUEE):
  • Legacy acreage increased to \$1,159/acre in 2025 (14% increase YoY, 149% increase since 2022)
  • 145% increase on acreage acquired in 2024, from \$204/acre to \$499/acre in 2025
• Capital and Liquidity Enhancements:
  • Closed inaugural \$500 million senior notes offering and new revolving credit facility in November 2025
  • Total liquidity as of December 31, 2025: \$235.7 million
  • Available borrowing capacity under new revolving credit facility: \$205 million
• Energy and Infrastructure Initiatives:
  • Development agreements with Samsung C&T Renewables for battery energy storage projects (aggregate capacity: 350 MW in Texas counties Pecos and Loving)
• Shareholder Returns:
  • Quarterly cash dividend increased by 20% to \$0.12 per share (payable March 19, 2026)
  • Board approved a \$50 million Class A share repurchase authorization through year-end 2027
• 2026 Guidance:
  • Adjusted EBITDA outlook for FY2026: \$205 million – \$225 million (projected >20% YoY growth at midpoint)

Business Model and Revenue Streams

LandBridge operates an asset-light and capital-efficient model, with a diversified mix of fee-based revenues. The company’s surface acreage portfolio exceeds 315,000 acres, supporting energy, power, digital infrastructure, and industrial development in the Delaware sub-region of the Permian Basin.

• Surface Use Royalties & Revenue:
  • Q4 2025: \$39.3 million (up 12% sequentially)
  • Driven by increases in produced water handling royalties and new easement payments
• Resource Sales & Royalties:
  • Q4 2025: \$12.0 million (up 12% sequentially)
  • Growth in supply water royalty volumes and sand sales
• Oil & Gas Royalties:
  • Q4 2025: \$3.1 million (down 6% sequentially)
  • Decrease due to lower activity levels

The company executed approximately 450 new easements and agreements in 2025, signaling strong demand for its land and resources.

Capital Allocation and Shareholder Value Initiatives

• Dividend Policy: Increased quarterly dividend by 20% to \$0.12 per share, reflecting confidence in cash flow and commitment to shareholder returns.
• Share Repurchase Program: \$50 million authorization for Class A share buybacks, providing flexibility to acquire shares at potentially undervalued prices and return capital to shareholders.
• Balance Sheet Strength: Refinancing with \$500 million senior notes and a new \$275 million credit facility improved cost of capital, increased liquidity, and supports future growth.

Despite the focus on dividends and repurchases, LandBridge prioritizes disciplined M&A and organic growth for long-term value creation.

Investor Events and Outlook

• 2026 Outlook: Adjusted EBITDA guidance of \$205-225 million signals continued high-margin growth, supported by robust fee-based revenues and capital efficiency.
• Investor Day: Scheduled for March 19, 2026, in New York City, featuring insights on macro environment, acreage portfolio strategy, and the value proposition of LandBridge’s business model. Presentations will include a fireside chat with data center experts, highlighting opportunities in West Texas.

Risks and Forward-Looking Statements

LandBridge cautions investors about risks relating to customer demand, execution of business strategies, reliance on a limited number of customers and regions, indebtedness, and economic or regulatory changes. These factors could materially affect actual results and performance.

For full risk disclosures, investors should review LandBridge’s SEC filings.

Conclusion

LandBridge’s Q4 and FY 2025 results demonstrate strong growth, capital efficiency, and strategic momentum. The increased dividend and share buyback authorization are notable shareholder-friendly actions. The development agreements and robust 2026 outlook may positively impact share value, especially as the company leverages its large surface acreage portfolio for energy and infrastructure projects. Investors should closely monitor upcoming events and the company’s execution of its growth strategy.