Liberty Energy Earnings: Efficiency Gains Yield Margin Expansion Despite Low Revenue Growth

Liberty Energy’s third-quarter earnings reflected the firm’s continued efficiency gains amid relatively stagnant frac activity throughout North America over the last few months. Management indicated full-year operating results will likely favor the high end of guidance, implying an adjusted EBITDA margin near 26% for fiscal 2023. We’re slightly raising our fair value estimate to $18 from $17 following the results, and we maintain our no-moat rating.