Atlas Energy (AESI) Q2 profit decreases 131% | Motley fool

Atlas Energy Solutions (Aesi -0.88%)The leading Permian River Basin, which proposes the development of Beg and Logistics Technology, published its revenues of the second quarter 2025 4. August 2025. However, it showed a net loss of $ 0.04 per slate (GAAP), reversal from $ 0.13 decreased at the share in quarter of 2024. Overall, the Atlas Energy Solutions experienced deteriorating profitability and significant pressure on the margin.

Source: Estimates of analysts provided by Factst. Expecting management proceedings, as stated in the earnings report in the fourth quarter of 2025.

Overview of business and recent focus

Energy Propping Supplies Solutions, a key sandy product used in hydraulic cleavage to open oil and gas wells. Extensive mining operations with innovative logistics include the Dune Express conveyor system, which provides an efficient, cost -effective supply of materials across the Permian River Basin. The low -cost production base of the company is the main advantage in the sector, which often manages aggressive price competition.

The Atlas has recently focused on expanding its logistics management through technological investments, such as 42 miles of express and auto -o -measuring initiatives for transport. The aim of these projects is to reduce costs, reduce miles and raise margins. Compliance with environmental and safety regulations, as well as increasing sustainability, also remains the core of business operations. In the newly launched Power segment, after acquisition activities, it refers to another way for diversification and growth.

A quarter in detail: return, margin and remarkable development

The Atlas showed GAAP’s return of $ 288.7 million, compared to $ 287.5 million in the fourth quarter of 2024, with $ 288.7 million (GAAP), just below the analysts. Product sales, to a large extent, contributed $ 126.3 million, which is sequence of $ 13.4 million. The returned service (GAAP) slipped to $ 146.4 million and rented in the energy segment climbed to $ 16.0 million, which doubled from the previous quarter. Promotional dirty volumes of the cam to 5.4 million tones, which is a 4% drop from the previous quarter, because the average price per ton settled in a low $ 20. These results underline the demanding demand environment and the volume and price under pressure.

The modified EBITDA dropped to $ 70.5 million from $ 79.1 million in the fourth quarter of 2024. The net margin (GAAP) was 5% for Q2 2024 and (2%) for Q2 2025. The company showed a net loss of $ 5.6 million (GAAP). Pure loss was influenced by soft demand and expenditure on credit loss of $ 4.1 million, which presents contractual competition with the customer. Administrative expenditure remained stable compared to the previous quarter.

Technological investments are still a priority. The Dune Express Compactr now supplies most of the Atlas Kermit plant, and from the first delivery of Dune Express 12. January will remove an estimated 1.8 million truck from the local motorways from the first Dune Express. The autonomous fleet of the company has completed more than 500 deliveries so far, progress in automation targets. Despite these initiatives, the extent necessary for meaningful economic benefits has not yet been fully realized, because the margin expansion was not sufficient to loss in the middle of weak prices and a decrease in volume.

Rental revenues increased to $ 16.0 million, by 119.2% compared to the first quarter of 2025. This business, which allows the Moser Energy Systems, focuses on energy rental, production support, micro-cross and commercial applications. Continuous integration; While the aimed impact of profit is small, it emphasizes the management of the long -term potential of the segment. Post-Trenén, Atlas also acquired patented sand filtration technology called propflow.

A forward view: Instructions and focus of the investor

Management projects have stabilized or slightly lower revenue and modified EBITDA (non-GAAP) for Q3 2025, although it is expected that the contributions of the energy segment segment will increase and the volumes of tests may increase. However, the prices of promotional prices are likely to continue to decline, as the management of the earnings in Q1 2025 is called that the contractual and promotional point prices are expected to trend in the upcoming neighborhoods because the inheritance has been rolled up and the incremental volumes are reserved in a lower location. Sales spot, if achieved, would bring lower average prices, reflecting current market conditions.

Throughout the period, the atlas shows its cheap operating model and advanced logistics as key strengths in competitive and price pressures of weather sites. This means that leadership recognizes nail uncertainty and sees no short -term improvement in market demand. Liquidity remains solid, with $ 78.8 million in cash and $ 203.6 million in total liquidity available as of June 2025, a long -term debt of a total of $ 492.1 million as of June 30, 2025. Dividend was maintained at $ 0.25 per quarter.

The return and network connection presented by us generally accepts the Principles of Accounting (GAAP) unless otherwise stuck.

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