ProFrac Holding Corp.

Greetings and welcome to the ProFrac Holding Corp fourth quarter and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael Messina, SVP of Finance. Thank you. You may begin.

Thank you, Operator. Good morning, everyone. We appreciate you joining us for ProFrag Holding Corp conference call and webcast to review our results of the fourth quarter and year-ended December 31st, 2025. With me today are Matt Wiltz, Executive Chairman, Ladd Wiltz, Chief Executive Officer, and Austin Harbour, Chief Financial Officer. Following my remarks, management will provide high-level commentary on the operational and financial highlights of the fourth quarter and full year 2025 before opening up the call to your questions. A replay of today's call will be made available by webcast on the company's website at pfholdingscorp.com. More information on how to access the replay is included in the company's earnings release. Please note, that the information reported on this call speaks only as of today, Thursday, March 12, 2026. You are advised that any trans-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Also, comments on this call may contain forward-looking statements within the meaning of the United States Federal Security Laws. including management's expectations of future financial and business performance. These forward-looking statements reflect the current views of ProFRAX management and are not guarantees of future performance. Various rifts, uncertainties, and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in management's forward-looking statements. The listener or reader is encouraged to read ProFRAX Form 10-K, and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's investor relations website section under the SEC Filings tab to better understand those writs on certain keys and contentious use. The comments today also include certain non-GAAP financial measures, as well as other adjusted figures to exclude the contribution of Flowtech. Additional details and reconciliations to the most directly comparable, consolidated, and GAAP financial measures are included in the earnings press release, which can be found on the company's website. With that, let me hand the call over to Procrack Executive Chairman, Mr. Matt Dulles.

Thank you, Michael. I'll kick off with some high-level remarks about our recent performance, market outlook, and strategic initiatives. Ladd will expand on the performance of our businesses, and finally, Austin will discuss our financial performance. Our results in the fourth quarter improved from Q3, with total adjusted EBITDA increasing 49% on an improvement across our two largest segments, simulation services and profit production. This performance was driven by better than anticipated activity levels, strong operational execution with optimized uptime, and the early benefits of our cost and capital management initiatives. Notably, Our prop and production segment delivered exceptional results, benefiting from increased volumes and improved logistics efficiency that helped us maintain strong margins. Ladd will elaborate on this in a few minutes. Looking at 2025 as a whole, the year presented a challenging backdrop for the completions industry. Terror-driven economic uncertainty and OPEC's decision to increase supply in early April rattled commodity prices and prompted widespread operator reassessment of near-term activity. Throughout the summer and early fall, operators remained cautious as they balanced hedge books, return commitments, and commodity exposure against continued commodity volatility and broader economic and geopolitical uncertainty. Against this backdrop, the market and ebbed and flowed at relatively subdued activity levels. What enabled us to navigate 2025 effectively and emerge well-positioned for 2026 was the fundamental strength of our business model. Throughout the year, our vertical integration and asset management platform were instrumental, providing the operational flexibility and cost advantages that differentiate our performance during difficult market conditions. However, this isn't just about weathering downturns. It's about having the structural advantages that allow us to compete more effectively across cycles. The recent conflict in the Middle East resulting in disruptions to tanker flows through the Strait of Hormuz, in addition to the damage to Gulf energy infrastructure, are likely to continue to not only have a meaningful impact on both near-term, but also potentially on medium-term physical supply and demand balances. The severity and duration of these factors remains fluid However, if disruptions prove lasting, the path to sustainably higher oil prices may crystallize. The conflict in the Middle East is playing out against the backdrop where the setup in North America for onshore activity remains compelling. As we've noted for several quarters, activity has been running below levels needed to sustain flat-shell production, and we expect that gap to close as operators accelerate activity to combat natural decline. On the gas side, Expanding LNG capacity and rising power demand continue to support a favorable outlook. Layered on top of that, we believe capital discipline across the hydraulic fracturing industry, combined with ongoing equipment attrition and restrained new additions, sets the stage for supply-demand tightening as activity picks up. Any sustained disruption to Arabian Gulf supply could be the catalyst that pulls the timeline forward. When that acceleration comes, we believe Protract is well positioned to benefit. Some of the same attributes mentioned earlier, including our vertical integration and how we manage our asset base, as well as our position in dual fuel and electric technologies, are what keep us squarely where operator demand is highest and position us to move decisively as the cycle turns. Turning to the first quarter for a few moments, We experienced a significant weather impact in January that created near-term operational challenges. Winter storms affected our operating regions during a period when operators were also taking a measured approach to activity amid broader macro uncertainty. However, momentum has been building as we've moved through the quarter, which has been encouraging. Our calendar has tightened. Activity levels have improved. And with oil prices recovering since the start of the year, Operator sentiment has strengthened. Key to being well-positioned for the dynamics we have seen for several quarters is the work we have done internally to strengthen our cost structure. On our November call, we introduced a business optimization plan targeting annualized savings of approximately $100 million at the midpoint by the end of the second quarter of 2026. This consists of $35 to $45 million in labor-related COGS and SG&A reductions, $30 to $40 million in non-labor operating expenses, and $20 to $30 million in capital expenditure efficiency. We are pleased to report strong progress across all three components of this program. On capital expenditure efficiency, we have already achieved, at a minimum, the midpoint of our targeted range and expect be at the higher end of the 20 to 30 million target. The early benefits of these capital savings were visible in our fourth quarter results, where we delivered a significant beat on net capital expenditures and FRAC. Austin will provide more detail on what this progress means for our 2026 capital expenditure outlook in a few moments. On labor-related savings, we have fully implemented the cost reduction measures such that we are currently running at an annualized savings rate that positions us at or above the midpoint of our 35 to 45 million target range. For non-labor operating expenses, we've achieved approximately one-third of the targeted savings on an annualized basis, primarily from fully implemented SG&A reductions. The larger component of this category, related to repair and maintenance and asset level operating expenses, remains in earlier stages of implementation and should accelerate as we move through the year. We continue to expect to achieve the full 30 to 40 million range as these initiatives mature through the second quarter. Taken together, we believe these actions meaningfully improve our cost structure and position Profract to generate stronger returns as market conditions improve. Alongside those efforts, technology differentiation remains a key focus. Let me take a few minutes to walk through our latest technology initiatives, which I believe represent a meaningful and underappreciated part of the Protract value proposition. When we announced our strategic partnership with Seismos back in August, we talked about bringing closed-loop fracturing to the industry, combining ProPILOT surface automation with Seismos' subsurface intelligence to enable real-time optimization during active pumping. The partnership has been performing as we envisioned, and we believe recent field trials have validated the approach. But as we deployed this technology and collaborated with our customers, it became clear the closed-loop control was just one piece of larger opportunity. Today, I want to discuss Mocubus, our complete well optimization suite that we believe takes everything we've built with Seismos and ProPILOT and extends it into a unified platform that spans the entire completion process. life cycle. Machina integrates treatment design, real-time measurement, mid-stage intervention, frack hit detection, live pad level tracking, historical and analytics, supply chain optimization, and water quality analysis into a single continuous architecture. Central to Machina's architecture is a new generation of AI engineering agents that we think of as digital employees embedded directly into the workflow. These agents monitor, interpret, and act continuously across the completion lifecycle. Challenges that historically required physical intervention, mechanical testing, or brute force diagnostic runs can now be identified and resolved through a software update. What makes Magna particularly powerful is how it builds on ProPILOT 2.0's foundation. serves as both a cost optimization tool and an execution precision enabler designed to reduce labor requirements and maintenance expenses while delivering the coordinated pump control and millisecond level response time that makes closed-loop fracturing possible. Without ProPILOT's execution, stability, and predictive maintenance capabilities, we couldn't achieve the rapid, repeatable actuation that knocking up requires to translate subsurface intelligence into immediate operational adjustments. Design assumptions now flow directly into execution monitoring. Intervention decisions designed by our customer are interpreted algorithmically and executed immediately through ProPILOT. Subsurface response is validated in real time, and all of that learning feeds back into future design optimization. We believe that this is not only about making one stage better, It's about creating a continuous improvement engine that potentially improves perforations in every stage, every pad, and every program. Vlad will walk through how this works operationally and what we've experienced to date. In summary, we closed 2025 with momentum. Q4 EBITDA was up 49% sequentially. demonstrating the strengths of the business model and cost initiatives and positioning us to capitalize when the market inflects. Weather headwinds early in the quarter have given way to strengthening fundamentals, while Q1 began with operational challenges. Our calendar is tightened with activity accelerating. Our $100 million cost optimization program is ahead of schedule. Labor savings have been fully implemented CapEx efficiency is tracking to the high end of targets, and non-labor reductions are progressing. Machiner represents the next evolution in completion technology by unifying ProPILOT's surface automation with subsurface intelligence into a complete optimization platform. We're not just improving individual stages. We're building a continuous improvement engine. With that, I'll turn it over to Ladd, who will provide more detail on our segment performance.